Present: Mayor Trinks, Deputy Mayor Curtis, Councilor
Broxterman, Councilor Dean, Councilor Ellingwood,
Councilor Jepsen, Councilor Mulligan, and Councilor
Walker
Moved by Councilor Broxterman, seconded by
Councilor Jepsen that the following motion RESOLVED,
that the reading into the minutes of the text of the
resolution entitled "RESOLUTION OF THE TOWN COUNCIL OF
THE TOWN OF WINDSOR AMENDING THE RESOLUTION ADOPTED BY
THE TOWN COUNCIL AT MEETING HELD FEBRUARY 17, 2004
AUTHORIZING THE ISSUANCE OF REFUNDING BONDS TO
INCREASE SAID REFUNDING BOND AUTHORIZATION TO
$19,000,000 AND TO PROVIDE FOR PAYMENT OF ALL OR ANY
PORTION OF THE OUTSTANDING PRINCIPAL OF AND INTEREST
AND ANY CALL PREMIUM ON THE TOWN’S $5,550,000 GENERAL
OBLIGATION BONDS, ISSUE OF 2001, AND $17,640,000
GENERAL OBLIGATION BONDS, ISSUE OF 2001 AND COSTS
RELATED THERETO" is hereby waived, the full text of
the resolution having been distributed to each member
of the Council and copies being made available to
those persons attending this meeting; and that the
full text of the resolution be recorded with the
minutes of this meeting.
Leon Churchill, Town Manager, introduced Gregg
Pavitt, Finance Director and Mark Chapman of
Independent Bond & Investment Consultants (the town’s
financial advisors) to discuss the proposed
refinancing of previously issued bonds. Mr. Churchill
stated that the refinancing has the possibility of
saving the town approximately $275,000 in debt service
cost in FY 2005.
Mr. Pavitt and Mr. Chapman reviewed the process
used to determine the feasibility of refinancing. A
minimum two percent savings is the accepted threshold
for determining whether refunding is feasible. The
principal of the original bonds will be paid through
the use of escrow funds and paid off in full when
callable starting in 2009. The escrow funds are
essentially invested in interest bearing Treasury
notes and then the earned interest is used to make
annual interest payments until the original bonds are
paid off.
Motion passed 8-0-0 (Councilor Simon absent)
Moved by Councilor Broxterman, seconded by
Councilor Jepsen to introduce the following resolution
entitled, "RESOLUTION OF THE TOWN COUNCIL OF THE TOWN
OF WINDSOR AMENDING THE RESOLUTION ADOPTED BY THE TOWN
COUNCIL AT THE MEETING HELD FEBRUARY 17, 2004
AUTHORIZING THE ISSUANCE OF REFUNDING BONDS TO
INCREASE SAID REFUNDING BOND AUTHORIZATION TO
$19,000,000 AND TO PROVIDE FOR PAYMENT OF ALL OR ANY
PORTION OF THE OUTSTANDING PRINCIPAL OF AND INTEREST
AND ANY CALL PREMIUM ON THE TOWN’S $5,550,000 GENERAL
OBLIGATION BONDS, ISSUE OF 2001, AND $17,640,000
GENERAL OBLIGATION BONDS, ISSUE OF 2001 AND COSTS
RELATED THERETO" be approved.
Councilor Dean asked what was the premium we would
be paying? Mr. Chapman responded that there is not a
premium being paid on the bonds. The original bond
issues did not include such a premium be paid if sold
prior to maturity. We would be paying face value.
Councilor Broxterman asked what the word "defeased"
means. Mr. Pavitt stated that it means we do not have
any liability since we have paid the obligations and
escrowed funds, along with segregating the funds.
Councilor Broxterman asked if the projected savings
are net all costs or fees. Town Manager Churchill
stated that yes the estimated savings were net
savings.
Councilor Jepsen asked who owns and/or controls the
Treasury notes. Mr. Pavitt responded that the trustee
owns the notes, and the town does not have control.
Motion passed 8-0-0 (Councilor Simon absent)
4. Public Comment
None.
5. Adjournment