Council Meeting 5/14/2013

COUNCIL PROCEEDINGS                                                                                                                           May 14, 2013

The City Council of La Porte City, Iowa met in special session on May 14, 2013.  Mayor Rick Lubben called the meeting to order at 7:00 PM with Council Members Todd Butler, Sarah Craft and Kathy Norris present. Absent were Council Members Mike Johnson and Kim Ortiz. Also present was Maggie Burger of Speer Financial.

Moved by Norris, seconded by Butler to approve the AGENDA. Motion carried 3-0.

Maggie Burger of Speer Financial reviewed with the Council the bids received for the City’s $1,705,000 GENERAL OBLIGATION REFUNDING CAPITAL LOAN NOTES, SERIES 2013.  Four bids were received:

Account Managers                                                                              True Interest Rate

UM Bank, n.a., Kansas City, Missouri                                                            1.0062%

Banker’s Bank, Madison, Wisconsin                                                              1.0790%

Hutchison, Shockey, Erley & Co., Chicago, Illinois                                      1.3930%

Northland Securities, Inc., Minneapolis, Minnesota                                     1.6685%

 

Moved by Butler, seconded by Craft to approve a “RESOLUTION DIRECTING SALE OF $1,705,000 GENERAL OBLIGATION REFUNDING CAPITAL LOAN NOTES, SERIES 2013.”  The general obligation notes are for a term of 8 years at an interest rate of $1.0062%.  Roll call vote passed 3-0 and Mayor Lubben declared resolution 13-33 adopted.

Moved by Butler, seconded by Norris to approve a “RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2005.”  The $2,080,000 in general obligation notes were issued in 2005 for a term of 15 years at an interest rate of $3.9939%. Roll call vote passed 3-0 and Mayor Lubben declared resolution 13-34 adopted.

Moved by Norris, seconded by Craft to approve a “RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2006.”  The $920,000 in general obligation notes were issued in 2006 for a term of 10 years at an interest rate of $4.0484%. Roll call vote passed 3-0 and Mayor Lubben declared resolution 13-35 adopted.

By refunding the general obligation debt at a lower interest rate, the City expects to save approximately $186,000 in interest over the life of the combined note.

Moved by Butler, seconded by Norris to adjourn at 7:09 PM. Motion carried 3-0.

Jane Whittlesey, City Clerk                                                               Rick Lubben, Mayor

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