10-26-94SpMtg OCTOBER 26, 1994
A Special Meeting of the City Commission of the City of
Delray Beach, Florida, was called to order by Mayor Thomas E.
Lynch in the Commission Chambers at City Hall at 5:10 P.M.,
Wednesday, October 26, 1994.
Roll call showed:
Present - Commissioner Jay Alperin (Arrived 5:12 p.m.)
Commissioner Ken Ellingsworth
Commissioner David Randolph
Mayor Thomas E. Lynch
Absent - Commissioner Barbara Smith
Also present were - City Manager David T. Harden and
City Attorney Susan A. Ruby
Mayor Lynch called the meeting to order and announced
that this meeting has been called for the purpose of considering
the following:
1. R~SOLUTION NO. 85-94: Approve Resolution No. 85-94
which provides for the negotiated sale and determines certain
details of the 1994 Utility Tax Revenue Refunding and Improvement
Bonds; and for other purposes, including approval of the form and
authorization to execute a Bond Purchase Agreement to effect the
negotiated sale of the bonds.
The City Attorney stated this is in the amount of
$5,810,000 in the aggregate amount.
Upon question by Mayor Lynch regarding the actual
interest rate, Joe Safford, Finance Director, stated that Jerry
L. Wright, Managing Consultant with the firm of Public Financial
Management, Inc., will give a brief summation explaining exactly
what has happened. At this time he introduced Mr. Wright, Finan-
cial Advisor to the City, Steve Sanford, Bond Counsel and Kevin
McCarty, member of the underwriting team for the City.
Mayor Lynch announced that Dr. Alperin has arrived.
Mr. Wright gave an overview of the method used in the
pricing process for the City's "Series 1994 Bonds" and how the
demand for these Bonds from potential investors will determine
the interest rate scale and structure. It is the opinion of his
firm that, given the underwriter's discount and the interest
rates they were able to achieve, this bond issue is not only fair
but very favorable to the City of Delray Beach.
Mayor Lynch questioned if there were other expenses in
addition to the $77,000 underwriting expense as outlined in the
pamphlet provided by PFM and what the net proceeds would be on
$5.8 million.
Mr. Wright responded that the amounts referred to by
Mayor Lynch were estimates and have actually changed slightly.
Final negotiations were made after the booklet was printed. The
total amount the City would actually receive from this bond issue
is $5,810,000 less approximatly $61,000 for the underwriter's
discount. The bonds were sold at a slight discount of
$55,403.15, which meant that the interest rate on which the
coupons were sold was lower than the yield, allowing PFM to
provide a lower cost of bonds to the City.
Upon question by Mayor Lynch regarding accrual, Mr.
Wright stated the bonds were dated October 15, which means that
they start accruing interest from that date to the actual closing
date or upon receipt of monies from the investors on November
10th.
Discussion followed with regard to debt service re-
serve, earned interest and bond insurance.
Mr. Ellingsworth moved for the adoption of Resolution
No. 85-94, seconded by Mr. Randolph. Upon roll call the Commis-
sion voted as follows: Dr. Alperin - Yes; Mr. Ellingsworth -
Yes; Mr. Randolph - Yes; Mayor Lynch - Yes. Said motion passed
with a 4 to 0 vote.
There being no further business, Mayor Lynch declared
the meeting adjourned at 5:30 p.m.
~City Cl~rk z
ATTEST:
The undersigned is the City Clerk of the City of Delray
Beach and that the information provided herein is the minutes of
the meeting of said City Commission of October 26, 1994, which
minutes were formally approved and adopted by the City Commission
on ~c~ / /99x7
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- ~ City Cl~rk _v
NOTE TO READER:
If the minutes that you have received are not completed as indi-
cated above, then this means that these are not the official
minutes of the City Commission. They will become the official
minutes only after they have been reviewed and approved which may
involve some amendments, additions or deletions to the minutes as
set forth above.
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