Minutes 10/14/1997 - Laserfiche WebLink

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36 TUESDAY, OCTOBER 14, 1997 the City's share of current Architectural and Engineering expenses related to the expansion of the W. W. Moore Juvenile Detention Facility, in Danville, Virginia. City Manager Reynolds reviewed the history of events to date, with regard to the expansion of the above facility and the City's involvement in the project. Mr. Reynolds also noted that the average daily cost to house juvenile offenders within the region was about $70 per day, and that the projected per diem cost in the W. W. Moore facility, including the portion of per diem devoted to debt service on the capital construction, was about $69. Mr. Reynolds also stated that our share of this debt service, when paid as a portion of'our per diem costs, would not affect the City's debt obligation, and that there would not be the ability to arbitrage the bond proceeds as was the case in the City's recent school construction loans. Upon motion duly seconded, and by unanimous vote, City Council authorized the transfer of $9,956 from the Electric Fund Unexpended Fund Balance to Account # 01-910300-3002007, W. W. Moore Study under General Expense in the General Fund. Councilmember Teague noted that this was a good example of regional cooperation, and Councilmember Haskell noted it was also an example of the large cost for such facilities. Council next considered the authorization of an appropriation of $7,000 for professional services rendered for the $2,000,000 bond financing for school projects. Mr. Reynolds noted that the projects for which these funds were intended were well under way. In response to a question from the Mayor, Mr. Reynolds confirmed that the City was earning 6% interest on investment of the funds, paying 4% interest on the loan, and would manage the draw downs against the loan to maximize arbitrage earnings. Upon motion duly seconded, and by unanimous vote, Council authorized an appropriation of $7,000 from the Meals Tax Unexpended Fund Balance to Account # 18-620200-3002010, Legal Services, Office of Superintendent in the School Fund.