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.224 <br />' 'TilURSDAY. JANUARY 21. 1999 <br /> reimbursement from the State; no reimbursement, 25% reimbursement and 50% reimbursement. In each <br /> scenario presented the debt ratio figures produced were strong enough to obtain an A bond rating for the <br /> City, according to Mr. Rose, even the highest debt, lowest reimbursement scenario, with no tax increase <br /> required in any situation shown. <br /> <br /> Further discussion then took place concerning the bond rating process and issues related to this, <br /> including revenue projections used, anticipated source of revenues to support debt service, bond repayment <br /> schedules, arbitrage potential, timing for getting a bond rating and for going to the bond market, and costs <br /> versus benefit for getting a bond rating. Mr. Rose proposed that Council act at their next meeting to approve <br /> an ordinance to propose issuance of up to $7.5 million, to provide funding for the Albert Harris School <br /> project. In addition, he proposed that Council give approval for City officials and members of their <br /> organization to go to New York to obtain a bond rating for the community. These actions were .proposed in <br /> order to complete interim financing for the school project by April 1, 1999. Estimated cost to obtain a bond <br /> rating for the City was stated at $25,000-$30,000, with savings in debt financing costs estimated to be in the <br /> hundreds of thousands of dollars. Mayor Crabtree noted that the last such interim financing the City did <br /> resulted in nearly $.5 million in arbitrage earnings. Mr. Rose 'stated that he did not believe earnings at the <br /> same level would be achieved in this issue, but that some arbitrage would be possible. Wade Bartlett, City <br /> Director of Finance, stated that the sooner the funds were borrowed the sooner arbitrage earnings would <br /> begin.- He characterized the potential loss at as much as $1,000 per day for each day of lost arbitrage <br /> earnings. Vice-Mayor Teague summarized by stating that his understanding of staffs recommendation to be <br /> that the Council should act to approve the ordinance to issue bonds in the mount of up to $7.5 million as <br /> soon as possible, that a bond rating should be sought immediately, and that the total amount of bonds to be <br /> financed at this time would be the amount for the school project plus a re~nancing of $4 million in existing <br /> debt. Mr. Reynolds and Mr. Rose confirmed this understanding. Council Member Haskell then asked that <br /> the revised comparison analysis show and discuss Enterprise Fund balances for all jurisdictions, as well as <br /> <br /> <br />