Agenda 09/28/1999 - Laserfiche WebLink

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Vote: 5-0 Yeas: (5) Crabtree, Dallas, Haskell, Roop, Teague. Nays: (0) None. TUESDAY, JUNE 8, 1999 146 Council next considered adoption of a Supplemental Ordinance amending the Ordinance of City Council authorizing the Issuance of up to $4,200,000 principal amount of General Obligation Refunding Bonds of the City of Martinsville, Virginia, and providing for the form, details and payment thereof. City Manager Reynolds provided a brief history of the bonds to be refunded, stating that in 1997 $2 million in School Bonds had been acquired, $1 million for Technology and $1 million for Capital Improvements. Thereafter an additional $2 million had been acquired to provide for redevelopment of the City' s property at the Rives Road Industrial Park, the acquisition and demolition of the old Tultex facility on Moss Street, and the purchase of the former Tultex Uptown headquarters on Church Street. Mr. Reynolds stated that a balance of $600,000 remained in the General Fund from the total of $4 million borrowed, and that all the funds acquired had been obtained through temporary financing mechanisms. He stated that the City had since gone to the bond market for permanent, long term financing of the debt, and had achieved excellent results in interest rates. Mr. Darrell Hill of Davenport and Associates, the City' s finance advisors, then spoke, stating that bonds to cover the debt of approximately $4.2 million had received interest rates and maturity dates of 3.3% in 2000 and 5.1% in 2019, for a blended rate of the entire sale of 5.5%. Mr. Hill further stated that national indices on current bond rates showed typical rates of 5.14% for a maturity date of 2019, demonstrating that the City' s triple A bond rating had achieved interest cost savings of approximately $110,000. Council Member Haskell asked ivhat the bond insurance on the issue had cost, and was told that