HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 12/13/1995 KENT CITY COUNCIL
SPECIAL MEETING
December 13 , 1995
A special meeting of the Kent City Council was called to order at
5:00 p.m. by Mayor White. Present: Councilmembers Clark, Mann,
Orr and Woods, City Attorney Lubovich, Finance Division Director
Miller, and Richard King of Lehman Brothers.
Water Revenue Refunding Bonds. At their November 22, 1995,
meeting, the Operations Committee recommended adoption of an
ordinance for the refunding of all outstanding water system
revenue bonds. Today' s positive interest rates will provide a
savings total of approximately $469 , 000 or 6. 8 percent of the
refunded principal which amortizes to approximately $90,000
annually in debt service savings for the next nine years.
Authorization in requested for the Mayor to sign the Refunding
Trust Agreement and Refunding Bond Purchase Agreement.
Finance Division Director Miller noted that these interest rates
are the lowest of any bond issue, and that the savings is close
to $100, 000 a year. She noted that this also restructures the
ordinance, allows more flexibility in financing, and helps set up
for future projects. She added that a significant amount of
money was saved by refunding all the issues.
Richard King of Lehman Brothers explained that both Moody's and
Standard and Poor's confirmed the City' s A ratings on the water
system. He agreed that this will provide flexibility, and said
that there will be increasing cooperation regionally in the
delivery transmission of water and that this new ordinance will
help. King noted that the market has been quite strong and the
30-year Treasury has gotten down to just above 6%.
WOODS MOVED to adopt Ordinance No. 3258 relating to the refunding
of all water revenue bonds and authorizing the Mayor to sign the
Refund Trust Agreement and Water Revenue Bond Purchase Agreement.
Mann seconded and the motion carried.
The meeting then adjourned at 5: 05 p.m.
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Brenda Jacoberj CMC
City Clerk /