07/14/2003 Meeting Minutes (2) - Laserfiche WebLink

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Caucus/Regular Council Mtg. 7-14-03 Page 8 Fire -Chief Mohr said I would like to thank Lt. Girbino and his attention to detail regarding the fireworks. I think they went off without a hitch. It seems that the people were very pleased with this year's show. Mayor Rinker said thank you; that is true. Finance - Mr. Brett said I have 4 things I want to discuss briefly: I sent around a package with the URS Modification 9 which is on the agenda this evening. I sent with that a recap of the budget submitted to TRAC back in 1998 and the current budget. Going through that, the engineering and things like that, there were a lot of increases in particular areas throughtout the particular budget, however, the, bottom line is the project as it is right now with the contracts let is about 1.4 million dollars less than what was submitted'to TRAC in 1998. I want you to take that into account when you look at the URS modification and we can discuss that. The best way to really get a feel for the modifications is to go through a119. I have those this evening. I am not going to go through each of them but I can answer questions at that time. For the most part the biggest increase in expenditures came in the area ofRight-of--Way Acquisition and compensation for utility relocation. A lot of that has to do with some easements that we were not aware of- they really didn't show up in a 40-year title search and I think a lot of it was the way the utilities have changed the way that they charge since pre-deregulation and post-deregulation. Again I can answer questions regarding that when we get to it. On a similar vein, I sent out to everyone a memo that I've drafted to Melinda Lawrence at the State Infrastructure Bank. Given that we have now the costs for the entire project, one option that I would like to look at is to close the State Infrastructure Bank Loans that we have still remaining and see if we can finance a new State .__~ Infrastructure loan for the amount of $4.5 million over 20 years. I've laid out what that encompasses as far as debt service over the next 20 years and I have also laid out how that corresponds with the Tax Incremental Financing revenues that we will receive over the next 30 years. As you can see right now, they about match. If you isolate the Tax Incremental Financing revenues which were designated the 3 main projects that they are designated for are the widening of S.O.M. Center Road, North Commons Blvd. and just general stormwater management and also recreational facilities. If you look at those and you look at the dollars we are looking at over the next 30 years, look at the debt service that we are looking at for the next 20 years, you will see that we are right there when you isolate those. There was a question before about the $100,000 that goes to the schools, that is in the General Fund; that is not germane to this particular issue so if Council has no objection, I will be submitting that letter to Miss Lawrence - tomorrow. I have talked with heron the phone; she did not say no-which is good forme. So, that was the second thing. Council President Buckholtz asked, did I read that correctly that that's at a lower interest rate? Mr. Brett said yes. Currently when we got the SIB's in 1998; the interest rate was 5% with'/a% administrative fee which was great. We used those fees. Again, one of the things that we saved was underwriting fees. We don't go through any of that underwriting fees that we would = normally do with conventional debt. In going to the NOACA Summit, I was talking with Ron Klaiber, the County Engineer, he was stating that he is getting TIF funds and he was showing how he was using TIF funds in a particular project; he was getting 3% and 0% administrative fees. I talked with Miss Lawrence and she was under the impression that I was trying to