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MINUTES OF THE REGULAR ORONO CITY COUNCIL <br />MEETING HELD ON MARCH 23,1998 <br />( 92) Amendment to Lease Purchase Contract - Continued) • <br />The table on page 4 shows the prior debt service and rates for years 2002.2008 if no <br />changes are made. The next page indicates the new rates of 4.10 -4.5% interest that <br />replace the other rates. Drude noted that $65,000 was added to the principal amount to <br />cover the costs of the issuance. The savings indicated are net of these costs. Page 3 <br />shows the comparison between the old and new rates for a savings of $121,265 or <br />4.33 %. The savings had been projected at $120,000 or 4.21/o. Drude informed the <br />Council that State law requires a savings of at least 3% for a crossover advancing <br />refunding. <br />The costs, discount, and cost of issuance are shown on page 1 including uses of the funds <br />for Ehlers and Associates, attorney fees, Moody's Investors, and CPA verification for an <br />objective review and for the escrow amount utilized until the call date. The bonds are <br />issued in $5,000 increments. <br />Jabbour expressed his appreciation to Drude and City Staff for keeping the Council <br />informed of the possibility of saving in this manner. He informed the citizens present that <br />residents typically are aware of land use issues but unaware of the Council's financial <br />responsibility for the Citv. He noted that the Citv's bond rating is exceptionally good. <br />The Aa 1 rating is the highest rating available for a city the size of Orono. He noted that <br />the recent sewer projects have received the benefit of this rating in the form of low <br />interest rates on the sewer assessments. • <br />There were no questions from the public. <br />Flint moved, Goetten seconded, to adopt Resolution No. authorizing the execution and <br />delivery of a first amendment to the lease - purchase contract between the City and the <br />City's HRA. Vote: Ayes 4, Nays 0. <br />ADJOURNMENT <br />Goetten moved, Peterson seconded, to adjourn at public hearing held from 7:05 p.m. to <br />7:15 p.m. Vote: Ayes 4, Nays 0. <br />( 0) HRA MEETING - 7:05 P.M. <br />HRA Chairman Jabbour called the BRA meeting to order at 7:05 p.m. and noted the <br />presence of all HRA Members except Charles Kelley. <br />• <br />2 <br />