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City Council Packet 2006 10-30-06 - Special Meeting C/P T United City of Yorkville 800 Game Farm Road ESTT. =\` 1636 Yorkville, Illinois 60560 o L Telephone: 630-553-4350 90 �0 Fax: 630-553-7575 <�E AGENDA CITY COUNCIL SPECIAL MEETING YORKVILLE MIDDLE SCHOOL 702 Game Farm Road 7:00 PM Monday, October 30, 2006 Call to Order: Pledge of Allegiance: Roll Call by Clerk: WARD I WARD I1 WARD III WARD IV Paul James Valerie Burd Marty Munns Joe Besco Jason Leslie Dean Wolfer James Bock Rose Ann Spears Establishment of Quorum: Public Hearings: 1. General Obligation Refunding Bonds (Alternate Revenue Source) City Council Requests: 1. Discussion of Host Agreement and Landfill Siting Process Adjournment: ♦(VD c/% Reviewed By: J J� T Legal F-1 City Council EST. 1936 Finance ❑ Engineer ❑ 0 vJ City Administrator ❑ Agenda Item Tracking Number Consultant ❑ Qc( 6' (` E ,VV ❑ City Council Agenda Item Summary Memo Title: Refunding of 2002, 2002A & 2003 Debt Certificates City Council /Committee of the Whole Date: Special Meeting 10/30/06 Synopsis: Council Action Previously Taken: Date of Action: Action Taken: Item Number: Type of Vote Required: Council Action Requested: Vote for approval of the sale of the bonds on 11/14/06 City Council meeting Submitted by: Susan Mika Finance Name Department Agenda Item Notes: PUBLIC FINANCE CONSULTANTS SINCE 1954 SPEER FINANCIAL, INC. KEVMWMcCANNA DAVIDR PHILLIPS LARRY P.BURGER DANIEL D.FORBES BARBARA L.CHEVALIER RAPHALIATA MCKENZIE PRF5I4ENT SR.VICEPRESIDENT VICE PRESIDEM VICE PRESIDENT VICE PRESIDEM VICE PRESIDEM UNITED CITY OF YORKVILLE Debt Certificate Refunding As long term interest rates have recently been declining, several of the City's debt certificate issues are now refundable for significant savings. Series 2002, 2002A and 2003 have interest rates in the 4% to 5.4%D range. If rates continue at the current level, savings of over$400,000 is achievable on a debt issuance of some $8,745,000. Attached are schedules from LaSalle Bank, indicating their interest in this issue. At this point, the refunding makes sense and, given recent interest rate volatility, we recommend proceeding quickly with a sale with LaSalle. However, an additional factor to consider is the current restriction on the City's debt limit. Recall that debt certificates and general obligation bonds count against the limit of 8.625% of EAV. As the City is planning to bond for additional buildings, this limitation may become a problem. As alternate revenue bonds do not count against this limit, it may be best to convert some of this debt into alternate bonds. The essential obligation of the City to repay its debt is unchanged. To issue a portion of the refunding debt as alternate bonds will require the City to pass an alternate bond resolution and to publish it, thereby starting the process. Alternate bonds require proven debt service coverage. Since most of these debt certificates were issued for water improvements, alternate bonds may only be issued to the extent that water revenues will formally support the debt. This will be determined over the next month. Therefore, it is suggested that the refunding proceed partially using debt certificates and partially using alternate bonds. KWM:nm 9-25-06 SUITE 41 OD•ONE NORTH LASALLE STREET•CHICAGO,ILLINOIS 60602•(312)346-3700•FAX(312)346.6833 SUITE 608.531 COMMERICAL STREET•WATERLOO,IOWA 50701•(319)291-2077•FAX(319)291-8628 Preliminary Village of Yorkville,IL Proposed 2006 Refunding Includes 2002, 2002A and 2003 Maturities Debt Service Comparison Date Total P+I PCF Existing DIS