2001-137EXHIBIT II
RESOLUTION NO. 2001-137
RESOLUTION .4 tV.4RDING $14,950,000 GENERAL OBLIG.4 TION PROMISSORY NOTES,
SERIES 2001, OF THE CITY OF J.4NESVILLE, }FISCONSIN, EST.4BLISHING INTEREST
RATES THEREON /IND LEVYING T.4XES THEREFOR
WHEREAS, this City Council has heretofore authorized the issuance and sale of
$14,950,000 General Obligation Promissory Notes, Series2001 in a resolution adopted on
April 9, 2001 and entitled "Resolution Authorizing the Issuance of $14,950,000 General Obligation
Promissory Notes, Series 2001, of the City of Janesville, Wisconsin, and Providing the Details
Thereof"; and
WHEREAS, pursuant to advertised public sale the following sealed bids were received for the notes
on April 23, 2001, by 1:00 p.m., local time:
Names of Bidders
(Account Manager)
Net Interest Rates
Salomon Smith Barney, Inc., Chicago, PaineWebber Incorporated,
New York, Morgan Stanley Dean Witter/Dean Witter Reynolds, Inc.,
New York, CIBC Oppenheimer, New York, and Citizens Bank,
Flint, Joint Managers .......................................................................... 4.479122%
Dain Rauscher, Inc., Minneapolis, Griffin, Kubik, Stephens & Thompson, Inc., Chicago, and ABN AMRO Incorporated, Chicago,
Joint Managers ................................................................................ 4.479953%
US Bancorp--Piper Jaffray, ' ' o
Inc., Minneapolis .............................................. 4.5085 ~/o
Banc o f America Securities LLC, Charlotte .................................................. 4.5186%
Robert W. Baird & Co., Inc., Milwaukee ....................................................... 4.5854%
Legg Mason Wood Walker, Inc., Baltimore, and A.G. Edwards & Sons,
Inc., St. Louis, Joint Managers ................................................................. 4.6041%
WHEREAS, it has been determined that the highest and best bid for the notes was that of
Salomon Smith Barney, Inc., Chicago, Illinois, which bid is as follows:
Bol. O~i~ ~MITH I~¥
OFFIOIAL FORM
MO. 07~
P. 1./1
City of JanesVllle
Municipal Building
Janesvtlle, Wisconsin
April 23, 2001
and Gentlemen:
For your $14,960,000 City of Jene~vllle, Wle0onaln, General Obiiga/ion Pmmlseory Notes, ~e~iaa 2001 described in the
$Offi~la~DJ)lofioe of 8ale, whioh is expm'e~ly made a part hereof by rofetenoe, we will I:e.y you par plus a premium Of
· plus accrued IntemM from May 1, 2001 to the dm,~ of delivery. The Notes are to bear Interest at the
fo~ov~ng respeotive rates (each a multiple Of 1/8 or 1/20 of 1%) for Notes of each designated maturity. The rate specified for
any year al~al! not be less than ff~t for the Immedtatoly prior year.
$2,235,000 .. , 2002
zo ,ooo
1,475,000 ..... 20(17
1,180.0B0 ..... 2008
$1 ,D1.5,000 ..... 200~
086,000 ..... 2010
m'0,000 ..... 2Oll
As evidence of our good faith, we enclose herewith our 8ura~ B~d ~ (oe.~hie~'s) (certified) ~nec~in the aura of SP..gg,000
In ad,on:lance with your Official Notioe of Sale. CUSIP numbers are to be applied for and p~inted on the Notes at our expense,
and we ~gree to accept the NotH at delivery with t'ne CUSIP numbero a~ printed.
The Notes are to be iaauao in glo,al book-entry-only form and the aeeudtise depository i~ to be T~e Debe~ry Trust
Company,
NOT A PART OF BID
Our oal~latlon of interest ~=at from above
Total Interest ..............
t.ese Premium ............. $
Net Interest Cost ........... $ ~.
Net Intorea ~ ..........·
Acknowledgment Of appllc, ebll~ of our Surety
Bond or return of our bid deposft ohe~ is
aoknowle0ged.
By ... Date
Respeoffu~y submitted,
(A {l~ of the members of our sgoount on whose behalf
this bid Is made is attache~ hereto.)
ACCEPTANCE CLAUSE
The toregbing bid waS ao~epted and the Note~ ~ofd by Re~olutton of the City C0ur~ll of the City of de. seville, Wisconsin,
on April 23, 2001 and receipt la hereby aol~lowiedged of the good faith deposit whk~h le being held In a=cordanoe wl~ the ~rrns
Of the Official Notioe Of Sale.
