RES 2004-1577 - Special assessment financing for special assessment fund account /11Se-
RECEIVED
Finance Department
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'TFa FE84o1, G( CLERK
C N A H A a I1 r. Carol A.Ebdon
City of Omaha Director
Mike Fahey,Mayor
Allen R.Herink
City Comptroller
December 14, 2004
Honorable President
and Members of the City Council,
"Section 5.25 Special Assessment Financing" of the Home Rule Charter of the City of Omaha,
1956,. provides that the City Council may augment the cash balance in the Special Assessment
Fund Account at any time the cash on hand is inadequate for current rdquirements. In order for
the Fund to meet its obligations to contractors for work in place, which is to be ultimately.
assessed to benefited property owners, it is necessary to continue bank borrowings to supplement
cash balances. Projections indicate the need to borrow $1.396 million. The following is a
schedule of borrowings from banks during the past 10 years:
1995 4,600,000 2000 3,600,000
1996 4,900,000 2001 1,750,000
1997 5,100,000 2002 1,260,000
1998 4,500,000 2003 1,215,000
1999 4,200,000 • 2004 1,396,000
Notice for bid was placed in the November 17, 2004, Daily Record. In addition, Requests for
Proposals were sent out to 15 financial institutions in Omaha who had expressed interest in these
borrowings during previous years. All proposals were opened in the City Clerk's Office at 11:00
a.m. on December 1, 2004. Proposals submitted were:
Rate of Interest
First National Bank of Omaha 2.96%
U. S. Bank 3.54%
Security National Bank of Omaha 4.75%
Great Western Bank 5.01%
Currently the National Prime Rate is 5.00% and the Discount Rate is 2.00% (FRB). Last year's
interest rate that the City of Omaha paid was 2.22%.
Honorable President
and Members of the City Council
Page -2-
As indicated below, there is adequate collateral for the loan coverage:
As of November 1, 2004
Assessments and Billings Receivable $3,505,579
Payments to Contracts for Work in Place:
Contracts completed awaiting assessment 458,758
Contracts in process of construction 484,548
Total Collateral Available for Borrowing Purposes $4,448,885
Borrowing Limitation 90% of Collateral $4,003,997
Of the proposals received, First National Bank of Omaha, Omaha, Nebraska, is the best proposal.
We recommend accepting their proposal.
Respectfully submitted, Referred to City Council for Consideration:
la-LAX Ok•
Carol A. Ebdon Date Mayor's Office Date
Finance Department
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THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (the
"'33 ACT") AND MAY NOT BE TRANSFERRED, ASSIGNED, SOLD OR
HYPOTHECATED UNLESS A REGISTRATION STATEMENT UNDER THE '33 ACT
SHALL BE IN EFFECT WITH RESPECT THERETO AND THERE SHALL HAVE BEEN
COMPLIANCE WITH THE '33 ACT AND ALL APPLICABLE RULES AND
REGULATIONS THEREUNDER, OR THERE SHALL HAVE BEEN DELIVERED TO THE
CITY OF OMAHA PRIOR TO TRANSFER, ASSIGNMENT, SALE OR HYPOTHECATION
AN OPINION OF COUNSEL, SATISFACTORY TO THE CITY OF OMAHA TO THE
EFFECT THAT REGISTRATION UNDER THE '33 ACT IS NOT REQUIRED.
GENERAL OBLIGATION NOTE OF THE CITY OF OMAHA
No. 04-A $1,396,000
The City of Omaha in the County of Douglas, a city of the metropolitan class and a
Municipal Corporation duly existing under the laws of the State of Nebraska, hereby
acknowledges itself indebted and for value received promises to pay to First National Bank of
Omaha, Omaha, Nebraska, or order, the sum of One Million Three Hundred Ninety-Six
Thousand Dollars ($1,396,000) on the 23rd day of December, 2005, with interest thereon from
the date at the rate of Two and Ninety-Six Hundredths percent (2.96%)per annum.
This note is issued pursuant to the provision of a resolution entitled Resolution No.
55 7 7 , series of 2004 duly adopted by the City Council of the City of Omaha on the 14`"
day of December, 2004.
