Special Board of Aldermen 11-22-2021 Page 2
Tim Cummings, Economic Development Director
Yes, absolutely. So, Mr. Chair, Tim Cummings, Director of Economic Development. I'm here also with Director
Fauteux who's here this evening relative to looking for full authorization for a DPW administrative office building
capitol building project. | want to thank Treasurer Fredette and CFO Griffin for joining us this evening as well, as we
would like to ask for your favorable approval of R-21-190, R-21-191, and R-21-192. This is legislation that would
allow us to proceed with all the sources of funds necessary to construct a $15.1 million building project.
So essentially, the financing plan outlines a few different sources of funds. We've already got authorized $6 million.
We already have $500,000. We have $3.6 million from the proceeds of the sale of Park Street, which is one of the
pieces of legislation before you this evening. We have $2 million available from unspent Broad Street Parkway funds,
which is again, one of the pieces of legislation before you and then we have a gap of just under $3 million. So we're
asking for new authorization of $3 million to create the entire amount necessary for the building project. So that is
essentially what we're here to try to do this evening. R-21-190 is the transfer of $3.6 million from | believe its
undesignated revenue to the DPW administrative office building capital project account.
R-21-191 is repurposing of the $2 million of the Broad Street Parkway funds that are available to us for the purposes
of the, again, DPW administrative office building.
And then lastly, R-21-192 which is asking for authorization have an additional $3 million to bring us to that $15.1,
again, for the construction of the DPW administrative office building. | believe Treasurer Fredette could probably talk
to us about how we can accommodate this bonding and if | could, I'd ask him to speak a little bit about the next slide
or two.
David Fredette, Treasurer
Can everybody see that? If not, | have handouts that might be easier. Mr. Chairman this is a form that I've given to
you before in the past usually with a letter but | didn't have a lot of time to get this all done. So this is what itis. The
first, page 1, reflects bonds that have been approved but haven't been sold yet plus bonds that might happen in the
near future. The top part as you can see are items that are approved. The bottom part started on line 10 are items
that may be approved in the future. This is what | use to do the next page which is the back page of page two. What
this show you is column B represents — okay - this is the general fund. Bonds only. It does not include sewer and
those type of bonds. These are bonds that affect the tax rate directly. Column B is what our bond payments are on
Fiscal Year 2022 through Fiscal Year 2047. That represents all the bonds that was sold up to this fall.
Column C is strictly increase and decrease on year to year. So as you can see, we still have in 24, 25, 26, decreases
because the high school bonds are being paid off by then and it's also probably related to some funding bonds that
we've done over the years.
Column D is strictly a target budget that | created over the years that | give to our financial advisors saying that we
should try to live within this target anyways at least. We've been under it for quite a while.
And then column E represents if all the bonds on the first page was sold over a period of time, these would be
payments from Fiscal Year 2023 all the way through Fiscal Year 2050. Now the first column - 2022, that number was
what we budgeted but we had a sale this fall, which was very, very good. We sold over $65 million of bonds. The
majority of it was the middle school. The true interest cost was 1.8%. Much lower than what | had used when |
estimated. | think I've told you before | estimate on the high side everywhere. We received almost $7 million of
premium, which was a good number. That is the amount that we don't have to sell because it's cash given to us.
Even though that budget for 22 is 166, | know the actual is lower than that. Beginning in 2023, it's based on the sales
that we had plus the new ones. And as you can see, it goes up and down. Again, this column is very conservative
and close rates. It shows on the bottom here estimated rates 3 to 4%. That's very conservative. It does not include
receiving any premiums at all and we usually do. Like | said, this sale received almost $7 million. It was a big sale,
but we're going to have a couple big ones because the middle school has to be bonded — the rest of it. So, again, this
is something I've done usually once or twice a year and review it with the Budget Committee. | just updated it just
recently.
Chairman Dowd
Are there any questions relative to Treasurer Fredette’s presentation?
