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Regular City Council Meeting <br />June 9,2003 <br />Page 20 <br /> <br />and that is the net of the cost to issue the bonds. Mr. Almon said they would be <br />selling enough bonds to pay off the outstanding bonds on those two series, the <br />1993 and 1994, to the early call date plus pay the interest on those bonds until <br />the early call date along with the cost of issuance relating doing the new <br />refunding bond issue. He advised that the debt service on that amount of bonds, <br />which this page is telling us, is still about seven hundred thousand less than the <br />debt service on the bonds that would be refunded. Mr. Almon said when they <br />decided to actually present it to the Council, they thought that they had better <br />back off and put 5 or 10 basis points in the rates as they have two months <br />between now and the time they get to market. They did not want to be unfair <br />representing the city's expectations, but they think that this is a very reasonable <br />representation where the market is today. Mr. Almon told the Council that the <br />rates that he is showing in the third column, within 5 to 10 basis points are <br />today's rates for this type obligation. They would sell their as triple A rated and <br />it would be bank qualified and those rates are where they would be. <br /> <br />After further discussion, a motion was made by Councilman Bell to table Agenda <br />Item 5C. The motion was seconded by Councilman Plata and carried 7 ayes, 0 <br />nays. <br /> <br />Mayor Fendley announced that the next item on the agenda was a presentation <br />of projected impact on system water rates of proposed new methodology for <br />assessing water rates for inclusion in a new water purchase contract with <br />Campbell Soup Corporation. <br /> <br />City Attorney Schenk advised that the purpose of presenting this to the Council <br />is that he wanted to give them a general description of the discussion they have <br />had with Campbell Soup officials at the local level plus one corporate individual. <br />They were very frank; they were positive; they felt they were above board with <br />everyone trying to accomplish the desired goal. He said that his purpose in <br />presenting this to the Council was to tell them about the rate methodology that <br />is being considered. It is a two- part rate structure that would be incorporated <br />in the contract and is different from the current rate structure. The nature of that <br />rate structure would encourage the company to increase their volumetric use with <br /> <br /> <br />