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Austin Sells $6.5M Utility Bonds

Friday, March 6, 1959 regular
  • The city opened bids for major financial bonds, including $6.5 million specifically for improvements to Austin's electric, water, and sewer systems, along with $1 million in general obligation bonds.
  • Council accepted the most favorable bid from The First Boston Corporation for the $6.5 million utility revenue bonds.
  • This decision authorized the City Manager to sell these bonds, securing significant funding for essential infrastructure upgrades at an effective interest rate of 3.46718%.
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MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Regular Meeting March 06, 1959 Council Chamber, City Hall The meeting was called to order with Mayor Miller presiding. Roll call: Present: Absent: Councilmen Long, Palmer, Pearson, White, Mayor Miller None * * * * In accordance with published notice thereof, promptly at 10:00 o'clock A. M., Mayor Miller announced that the time for submitting bids on the purchase of City of Austin, Texas Electric Light and Power, Waterworks and Sewer System Revenue Bonds, Series 1959 in the amount of $6,500,000.00, and City of Austin, Texas General Obligation Bonds, Series 1959, in the amount of $1,000,000.00, had expired, and that the City Council would proceed with the opening of said bids. Bids were then opened and read as follows: -5- NAME OF BIDDER 1. THE FIRST BOSTON CORPORATION AND ASSOCIATES (Supplement Coupons) 2. HALSEY, STUART & CO., INC. AND ASSOCIATES CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $6,500,000 ELECTRIC, WATER AND SEWER REVENUE BONDS MARCH 26, 1959 MATURITY DATES NOMINAL INTEREST RATE GROSS INTEREST COST PREMIUM OFFERED NET INTEREST COST EFFECTIVE INTEREST RATE Apr. 1, 1962 thru Apr. 1, 1976 Apr. 1, 1977 thru Apr. 1, 1983 3.30 % 3.40 % Jun. 1, 1959 thru Apr. 1, 1962 .60% $4,446,145.00 $ $4,446,145.00 3.46718 % Apr. 1, 1962 thru Apr. 1, 1975 4.00 % Apr. 1, 1976 thru Apr. 1, 1976 thru Apr. 1, 1977 3.50 % Apr. 1, 1978 thru Apr. 1, 1983 3.40 % 4,465,550.00 4,465,550.00 3.48231 % Apr. 1, 1962 thru Apr. 1, 1972 4.00 % Apr. 1, 1973 thru Apr. 1, 1977 3.40 % Apr. 1, 1978 thru Apr. 1, 1983 3.50 % 4,468,830.00 1,235.00 4,467,595.00 3.4839 % 3. EASTMAN DILLON, UNION SECURITIES AND CO. AND ASSOCIATES Kidder, Peabody & Co. L. F. Rothschild & Co. Coffin & Burr, Incorporated R. S. Dickson & Co. Eldredge & Co. King, Quirk & Co., Incorporated Geo. B. Gibbons & Co., Inc. Andrews & Wells, Inc. Park, Ryan, Inc. Talmage & Co. 4. PHELPS, FENN & CO. C. J. Devine & Co. Rauscher, Pierce & Co., Inc. and Associates 5. LEHMAN BROTHERS, FIRST SOUTHWEST COMPANY & ASSOCIATES Apr. 1, 1962 thru Apr. 1, 1974 Apr. 1, 1975 thru Apr. 1, 1978 Apr. 1, 1979 thru Apr. 1, 1983 Apr. 1, 1962 thru Apr. 1, 1975 Apr. 1, 1976 thru Apr. 1, 1978 Apr. 1, 1979 thru Apr. 1, 1983 Apr. 1, 1976 Apr 4.00 % 3.60 % 3.40 % 4,474,070.00 4,474,070.00 3.4889 % 4.00 % 3.50% 3.40% 4,477,995.00 3,900.00 4,474,095.00 3.4890 % * * tion: At this time Councilman Pearson left the Council Room. Councilman Long offered the following resolution and moved its adop(RESOLUTION) WHEREAS, the First Boston Corporation and Associates, acting by and through its duly authorized agent and representative, A. E. Kirtley, this day submitted to the City Council its proposal for the purchase of $6,500,000.00 City of Austin, Texas Electric Light and Power, Waterworks and Sewer System Revenue Bonds, Series 1959, with net interest cost to the City of $4,446,145.00 with an effective interest rate of 3.46718%, with no bond to bear interest in excess of 4%; and, WHEREAS, the said bid and proposal of The First Boston Corporation and Associates was the most advantageous bid submitted to the City Council for the purchase of the aforesaid bonds; Now, Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AUSTIN: That the City Manager be and he is hereby authorized and directed to sell to The First Boston Corporation and Associates the $6,500,000.00 City of Austin, Texas Electric Light and Power, Waterworks and Sewer System Revenue Bonds, Series 1959 as per the City's Notice of Sale and Prospectus dated February 26, 1959, at par and accrued interest from date of delivery according to the terms of said bid hereinbefore set out. vote: The motion, seconded by Councilman Palmer, carried by the following Ayes: Noes: Councilmen Long, Palmer, White, Mayor Miller None Absent: Councilman Pearson * * * There being no further business, the Council adjourned at 5:00P.M., subject to the call of the Mayor. APPROVED /s/ Tom Miller Mayor ATTEST: /s/Elsie Woosley City Clerk 8- CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $6,500,000 ELECTRIC, WATER AND SEWER REVENUE BONDS MARCH 26, 1959 NAME OF BIDDER MATURITY DATES NOMINAL INTEREST RATE GROSS INTEREST COST PREMIUM OFFERED NET INTEREST COST EFFECTIVE INTEREST RATE 6. THE FIRST BOSTON CORPORATION AND ASSOCIATES 7. GLORE, FORGAN & CO. AND ASSOCIATES 8. DREXEL & CO. AND ASSOCIATES Apr. 1, 1962 thru Apr. 1, 1974 Apr. 1, 1975 thru Apr. 1, 1977 Apr. 1, 1978 thru Apr. 1, 1983 Apr. 1, 1962 thru Apr. 1, 1981 Apr. 1, 1982 thru Apr. 1, 1983 4.00 % 3.40 % 3.50% $4,479,270.00 $ 3.50 % 3.60 % 4,524,075.00 Apr. 1, 1962 thru Apr. 1, 1974 Apr. 1, 1975 thru Apr. 1, 1976 Apr. 1, 1977 thru Apr. 1, 1983 4 % 3.70 % 3.50 % 4,550,280.00 $4,479,270.00 3.49301 % 1,780.00 4,522,295.00 3.526568 % 4,550,280.00 3.54839 % Each of the above and foregoing bids was accompanied by Cashier's-Certified check in the amount of $130, 000, 00, Whereupon bids were referred to the Director of Finance for tabulation and report.