TOWN OF NORTH HARMONY
TOWN BOARD MEETING
BOND RESOLUTION OF 6/14/2019 – CONSTRUCTION OF NEW TOWN BUILDING
MONDAY, 8/24/2020 7:00 PM
ROBERT YATES, SUPERVISOR PRESENT
RICHARD SENA, COUNCILMAN PRESENT
DUNCAN MCNEILL, COUNCILMAN PRESENT
STEVE SENSKE, COUNCILMAN PRESENT
LOUISE ORTMAN, COUNCILWOMAN ABSENT
OTHERS PRESENT: Dale Robbins & Kelly Johnson, Attorney’s; Robin Miller, Bookkeeper; Nancy Thomas, Town Clerk
Mr. Yates opened the meeting at 7:00 PM with the pledge and called for a moment of silence for the family of M.E.O. Ted Pugh.
Mr. Yates said we had received correspondence pertaining to options for financing the principal renewal amount of $640,000.00 to M&T Bank. He asked if there were any questions as to whether we should choose to go with a BAN, the interest rate is variable and currently would be at 2.9% or a Statutory Bond at a fixed interest rate of 3.4% for the life of the BAN. He said the issue is that if we choose the Statutory Bond it will cost approximately $10,000.00 to have Hodgson & Russ rewrite the BAN. He said he feels it is best at this time to go with the current BAN.
Mr. Senske asked how long the variable rate is good for.
Mr. Robbins said the BAN was for 5 years and we only have 4 more years after the current payment is made. One of those years would be at the current variable rate of $2.9, so there are only 3 years of unknown variable rate left. He said currently we are in a time crunch because the BAN payment is due by Friday 8/28/20 and we probably cannot get the Statutory Bond completed by that date. He said the renewal instrument he drew up has a Call Back feature in it which would allow the town 30 days from now to go out to the Bond Market and get a different/fixed rate for the remainder of the time period if they choose. He said there is really no way around renewing the current BAN tonight, but we do not have to stick with it.
There was discussion of the different types of Bonds available including Serial Bonds which are for a much longer time period.
Mr. Senske asked if there is a limit on how much the interest rate can go up on the BAN.
Mr. Robbins said no, it is market rate.
Mr. Senske asked if there are any other fees attached to the BAN financing.
Mr. Robbins said no.
There was further discussion of variable vs. fixed interest rates and the impact on cost.
Mr. Robbins requested that the board vote on the BAN tonight and reevaluate the Statutory Bond proposal in 2 weeks to 30 days if they wish.
- MOTION # 77 OF 2020
- SENA MOTIONED TO AUTHORIZE THE SUPERVISOR TO MAKE PAYMENT ON THE BAN FOR THE CONSTRUCTION OF A TOWN BUILDING (2019) DUE ON 8/28/2020 AS FOLLOWS. FURTHER, THE SUPERVISOR IS AUTHORIZED TO SIGN ANY AND ALL DOCUMENTS TO RENEW THE BAN AS INDICATED.
Principal amount: $800,000.00 Principal payment: $160,000.00
Interest payment @ 2.65%: $ 21,200.00
TOTAL PAYMENT $181,200.00
Principal Renewal $640,000.00 @ 2.9% with M&T Bank
- MCNEILL SECONDED. YES (4): SENA, MCNEILL, SENSKE, YATES. NO (0). THE MOTION WAS CARRIED.
- MOTION # 78 OF 2020
ON A MOTION MADE BY MR. SENSKE, SECONDED BY MR. SENA AND WITH NONE BEING OPPOSED, THE MEETING WAS ADJOURNED AT 7:10 PM.
Nancy M. Thomas