MINUTES
STATE OF
The Cane Creek Water &
Sewer District Board met for a regularly scheduled meeting at 5:30 p.m. in the
Commissioners’ Conference Room of the
Present were: Chairman
Bill Moyer, Vice-Chairman
Also present were: Planning Director Anthony Starr, Fire Marshal
Rocky Hyder, Finance Director J. Carey McLelland, Deputy Clerk to the Board
Commissioner McGrady made the motion for
the Board to convene as Cane Creek Water & Sewer District Board. All voted in favor and the motion carried.
Financing – Mud Creek Phase I Sanitary Sewer Line
Project
Finance
Director Carey McLelland informed the Board that included in the current fiscal
year budget are funds to pay debt service for financing the Phase I
construction of the Mud Creek Sanitary Sewer Line Project in the Cane Creek
Water and Sewer District. Staff has requested
proposals from financial institutions to finance this project and to also
refinance the District’s Rural Development loan. Attached, with the agenda, was a summary of
the proposal received and a copy of the lowest responsive proposal from Bank of
America Public Capital Corporation.
Staff
presented a resolution to the Board of Commissioners for consideration
concerning the proposed installment purchase contract financing for the Project
and the refinancing. First, the
resolution authorizes Staff to begin the negotiation of an installment purchase
financing contract with Bank of America to finance $3,178,000 over a 10-year
term at a 3.73 annual interest rate to fund the design and construction of the
Phase I Project at a total cost of $2 million and to refinance the outstanding
Rural Development loan principal balance of $1,178,000. Refinancing this loan will save the District
$549,434 in interest expense. There is
no prepayment penalty for paying the loan off in full at any time.
Second,
the resolution makes the necessary findings to undertake and finance the
Project and authorizes Staff to submit an application to the Local Government
Commissioner for its required approval of the installment purchase contract
financing.
And
third, the resolution calls for a required public hearing on the financing
documents to be held on the Board of Commissioner’s October 18, 2006 meeting
date at 11:00 a.m. and directs the Clerk to the Board to cause a notice of the
public hearing to be published in a local newspaper with general circulation.
Commissioner McGrady made the motion to
approve the resolution which will authorize the necessary actions to be taken
to carry out the financing and set the required public hearing for the Board’s
October 18, 2006 meeting at 11:00 a.m. All
voted in favor and the motion carried.
Adjourn
Commissioner McGrady made the motion for
the Board to adjourn as Cane Creek Water & Sewer District Board and
reconvene as
Attest: