HomeMy WebLinkAboutVILLAGE BOARD - 04/15/1986 - SPECIAL MEETING/BONDS MINUTES OF THE SPECIAL MEETING OF
THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF ELK GROVE VILLAGE
HELD ON APRIL 15, 1986
President Charles J. Zettek called the meeting to order at 6:47 p.m. in the
Municipal Building, 901 Wellington Avenue, Elk Grove Village and noted for
the record that the following were present: Trustees Joseph T. Bosslet,
Dennis J. Gallitano, Edward R. Hauser, James P. Petri ; Michael A. Tosto;
ABSENT: Ronald L. Chernick. Village Manager, Charles A. Willis; Village
Attorney, George Knickerbocker; and Village Clerk, Patricia S. Smith were
present at this meeting.
President Zettek stated that the purpose of the Special Meeting tonight is
to consider the issuance of $9,750,000 of Corporate Purpose Bonds for the
Village of Elk Grove, Cook and DuPage County, and also to provide for the
levy to pay back the principal and interest on those Bonds.
The President asked if anyone on the Board or in the audience wished to
address this issue.
Mr. Peterson, of John Nuveen and Co. , Incorporated, said there are a
couple of things that are important to know regarding this issue:
1. John Nuveen & Co. put together a preliminary Official
Statement and records of the Village and sent them to
Moody's Investment Services to seek a credit rating on
the Village. The Village was given a high grade
credit of AA, this is topped only by their AAA
rating. This is a reflection of the general wealth,
well being and the way the Village is being managed.
A report from Moodys should be received later this
week and copies will be sent to the Village.
2. Bids were received from two firms as follows:
Account Managers Amount Bid True Interest Cost
The Northern Trust $9,558,397.50 7.5662%
Company
Merrill Lynch $9,457,571.80 7.1631%
Capital Markets
Mr. Peterson recommended the acceptance of the Merrill
Lynch Capital Markets Bid and stated that it was a very
good bid and the best reported in the market yesterday.
Mr. Peterson informed the Board of a comparison of Bonds issued by various
other cities throughout the United States and that the long term Tax
Exempt Bonds are yielding more than long term U.S. Government Bonds which
traditionally are at 70 to 80 percent of the yield on Treasury Bonds.
Mr. Peterson stated that this offering does not comply with what the House
Ways and Means Committee and the U.S. House of Representatives passed in
December of 1985. This is a straight, old-fashioned General Obligation
Bond.
Discussion followed regarding the stipulation of House Bill 3838 and the
tax free status of these Bonds.
The President asked if these Bonds can be called in at any time and was
informed that Bonds maturing on and after December 31, 1996 shall be
subject to optional redemption at par plus accrued interest.
It was moved by Trustee Petri and seconded by Trustee Tosto that the Board
waive the first reading rule of an ordinance as it pertains to the
issuance of $9,750,00 of Corporate Purpose Bonds. The motion was voted
upon by acclamation; whereupon the President declared the motion carried.
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It was moved by Trustee Petri and seconded by Trustee Tosto that the Board
adopt Ordinance No. 1794 entitled, "ORDINANCE SUPPLEMENTING AN ORDINANCE
PROVIDING FOR THE ISSUANCE OF $9,750,000 OF CORPORATE PURPOSE BONDS,
SERIES 1985, OF THE VILLAGE OF ELK GROVE VILLAGE, COOK AND DUPAGE
COUNTIES, ILLINOIS, AND PROVIDING FOR THE LEVY OF A DIRECT ANNUAL TAX FOR
THE PAYMENT OF PRINCIPAL OF AND INTEREST ON THOSE BONDS". The President
directed the Clerk to call the roll on the motion and upon the roll being
called the following answered AYE: Trustees Bosslet, Gallitano, Hauser,
Petri , Tosto; NAY: none; ABSENT: Chernick; whereupon the President
declared the motion carried.
It was moved by Trustee Bosslet and second by Trustee Petri that the
meeting be adjourned. The motion was voted upon by acclamation; whereupon
the President declared the motion carried and the meeting adjourned at
7:10 p.m.
Patricia S. Smith
Village Clerk
Charles J . Zettek
Village President
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