12/17/1980 - City Council Special J
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MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: DECEMBER 17, 1980
SUBJECT: BIDS FOR $31650,000 G.O. IMPROVEMENT BOND SALE
Three ( 3 ) bids were received at noon today for the $3 ,650,000 G.O.
Improvement Bond Sale. A low bidder was Bancnorthwest, Chicago,
at a net interest rate of 9. 2661%.
The City has expended funds in the amount of $2,284,196 to date
for payment to contractors for various projects included in this
bond issue. It is the position of the Director of Finance that
this bond sale should be approved due to cash flow constraints
to the various funds caused by expenditures to date.
The City' s fiscal consultant, Mr. Ernie Clark of Miller & Schroeder
Municipals, feels there will be relatively little relief, if any,
to the municipal bond index during the next two to three months .
According to Mr. Clark, investment of the bond proceeds will equal
at least the equivalent of 3/4 of a percent interest drop within
a two month period. In other words , the City could wait for appro-
ximately two months, hoping that the municipal bond index will
be lowered to at least 8. 5% at which time the City would be no
better off than they are today because of the ability to invest
the bond proceeds .
It is my recommendation, based on discussions with the Director
of Finance and the fiscal consultant and a review of the current
construction funds , that the City approve the low bidder, Bancnorth-
west of Chicago, for the sale of $3 ,650,000 G.O. Improvement Bonds .
City ministrator
Attached is a copy of the bid sheet per the 12 :00
noon sale.
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To►jFree Minnesota(800)862-6002
Toll Free Other States(800)328-6122
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Miller & Schroeder Municipals, Inc.
170 Northwestern Financial Center,7900 Xerxes Avenue South,Minneapolis,Minnesota 55431 •(612)831-1500
December 17, 1980
RESULTS OF SALE - DECEMBER 17, 1980 12 O'CLOCK NOON
RE: $3,650,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1980, SERIES B4OF EAGAN, MINNESOTA
RATINGS; STANDARD & POOR'S CORPORATION -- A
MOODY'S INVESTORS SERVICE, INC. - A
BIDDERS RATES PRICE N.I.C.
BancNorthwest 8.90%-1982/89 $3,613,500.00 9.2661%
First Bank Minneapolis 9.00%-1990 ($2,124,275.00)
Cronin & Marcotte, Inc. 9.10%-1991
Merrill Lynch White Weld Capital 9.25%-1992
Markets Group 9.40%-1993
Robert W. Baird & Co.., Inc. 9.50%--1994
Dean Witter Reynolds, Inc. 9.60%t1995
Dougherty Dawkins Strand & Ekstrom, Inc. 9-700-1996
Moore Juran & Company, Inc.
M. H. Novick & Company, Inc.
Robert S. C. Peterson, Inc.
In Association With:
Dain Bosc•?orth, Inc.
First National Bank of St. Paul
Allison-Williams Company
American National Bank and Trust Company of St. Paul
Piper, Jaffray & Hopwood, Inc.
Juran &Moody, Inc.
Headquarters:Minneapolis,Minnesota•Branch Offices:Solana Beach,California•Northbrook,Illinois•St.Paul,Minnesota•Naples,Florida
Member of the Securities Investor Protection Corporation
BIDDERS RATES PRICE N.I.C.
Continental Illinois National Bank 9.15%-1982/83 $3,613,520.00 9.561581%
and Trust Company of Chicago 9.20%-1984/90 ($2,191,992.47)
The First National Bank of Chicago 9.35%-1991
Harris Trust and Savings Bank 9.50%-1992
A. G. Becker, Inc. 9.70%-1993
Channer Newman Securities, Co. 9.90%-1994
Marquette National Bank 10.00%-1995/96
The Northern Trust Company 9.30%-1982/91 $3,615,882.50 9.57881%
Bache Halsey Stuart Shields, Inc. 9.40%-1992 ($2,195,942.50)
Goldman, Sachs & Co. 9.55%-1993
E. F. Hutton & Company, Inc. 9.70%-1994
Marine National Exchange Bank 9.85%-1995
10.00%-1996
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