PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
THURSDAY, MARCH 10, 1983
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET IN REGULAR SESSION ON THURSDAY, MARCH 10, 1983, AT 5:00 P.M. IN ROOM 211 CITY AND COUNTY BUILDING.
ON ROLL CALL THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: RONALD J. WRITEHEAD ALICE SHEARER SYDNEY R. FONNESBECK EDWARD W. PARKER PALMER DEPAULIS.
Mayor Ted Wilson and Roger Cutler, City Attorney, were present at the meeting.
Council Vice Chairman Edward Parker presided at and conducted this meeting.
DEPARTMENTAL BUSINESS
FINANCE AND ADMINISTRATIVE SERVICES
RE: Sale of $25,725,000 Water and Sewer Improvement and Refunding Revenue Bonds, Series 1983.
RECOMMENDATION: 1. That the City Council adopt a supplemental resolution authorizing the issuance and sale of Water and Sewer Improvement and Refunding Revenue Bonds, Series 1983. 2. That the City Council authorize the sale of the Water and Sewer Improvement and Refunding Revenue Bonds, Series 1983, to Prudential-Bache Securities, Inc., Burrow Smith & Co. Division at a net effective interest rate of 8.9456%. 3. That the City Council adopt a resolution approving the execution, delivery, terms, and provisions of an Escrow Agreement by and between Salt Lake City, Utah and First Security Bank of Utah, National Association, as escrow agent, in connection with the issuance of Water and Sewer Improvement and Refunding Revenue Bonds, Series, 1983, of Salt Lake City, Utah. 4. That the City Council adopt a resolution providing for the publication of a Notice of Bonds to be issued with respect to Water and Sewer Improvement and Refunding Bonds, Series, 1983, of Salt Lake City providing for the running of a contest period.
DISCUSSION: The preceding four motions are necessary to complete the negotiated sale of the Water and Sever Improvement and Refunding Bonds, Series 1983. Members of the committee participating in the pricing of these bonds were: Alice Shearer, councilmember; Roger Boyer, Public Utilities Advisory Committee member; Albert E. Haines, Salt Lake City chief administrative officer; Lance R. Bateman, city controller; Cheryl D. Cook, city treasurer. It is the recommendation of this committee that the $25,725,000 Water and Sewer Improvement and Refunding Bonds, Series 1983, be sold to Prudential-Bache Securities, Inc. at a net effective interest rate of 8.9456%. Cheryl Cook, city treasurer, said that they started their pricing period Monday; the markets have been up and down but on Wednesday the pricing committee agreed to take the rate offered by Bache which is 8.9456. She said that the revenue index is at the lowest level it has been since August of 1980; this is a very good rate. Ms. Cook said that the rate has been lowered effectively from 11.5 to 8.95; the water department has been provided with $4,874,000 in new money to continue with their projects; the total debt service has been kept under the $3.3 million ceiling that had been approved; and the net present value of savings over the term of the bond is $920,000. Councilmember DePaulis asked the cost of refinancing; Ms. Cook said that it was $940,000 for the total expense.
Councilmember Shearer moved and Councilmember Fonnesbeck seconded to authorize the sale of Water and Sewer Improvement and Refunding Revenue Bonds, Series 1983, of the City to Prudential-Bache Securities Inc., Burrow Smith and Company Division, which motion carried, all members present voting aye.
Councilmember Shearer moved and Councilmember Ponnesbeck seconded to adopt Resolution 16 of 1983, a supplemental resolution authorizing the issuance and sale of Water and Sewer Improvement and Refunding Revenue Bonds, Series, 1983, which motion carried, all members present voting aye.
Councilmember Shearer moved and Councilmember Fonnesbeck seconded to adopt Resolution 17 of 1983 approving the execution, delivery, terms and provisions of said Escrow Agreement by and between Salt Lake City, Utah, and First Security Bank of Utah, National Association, as escrow agent, in connection with the issuance of Water and Sewer Improvement and Refunding Revenue Bonds, Series 1983, of Salt Lake City, Utah, which motion carried, all members present voting aye.
Councilmember Shearer moved and Councilmember Fonnesbeck seconded to adopt Resolution 18 of 1983 providing for the publication of a Notice of Bonds to be issued with respect to Water and Sewer Improvement and Refunding Revenue Bonds, Series 1983, of Salt Lake City, Salt Lake County, Utah, and providing for the running of a contest period, which motion carried, all members present voting aye.
(Q 82-16)
The meeting adjourned at 5:20 p.m.