Minutes 01/21/1999 - Laserfiche WebLink

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