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Minutes of the Special Meeting of Council <br />Monday, June 23, 2014 <br />Page 3 <br />Dr. Pazker asked, how long have we had the existing bonds? <br />Mr. Wynne replied, we took them out in 2006, so 8 years. They were 20 year bonds so they <br />mature in 2026. <br />Council President Buckholtz asked, at what rate were the bonds at? <br />Mr. Wynne replied, they are coupons, so they vary in rate from 3.7% to 5%. <br />Mr. IVlarrie stated, I tend to agree with you on taking the sure thing. <br />Mr. Wynne replied, there's still a$40,000 difference but it's spread out over 12 years. You are <br />only talking $3,000-4,000 a yeaz and to me that's not worth the risk of the interest rate going up <br />and losing the market altogether. <br />Mr. Marrie agreed. <br />Dr. Parker sta.ted, we discussed this in the Finance Committee and everything was good. <br />Council President Buckholtz asked, is this a time that we could pay anytlung on the debt? <br />Mr. Wynne replied, yes. The fact that it's callable on December lst, the $4,270,000, we could <br />pay down some additional on that if you wanted to. I thought about that quite a bit if that's <br />something I think we should do and I guess my reaction is no. The reason being is we have had a <br />plan for the past five years that we have really done a good job of implementing as far as with <br />the money we are getting, putting it into infrastructure, amenities, operations, debt retirement and <br />reserves. Our reserves right now are $10 million wluch I think is a level we are all comfortable <br />. with and I think the public's coinfortable that we have that type of reserves in place. <br />From an infrastructure standpoint, we've got another sewer project to do on the heels of this one <br />that is going to cost the same. A lot of the funding for the one we are doing now came from <br />some estate tax dollars that we have gotten that are now gone, that has been taken away. Now, if <br />we don't receive any Issue I funding which we have not been able to get, it is going to be 100% <br />funded by General Fund money versus any esta.te tax money. <br />Our debt at the end of 2009 was $16.3 million. It will be $7.9 million at the end of this year. <br />Council President Buckholtz asked, from $16.3 million, and at the end of 2014 it will be? <br />Mr. Wynne replied, $7.9 million, so we paid it down by $8.4 million in five years by just <br />following the normal payment plan of the debt as well as paying some additional money. Taking <br />all that into consideration, I guess I would lean more towards keeping the extra money and using <br />it for infrastructure needs we still have to address versus paying down on the debt. <br />Council President Buckholtz sta.ted, I don't know that we will see interest rates like this. It's <br />hard to get lower than this. I am just funny about numbers, like getting it under 4 into the 3's <br />because how it sounds to the ear. I don't disagree that you've done great things with the debt.