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HomeMy WebLinkAboutMinutes - City Council - 06/24/1982June 24, 1982 CITY COUNCIL The South Burlington City Council held a special meeting on Thursday, April 24,1982 at 7:30 pm in the Mini-Conference Room, City Hall, 575 Dorset St. Members Present Paul Farrar, Chairman; Michael Flaherty, William Burgess, Hugh Marvin, Leona Lansing. Others Present William Szymanski, City Manager; David Minnich, Assistant City Manager MUNICIPAL COMPLEX BONDING Mr. Minnich stated on Tuesday, June 22,1982, the administration met with Chittenden Bank, and First Bank of Boston officials, to discuss the financing of the Municipal Complex. It is their advice to continue trying to sell our Bonds long term. We may either continue with the Vermont Bond Bank, or sell them on our own. If we continue with the Bond Bank they will require another commitment with terms of selling no higher then 13½ %, prior to August 31,1982. If we sell on our own the earliest the First Bank of Boston could arrange a sale, would be early August and our cost would be $20,000.00, if we sell with the school, and $25,000.00 if we sell on our own. Their further advice was that on any given day, the Bond Bank and the city would probably receive the same rate. Timing is the important factor of interest rates. Mr. Farrer, said we have several options: to sell long term with the Bond Bank, to sell long term on our own, sell short term on our own, or a combination of these options. Mr. Marvin felt we should sell the bonds long term with the Vermont Bond Bank. The advice from the Banking and Insurance Industry has been that both short term and long term rates would probably continue to rise till the end of this year. Mr. Minnich was asked, when the Vermont Bond Bank would be selling the bonds. He said, "within the next two weeks. The sale is targeted for July 8,1982. Mr. Flaherty moved the city sign an agreement with the Vermont Bond Bank to sell our bonds of $1,585,000 at no higher than an interest rate of 13.5%. This agreement would expire on August 31,1982. Mr. Marvin seconded the motion. Council members approved the motion with Mr. Farrer voting no. The Council meeting adjourned at 9:00 pm. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.