8.5 GO Bonds/Notes
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
03/20/2006
TIME
4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
8
ITEM
NO.
Page 1
FINANCE AND ADMINISTRATION
5
BY:
BY: Rod Franz
ITEM: Consider actions necessary to consummate the sale of $1,800,000 in temporary notes and
$2,200,000 in long term bonds, providing financing for the North Ohio Grade Separation project.
Specific actions required include:
A. Receive report on bids received on the Bonds and Notes
B. Second Reading of Ordinance No. 06-10320 authorizing the issuance and delivery of
$2,200,000 principal amount of General Obligation Internal Improvement Bonds, Series
2006-A of the City of Salina, Kansas
C. Consider Resolution No.06-6267 Prescribing the form and details of and authorizing the
delivery of $2,200,000 principal amount of General Obligation Internal Improvement Bonds,
Series 2006-A of the City of Salina, Kansas.
D. Consider Resolution No. 06-6268 authorizing and directing the issuance, sale, and delivery
if $1,800,000 principal amount of general obligation temporary notes, Series 2006-1.
BACKGROUND:
This set of actions will complete the next step for the financing of the North Ohio project. After
completion, the bonds and notes outstanding for this project will be:
Series 2003-2 Note due 7/1/2007: $ 1,200,000
Series 2004- 1 Note due 7/1/2007 1,000,000
Series 2006-1 Note due 8/01/2009 1,800,000
Series 2006-A Bonds Final Maturity 2026 2,200,000
Total: $ 6,200,000
The outstanding notes will be rolled to long term bonds upon maturity. This is consistent with the
financing plan for the project that was adopted by the City Commission in September, 2005.
These are full faith and credit bonds, meaning they are payable from future property tax proceeds,
however, a total of $2,100,000 of the capital improvement portion of the special % cent sales tax has
been committed to this purpose from 2007 through 2010. This "tas stabilization" supplement should
enable the City to maintain our debt service levy at a constant rate, despite the unusual demands
placed on the system by this project.
Bids for both the Notes and the Bonds will be opened before the meeting on Monday, March 20. A
report on the results and a recommendation for award will be made at that time.
We again requested a rating from Moody's Investors Service on both the Bonds and the Notes. The
rating service affirmed and renewed our current rating of Aa3 for the Bonds and MIG1 for the notes.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
03/20/2006
TIME
4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
8
ITEM
NO.
Page 2
FINANCE AND ADMINISTRATION
5
BY:
BY: Rod Franz
RECOMMENDED ACTION:
By separate action:
1. Pass, on second reading, Ordinance No. 06-10320 authorizing the issuance and delivery of
$2,200,000 principal amount of General Obligation Internal Improvement Bonds, Series 2006-A
of the City of Salina, Kansas.
2. Pass Resolution No.06-6267 Prescribing the form and details of and authorizing the delivery of
$2,200,000 principal amount of General Obligation Internal Improvement Bonds, Series 2006-A
of the City of Salina, Kansas.
3. Pass Resolution No. 06-6268 authorizing and directing the issuance, sale, and delivery if
$1,800,000 principal amount of general obligation temporary notes, Series 2006-1.
J
,
$1,800,000
City of Salina, Kansas
General Obligation Temporary Notes
Series 2006-1
Bid Tabulation Sheet
Dated: April 1, 2006
Sale Date: March 20, 2006
Bidder
Method of
Bidding
Good Faith
Check/Bond
Net Interest
Cost (%)
1.
UMB Bank Fax n/a 3.605000%
2.
Country Club Bank Fax n/a 3.592000%
3.
Gold Capital ManaQement Fax n/a 3.889800%
4.
Parker Hunter Fax n/a 3.810900%
Prepared by George K. Baum & Company
Page 1
.
t
.
$2,200,000
City of Salina, Kansas
General Obligation Internal Improvement Bonds
Series 2006-A
Bid Tabulation Sheet
Dated: April 1, 2006
Sale Date: March 20, 2006
Bidder
Method of
Bidding
$44,000
Good Faith
Check/Bond
True Interest
Cost (%)
1.
Wells FarQo BrokeraQe Services, LLC Parity Bond 4.261354%
2.
Piper Jaffrav Inc. Parity Bond 4.222932%
3.
George K. Baum & Company Parity Bond 4.201587%
4.
Morgan Stanley OW, INC Parity Bond 4.326167%
5.
UBS Securities LLC Parity Bond 4.313078%
6.
UMB Bank Fax Check 4.274096%
7.
Country Club Bank Fax Check 4.193479%
8.
9.
10.
11.
12.
13.
Prepared by George K. Baum & Company