Laserfiche WebLink
<br />06 <br />v <br /> <br />TUESDAY, OCTOBER 14, 1986 <br /> <br />light of current market conditions and the effect of the recently-enacted <br /> <br />financial advisors (Wheat, First Securities), after studying this matter in <br /> <br />Federal Tax Bill, have projected gross savings of approximately $129,000 (and <br /> <br />the issue. Even so, Mr. Brown expressed his concern with respect to the <br /> <br />present value savings of approximately $100,000) by refinancing the balance of <br /> <br />question of whether the City should undertake the refunding of the bonds <br /> <br />(recognizing that the City has the legal right to call the outstanding bonds <br /> <br />refunding or refinancing might have an adverse financial impact on future <br /> <br />without penalty and to request new proposals for the principal balance) because <br /> <br />borrowings from local financial institutions. Mr. Brown stated, further, that <br /> <br />became due during the established ten-year pay-back period" and that "if <br /> <br />with everyone acting in good faith that the bond issue would paid as the bonds <br /> <br />"the bonds were issued at a very reasonable interest rate at that time of 8.5%, <br /> <br />interest rates had escalated, rather than decreased, the City would not have <br /> <br />agreed to increase interest payments to the bank". Meanwhile, Mr. Brown noted <br /> <br />that, should Council decide to pursue this matter, it will be necessary to <br /> <br />well as the City's legal advisory firm, whose services would probably cost <br /> <br />enter into agreements or contracts with the City's financial advisory firm as <br /> <br />$5,000 each to assist in the refunding procedures. Mr. William P. Heath, Jr., <br /> <br />Senior Vice President of United Virginia Bank (Martinsville), informed Council <br /> <br />that, in his opinion, refinancing of the issue ......makes sense (if) at an <br /> <br />ratios at some banks; whereas, Mr. David A Chaffins, Investment Officer of <br /> <br />particularly because of tax-free interest vs. taxable interest conditions or <br /> <br />appropriate rate...... but the present time might not be the best time to do so, <br /> <br />refunding the bonds should not represent much risk (in obtaining favorable <br /> <br />Piedmont Trust Bank, suggested that for the City to postpone refinancing or <br /> <br />interest rates vs. interest rates it might obtain at an earlier date), although <br /> <br />timing on inviting bids or proposals will not be much of a factor insofar as <br />