City Council

LACONIA CITY COUNCIL FINANCE COMMITTEE MEETING MARCH 7, 2017 The meeting was called to order at 7:45 p.m. by Chairman Henry Lipman. Attendance: Councilor Lipman (Chair), Councilor Baer and Councilor Hamel Staff: Finance Director Donna Woodaman Recording Secretary: City Clerk Mary Reynolds I. SUBJECT: ISSUANCE OF BONDS AND NOTES FOR THE LED LIGHTING PROJECT Chairman Lipman reviewed the bond information for the LED lighting project as well as the various offerings from the banks as follows: Bond Bond Interest Total Bank Amount TERM Rate Costs Cost Bank of NH $300,000 5 yrs 2.15% $18,014 $318,014 Franklin Savings Bank $300,000 5 yrs 2.50% $22,514 $322,514 TD Bank $300,000 5 yrs 3.00% $24,750 $324,750 Meredith Village Savings $300,000 5 yrs 2.85% $25,627 $325,627 Discussion followed regarding the rebate amount of $100,000 and the timing of its disbursement, positive cash flow from usage savings, and the project timeline. Councilor Lipman moved: (1) That the City shall issue and sell a bond in the aggregate principal amount of $300,000 for the following project: • RES-2017-06 City Street Light Conversion to LED Lights $300,000 (the “Bond”) under and pursuant to the Municipal Finance Act (RSA 33), and other laws in addition thereto, and Resolution No RES-2017-06 which is pending approval by the City Council on March 27, 2017. (2) That the Bond shall be issued as a single registered Bond, bearing an interest rate of 2.15% dated as of its issuance date and sold to Bank of New Hampshire Bank (the “Bank”) at the price of par. (3) That the Clerk and the signers of the Bond are each hereby authorized to take any and all actions necessary or convenient to carry out the provisions of this Vote and the aforesaid Resolution, including the execution of a Loan Agreement with Bank of New Hampshire and delivering the Bond against payment therefore.  (4) That the projects for which the Bond is authorized under Resolution RES-2017-06 shall have a useful life in excess of five (5) years. Seconded by Councilor Hamel; the motion passed with all in favor. II. OTHER ITEMS The Committee held general discussion regarding the cost over run for the Lakeside Avenue project and possible approaches to remedy the financial shortage, the upcoming budget over view being presented by the City Manager on Monday, needed street repairs and possible means to finance road projects, and health insurance rates. No decisions were made regarding any of these items. III. ADJOURNMENT With no other business to discuss the meeting was adjourned at 8:33 p.m. Respectfully Submitted, Henry Lipman, Chair