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<br />4~ <br /> <br />TUESDAY <br /> <br />DECEMBER 11, 1984 <br /> <br />..- <br /> <br />At the request of the Blue Ridge Regional Library Board, Council postponed consider- <br /> <br />ation of matters pertaining to the Library (and its proposed expansion of its head- <br /> <br />quarters facilities) to one of Council's January (1985) meetings. <br /> <br />- <br /> <br />Mr. Jack Howe, Senior Vice-President of Wheat, First Securities, Inc., the City's <br /> <br />financial advisor for its water system improvements program, appeared before Council <br /> <br />and recommended that, predicated on the principal-interest payment structure presented <br /> <br />to him by the City, the City advertise publicly and invite public investor bids for <br /> <br />the $1,350,000 General Obligation (Water) bonds the City proposes to sell to help <br /> <br />finance the City's cost of the Leatherwood Raw Water Line, with annual debt service <br /> <br />requirements to be somewhat level. Mr. Howe, further, along with City Manager Edmonds, <br /> <br />proposed that bids be received and opened by mid-January of 1985, which is deemed an <br /> <br />opportune time to obtain a favorable interest rate (estimated to be between 9.75% and <br /> <br />10%, based on the City's "A-1" bond rating by Moody's Investors Service), with the <br /> <br />"closing" date thereon probably on Janllary 30th, in order that the City might have <br /> <br />sufficient funds (including those already budgeted) to pay the Henry County Public <br /> <br />Service Authority the City's cost of said raw water line, which cost--pending testing <br /> <br />and acceptance of the line--is expected to be due and payable in January of 1985. <br /> <br />To implement and put into action the foregoing financing proposal, an ordinance was <br /> <br />presented which would authorize the City to issue and sell its General Obligation <br /> <br />bonds in the amount of $1,350,000 for water system improvements, to be dated January 1, <br /> <br />1985, and to mature annually over a period of twenty years, for which the annual level <br /> <br />debt service was estimated to be $155,000.00 each year of the twenty years. (Note: <br /> <br />City Manager Edmonds informed Council that one-half year's interest cost was bud- <br /> <br />geted for 1984-85 but will not be needed inasmuch as the first interest payment under <br /> <br />the proposed ordinance will not be due until the 1985-86 budget year. Mr. Edmonds, <br /> <br />in response to an inquiry, also estimated the costs related to selling the bonds, such <br />