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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 05/12/1986 I Kent, Washington May 12 , 1986 On Monday, May 5 , 1986, the City Council recessed the meeting until Monday, May 12 , 1986 at 7 : 00 p.m. The continued meeting was called to order at 7 : 00 p.m. by Council President White. Present: Councilmembers Bailey, Biteman, Dowell, Houser, Johnson, White and Woods, Acting City Administrator/City Attorney DiJulio, Planning Director Harris, Public Works Director Wickstrom and Finance Director McCarthy. Also present: Fire Chief Angelo and Personnel Director Webby. FINANCE LTGO Bonds. The City has been presented with a proposal to advance refund the City' s $7 , 930 , 000 principal amount of Limited Tax General Obligation Bonds, 1984 , currently outstanding ( "1984 bonds" ) , Capital to achieve Debt Service savings and to pay costs Improvement of bond issuance. The 1984 bonds were issued to Fund pay the costs of bond issuance. The 1984 bonds were issued to pay the costs of redeeming $3 , 275, 000 of Limited Tax General Obligation Bond Anticipation LTGO Bonds Notes issued in 1984 , and to finance the acquisition of land for, and construction of, the Senior Citizens Center, construction of the 50 bed Corrections Facility, and the expansion of the Municipal Golf Coarse. The City has received an offer from Shear- son Lehman Brothers, Inc. , Foster and Marshall Division, for purchase of the bonds. The principal amount of the refunding bonds will be subject to reduction, subject to approval of the Finance Director. The provisions for reduc- tion of the principal amount of the bonds is pro- ! vi_ded in the purchase contract with Shearson Lehman. I The Operations Committee, meeting on May 7 , 1986 , recommended that the savings realized from this refunding be placed in the Contingent Reserve portion of the Capital Improvement Fund, to provide for security for the payment of Debt Service on the bonds, and for ongoing and emerging capital needs of the City. Finance Director McCarthy noted that this matter had first been before the Operations Committee in February and that our financial advisors had been monitoring the market since then. Dick King of Shearson Lehman commended the City ' s Operations Committee and Finance Director in moving quickly I I May 12 , 1986 FINANCE to take advantage of the favorable interest rates. He explained that the advance refunding would save the City $191 , 000 this year and $268, 000 for the remaining 18 years. He pointed out that Capital Moody ' s had rated the bonds A-1 . Bailey noted Improvement that this was a good rating, and stated that the Fund Operations Committee had recommended that action be taken promptly while market conditions are favorable. LTGO Bonds It was pointed out that the actual bond ordinance would be presented at the May 19 meeting. Joni Ostergaard, of Roberts & Shefelman, the City ' s bond counsel, was introduced. She has been the attorney responsible for several of the ordinances j and documentation for recent bond issues . BAILEY MOVED to adopt Ordinance 2631 : AN ORDI- NANCE of the City of Kent, Washington, relating to the Capital Improvement Fund; providing that savings from the Limited Tax General Obligation Refunding Bond Issue 1986 , be placed in the Contingent Reserve portion of the Capital Improve- ment Fund. Biteman seconded and the motion carried. ! LTGO Bonds - Purchase Offer. It is recommended that the City accept the offer of Shearson Lehman j Brothers, Inc. , Foster and Marshall Division, ! to purchase $9, 610 , 000 principal amount of Limited Tax General Obligation Refunding Bonds, 1986, or such lesser amount of principal as authorized by the Finance Director, all as provided in the purchase contract, the execution of which, by the Mayor, is hereby authorized. BAILEY MOVED to authorize the purchase contract as provided herein, Woods seconded. Motion carried. I HEALTH & Utility Connection Waiver Agreement. DiJulio SANITATION explained that the Public Works Committee had recommended approval of the waiver as described on the City ' s standard form. Resolution 1106 has been prepared to authorize such waiver on the application of Donald D. and Mary N. Lohman. JOHNSON MOVED to adopt Resolution 1106. Woods seconded and the motion carried. i ADJOURNMENT At 7 : 15 p.m. , WOODS MOVED to adjourn. Dowell seconded and the motion carried. i Marie Jensen, CMC City Clerk - 2 -