Net New D7S Old Net D/S Savings 051012007 - - 35,000.01) 35,000.00 35,000.00 - 05/012008 470,954.13 (178,771.67) 93,150,01) 385,332.46 394,072.50 8,740.04 05/012009 425,981.26 (133,800.00) 178,150.00 470,331.26 482,072.50 11,741.24 051012010 422,981.26 (133,80(1.00) 248,150.00 537,331.26 549,872.50 12,541.24 05/012011 424,881.26 1( 33,800.00) 318,150.00 609,231.26 622,672.50 13,441.24 051012012 421,681.26 (3,443,337.97) 3,707,687.97 686,031.26 700,092.50 14,061.24 05/012013 707,58126 - 33,150.00 740,731.26 777,512.50 36,781.24 05/012014 736,681.26 133,150.00 869,831.26 909,555.00 39,723.74 0510[2015 734,581.26 - 129,350.00 863,931.26 907,797.50 43,866.24 05/012016_ 73678126 _129450,00 2121_.,1121 _862,23126_ ..,__ 9D5,60Z50___._,43,376.24 051012017 738,181.26 - 121,450.00 859,631.26 903,082.50 43,451.24 05/012018 738,781.26 - 117,300.00 856,081.26 895,012.50 38,931.24 05/012019 738,58126 - 313,050.00 1,051,631.26 1,091,842.50 40,211.24 051012020 1,737,18126 - - 1,737,181.26 1,779,542.50 42,361.24 _ 05/012021 2121 1,684,781.26 1,684,781.26 2121. 1,730,042_50___45,261.24 05/012022 1 '95,175.01 - -- -----1,195,175.01 1,205,150.00 9,974.99 05/01/2023 1,035,934.38 - 1,035,934.38 1,050,000.00 14,065.62 Total $12950,719.90 (4,023,509.64) $5,553,187.97 $14,480,398.23 $14,938,927.50 $458,529.27 PV Analysis Summary(Net to Net) Gross PV Debt Service Savings 281 5� 37.35 Net PV Cawhgnlw Savin -._.0 and Y_iel_d Z 2�81_,5,.37.35 _ Cominilmg or RouadinyAmount 461.01 Net Present Value Benefit _ $281,99836 Net PV Benefit/ $7,625 763 Refunded Prin9ipa1 2121^ 3.698% -`---11.21.-1111 � 3.225% Net PV Benefit/$8_745 nding,000Refu Princes _ ____�,___,_,_m__ _.—.._..___.._-2121-- Refunding Bond Information 12202006 Refunding Delivery Date 1213012006 Debt CeMM11e nelunaln I Issue Summary 1 5/322006 14:09 PM LaSalle Financial Sei-vices, Inc. Public Finwice Page 1 Prefir-thary Village of York-111e,IL Proposed 2006 Refunding Includes 2002, 2002A and 2003 Maturities Sources & Uses Dated 1=01206 I Delivered 1=012006 Sources Of Funds Per Amount of Bonds $8,745,000.00 Rcofferinj�r�mlarn —-------- ...... Total.Seturcen ---—-----P7711424A0_ Uses Of Funds 6 .05- Total Underwriter's Disvwt (O.Zq .--§!,-2L5.qo- Costs orlssumm 60,000.00 Gross Bond Insurance Premium 51,902.89 Wpositw Net Cash Escrow Fund 9,571,577.66 461.01 Total Uses 58,771,424.60 Debt Gertfunte Refundin I Issue Summary 1 91222006 1 4:09 PM LaSalle Financial Services, Inc. Public Riance Page 2 Prellminary Village of Yorkville,IL Proposed 2006 Refunding Includes 2002, 2002A and 2003 Maturities Pricing Summary Type of Maturity Maturity Bond Coupon Yield Value Price Dollar Price 11/01/2008 Serial Coupon 4.000% 3.5709/6 75,000.00 100,753% 75,564.75 11/01/2009 Serial Coupon 4.000% 3.5700A 75,000,00 101.146% 75,859.50 11/01/2010 Serial Coupon ' 4.000% 3.580% 80,000,00 101,489% 81,191,20 11/012011 Serial Coupon 4.000% 3,610°A 80,000.00 101.712°A 81,369.60 11/012012 Serial Coupon 4_000% 3.640% 3750. 0D,00 101,873% 382,023.75 11/012013 Serial Coupon 4.000% 3.680°A 420,ODO.00 101.914% 428,038.80 11/01/2014 Serial Coupon 4.000% 3.7305/6 435,000.00 101.815% 442,895.25 11/012015 Serial Coupon 4.000% 3.790% 455,ODD,00 101.560% 462,098.00 11/012016 Serial Coupon 4.000% 3.850°A 475,00D.00 101,214% 480,766.50 _ 11/01/2017 __Serial Coupon_ 4.000% _3.970% 495,000.00 .___. 