The City of Omaha is held and firmly bound and its full faith and credit, taxing power
and revenue, and all its real and personal property including the accounts receivable in the
Special Assessment Fund Account, are hereby pledged for the prompt payment of the principal
sum of this note and the interest accruing thereon.
It is hereby certified, recited and declared that all acts, conditions and things required by
law to be done and to exist precedent to, in order to lawfully authorize the issuance of this note,
have been properly and lawfully done and performed and do exist in regular and due form as
required by the Constitution and laws of the State of Nebraska and the City Charter and
ordinances of the City of Omaha.
IN WITNESS THEREOF, THE City of Omaha has caused this note to be signed by its
Mayor and its corporate seal to be hereunto fixed and attest by its City Clerk and this note to be
dated as of the 24` day of December, 2004.
CITY OF OMAHA,A MUNICIPAL CORPORATION
SEAL �^ /2 �C/d
Mayor of the City f Omaha
ATTEST: ,,/ /
City Clerk of the City of Omaha •
�Y��/�� '�P P O LD'AS 'O QR ;:
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• C-26A, CITY OF OMAHA
LEGISLATIVE CHAMBER
, Omaha,Nebraska
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, Section 5.25 of the Home Rule Charter of the City of Omaha, 1956,
as amended, provides that the City Council may augment the cash balance in the Special
Assessment Fund Account when the same is inadequate for current requirements by offering for
sale either at public or private sale general obligation notes limited as to amount and term by the
provisions of Sections 5.27 and 5.29, as amended, of said Charter; and,
WHEREAS, the cash on hand in the Special Assessment Fund Account is
inadequate for current requirements; and,
WHEREAS, the current requirement of One Million Three Hundred Ninety-Six
Thousand Dollars ($1,396,000) does not exceed the limit provided in Section 5.27(4), as
amended, of said Charter, the same being quoted precisely: "Notes issued to provide cash for the
Special Assessment Fund shall not exceed ninety percent of the sum of: (a) Assessments
receivable, and (b) The contract amounts for work in progress which is ultimately to be assessed
against property"; and,
WHEREAS, the proposal to purchase 2004 General Obligation Note No. 04-A at
the lowest interest cost to the City of Omaha for temporary financing evidenced by the copy of
the General Obligation Note of the City of Omaha, attached hereto and made a part hereof and
identified as:
Number of Amount of Term of •
Note Obligee Note Note
No. 04-A First National Bank of Omaha $1,396,000 12/24/04 to
Omaha,Nebraska 12/23/05
WHEREAS, the Finance Director of the City of Omaha has recommended said
temporary financing; and,
By
Councilmember
Adopted
City Clerk
Approved
Mayor
N C-15A
CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
PAGE 2
WHEREAS, in order to issue said general obligation note, all conditions and
requirements have been properly and lawfully done and performed and do exist in regular and
due form as required by the Constitution and laws of the State of Nebraska and the City Charter
and ordinances of the City of Omaha.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
THAT, Mike Fahey, Mayor of the City of Omaha, or any acting Mayor of the
City of Omaha, and Buster Brown, City Clerk of the City of Omaha, or any Deputy City Clerk of
the City of Omaha, be, and they are authorized and directed to execute and attest, respectively,
General Obligation Note No. 04-A of the City of Omaha in the amount of One Million Three
Hundred Ninety-Six Thousand Dollars ($1,396,000) payable to First National Bank of Omaha,
Omaha, Nebraska; the General Obligation Note to be issued December 24, 2004, and maturing
December 23, 2005, with interest thereon at the rate of Two and Ninety-Six Hundredths percent
(2.96%)per annum to temporarily finance the Special Assessment Fund of the City of Omaha.
BE IT FURTHER RESOLVED:
THAT, the General Obligation Note in the principal amount of One Million Three
Hundred Ninety-Six Thousand Dollars ($1,396,000) and the interest thereon be payable from the
Special Assessment Fund Account.
P:\FIN\11520pjm.doc APPRO AS TO FORM:
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Oyu C Y DATE
By 'i`I 1)aialefi
Councilmember
Adopted - DEC 1 4 2 04 �-O
1 City Clerk /
Approved. 4 /b/�7
, Mayor
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