City Council

Minutes were approved by the finance committee on May 20, 2024. CITY OF LACONIA - CITY COUNCIL SUBCOMMITTEE MEETING FINANCE COMMITTEE Immediately following the regular City Council meeting City Hall - Armand A. Bolduc Council Chamber 12/11/2023 - Minutes 1. CALL TO ORDER Chairman Lipman called the meeting to order at 8:18 PM 2. SALUTE TO THE FLAG Councilor Lipman led the salute to the flag 3. RECORDING SECRETARY Katie Gargano, City Clerk 4. ROLL CALL Clerk Gargano called the roll of the following committee members: Councilor Soucy, Councilor Felch sitting in for Councilor Cheney, and Councilor Lipman. Chairman Lipman announced that all committee members were in attendance and a quorum was established. 5. STAFF IN ATTENDANCE Kirk Beattie, City Manager; Glenn Smith, Finance Director 6. ACCEPTANCE OF MINUTES FROM PREVIOUS MEETINGS 7. FINANCE (Lipman (Chair), Cheney, Soucy) 7.A. STAFF REPORT - Accept the bond bid related to the purchase of a replacement fire engine, sanitary sewer system improvements, replacement of two ambulances and transportation infrastructure capital improvements The purpose of the bond is to distribute the net cost of the acquisitions over a twenty-year period. The net cost of all items is seven million dollars ($7,000,000). Issuance of these bonds was approved by Council under Resolution 2023-24 (Fire Engine), 2023-25 (Sewer System Improvements) 2023-30 (Ambulance Replacement) and 2023-34 (Transportation Infrastructure Capital Improvements). On September 18, 2023, a bid request was distributed to Bank of New Hampshire, Franklin Savings Bank, Northway Bank, TD Bank, Meredith Village Savings Bank, New Hampshire Municipal Bond Bank (NHMBB) and Newburyport Bank. Bank of New Hampshire and Franklin Savings Bank filed bids for this project. Both institutions filed proposals for one bond covering both projects. TD Bank declined to bid, noting they do not issue bonds for terms in excess of 10 years. No response was received from Meredith Village Savings Bank, Newburyport Bank or Northway Bank. NHMBB filed a On September 18, 2023, a bid request was distributed to Bank of New Hampshire, Franklin Savings Bank, Northway Bank, TD Bank, Meredith Village Savings Bank, New Hampshire Municipal Bond Bank (NHMBB) and Newburyport Bank. Bank of New Hampshire and Franklin Savings Bank filed bids for this project. Both institutions filed proposals for one bond covering both projects. TD Bank declined to bid, noting they do not issue bonds for terms in excess of 10 years. No response was received from Meredith Village Savings Bank, Newburyport Bank or Northway Bank. NHMBB filed a letter of interest outlining their upcoming issue. All responses provided for a fixed interest rate, annual principal payments and semiannual interest payments. Rate and fee information is summarized below. FSB BNH Rate 5.35% * 6.85% Prepay Penalty None Not Specified Fees $500 (est.) None * Revised to 5.75% on November 8, 2023 The project has been proposed for inclusion in the January 2024 issue of the New Hampshire Municipal Bond Bank. Interest rates for this issue have not been finalized. For purposes of comparison, the most recent NHMBB issue offered a rate of 3.65% and their projection for the January issue is 4.7%. Interest cost ranges from $3,454,500 to $5,034,750 over the 20-year life of the bond, depending on which institution is selected as the successful bidder. FY25 costs range from $329,000 to $479,500. Councilor Soucy made a motion to award the FY 24 bond to New Hampshire Municipal Bond Bank as proposed. Seconded by Councilor Felch. Discussion: None. The Motion passed with all in favor. 3-0 Chairman Lipman read the bond details into the record: 1. That the City shall issue and sell a bond in the aggregate principal amount of seven million dollars ($7,000,000) (the “Bond”) under and pursuant to the Municipal Finance Act (RSA 33) and other laws in addition thereto for the following purposes: a. Replacement of Fire Engine #2 in the amount of nine hundred thirty-five thousand dollars ($935,000) as approved by the City Council by adoption of Resolution 2023-24 on September 11, 2023, which project has a life expectancy in excess of twenty years; b. Sewer system capital projects in the amount of three million dollars ($3,000,000) as approved by the City Council by adoption of Resolution 2023-25 on September 11, 2023, which project has a life expectancy in excess of twenty years; c. Purchase of two replacement ambulances in the amount of nine hundred eighty-one thousand two hundred sixty-two dollars ($981,262) as approved by the City Council by adoption of Resolution 2023-30 on November 27, 2023, which ambulances each have a life expectancy in excess of ten years; d. Transportation Infrastructure capital projects in the amount of two million eighty- three thousand seven hundred thirty-eight dollars ($2,083,738) as approved by the City Council by adoption of Resolution 2023-34 on December 11, 2023, which projects have a life expectancy in excess of twenty years. 2. That the Bond shall be issued as a single registered Bond for a term of 20 years and bearing an interest rate of as designated by the New Hampshire Municipal Bond Bank at the time of its January 2024 issuance. 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 Resolutions, including, but not limited to, the execution of a Loan Agreement with the New Hampshire Municipal Bond Bank, the issuance of Bond Anticipation Notes as needed and delivering the Bond against payment therefore.  time of its January 2024 issuance. 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 Resolutions, including, but not limited to, the execution of a Loan Agreement with the New Hampshire Municipal Bond Bank, the issuance of Bond Anticipation Notes as needed and delivering the Bond against payment therefore. I further certify that the meeting was open to the public; that the aforesaid Vote was not taken by secret ballot nor in executive session; that notice of the time and place of the Meeting was posted in at least two (2) appropriate places: Laconia City Hall and the Gale Memorial Library at least twenty- four (24) hours excluding Sundays and legal holidays, prior to the Meeting: that no deliberations with respect to the Vote were taken in executive session; and that the minutes of the Meeting, have been promptly recorded and have been or will be made open to the public inspection within seventy-two (72) hours of the Meeting, all in accordance with RSA 91-A:2. I further certify that the above Vote has not been amended or rescinded and remains in full force and effect as of this date. The Certificate was signed and sealed by the Clerk of the Finance Committee. 8. Any other business that may come before the Committee None. 9. ADJOURNMENT Chairman Lipman adjourned the meeting at 8:23 PM. Respectfully submitted, Katie Gargano, City Clerk