2003-428RESOLUTION NO. 2003-428
RESOLUTION A WARDING $5,840,000 GENERAL OBLIGATION
PROMISSORY NOTES, SERIES 2003A, OF THE CITY
OF JANES VIL L E, WISCONSIN, ESTABLISHING INTEREST RATES
THEREON AND LEVYING TAXES THEREFOR
WHEREAS, this City Council has heretofore authorized the issuance and sale of (i)
$3,240,000 General Obligation Promissory Notes, Series 2003A in ~a resolution adopted on
June 9, 2003 and entitled "Resolution Authorizing the Issuance of $10,885,000 General Obligation
Promissory Notes, Series 2003, and Providing the Details Thereof" and (ii) $2,600,000 General
Obligation Promissory Notes, Series 2003A in a resolution adopted on November 10, 2003 and
entitled "Resolution Authorizing the Issuance of $2,600,000 General Obligation Promissory Notes,
Series 2003A, 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 November 24, 2003, by 1:00 p.m., local time:
Names of Bidders
(Account Manager)
Net Interest Rates
Hutchinson, Shockey, Erley & Co., Chicago ................................................ 2.947896%
A.G. Edwards & Sons, Inc., St. Louis, and Banc One Capital Markets,
Inc., Chicago, Joint Managers .......................................................................
2.969906%
Harris Trust & Savings Bank, Chicago, Manager and Associates ................ 2.970880%
Wachovia Bank, National Association, Charlotte ......................................... 2.984008%
First Trust Portfolios, L.P., Lisle and Legg Mason Wood Walker, Inc.,
Baltimore, Joint Managers ............................................................................
3.0184%
Robert W. Baird & Co., Inc., Milwaukee .....................................................
3.0303%
Hanifen, Imhoff, Inc., Denver ......................................................................
3.040163%
UBS Financial Services, Inc., Chicago, Citigroup Global Markets, Inc.,
New York, CIBC World Markets, New York, and Citizens Bank, Flint,
Joint Managers .............................................................................................
3.086685%
and
WHEREAS, it has been determined that the highest and best bid for the notes was that of
Hutchinson, Shocke¥, Erley & Co., Chicago, Illinois, which bid is as follows:
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 $5,840,000 General Obligation Promissory Notes,
Series 2003A, to Hutchinson, Shocke¥, Erley & Co., Chicago, Illinois, at a price of $3,901.40 and
accrued interest to the date of delivery is hereby ratified and confirmed.
Section 2. Interest Rates. The notes shall mature on February 1 of the following years,
and bear interest at the following rates, payable on February 1, 2004 and each August 1 and
February 1 thereafter:
Maturities Amounts
Interest Rates
2004 $880,000 2.0000%
2005 $855,000 2.0000%
2006 $875,000 2.0000%
2007 $880,000 2.5000%
2008 $345,000 2.7500%
2009 $475,000 3.0000%
2010 $465,000 3.1250%
2011 $355,000 3.2500%
2012 $350,000 3.5000%
2013 $360,000 3.5000%
Section 3. Redemption Provisions. The notes maturing on or after February 1,2011 shall
be subject to redemption prior to maturity as a whole or in part at the option of the City upon notice
as therein provide, in any order of maturity and by lot within a single maturity, on August 1, 2010,
and on any date thereafter, at a redemption price equal to 100% of the principal mount thereof to
be redeemed plus accrued interest to the redemption date and without premium.
Section 4. 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 Bank One, Nationai Association, 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 2003A, 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 5. 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 Lew
Amount of Principal
and Interest
2003 $970,437.50
2004 $977,706.25
2005 $980,406.25
2006 $965,656.25
2007 $414,912.50
2008 $533,043.75
2009 $508,653.13
2010 $385,618.75
2011 $368,725.00
2012 $366,300.00
Section 6. 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 7. Debt Service Fund. There is hereby created a fund to be known as "General
Obligation Promissory Notes, Series 2003A, 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 8. 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 9. 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: November 24, 2003
APPROVED:
t~vven~I~. Sheiffer, City~[anag~r
Proposed by: City Administration
Prepared by: Finance Administration
MOTION BY: DeGarmo
SECOND BY: Steeber
COUNCILMEMBER AYE NAY PASS ABSENT
ADDIE X
MURPHY X
DEGARMO X
STEEBER X
WILLIAMS X
BRIEN X
WELLNITZ X