Fort Walton Beach Council minutes — 03-03-1964 Special — reading text

36 MINUTES OF SPECIAL MEEI'ING OF CITY COUNCIL OF FORT WALTON BEACH, FLORIDA - 3- 3- 64 I A special meeting of the Fort Walton Beach City Council was held at City Hall on March 3, 1964, at 3: 00 P. M., with the following members present: S. E. Lindsey, Mayor C. H. Long H. H. Carnathan JiIl11T\Y Ready S. L. Rogers Lee Courter Fred Tolbert, City Manager, City Clerk- Finance Director, City Attorney, and RicDBrd BrashIer, representing Fiscal Agent, Barcus Kindred, and Company. After the meeting had been called to order Maypr stated that the meeting was called pursuant to notice for the purpose, among other things, of opening sealed bids received for t he purchase of $ 194, 000. 00 Sewer Revenue Certificates, Series 1961, and $ 350, 000. 00 Water Revenue Certif- icates, Series 1964. Bids for Water Revenue Certificates were opened and tabulated as follows: B. J. Van Ingen & Company, Inc. Cashier' s Check for $7, 000. 00 enclosed. Bonds bearing Interest at 4. 10% Premium $ 418. 60 Net Interest Cost: 4. 0961 Bache & Company and William R. Huff & Company Associates Cashie~ Check for $ 7, 000. 00 enclosed. Bonds & 1e 1990 to 1996 - Interest rate 4% Bonds due 1997 and 1998 - 4. 10% Bid par. Average Interest rate 4. 0276 Barcus & Kindred and Company Cashier' s Check for $7, 000. 00 enclosed. Bonds maturing 1990- 91 - 3. 90% I Bonds maturing 1992- 98 - 4. 00% Total Premium $ 259. 90 Average Net Interest Cost 3" 99% Goodbody & Company Cashier' s Check for $ 7, 000. 00 enclosed. Bonds Maturing 1990- 94 4. 00% Bonds Maturing 1997- 1998 4. 10.% Premium $ 728. 35 Average Interest Cost 4. 0209. 37 Bids for Sewer Revenue Certificates were opened and tabulated as follows: B. J. Van Ingen & Company All Bonds bearing Interest Rate 4. 10% Premium $ 191. 09 Net Interest Cost 4. 096 BRche & C0mpany and William A. Huff & Associates Bonds bearing Interest at 4. 10% Bid par. Average Interest Rate 4. 10% Barcus Kindred, & Company Bonds Maturing in Year 1989 3. 90% Bonds Maturing 1990- 99 4% Premium $ 215. 67 Average Net Interest Cost 3. 99% Mayor Lindsey declared recess to allow tam11ation of bids. Meeting recessed at 3: 20 P. M. and reconvened at 3:~ 0 P. M. Mr. BrashIer stated that Barcus Kindred & Company vIaS low bidder on each issue witlr 3. 99 and other bids 1.vere L. oo or in excess. Manal? er asked Mr. BrashIer to explain why tl1ere WAS A ~ point difference ~> rate betH8en this, and last year' s bids. BrashIer replied there were two basic reasons. INhen City sold bonds about a year afo the Dow Jones Hunicipal average at that time was about 3. 10%. Average bonds for Cities like NevJ York, ChicaE;o, etc. and for 20 year bonds. Said market is o~ f and interest rates generally higher at this time as compared with ;year ago. Second reason - Bonds sold year ago had about average life of about 18 years, and these bonds averafe life of 30 years, as you program out in maturity. Bank of England raised prime rate from 4 to 5 percent and will affect rates all over world. He said talk was going around that U. S. rates were about to go up to counter with England. He said last week bids were all 4% - had dropped and bids were from 3. 90 to 4. 05 and back to 4. 10 this morning. He said he would advise the Ci t~ r not to wait much longer because rates were going DP and though they might get better, indications were that they vlOuld not. Councilman Long moved that Council accept low bid onboth issues and good faith" checks be returned to other bidders. Motion seconded by CounciL~an Courter and the vote was aye unanimously. Oi ty A ttorney presented the following Resolutions:  38 64- 11 - RESOLUTION confirming the sale of and fixing the interest rates for $ 350, 000. 00 Water Revenue Certificates, Series of 1964, of the City of Fort Walton Beach, Florida, and declaring an emergency. 1 Councilman Rogers moved tr~t this resolution be approved. Motion seconded by Councilman Ready, and the vote was aye unanimously. 64- 12 - A RESOLUTION confirming the sale of and fixing the interest rates for $194, 000. 00 Sewer Revenue Certific8tes, Series 1961, of the City of Fort Walton Beach, Florida, and de- claring an emergency. CouncilTr1~rn Ready moved that this resolution be approved; motion second- ed qy Councilman Courter, and the vote was aye unanimously. Meeting adjourned at 3: 50 P. M. ADOPTED: 17)tMrJ; : 2.-/~ 171:> v MAYOR:~. L/, 4~ o~ ATTEST: j.t2~ City Clerk I