Laserfiche WebLink
MEMORANDUM: <br />TO: CURTIS FENDLEY, CHAIRMAN, UPPER STILLHOUSE CREEK <br />SEWER SERVICE COMMITTEE <br />FROM: CITY ATTORNEY <br />SUBJECT: FINANCING FOR WATER AND SEWER RECONSTRUCTION AND <br />EXTENSION. <br />DATE: NOVEMBER 23, 1987 <br />I visited with Mr. Bob Day of Rauscher Pierce Refsnes, <br />Inc., who has acted as financial advisor and bond placement <br />agent for the City of Paris for many years, and with Peter <br />Tart of McCall, Parkhurst & Horton, who has acted as bond <br />counsel for the City of Paris for many years, and have <br />reached the following conclusions: <br />1. That the minimum water and sewer bond issue is <br />$2,000,000.00, due to the fact that below $2,000,000.00 <br />insurance coverage would not be available and your rate <br />would not be the best obtainable. <br />2. The maximum amount should be $5,000,000.00 due to <br />the fact that when it is exceeded, there is more stringent <br />arbitrage penalties and if you exceed $10,000,000.00 the <br />issue will lose its attractiveness to bank purchasers. <br />3. The amount of the issue should not exceed the <br />amount that you plan to expend within a 3 year period unless <br />it is necessary in order to get above the $2,000,000.00 <br />minimum. <br />4. The water and sewer rate study should consider <br />additional levels of financing so that the rate may be <br />adjusted if additional levels of financing are required. <br />Very respectfully submitted, <br />T. K. Haynes <br />TKH /lu <br />