Special Bd. of Aldermen — 07/22/2019 Page 3
Alderman Jette
So what we are here for tonight is the public hearing on the bond right?
Alderman Dowd
Yes.
Alderman Jette
| notice in the, | don’t see it in the bond language itself, but in the fiscal note on the bond it says that the bond
would be sold in Fiscal Year 21 and | am wondering why is that? Why wouldn't it be sold right away? |
understand the interest rates are really good for municipalities right now. Why would we wait until 2021 to sell
the bond?
Alderman Dowd
Treasurer Fredette would you like to come up and address that.
David Fredette, Treasurer
First of all, after the bond gets passed here a packet has to go out to bond counsel. That can take up to 60
days. We are selling bonds in October of this year. This just won’t be ready, plus we don’t sell bonds normally
until the work is almost already complete. We use our own cash to pay for the work and then we reimburse
ourselves later. The rates will still be good for, | think, a couple more years, the way it looks. That is the plan
anyways. | don’t think | could have it ready for the October sale. We try to sell just once a year because there
are a lot of expenses when you sell.
Alderman Dowd
Treasurer Fredette, would you also explain why it is a five-year bond?
Mr. Fredette
There is a State Law that allows only up to 5 years for this type of bond. | think it goes back to years ago, |
think many communities did these every 5 years. | mean you don’t do it today, but years ago they did. So |
think that’s why the five-year max is there.
Alderwoman Kelly
Just a question around the selling of the bond. If we find that things are shifting, could we sell it earlier than
2021? You are saying for a couple of years the rate might be fine?
Mr. Fredette
Oh yeah, we could sell it earlier if we thought something was happening with rates, yes.
Alderman Dowd
Any other questions for Treasurer Fredette. Thank you. Any other questions?
