2005-229
RESOLUTION NO. 2005-229
RESOLUTION AWARDING $3,900,000 GENERAL OBLIGATION
PROMISSORY NOTES, SERIES 2005A, OF THE CITY
OF JANESVILLE, WISCONSIN, ESTABLISHING INTEREST RA TES
THEREON AND LEVYING TAXES THEREFOR
WHEREAS, this City Council has heretofore authorized the issuance and sale of $3,900,000
General Obligation Promissory Notes, Series 2005A in a resolution adopted on November 28, 2005
and entitled "Resolution Authorizing the Issuance of $3,900,000 General Obligation Promissory
Notes, Series 2005A, 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 December 12, 2005, by 1 :00 p.m., local time:
N ames of Bidders
(Account Manager) Net Interest Rates
Harris N .A., Chicago........ ........................... ............... ................................... 3.619259%
Stife1, Nicolaus & Co., Inc., Hanifen-ImhoffDiv., Denver.......................... 3.660000%
Piper J affray, Minneapolis............................................................................. 3.663438%
Wachovia Securities, LLC, Richmond.......................................................... 3.715841 %
Robert W. Baird & Co., Inc., Milwaukee...................................................... 3.738895%
; and
WHEREAS, it has been determined that the highest and best bid for the notes was that of
Harris N.A., 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 $3,900,000 General Obligation Promissory Notes,
Series 2005A, to Harris N.A.. Chicago, Illinois, at a price of $3,906,660.25 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 intcrest at the following rates, payable on June 1, 2006 and each Decemher I and Junc 1
thercafter:
Maturities
Amounts
Interest Rates
2006
2007
2008
2009
2010
$ 825,000
$ 950,000
$ 875,000
$1,000,000
$ 250,000
3.50%
3.50%
3.75%
3.75%
3.75%
Section 3. Redemption Provisions. The notes are not subject to redemption pnor to
maturity.
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
2005A, 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 Levy
Amount of Principal
and Interest
2005
2006
2007
2008
2009
$940,557.29
$1,046,312.50
$938,281.25
$1,028,125.00
$254,687.50
Section 6. Extension of Taxes. The amounts of taxes levied pursuant to Scction 5 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 2005A, Debt Service Fund" to be established and maintained
in accordance with generally accepted accounting principles.
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Into thc 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 Scction 5
hereof; (c) any surplus in the Borrowed Money Fund created in Section 4 hereof; and (d) such
additional amounts as may at any time be nccessary to pay the principal of and intcrest 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:
2005
Motion by: DeGarmo
Second by: Addie
Council member Aye Nay Pass Absent
Brunner X
Brien X
Williams X
Wellnitz, Tim X
Wellnitz, Tom X
DeGarmo X
Addie X
APPROVED:
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ATTEST:
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/ {,r''''- /,' /? ';' ! ¡ ,: ('<"c ~//
Jea~;lWu¡f, City Clerk-Treasurer L<"
APPROìE. D ^IS TO. fOj:
" ) vl(. l
.-.¿-I.. '- "-
Assistant City Attorney
Proposed by:
Prepared by:
City Administration
Finance Administration
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