ccm19780726of Common Council Held July 26, 1978
Excerpts of Minutes of Meeting
Muskego, Waukesha County, Wisconsin, was held in open session
on July 26, 1978 and called to order by His Honor, Mayor
Gottfried at 8:OO P.M. in the Council Chambers, City Hall.
The following Aldermen were present: Paul J. Schaumberg,
Mark E. Pienkos, Thomas J. Van Lanen, Ralph Tomczyk, Raymond
Wallner and Edwin P. Dumke
A special meeting of the Common Council of the City of
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The following Aldermen were absent: Ronald J. Ford
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The Deputy City Clerk announced that bids for Promissory
Notes had been received as follows:
BID TABULATION
$500,000 GENERAL OBLIGATION PROMISSORY NOTES
e CITY OF MUSKEGO, WISCONSIN x: WEDNESDAY, JULY 26, 1978 e AWARD: THE NORTHERN TRUST COMPANY, CHICAGO, ILLINOIS
MOODY'S RATING: "A"
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NAME OF BIDDER NET INTEREST COST
RATES YEARS & RATE PRICE
THE NORTHERN TRUST COMPANY
Chicago, Illinois 5.75%
5.30%
5.35%
'FIRST NATIONAL BANK OF MINNEAPOLIS 5.60%
5.50%
5.40%
M. H. Novick & Co., Inc. Minneapolis, Minnesota
FI fl WISCONSIN NATIONAL BANK OF MILWAUKEE 5.90% Milwaukee, Wisconsin 5.40%
'0 1 )BANC NORTHWEST
Chicago, Illinois 5.90%
5.40%
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FIRST NATIONAL BANK OF CHICAGO 6.00% 1 Chicago, Illinois 5.40%
5.45%
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MARINE NATIONAL EXCHANGE BANK Blunt Ellis Loewi & Co., Inc.
Milwaukee, Wisconsin
CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY OF CHICAGO
5.75%
5.50%
6.00%
5.40% Chicago, Illinois 5.50%
LLE NATIONAL BANK
Chicago, Illinois
5.75%
5.60%
5.50%
1986
1987
1988
1986
1987
1988
1986
1987/88
1986
1987/88
1986
1988
1987
1986
1987171
1986
1987
1988
1986
1987
1988
$248,156.00
5.3946%
$251,800.00
5.4739%
$252,375.00
5.4864%
.$252,395.00
5.4868%
$254,194.00
5.5259%
$254,957.00
5.5425%
$255,100.00
5.5456%
$256,800.00
5.5687%
$500,244.00
$500,000.00
$500,025.00
$500,005.00
$500,006.00
$500,043.00
$500,100.00
$500,639.00
0 e (continued on following page)
. .
Bid Tabulation
Page 2
0 Promissory Notes
NAME OF BIDDER RATES YEARS & RATE PRICE NET INTEREST COST
CHANNER NEWMAN SECURITIES COMPANY , 5.75% 1986 $256,800.00 $500,000.00 Chicago, Illinois 5.60% 1987
5.50% 1988 b 5.5826%
FRANK HENJES & COMPANY, INC. 6.50% 1986 $260,034.00
5.45% $500,066.00 1987 Milwaukee, Wisconsin 1 5.50% 1988 5.6529%
DAIN, KALMAN & QUAIL, INC. 5.60% 1986 $260,908.00 $500,492.00 Minneapolis, Minnesota 5.70% 1987/88 an National Bank & Trust Co.
Minnesota 5.6719%
EHLERS AND ASSOCIATES, INC. Financial Specialists
First National-Soo Line Concourse
507 Marquette Avenue
Minneapolis, Minnesota 55402
Telephone: (612) 339-8291
The Deputy City Clerk read the resolution to be known as
Resolution No. 162-78 as follows:
e Resolution Awarding Notes
WHEREAS this City has duly received sealed proposals for
its issue of $500,000 Promissory Notes; and
WHEREAS it has been determined that the best proposal re-
ceived was that submitted by The Northern Trust Company, Chicago,
Illinois:
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NOW, THEREFORE, BE IT RESOLVED that the proposal of The
Northern Trust Company, Chicago, Illinois, be and it hereby is
accepted and the Mayor and Deputy City Clerk are authorized and
directed to execute an acceptance of the offer of said success-
ful purchaser on behalf of the City;
FURTHER RESOLVED that the check of the successful purchaser
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be retained by the City Treasurer until actual closing of the note
issue and checks of the unsuccessful bidders be promptly returned.
