2000-50RESOLUTION NO. 2000-50
RESOLUTION AWARDING $7,620,000 GENERAL OBLIGATION
PROMISSORY NOTES, SERIES 2000, OF THE CITY
OF JANESVILLE, WISCONSIN, ESTABLISHING INTEREST RATES
THEREON AND LEVYING TAXES THEREFOR
WHEREAS this City Council has heretofore authorized the issuance and sale of
$7,620,000 General Obligation Promissory Notes, Series 2000 in a resolution adopted on May
22, 2000 and entitled "Resolution Authorizing the Issuance of $7,620,000 General Obligation
Promissory Notes, Series 2000, 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 June 12, 2000, by 1:00 P.M., local time:
Names of Bidders
(Account Manager)
Net lnterestRates
Harris Trust and Savings Bank, Chicago, Manager and Associates ........... 5.1714%
US Bancorp-Piper Jaffray, Inc., Minneapolis, and Morgan Keegan
& Company, Inc., Memphis, Joint Managers ....................................... 5.1996%
Griffin, Kubik, Stephens & Thompson, Inc., Chicago, and Dain
Rauscher, Inc., Minneapolis, Joint Managers ....................................... 5.2082%
A.G. Edwards & Sons, Inc., St. Louis ......................................................... 5.2139%
Salomon Smith Barney, Inc., Chicago, PaineWebber Incorporated,
New York, Morgan Stanley Dean Witter/Dean Witter Reynolds, Inc.,
New York, and CIBC Oppenheimer, New York, Joint Managers &
Associate .......................................................................................... 5.239816%
Robert W. Baird & Co., Inc., Milwaukee, Manager and Associates .......... 5.2472%
Nike Securities LP, Lisle, SunTrust Equitable Securities, Atlanta, and
William R. Hough, St. Petersburg, Joint Managers .............................. 5.2477%
; and
that of
WHEREAS it has been determined that the highest and best bid for the notes was
Harris Trust and SaVings Bank , Chicago , Illinois , which bid is as follows:
OFFICIAL BID FORM
City of Janesville
Municipal Building
Janesville, Wisconsin
June 12,2000
Ladies and Gentlemen:
For your $7,620,000 City of Janesville, Wisconsin, General Obligation Promissory Notes, Series 2000 (Bank Qualified)
described in the Official Notice of Sale, which is expressly made a part hereof by reference, we will pay you par plus a premium
of $ ~.~'D ~ ~ , plus accrued interest from June 1,2000 to the date of delivery. The Notes are to bear interest at the
following respective rates (each a multiple of 1/8 or 1/20 of 1%) for Notes of each designated maturity. The rate specified for
any year shall not be less than that for the immediately prior year.
MATURITIES - June I
$395,000 ..... 2001 ~* I~) % $965,000 ..... 2004 &~ 15~% $705,000 ..... 2008 ~ 7-0 %
735,000 ..... 2002.,~_~.~% 930,000 ..... 2005 ~ % 700,000 ..... 2009 I %
950,000 ..... 2003 I % 830,000 ..... 2006~ % 695,000 ..... 2010 ' %
715,000 ..... 2007 %
As evidence of our good faith, we enclose herewith our Surety Bond or (cashier's) (certified) check in the sum of $152,400
in accordance with your Official Notice of Sale. CUSIP numbers are to be applied for and printed on the Notes at our expense,
and we agree to accept the Notes at delivery with the CUSIP numbers as printed.
The Notes are to be issued in global book-entry-only form and the securities depository is to be The Depository Trust
Company.
NOT A PART OF BID
Our calculation of interest cost from above is:
Total Interest .............. $
Less Premium ............. $
Net Interest Cost ........... $ ~-,
~Net Interest Rate ~, I"~ I %
Acknowledgment of applicability of our Surety
Bond or return of our bid deposit check is
acknowledged.
By Date
Respectfully submitted,
T[tUS VINGS
Carrie L. Neal, Vice President
Address 111 West Monroe Street
City Chicago State IL Zip 60603
Telephone312-461-286~x 461-3600
(A list of the members of our account on whose behalf
this bid is made is attached hereto.)
ACCEPTANCE CLAUSE
The foregoing bid was accepted and the Notes sold by Resolution of the City Council of the City of Janesville, Wisconsin,
on June 12, 2000 and receipt is hereby acknowledged of the good faith deposit which is being held in accordance with the terms
of the Official Notice of Sale.
CITY OF JANESVILLE, WISCONSIN
City Manager
; and
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 $7,620,000 General Obligation Promissory
Notes, Series 2000, to Harris Trust and Savings Bank , Chicago , Illinois , at a price
of $7,620,240.00 and accrued interest to the date of delivery is hereby ratified and confirmed.
Section 2. Interest Rates. The notes shall mature on June 1 of the following
years, and bear interest at the following rates, payable on June 1, 2001 and each December 1 and
June 1 thereafter:
Maturities Amounts Interest Rates
2001 $395,000 5.10%
2002 735,000 5.15%
2003 950,000 5.15%
2004 965,000 5.15%
2005 930,000 5.15%
2006 830,000 5.15%
2007 715,000 5.15%
2008 705,000 5.20%
2009 700,000 5.20%
2010 695,000 5.20%
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 2000, 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
2000 $974,851.25
2001 $1,089,211.25
2002 $1,260,822.50
2003 $1,226,511.25
2004 $1,142,715.00
2005 $997,395.00
2006 $842,611.25
2007 $795,870.00
2008 $754,340.00
2009 $713,070.00
Section 5. Extension of Taxes. The amounts 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 2000, 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: June 12, 2000
APPROVED: ,, ~
S-~ev-en E. Sheiffer, ~ity M~ager
ATTEST:
J~dfAnn Wulf, City Clerk-Treasure~/?
APPROVED AS TO FORM:~ q~..~ ! ~. ~vm ~
City Att~"mey ' ~,- t
MOTION BY: O' Leary
SECOND BY: DeGarmo
COUNCILMEMBER AYE NAY PASS ABSENT
SCHNEIDER X
WILLIAMS X
NOLL X
BRIEN X
MURPHY X
O'LEARY X
DEGARMO X
Proposed by: City Administration
Prepared by: Finance Department