Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Bonds topic
No spam. Unsubscribe anytime.
Muskogee board accepts UMB Bank bid, approves $6.825 million bond resolution
Summary
The Muskogee Board of Education accepted the low bid from UMB Bank for a $6,825,000 general-obligation bond issue and approved a bond resolution that prescribes forms, registration and a levy to repay principal and interest.
The Muskogee Board of Education voted to accept a low bid from UMB Bank of Kansas City and approved a bond resolution authorizing $6,825,000 in general-obligation building bonds.
Board members voted verbally in favor of both measures after hearing staff explain the bids, the continuing-disclosure obligations for the issues and the mechanics of registration and tax levy for repayment.
Board staff described two sets of continuing-disclosure obligations tied to the district's borrowing. A staff member said, “You have two different continuing disclosure or obligations that are related. For the general obligation policy, you're issuing directly. You have to file your audit and the updated financial and operating data that we use in the offering documents,” and explained that similar filings are required for the revenue-financed portion because the district is the beneficiary of acquisition payments. The staff member said those filings are submitted to the Electronic Municipal Market Access system run by the Municipal Securities Rulemaking Board and noted the SEC established the underlying disclosure rule for municipal offerings.
The board received and reviewed four bids for the sale. The bids and the net interest costs as reported to the board were: Rockman (net interest cost $1,249,400; average rate 5.222153%); UMB Bank of Kansas City (net interest cost $1,057,892.88; average rate 4.421705%); American Heritage Bank (net interest cost $1,076,100.53; average rate 4.497808%); and Country Club Bank (net interest cost $1,000,001.27; average rate 4.713166%). Staff told the board that state law requires acceptance of the lowest responsible bid, and recommended accepting the UMB Bank offer.
A board member moved to accept the UMB Bank bid; another member seconded. The board voted in favor, and the motion carried. The board then voted to approve the bond resolution — described in the agenda as prescribing bond form, providing for registration, designating a paying agent/registrar and providing for the levy of an annual tax for payment of principal and interest — and that motion also carried on a voice vote.
Following the votes the board adjourned.