Alderman Schaumberg moved that Resolution No. 162-78 be
adopted. Motion seconded by Alderman Tomczyk and carried
by the following vote:
Ayes: Schaumberg, Pienkos, Van Lanen, Tomczyk, Wallner and Dumke
Noes: None
The Deputy City Clerk read the following resolution, to be
known as Resolution No. 163-78:
"A Resolution Authorizing the City of Muskego
to Borrow the Sum of $500,000 Pursuant to
.Section 67.12 (12) of the Wisconsin Statutes
for Corporate Purposes
(sometimes hereinafter called the "City") , is presently in need
of the sun of Five Hundred Thousand Dollars ($500,000) for the
purpose of paying part of the costs of public work. or improvements
and equipment; and'
WHEREAS the City of Muskeqo, Waukesha County, Wisconsin
a and in the best interest of the City that said sum be borrowed
pursuant to the provisions of Section 67.12(12), Wis. Stats.,
upon the terms and conditions hereinafter provided;
WHEREAS the Common Council of the City deems it necessary
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NOW, THEREFORE, BE IT RESOLVED by the Common Council of
the City of Muskego, Waukesha
borrow the amount .of $500,000
Section 1. The City of
Chicago, Illinois,
County, Wisconsin , that:
Muskego, blaukesha County, Wisconsin,
from The Northern Trust Company,
for the purpose above stated.
Clerk shall make, execute and deliver to said lender, for and on
behalf of the City 100 general obligation promissory .notes of the
City in the denomination of Five Thousand Dollars ($5,000) each,
numbered from 1 through 100, and dated July 1, 1978. Said Notes
shall mature serially on July 1 of each of the years and shall
bear interest as follows:
Section 2. To evidence such indebtedness, the Mayor and City
Year Amount Interest
1986 $100,000 5.75 %
1987 200,000
1988
5.30 %
200,000 5.35 %
-
Said interest shall be payable semiannually on January 1 and July 1
of each year in accordance with, and upon presentation and surrender
of, the interest coupons to be attached thereto. The Notes shall
be callable as provided in the note form herein established.
Principal of and interest on these Notes shall be payable in
lawful money of the United States of America at The Northern Trust
Company, in Chicago, Illinois
Section 3. The Notes shall be payable to bearer, shall be
delivered to the lender upon receipt of the price thereof, plus
accrued interest to date of delivery and shall be in substantially
the following form:
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STATE OF bIISCOtJSIIJ
COUNTY OF WAUKESHA
CITY OF MUSKEG0
PROMISSORY NOTE
NO. $5,000
FOR VALUE RECEIVED, the City of Muskego, Waukesha County,
Wisconsin, promises to pay to bearer the sum of FIVE THOUSAND DOL-
LARS ($5,000) on the first day of July, 19 , together with inter-
est thereon at the rate of per cent ( %) per annum,
said interest to be payable semiannually on the first days of January
with, and upon presentation and surrender of, the interest coupons
and July in each year, commencing January 1, 1979, in accordance
attached hereto as they severally become due.
payable in lawful money of the United States of America at The
Northern Trust Company the prompt payment of this Note with interest thereon as aforesaid,
,in Chicago , Illinois , and for
and the levying and collection of taxes sufficient for that purpose,
the full faith, credit and resources of the City of Muskego, Wis-
consin are hereby irrevocably pledged.
Both principal hereof and interest hereon are hereby made
Notes of this issue maturing in the years 1987 and 1988 shall
be subject to call and prior payment in whole or from time to time
July 1, 1966, or on any interest payment date thereafter at the
in part in inverse numerical order at the option of the City on
price of 101% of par plus accrued interest. Not less than thirty
(30) days' notice of such call shall be given by the publication of
a notice thereof once in a newspaper published in Chicago, Illinois,
which customarily publishes like notices as a part of its regular
service.
67.12(12), Wisconsin Statutes, for the purposes of paying part of
the costs of public work and improvements and equipment and is au-
thorized by a resolution of the Common Council of the City of
mskego, duly adopted by at least a two-thirds vote of the nembers-
elect of said Common Council at its meeting duly convened on July
26, 1978, which resolution is recorded in the official book of its
minutes. for said date and is referred to as Resolution No. 163-78
in said minutes.
This Note is issued pursuant to the provisions of Section
It is hercby certified and recited that all conditions, things
and acts required by law to exist or to be done prior to and in con-
nection with the issuance of this Note have been done, have existed
and have been performed in due form and time; that the aggregate
indebtedness of the City, including this Note and others authorized
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simultaneously herewith, does not exceed any limitation imposed
by law or the Constitution of the State of Wisconsin: and that the
said City has levied a direct, annual irrepealable tax sufficient
to pay this Note, together with interest thereon when and as payable. a No delay or omission on the part of the holder hereof to ex-
ercise any right hereunder shall impair such right or be considered
as a waiver thereof or as a waiver of or acquiescence in any de-
fault hereunder.
