Special Board of Aldermen Public Hearing — 12/16/2019 Page 3
Mr. Fredette
This bond will be sold, the trucks will be for 7 years, the rest of it is 20 years, it’s right on the first page.
Chairman Dowd
Thank you so that was your one question at this point, can you come back if you have another question?
Mr. Teeboom How can you have a bond for 20 years which | just asked but you have a truck you are going to sell
for 7 years, please explain this. You have a 20 year bond which you just told me, and you said there is a 7 year
truck. So you bond it for 20 years, while the item is for 7 years, how do you combine that? How does that meet
State requirement.
Chairman Dowd
| would assume that the Bond Counsel and the Treasurer have got together and worked that out and it meets their
requirements so if you have another question, can you come back up on the second round?
Mr. Teeboom Well it is a bad assumption, | think we need a better explanation than an assumption.
Mr. Fredette
It’s not a very complicated thing. When we sell ...
Chairman Dowd
You’ve got to come up to the microphone, nobody will hear you.
Mr. Fredette
When we sell these bonds the portion related to the trucks will be purchased by people for 7 years. Those bonds,
the $600,000.00 will be 7 year bonds. The rest will be 20 years. This is something we have been doing for 35, 40
years.
Mr. Teeboom_ So there are 2 bonds; 1 for 20 years and 1 for years. Two different bonds.
Mr. Fredette
The bond itself is $1,495,000.00 but we can sell portions of it in different periods of time.
Mr. Teeboom So one bond is good for 7 years and one bond is good for 20 years.
Mr. Fredette
Right.
Stephen Bolton, Corporation Counsel
The bond authorization allows you to sell multiple bonds, not one person buys every single bond. A bond is like an
IOU, it will be many, many people buying individual bonds.
