2004-50RESOLUTION NO. 2004-050
RESOLUTION A WARDING $14,220,000 GENERAL OBLIGATION
PROMISSORY NOTES, SERIES 2004, 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
$16,020,000 General Obligation Promissory Notes, Series 2004 in a resolution adopted on
May 24, 2004 and entitled "Resolution Authorizing the Issuance of $16,020,000 General Obligation
Promissory Notes, Series 2004, of the City of Janesville, Wisconsin, and Providing the Details
Thereof";
WHEREAS, the City has determined to reduce the principal amount of the issue to
$14,220,000; and
WHEREAS, pursuant to advertised public sale the following sealed bids were received for
the notes on June 14, 2004, by 1:00 p.m., local time:
Names of Bidders
(Account Manager)
Net Interest Rates
Stifel Nicolaus & Company, Inc., Denver, CO ............................................................... 3.759758%
A.G. Edwards & Sons, Inc., St. Louis, and Banc One Capital
Markets, Inc., Chicago, Joint Managers .......................................................................... 3.761545%
Wachovia Bank, National Association, Charlotte ........................................................... 3.837031%
Robert W. Baird & Co., Inc., Milwaukee, William Blair & Company,
Chicago, Legg Mason Wood Walker, Inc., Chicago, and First Trust
Portfolios, L.P., Lisle, Joint Managers and Associate ......................................................... 3.8378%
UBS Financial Services, Inc., New York, Citigroup Global Markets, Inc.,
New York, Morgan Stanley-Morgan Stanley DW, Inc., New York, CIBC
World Markets, New York, Citizens Bank, Royal Oak, Cronin & Co., Inc.,
Minneapolis, and Charles Schwab & Co., San Francisco, Joint Managers ....................3.855554%
Harris Trust & Savings Bank, Chicago, Manager and Associates .................................. 3.860056%
Piper Jaffray & Co., Minneapolis .................................................................................... 3.915212%
; and
WHEREAS, it has been determined that the highest and best bid for the notes was that of
Stifel, Nicolaus & Company, Inc., Denver, Colorado, 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 $14,220,000 General Obligation Promissory Notes,
Series 2004, to Stifel, Nicolaus & Company, Inc., Denver, Colorado, at a price of $14,269,601.35
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, 2005 and each August 1 and
February 1 thereafter:
Maturities Amounts
Interest Rates
2005 $ 695,000 3.00%
2006 1,725,000 3.00%
2007 1,800,000 3.25%
2008 1,775,000 3.75%
2009 1,775,000 3.75%
2010 1,825,000 3.75%
2011 1,025,000 3.75%
2012 1,050,000 3.875%
2013 1,275,000 4.100%
2014 1,275,000 4.200%
Section 3. Redemption Provisions. The notes maturing on or after February 1, 2013 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, 2012,
and on any date thereafter, at a redemption price equal to 100% of the principal amount 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 Wells Fargo Bank, N.A., 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 2004,
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.
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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 Levy
Amount of Principal
and Interest
2004 $1,245,321.88
2005 $2,195,887.50
2006 $2,215,762.50
2007 $2,128,231.25
2008 $2,061,668.75
2009 $2,044,168.75
2010 $1,190,731.25
2011 $1,176,168.75
2012 $1,354,687.50
2013 $1,301,775.00
Section 6. 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 7. Debt Service Fund. There is hereby created a fund to be known as "General
Obligation Promissory Notes, Series 2004, 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.
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ADOPTED: June 14, 2004
APPROVED:
Steven E. Sheiffer, City Manager
ATTEST:
Je~Ar~r~Wulfl City Clerk-Treasurer~
APPROVED AS TO FQRM:
City A~tom~ey ~ a ~
Proposed by: City Administration
Prepared by: Finance Administration
Motion by: Williams
Second by: Addie
Councilmember Aye Nay Pass Absent
Wellnitz, Tim X
Brien X
Williams X
Wellnitz, Tom X
Steeber X
DeGarmo X
Addle X
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