Board of Directors

MINUTES SPECIAL MEETING OF THE BOARD OF DIRECTORS AUGUST 13, 2003, AT 5:00 P.M. A Special Meeting of the Board of Directors was held on Wednesday, August 13, 2003, at 5:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. Mayor Bush called the meeting to order at 5:00 p.m. Prior to roll call, Director Maruthur was called out on an emergency. 1 Roll Call Roll call was as follows: Present: Directors Elaine Jones, Carroll Weatherford, Bill Edwards, and Mike Bush, total 4. Absent: Directors Peggy Maruthur, Burt Newell, and Bob Wheeler, total 3. 2 Approval of Agenda A motion was made by Director Edwards, duly seconded by Director Jones, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 PUBLIC HEARING This being the time and date set for a public hearing on the question of adoption of an ordinance authorizing issuance of $10,530,000 industrial development revenue bonds on Magic Springs, Mayor Bush declared the public hearing open. Mr. Paul Young, with Morgan Keegan, stated that Mr. Tom Leggett, with Friday, Eldredge and Clark, is serving as bond counsel. Following the election, he has prepared the financing and the prospectus of the official statement, which he distributed in booklet form. Regarding this transaction, the City is serving as a conduit for the financing. The State agencies (Arkansas Department of Economic Development and ADFA) have guaranteed the bond issue as they guaranteed the two prior bond issues for Magic Springs. This bond issue, which is over $10.5 million, is set forth in two separate series (one series for each agency). He stated there are new money requirements that were authorized at the recent election because interest rates have decreased significantly since the bonds were issued in 1999 and 2000, and there was an opportunity to refund the bonds for savings. He noted that these are taxable bonds and are not tax exempt; therefore, the rates are higher than the tax exempt. The rate is approximately six percent; whereas, the old bonds were in the 7.40 percent range, which is a savings of over $500,000. He added that it is a future savings over time of $675,000 and about $40,000 a year in terms of annual savings. He stated the bond rate has been fixed; the project can b e funded as approved by the voters; and a significant savings will be realized by the company as a result of the financing. Mr. Jay Chesshir, Chairman of the GCEDC, expressed appreciation to the Board for its work on this project. Ms. Vickie Bernie, g eneral manager of Magic Springs, expressed appreciation to the voters and the Board for its support. There being no further comments, Mayor Bush declared the public hearing closed. Mayor Bush announced that due to the requirement of a super majority to proceed with the suspending of the rules and passage of the emergency clause, the meeting will be recessed until Thursday, August 14, 2003, at 8:00 a.m. A motion was made by Director Jones, duly seconded by Director Edwards, to recess until Thursday, August 14, at 8:00 a.m.; and upon voice vote, the motion unanimously carried. The meeting adjourned at 5:15 p.m., to meet again on Thursday, August 14, 2003, at 8:00 a.m. ATTEST:______________________ APPROVED:___________ ________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 2 August 13, 2003 at 5:00 P.M.