HomeMy WebLinkAbout2007-10-17 Special Meeting MinutesMINUTES OF THE
OCTOBER 17, 2007, SPECIAL MEETING OF THE BOARD OF TRUSTEES
OF THE VILLAGE OF MORTON GROVE
RICHARD T. FLICKINGER MUNICIPAL CENTER -TRUSTEES CONFERENCE ROOM
6101 CAPULINA
MORTON GROVE, ILLINOIS 60053
Pursuant to proper notice in accordance with the Illinois Open Meetings Act, the Special Meeting was
called to order at 7:00 pm by Mayor Richard Krier.
Clerk Carol A. Fritzshall called the roll. In attendance were:
Elected Officials: Mayor Richard Krier, Trustee Georgianne Brunner, Trustee Shel
Marcus, Trustee Rita Minx, Trustee Dan Staackmann, Trustee John Thill
Absent: Trustee Roy Kogstad
Village Staff: Village Administrator Joseph F. Wade, Corporation Counsel Teresa
Hoffman Liston, Finance Director Daniela Partipilo, Community and
Economic Development Director Bill Neuendorf
Also Present Kevin McKenna from Speer Financial and two members of the public
President Krier announced the purpose of this evening's meeting was to report on the bid of the
Village's bond sale. Village Administrator Joseph Wade reported ten companies participated in the
bid. The lowest bidder was Griffin, Kubik, Stephens & Thompson, Inc., with an interest rate of
3.920%. Ms. Partipilo stated the Village was interviewed very thoroughly by Moody's, resulting in a
highly favorable bond rating of Aa3.
Kevin McKenna from Speer Financial reported there were bidders from seven states with a total of
twenty bids. This was significant because typically they receive five to six bids. Mr. McKenna
reported the bid offering was "a very attractive piece of paper" reflecting the Village's strong bond
rating which was based on "Morton Grove's mature tax base experiencing steady growth, strong fiscal
management yielding ample reserves, home rule status which creates substantial operating flexibility,
and moderate debt burden that is expected to remain manageable". Mr. McKenna then entertained
questions from the Board. He explained the difference between bond ratings. He noted all the bidders
were qualified and required to produce a surety bond representing they would pay two percent (2%) of
the bond proceeds by 3:00 pm on October 18, 2007. Griffin, Kubik is the strongest or second strongest
seller of Illinois bank qualified paper. Most of its customers are banks. He then explained the
significance of having a 4% coupon which was very attractive to investors.
Mr. McKenna also explained the involvement of Speer Financial in the sale of these bonds began in
2004 and included the creation of the Village's official statement, working with Moody's regarding the
Village's bond rating, sending the official statement to over 200 purchasers, posting the bid
information and official statement on its web site and sending that information to 25 firms. Speer
structured the sale which occurred on-line. Their services will continue through the closing of the sale
and they will be paid based on the size of the issuance.
There being no further discussion, Trustee Minx moved to accept the bid of Griffin, Kubik the motion
was seconded by Trustee Marcus and approved unanimously pursuant to a voice vote.
Trustee Staackmann asked, given this attractive interest rate, whether the Village should consider
refinancing some of its other debt. Mr. McKenna stated they had researched this and refinancing at
this time was not attractive, based on the current interest rate of the Village's other debt. However,
Speer Financial will continue to monitor interest rate fluctuations and will advise the Village
accordingly.
Mr. McKenna also noted the Village's issuance as bank qualified debt saved the Village approximately
$225,000. Trustee Staackmann also asked whether any of the bond proceeds could be used to pay off
some of the Village's existing loans to purchase property in the TIF District. Bill Neuendorf replied
staff would investigate this inquiry.
There being no further business, Trustee Minx moved to adjourn the meeting. The motion was
seconded by Trustee Marcus and approved unanimously pursuant to a voice vote at 7:17 pm.
Minutes by: Carol A. Fritzshall, Village Clerk
PASSED THIS 22°d day of October 2007.
Trustee Brunner
Trustee Kogstad
Trustee Marcus
Trustee Minx
Trustee Staackmann
Trustee Thill
APPROVED BY ME THIS 22°d day of October 2007
Richard Krier, Village President
Village of Morton Grove
Cook County, Illinois
ATTESTED and FILED in my office
This 23`d day of October 2007
Carol A. Fritzshall, Village Clerk
Village of Morton Grove
Cook County, Illinois
legis~minutes~specialmeetingminutes.l0-17-07