100,238% c 11/012018 Serial Coupon 4.000% 4,030% 515,000.00 99.715Y° 513,532.25 11/012019 Serial Coupon 4.000% 4.070°A 1,555,000.00 99.301% 1,544,130.55 111012020 Serial Coupon 4.000% 4.130°A 1,565,000.00 98.635% 1,543,637.75 11/012021 Serial Coupon 4.125% 4,140% 1,130,000.00 99.830% 1,128,079.00 11/012022 Serial Coupon __ 4,125% 4,170% 1,015,000.00 99.477% _ 1,009,691.55 Total $8,745,000.00 $8,745,056.55 Bid Information Par Amount of Bonds___, $ti,7451000.OD Reoffering Premium or Diacount _ 56.55 Gross Production _$8,7451056,55 Total Underwriter's Discount Bond Insurance Premium paid by Underwriter _ X51 802.88 B98.7D8% __ 8,632,038.67 Total Purchase Price 67 Bond Year Dollars $10411679 11.906 Years Average Coulon 4.0394252% Net Interest Cost(NICZ .. ..' ...._... . _ .. '_.._.4.1479200% True Interest Cost(TIC) -•---- - 4.1759965% Debt caMicate Reamdln I Issue Summary 1 82212906 1 448 PM LaSalle Financial Services, Inc. Public Fiiiaiice Page 3 Preliminary Village of York ille,IL Proposed 2006 Refunding Includes 2002, 2002A and 2003 Maturities Summary Of Bonds Refunded Of Maturity Issue Maturity Type Bond Coupon Value Call Date Call Price Dated 12/15/2005 1 Delivered 12/152005 Series2003-Debt Cerftfioetes 12/1512019 Serial Coupon 5.000% 1,000,000 12/152011 100.000% Series 2003-Debt Cerfificates 12/15/2020 Serial Coupon 5.000% 1,000,000 121152011 100.000% Series 2003-Debt Certificates 12/152021 Serial Coupon 5.000% 1,000,000 121152011 100.000% Series 2003-Debt Certificates 12/152022 Serial Coupon 5.000% 1,000,000 12/152011 100.000% Subtotal 54,000,000 Dated 8292002 Del' Bred 8292002 Series 2002-Debt Certificates 05/012013 Serial Zero - 440,000 05/012012 100.000°A Series 2002-Debt Certificates 051012014 Serial Zero - 475,000 05/012012 100,000% Series 2002-Debt Certificates 05/012015 Sala] Zero - 475,000 05/012012 100.0000% Series 2002-Debt Certificates _ 05/012016 Serial Zcro __ ___475,000_____.05/01/2012 100.00%__ Series 20022-Debt Certificates 05/012017 Serial Zero - 475,000 55/012012 100.000% Series 2002-Debt Certificates 05/012018 Serial Zero - 475,000 05/012012 100.000% Series 2002-Debt Certificates 05/012019 Serial Zero - 475,000 05/012012 100.000% Series 2002-Debt Certificates 05/012020 Serial Zero - 475,000 05/012012 100.000% Series 2002-Debt Certificates 05/012021 Serial Zero 475,000 05/012012 100.000% Subtotal $4,240,000 Dated 1/012007 1 Delivered 1/0112007 Series 2002A-Debt Certificates 011012008 Term 3 Coupon 4.000% 50,000 -Series 2002A-Debt Certificates 0110120D9 Tom Coupon 4000°A 55,000 - Series 2002A-Debt Certificates 01/012010 Term 3 Coupon 4.000% 55,000 - Series20D2A-Debt Certificates 01/012011 Term 4upon_ 4.300% _ ,_. 60,000_ 01/012010_ 100.000%. Series 2002A-Debt CerR_t ates 01/012012 Tom 4 Coupon 4.300% 60,000 01/0112010 100.000% Series 2002A-Debt Certificates 01/012013 Tom Coupon 4.550% 65,000 01/012010 100.000% Series 2002A-Debt Certificates 01/012014 Tom 5 Coupon 4.550% 65,000 01/012010 100.000% Series 2002A-Debt Certificates 011012015 Term Coupon 4.700% 70,000 01/012010 100.0006/6 Series 2002A-Debt Certificates _ 011012016 Term 6 Coupon 4.700% 75,000 01/012010 100.000% Series 2002A-Debt Certificates 01/012017 Term 7 Coupon 4.900% 80,000 01/012010 160A00% Series 2002A-Debt Certificates 511012018 Tom 7 Coupon 4.900% 80,000 011012010 100.00D°A Series 2002A-Debt Certificates 01/012019 Term 8 Coupon 5.000% 85,000 01/012010 100.000% Series 2002A-Debt Certificates 01/012020 Term 8 Coupon 5.000% 90,000 01/012010 100.000% Series 2002A-Debt Certificates 01/012021 Term 9 Coupon 5.150% 95,000 01/012010 100.000% Series 2002A-Debt Certificates 01/012022 Tom 9 Coupon 5.150%° 100,000 01 10(2010 100.000% Subtotal - - $1,085,000 - - Total $9,325,000 Dabt CaTUR ale Rerundin I Issue Summary 1 9222008 I C09 I'M LaSalle Financial Services, Inc. Public ORDER calling a public hearing concerning the intent of the City Council of the United City