01071987 Special Meeting - Laserfiche WebLink

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28 Special Meeting January 7, 1987 Page 2 Rausche~ Pierce, Refsnef, Inc. Gross Interest Cost Less Premium Net Interest Cost Effective $1,191,294.79 645.15 1,190,649.64 6.593961% Bear Stearns & Co., Inc. Gross Interest Cost Less Premium Net Interest Cost Effective $1,196,787.08 6.627951% Prudential-Bache Capital Funding Gross Interest Cost Less Premium Net Interest Cost Effective $1,263,966.67 7.00% Interfirst Bank Dallas (JEMFRA & Co.) Gross Interest Cost Less Premium Net Interest Cost Effective $1,268,840.42 16.65 $1,268,823.77 7.0268% Messrs. Newman and Rick Fisher then verified the bids and Mr. Newman recommended approval of the Underwood-Neuhaus bid. Mr. Coddington then reiterated he has problems with the City's use of Certificates of Obligation. Mr. Coddington stated the City was going to use $500,000 from the Utility Fund and that the City should use another $1.4 million which is unencumbered and save the citizens money. He recommended the City contact Dillon, Reed &Co. Mr. Gonzalez stated there are unencumbered funds in the City's fund balance which enables the City to obtain good bond ratings and that the City needs to retain a good fund balance to maintain our wastewater system and to make possible this project for this building. If the City used $1.4 million of unen- cumbered funds, it would make the City cash poor. Mr. Newman advised the Council that the City needs to retain a cushion. Mayor Younger introduced for consideration adoption of an Ordinance on emergency, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AUTHORIZING THE ISSUANCE AND SALE OF CITY OF SAN MARCOS, TEXAS, CERTIFICATES OF OBLIGA- TION, SERIES 1987, IN THE AGGREGATE PRINCIPAL AMOUNT OF $1,400,000, PRESCRIBING ?HE FORM OF SAID CERTIFICATES; PROVIDING FOR THE SECURITY FOR AND PAYMENT OF SAID CERTI- FICATES; AWARDING THE SALE THEREOF; APPROVING THE OFFI- CIAL STATEMENT; AND ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT AND DECLARING AN EMERGENCY. Mayor Younger moved for adoption of the Ordinance and Mr. Guerra se- conded the motion. Mayor Younger moved to amend the Ordinance as follows: on Page 5, Section 3.02(b) to complete the interest rates by year as follows: "1989 1990 1991 1992 1993 1994 1995 1996 1997 9.00% 9.00% 9.00% 9.00 9.00% 9.00% 9.00% 8.00% 6.00% 1998 1999 2000 2001 2002 2003 2004 2005 2006 6.10% 6.20% 6.30% 6.40% 6.50% 6.60% 6.00% 6.00% 6.00%";