IN WITNESS WHEREOF, the Common Council of the City of Muskego,
Waukesha County, Wisconsin, has caused this Note to be signed on
behalf of said City by its duly elected Mayor and City Clerk, its
corporate seal to be hereto affixed, and the attached coupons to
be signed by the facsimile signatures of its Mayor and City Clerk,
Note, does adopt his aforesaid facsimile signature as and for his
each of whom in his respective capacity by the execution of this
own proper signature, all as of this first day of July, 1978.
EGO, WAUKESHA
(Form of Coupon)
$
On the first day of , 19 , the City of Muskego,
Waukesha County, Wisconsin, promises to pay to bearer the amount
shown hereon in lawful money of the United States of America at
The Northern Trust Company , in Chicago , Illinois I
for interest due that day on its Promissory Note dated July 1,
1979, NO.
COUNTY , WISCONSIN
CITY OF MUSKEGO, WAUKESHA
BY (facsimile) BY City Clerk
(facsimile)
Mayor
(Clause to be added to coupons
numbered 18 and up on Notes 21/100)
e "Unless the Note to which this coupon is attached shall have
been called for prior redemption . . ."
Section 4. For the purpose
interest on each of said EJotes as
the full faith, credit and taxino
Of Payins the principal of and
the- same-respectivel; falls due,
~ powers of the City are hereby
irrevocably pledged and there be and there hereby is levied on
all of the taxable property in the City of bluskego a direct, annual
irrepealable tax for the following years and in the following
amounts:
For the year 1978
For the year 1979
For the year 1980
For the year 1951
For the year 1982
For the yea,r 1984
For the year 1983
For the year 1985
For the year 1986
For tne year 1987
$ 40,575
27,050
27,050
27,050
27,050
27,050
27,050
124,175
216,000
205,350
In each of said years from 1978 to 1987, inclusive, the di-
rect, annual irrepealable tax hereinabove levied shall be carried
into the tax roll each year and collected in the same manner and
at the same tine as other taxes of the City for such years are
collected. So long as any part of the principal of or interest on
said Notes remains unpaid, the proceeds of said tax shall be seg-
regated in the special fund established by Section 5 of this resolu-
tion and used solely for the payment of principal of and interest
on' said Notes.
There hereby is appropriated fron funds of the City on hand
the sum of $ 13,525.00 to be deposited in the Sinking Fund herein-
January 1, 1979, which sum nay be returned to the general fund
after created to be used solely to meet interest payments due on
upon collection of the taxes herein levied for the year 1978.
If at any time there shall be on hand insufficient funds from
the aforesaid tax levy sufficient to meet principal and/or interest
payments on said Notes when due, the requisite amounts shall be
paid from other funds of the City then available, which sums shall
be replaced upon the collection of the taxes herein levied.
Section 5. There is hereby established in the City Treasury
a fund separate and distinct from all other funds of the City, de-
signated "Sinking Fund for Promissory Notes dated July l, 1978,"
which fund shall be used solely for the purpose of paying principal
of and interest on said Notes. There shall he deposited in said
Notes at the time said Notes are delivered to the lenders, all
fund the premium, if any, and all accrued interest paid on said
money raised by taxation or appropriated pursuant to Section 4
hereof or Section 67.11(1) (e), Wis. Stats., and such other suns
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as may be necessary to pay interest on said Notes when the same
shall become due and to retire said Notes on their respective ma-
turity dates.
0 Section 6. The City Comptroller shall keep, maintain and preserve an adequate and correct register account of all Notes
and the City Clerk shall provide and keep a separate record book
issued and all payments and other transactions relating thereto;
and shall record a full and correct statement of every step or pro-
ceeding had or taken in the course of authorizing and issuing these
Notes.
Section 7. The "proceeds" of the Notes shall be used solely
invested until needed in legal investments provided that no such
for the purposes for which they are issued, but may be temporarily
be "arbitrage bonds" within the meaning of Section 103(c) (2) of
investment shall be in such a manner as would cause the Notes to
the Internal Revenue Code of 1954, as amended, or the Regulations
of the Commissioner of Internal Revenue thereunder; and an officer
of the City charged with the responsibility for issuing these Notes
shall certify that on the basis of the facts, estimates and circum-
stances in existence on the date of closing, it is not expected
that the "proceeds" will be used in a manner that would cause the
Notes to be "arbitrage bonds."
Section 8. Said Notes shall be executed as soon after adop-
tion of this resolution as possible and shall be delivered to the
lender upon receipt of the price thereof and accrued interest to
date of delivery."
Alderman Schaumberg moved that Resolution No. 163-78be
adopted. Motion seconded by Alderman Tomczyk and carried
by the following vote:
Ayes: Schaumberg, Pienkos, Van Lanen, Tomczyk, Wallner and Dumke
Noes: None
The Mayor declared the resolution adopted and signed same
in open meeting.
City Clerk signed attest of resolution.
City Clerk
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