Minutes 01/22/1985 - Laserfiche WebLink

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" ~, t , TUESDAY JANUARY 22, 1985 .- Piedmont Trust Bank-United Virginia Bank-Dominion Bank-Sovran Bank, N.A. Twelve-year Bonds at initial interest rate of 6.50% and subsequent interest rates at 60% of Piedmont Trust Bank's Prime Rate, with guaranteed minimum rate of 6.25% and guaranteed maximum rate of 10.00%; guaranteed maximum annual payment of $198,200.00 (p & I); fee of $6,000.00. Piedmont Trust Bank-United Virginia Bank-Dominion Bank-Sovran Bank, N.A. Maximum term of 10 years and 3 months at interest rate of 8.00% for first three years and thereafter at 60% of Piedmont Trust Bank's Prime Rate, with guaranteed minimum rate of 6.25% and guaranteed max- imum rate of 10.00%; fixed annual payment of $204,000.00; fee of $6,000.00. -, Piedmont Trust Bank-United Virginia Bank-Dominion Bank-Sovran Bank, N.A. Ten-year bonds at fixed interest rate of 9.45%; fixed annual payment of $215,000.00; fee of $6,000.00. Dominion Bank (Roanoke, Virginia) Ten year bonds at maximum interest rate of 56% of Dominion's Commer- cial Base Rate, with guaranteed minimum rate of 5% and guaranteed maximum rate of 15%; interest expense savings feature as well as "put" feature and "line of credit facility" feature; plus in event of interest savings participation, annual remarketing fee of $13,500.00, plus approximately $1,000.00 for trustee fees initially and an addi- tional $1,000.00 annually for administrative fees. NOTE: All of the foregoing proposals provided for prepayments and/or "call" features, subject to conditions made a part of each proposal, as well as stipulated certain other conditions not enumerated above. Acting City Manager George W. Brown informed the Council that, predicated upon an analy- sis of projected Water Fund revenues and anticipated expenditures over the next ten years (allowing for no growth in revenue over the 1984-85 base of $1,493,230.00 and allowing for ,- an annual increase of 6% in expenditures but for no major water line expansion costs or for unanticipated major expenditures), the present water rate can support a debt service of $200,000.00 per year for approximately nine years. Mr. Howe, after comparing and analy- zing the fixed-rate proposals with one or more of the variable interest-rate proposals, noted that flexibility is offered and, too, the additional cost in interest to be paid on 20-year bonds (over that paid on 10-year bonds) might be offset by interest the City might earn on the difference between the annual debt services requirements required by the 10-year bonds (during the life if this type of issue) over the 20-year bonds. With the