06/06/1989 Meeting Minutes - Laserfiche WebLink

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- -' Finance Director's Report -June 6, 1989 Note Sale After contacting several txwriting fi.rn~ I sold the Deerfield note ($145,000) and the Fire ec;uipment note ($205,000) to Natioaial City at a 6.65$ interest rate for a one year period ending June 6, 1990. This atmunts to $23,275 of interest, $2,9?5 below the original estimate. The next lowest price was 7.05$ with a $14 premium which results in a 7.046 effective rate. Market The bond and note market appears to be going thrntagh an adjustment period. Long team borrowings have gotten out of sync with at~rt texm borrowings. This will probably result in a stabilized or inveY-ted short teen rate far a month or more and we should be positioned correctly for pending notes such as Recreatian and Signalizatian as well as the August rollovers. New Notes and Ibllov+ers Between August 1, and September 1 three mote issues will mature. The Police Vehicle note of $85,000, the Industrial Park note of $1,025,040, and the Judgement notes of $300,000. We can pt~bably pay off the Police vehicle Hate and pay c3vwn an the Industrial Park note. I have held discussions with Mr. Noble and Mr. Ctiauling}x~n on these and will advise Council next It is my hope-to have the legislation prepared for one of the next two meetings. Mr. Noble advis®d me today of the amount required for the signaiizatian issue. Mr. Fatlar will contact me either this w~ee}c or next about the size of the Pecr~atian issue. As original issues bath will require three readrygs and a 30 day referendtan period. I hope to have the appropriate ordinances before Council no later than the next regular meeting so that special meetings can be kept to a minim~sn and the notes can be sold in August. The key reasan far selling in August is that it allows me to link the notes with existing rollover notes and obtain a lower interest rate. I hope to have all issues mature an or about June 6, 1990 so they can be linked to ane bond issue thus saving an interest and legal experLSes in 1990. I would like to point out that the bidding process does not have to wane for the 30 day referencltan period to end. The City can request bids and actually select one during that time but I will not be able to sign the fiscal officers certificate or deposit the money until the 30 day period expires. ~x~~~