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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☐ Safe & Prosperous |
☒ Motion |
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Finance |
☐ Active & Appealing |
☐ Resolution |
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☒ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☐ Connected & Engaged |
☐ Ordinance - Adoption |
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Procurement |
☐ Unique & Creative |
☐ Public Hearing |
TITLE:
title
Cooperative Purchase Agreement: Investment Banking Services
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SUMMARY RECOMMENDATION:
Summary Recommendation
Authorize a one-year professional services contract for Investment Banking Services with the option to renew annually for up to four additional years through a Crane School District Cooperative Purchase Agreement. Renewals are contingent upon funding appropriations and satisfactory performance to Stifel, Nicolaus & Company, Inc. of Phoenix, Arizona. (Finance-CPA-26-177) (Douglas Allen/Robin Wilson)
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STRATEGIC OUTCOME:
This item supports the City Council’s strategic outcome of Respected and Responsible by ensuring prudent management of public funds and using the knowledge of highly qualified firms to strengthen the City’s investment strategies.
REPORT:
Procuring investment banking services will aid investment management in the specialized area of tax-exempt utility system revenue obligation (bond) proceeds, which are funds raised through bonds that are exempt from certain taxes. Stifle’s expertise will help the City secure favorable financing terms. It will also ensure transparency and compliance with all regulatory requirements. This includes investing as allowed under Arizona Revised Statutes, the City’s Investment Policy, and Federal Arbitrage Restrictions, which are rules to prevent profit from differences in interest rates.
Stifle will also provide financial advisory services related to cash flow analysis, such as forecasting future cash needs, and bond proceed draw schedules, including timing and amounts of bond issuance. They will assist with financial reporting for investments by preparing quarterly reports and offer ongoing guidance on market trends, such as interest rate changes, and regulatory matters, such as new municipal finance regulations, that may impact the City’s financial position related to municipal investment management.
Stifle has been managing City proceeds from the Utility Service Revenue Obligations Series 2021 for the Desert Dunes plant expansion. This includes project financing, compliance monitoring, and reporting. This award would continue services with proceeds from the Utility Service Revenue Obligations Series 2025 and Excise Tax Revenue Obligations Series 2025 proceeds issued in November. It will encompass similar responsibilities such as financing, monitoring, and reporting.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 20,000.00 |
BUDGETED: |
$ 20,000.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING ACCOUNT/FUND #/CIP: |
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TOTAL |
$ 20,000.00 |
Proportionate share of all funds in the City’s investment pool. |
FISCAL IMPACT STATEMENT:
Like other investment management fees, fees for investing municipal bond proceeds are offset by investment earnings. Total program expenditures may exceed $100,000 over five years. Expenditure per investment depends on the amount invested.
The City’s investment programs earned $17.9 million in FY2025; $16.5 million in FY 2024; and $11.6 million in FY 2023. The use of investment earnings is excluded from the Arizona Expenditure Limitation.
Retaining professional investment services is vital to continued success for the City’s investment program.
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
NONE
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☒ Department
☐ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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John D. Simonton |
01/23/2026 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
01/23/2026 |