of Yorkville, Kendall County, Illinois, to sell not to exceed $6,000,000 General Obligation Refunding Bonds (Alternate Revenue Source). WHEREAS, the United City of Yorkville, Kendall County, Illinois (the "City"), is a duly organized and existing municipality created under the provisions of the laws of the State of Illinois, and is now operating under the provisions of the Illinois Municipal Code, and all laws amendatory thereof and supplementary thereto, including the Local Government Debt Reform Act of the State of Illinois, as amended; and WHEREAS, the City Council of the City (the "Council") intends to sell bonds in the amount of not to exceed $6,000,000 (the "Bonds") for the purpose of refunding a portion of the City's Debt Certificates (Capital Appreciation), Series 2002, and Debt Certificates, Series 2003; and WHEREAS, the Bond Issue Notification Act of the State of Illinois, as amended, requires the Council to hold a public hearing concerning the Council's intent to sell the Bonds before adopting an ordinance providing for the sale of the Bonds: Now, THEREFORE, Be It and It is Hereby Ordered by the undersigned Mayor of the United City of Yorkville, Kendall County, Illinois, as follows: 1. I hereby call a public hearing to be held at 7:00 o'clock P.M. on the 24th day of October, 2006, at the City Council Chambers of the City Hall, located at 800 Game Farm Road, Yorkville, Illinois, in the City, concerning the Council's intent to sell the Bonds and to receive public comments regarding the proposal to sell the Bonds (the "Hearing"). 2. I hereby direct that the City Clerk of the City (the "City Clerk") shall (i)publish notice of the Hearing at least once in the Kendall County Record, the same being a newspaper of general circulation in the City, not less than 7 nor more than 30 days before the date of the BINAProceedings 2143501/KK/10/11/06 Hearing and (ii) post at least 48 hours before the Hearing a copy of said notice at the principal office of the Council. 3. Notice of the Hearing shall appear above the name of the City Clerk and shall be in substantially the following form: -2- 4. At the Hearing the Council shall explain the reasons for the proposed bond issue and permit persons desiring to be heard an opportunity to present written or oral testimony within reasonable time limits. The Council shall not adopt an ordinance selling the Bonds for a period of seven (7) days after the final adjournment of the Hearing. Ordered this 10th day of October, 2006. Mayor, United City of Yorkville, Kendall County, Illinois -4- MINUTES of a regular public meeting of the City Council of the United City of Yorkville, Kendall County, Illinois, held at the City Council Chambers of the City Hall, located at 800 Game Farm Road, Yorkville, Illinois, in said City at 7:00 o'clock P.M., on the 24th day of October, 2006. The meeting was called to order by the Mayor, and upon the roll being called, Arthur F. Prochaska, Jr.,the Mayor, and the following Aldermen answered present at said location: The following Aldermen were absent: Various business was conducted. At _ o'clock P.M., the Mayor announced that the next agenda item for the City Council was a public hearing (the "Hearing")to receive public comments on the proposal to sell in the amount of not to exceed $6,000,000 General Obligation Refunding Bonds (Alternate Revenue Source) for the purpose of refunding a portion of the City's Debt Certificates (Capital Appreciation), Series 2002, and Debt Certificates, Series 2003 and explained that all persons desiring to be heard would have an opportunity to present written or oral