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TUESDAY. APRIL 28~ 1998 <br />Council next considered the need to conduct a Public Hearing regarding the issuance, on an emergency basis, <br /> <br />of up to a $2,000,000 General Obligation Note for the purposes of assisting in redevelopment projects and <br />general property improvements in the City. Mayor Adams opened the Public Hearing and Mr. Earl B. <br />Reynolds, Jr., City Manager, noted the options that had been considered for the acquisition of the funds in <br />question, and then recommended a two-year financing program at a 3.95% interest rate, stating that at the end <br />of the two-year period the note could be paid off, re-financed, or other options could be examined at that <br />time. Vice-Mayor Crabtree asked at what rate the borrowed funds might be invested, and was told that the <br />exact figure was not yet known, but that it would be at a rate in excess of 5.2%. Mr. Paul Jacobson, Bond <br />Attorney with the firm of Sands, Anderson, Marks and Miller, was present to answer questions, and Council <br />Member Haskell asked Mr. Jacobson whether any changes had occurred with regard to the intended issue <br />since publication of the Public Hearing Notice. Mr. Jacobson stated that no changes had occurred and that, <br />except for the use of the funds, the process on this issue was the same as that of the funds acquired recently <br />for school needs. Council Member Dallas asked if the City would earn interest on all unexpended funds, and <br />this was confirmed. Vice-Mayor Crabtree and Council Member Teague asked what the arbitrage percentage <br />would be, and Mr. Wade Bartlett, Director of Finance, stated that he expected it to be about 1.5%. Council <br />Member Haskell then asked Tom Harned, Assistant to the City Manager for Development, when the W. M. <br />Bassett demolition project would be finished, and was told that it would be completed by mid-summer. Mrs. <br />Haskell then confirmed that payments would be made from the funds in question from the Note until this <br />work was finished. Mr. Bartlett reminded Council that in a similar school bond arrangement the city had <br />earned some $20,000 more in arbitrage earnings than had been paid in interest. Council Member Teague <br />remarked that borrowing funds on the proposed basis was a much better strategy than taking funds out of <br />savings that were invested in CD's earning interest at 8% or more. Mr. Tim Martin of Martin Associates then <br />asked what projects the funds would be used for, and was told that the W. M. Bassett and Tultex demolition <br />projects were examples of how the funds would be used. Mr. Teague pointed out that as long as the funds <br />were used for property improvements on pub~property the money could be put to a variety of uses. Mr. <br /> <br /> <br />