02-23-1998 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING HELD ON FEBRUARY 23, 1998 ( #2 - Advance Refunding of City Facilities Bonds - Continued) • Jabbour noted the bond is an HRA Bond. He asked if there would be any savings for the City if they accumulate this bond with others, such as those used for sewering projects. Drude said the financing needs to be separated but if done within a short period of time, there would be savings on some fees as some information would remain the same. In response to a question from Kelley, Drude explained how the process works. The $2.4 million in cash would be placed in escrow. She recommended the escrow be invested in SLGS and issued to coincide with the payment date and carrying the maximum interest rates available at that time. Kelley was informed that the money in escrow would be invested with an interest rate similar to that of the bonds. Drude reviewed the process taken for making this decision. Bids are taken and rates are calculated and reviewed by a CPA and Bond Counsel. The escrow agent used is the City's decision but would be a major bank. Drude indicated the rates are locked in when the award is made. Moorse indicated the HRA has to take action on March 23 along with the Council. Jabbour asked Drude if she felt this action was appropriate. Drude said she would inform the Council if any changes occur in interest rates prior to the bid date. If so, the matter can be placed on hold. Drude indicated that if the sale was held and bids were rejected, the only cost incurred would be that from Moody Investors Service of 60% of the cost or • about $2500. Drude said she would not recommend the refunding if the present value savings were barely over 3% but feels the 4% savings is respectable. She noted that it is impossible to determine what will occur to the interest rates in the future. Council agreed to move forward with the advance refunding of the City facilities' bond sale. Jabbour asked Staff to review what other bonds are being considered for possible savings. Kelley moved, Goetten seconded, to adopt Resolution No. 4032 calling for an advance refunding bond sale of the HRA City facilities' bonds on March 23, 1998. Vote: Ayes 4, Nays 0. ZONING ADMINISTRATOR'S REPORT ( #4) #2290 ELAINE AND STEVE SILUS, 3225 CASCO CIRCLE - CONDITIONAL USE PERMIT TO GRADE WITHIN 5' OF THE SOUTH PROPERTY LINE TO ALLOW A DRIVEWAY AND RETAINING WALL The Applicants were present. 4 0