CITY OF JANESV1LLE, WleOON$1N
L L I
WHEREAS, it is now necessary to award the notes to the successful bidder and to establish
the interest rates thereon;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Janesville,
Wisconsin, as follows:
Section 1. Sale of Notes. The sale of $14,950,000 General Obligation Promissory Notes,
Series 2001, to Salomon Smith Barney, Inc., Chicago, Illinois, at a price of $14,950,000 and
accrued interest to the date of delivery is hereby ratified and confirmed.
Section 2. Interest Rates. The notes shall mature on May 1 of the following years, and
bear interest at the following rates, payable on May 1, 2002 and each November 1 and May 1
thereafter:
Maturities Amounts
Interest Rates
2002 $2,235,000 4.40%
2003 $2,110,000 4.40%
2004 $2,025,000 4.40%
2005 $1,590,000 4.40%
2006 $1,395,000 4.40%
2007 $1,475,000 4.40%
2008 $1,150,000 4.40%
2009 $1,015,000 4.50%
2010 $985,000 4.60%
2011 $970,000 4.70%
Section 3. Execution and Delivery; Borrowed Money Fund. The notes shall be executed
by the City Manager and the City Clerk in the manner heretofore provided, and upon authentication
by American National Bank and Trust Company of Chicago, Chicago, Illinois, as note registrar,
shall thereupon be delivered by the City Clerk to the purchaser upon payment of the purchase price.
The principal proceeds from the sale of the notes shall be paid into the City treasury and entered in a
fund separate and distinct from all other funds, which fund shall be designated "General Obligation
Promissory Notes, Series 2001, Borrowed Money Fund." Money in said fund shall be used solely
for the purposes for which the notes were issued, including repayment of any temporary loan or
reimbursement of any temporary advance made in anticipation of the issuance of said notes.
Section 4. Tax Levy. For the purpose of paying the principal amounts of the notes as the
same shall mature, and to pay the interest thereon as the same shall come due, there is hereby
levied, for each year in which any of the notes shall be outstanding, direct, annual, irrepealable
taxes in amounts fully sufficient to pay such principal and interest, and the specific amounts levied
for each year are as follows:
Year of Levy,
Amount of Principal
and Interest
2001 $3,181,372.50
2002 $2,628,935.00
2003 $2,452,965.00
2004 $1,938,435.00
2005 $1,677,765.00
2006 $1,694,625.00
2007 $1,311,875.00
2008 $1,128,737.50
2009 $1,053,245.00
2010 $992,795.00
Section 5. Extension of Taxes. The mounts of taxes levied pursuant to Section 4 hereof
shall be carried onto the tax roll by the City from year to year and collected as other taxes are
collected, and such amounts may be reduced in any year only by any amount of surplus money in
the Debt Service Fund created pursuant to Section 67.11, Wisconsin Statutes.
Section 6. Debt Service Fund. There is hereby created a fund to be known as "General
Obligation Promissory Notes, Series 2001, Debt Service Fund" to be established and maintained in
accordance with generally accepted accounting principles.
Into the Debt Service Fund there shall be deposited the following: (a)all premium and
accrued interest from the sale of the notes; (b) all money raised by taxation pursuant to Section 4
hereof; (c)any surplus in the Borrowed Money Fund created in Section 3 hereof; and (d)such
additional amounts as may at any time be necessary to pay the principal of and interest on the notes
as the same shall become due.
Section 7. Continued Validity. If any section, paragraph, clause or provision of this
resolution shall be invalid or ineffective for any reason, the remainder of this resolution shall remain
in full force and effect, it being expressly hereby found and declared that the remainder of this
resolution would have been adopted by the City Council despite the invalidity of such section,
paragraph, clause or provision.
Section 8. Effective Date. All orders or resolutions in conflict herewith are hereby
repealed insofar as such conflict exists, and this resolution shall take effect immediately upon its
passage, the public welfare requiring it.
ADOPTED: April23, 2001
APPROVED: ,9
--~ven E. She~-ffe~, City M~nager
ATTEST:
APPROVED AS TO FORM:
City A~'~mey" ' ~ '
MOTION BY: Murphy
SECOND BY: 0 ' Leary
COUNGILMEMBER AYE NAY PASS ABSENT
DAMRON X
WILLIAMS X
O'LEARY X
DEGARMO X
BRIEN X
MURPHY X
STEEBER X
Proposed by: City Administration
Prepared by: Finance Administration
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