testimony with respect thereto. The Mayor opened the discussion and explained that the reasons for the proposed issuance of the Bonds were as follows: Whereupon the Mayor asked for additional comments from the Aldermen. Additional comments were made by the following: (If no additional statements were made, please so indicate with the word "none.") Written testimony concerning the proposed issuance of the Bonds was read into the record by the City Clerk and is attached hereto as Exhibit L (If no written testimony was received, please so indicate with the word"none.") Whereupon the Mayor asked for oral testimony or any public comments concerning the proposed issuance of the Bonds. Statements were made by the following: (If no additional statements were made, please so indicate with the word "none.") The Mayor then announced that all persons desiring to be heard had been given an opportunity to present oral and written testimony with respect to the proposed issuance of the Bonds. Alderman moved and Alderman seconded the motion that the Hearing be finally adjourned. -2- After a full discussion thereof, the Mayor directed that the roll be called for a vote upon the motion. Upon the roll being called, the following Aldermen voted: AYE: NAY: Whereupon the Mayor declared the motion carried and the Hearing was finally adjourned. Other business not pertinent to the conduct of the Hearing was duly transacted at said meeting. Upon motion duly made, seconded and carried, the meeting was finally adjourned. City Clerk, United City of Yorkville, Kendall County, Illinois -3- STATE OF ILLINOIS ) ) SS COUNTY OF KENDALL ) CERTIFICATION OF MINUTES I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the United City of Yorkville, Kendall County, Illinois (the "City"), and as such official I am the keeper of the records and files of the City Council of the City(the "Council"). I do further certify that the foregoing constitute a full, true and complete transcript of the minutes of the meeting of the Council held on the 24th day of October, 2006, insofar as the same relates to a public hearing concerning the intent of the Council to sell in the amount of not to exceed $6,000,000 General Obligation Refunding Bonds (Alternate Revenue Source). I do further certify that the deliberations of the Council at said meeting were conducted openly, that all votes taken at said meeting were taken openly, that said meeting was held at a specified time and place convenient to the public, that notice of said meeting was duly given to all of the news media requesting such notice, that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the Council at least 96 hours in advance of the holding of said meeting, that a true, correct and complete copy of said agenda as so posted is attached hereto as Exhibit A, that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, the Illinois Municipal Code, as amended, and the Bond Issue Notification Act of the State of Illinois, as amended, and that the Council has complied with all of the provisions of said Acts and said Code and with all of the procedural rules of the Council in the conduct of said meeting. I do further certify that notice of said public hearing was posted at least 96 hours in advance of the holding of said meeting at the principal office of the Council and that attached hereto as Exhibit B is a true, correct and complete copy of said notice as so posted. IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of said City, this 24th day of October, 2006. City Clerk, United City of Yorkville, Kendall County, Illinois [SEAL] [Attach Exhibits A and B]