Special Session of Council

Borough of Greenville Council Minutes 04-29-13 BOROUGH OF GREENVILLE www.greenvilleborough.com MINUTES OF A SPECIAL MEETING OF THE BOROUGH OF GREENVILLE COUNCIL HELD IN COUNCIL CHAMBERS Monday, April 29, 2013 at 6:30 p.m. 1. Call to Order Brian W. Shipley, Council President 2. Roll Call: Brian W. Shipley, Council President Pamela S. Auchter, Council Vice President Theodore E. Jones, Council President Pro Tempore Anthony D’Alfonso, Councilor Kateri Linn, Councilor Alfred L. Peden, Councilor Donald B. Shaw, Councilor – excused Joshua Stephens, Mayor Jasson W. Urey, Borough Manager James E. Douglas, J. D., Esquire, Douglas, Joseph & Olson, Solicitor – excused Also present: Amber Poteet Amy Hollowell Staff: Media: David Hetrick, Financial Assistant Caleb Stright, Record-Argus Megan Heathcote, Administrative Assistant 3. Public Comments None. 4. Unfinished Business None. 5. New Business A. Michael McCaig, Managing Director of Janney Capital Markets reported on the bond refunding project. Mr. McCaig said that we are refinancing our 2005 bond and issuing a 2013 bond for lower interest rates. The current bond proceeds are $2,995,000. Mr. McCaig said that the Borough received an “A” stable rating from S&P which is better than he had anticipated. He said that we are not extending the term of bond and that it will still mature in 2025 and added that the Borough will save 282,099.44 over the life 1 Borough of Greenville Council Minutes 04-29-13 of the bond. Mr. McCaig said that our current interest rate is 4.31% and that it will drop to 2.65%. He said that these are fixed rates and that in 5 years we could potentially refinance again if rates get below 2.65%. The Borough will save about $25,000 every year until 2025 and that in 2013 the savings will be about $13,000 since we are already a quarter of the way through the year. B. Motion by Councilor Jones, seconded by Councilor Auchter, for a first and final reading of Ordinance 1522 on Bond Refunding. Motion carried. Mr. Urey read the ordinance aloud. C. Motion by Councilor Auchter, seconded by Councilor Peden, to enact Ordinance 1522 on Bond Refunding. A roll call vote was taken: Councilor Jones Yes Councilor Auchter Yes Councilor Linn Yes Councilor Peden Yes Councilor D’Alfonso Yes Council President Shipley Yes Motion carried, 6-0. 6. Council Comments Councilor Auchter thanked everyone involved and that she is glad we are able to move forward with good savings. Councilor Peden said that he hopes people on the streets are able to understand it. Councilor Jones asked how it translates into the Act 47 plan. • Council President Shipley said that he would answer that question in his comments. 7. Mayor’s Comments None. 8. Council President Comments Council President Shipley thanked Dr. Hirt, Mr. McCraig, Mr. Ditka, and the finance committee. He said that this process has taken two years and that they had to get everything right; timing and savings have to be right being under Act 47 to be able to have this type of savings. He added that Council has taken major steps towards getting out of Act 47. Council President Shipley said that $25,000 equals to about 2/3 in mil of taxes and that we should be able to see a reduction in taxes again next year. He also said that Mr. McCaig being involved back in 2005 and seeing the changes in the Borough helped us get the favorable rating. 9. Dr. Hirt Comments Dr. Hirt said that it is a very positive day and that she is very pleased. She said the rating shows signs of stability. Dr. Hirt said that the DCED loan will be paid off the end of this year so that will drop the Borough’s debt service to less than 10% of its budget. 2 Borough of Greenville Council Minutes 04-29-13 10. Borough Manager Comments Mr. Urey thanked Mr. McCraig and Mr. Ditka for all their help. He said that saving 10% over the life of the bond is great and that we are moving towards the future. 11. Adjournment Having no other business before council, motion by Councilor Auchter, seconded by Councilor D’Alfonso, to adjourn the meeting at 6:46p. Motion carried. Respectfully submitted, Jasson W. Urey Borough Manager/Secretary 3