Loading...
HomeMy WebLinkAbout2021-04-21 Finance Committee Minutes C ity of Bangor Finance Committee Meeting Minutes April 21, 2021 Councilors in Attendance (via Zoom): Hawes, Sprague, Nichols, Fournier, Schaefer (in person non-voting) Staff in Attendance: Laurie, O’Donnell, Hayman The meeting was held remotely via ZOOM and called to order at 5:15 pm by the Chair, Sue Hawes. 1. Consent Agenda a. Workout Agreement – 298 Center & 290 Pearl Street - Rambo Councilor Fournier inquired as to whether one of the properties was a rental property, staff will follow up with the Committee. Motion made and seconded to approve agreement, motion passed unanimously. 2. Approval of City of Bangor Series A Bond Financing Motion by Councilor Fournier to approve resolution captioned “Resolution Approving $1,000,000 Loan and the Details of the City of Bangor, Maine $527,500 2021 SRRF General Obligation Bond”, attached hereto as Exhibit A, seconded by Councilor Sprague. Following discussion, the vote was unanimous and the motion carried 4-0. 3. City’s Financial Advisor Review of Recent Ratings Joe Cuetara of Moors & Cabot, the City’s Financial Advisor, reviewed the overall ratings process. In addition, he highlighted areas of each report of note including items that were deemed positive and negative by both Standard & Poor’s and Moody’s. Councilors engaged in discussions with both staff and the financial advisor related to the City’s financial operations. It was noted that staff will work towards preparing regular financial updates to review by the Committee. 4. Order, Authorizing the Transfer of $2,500,000 from the Unassigned Fund Balance to Various Assigned Fund Balances Funding of capital replacement reserves has not been part of the City's annual budget process for nearly a decade. The ability to fund capital needs without impacting the tax rate, has been part of the City's overall financial management. Due to the financial uncertainty surrounding the pandemic, no funds were transferred to capital reserve fund balances at the end of the 13070298.1 prior fiscal year. If approved, this Order would transfer funds from the City’s unassigned fund balance to various assigned fund balances. The amounts recommended are related to the departmental five year capital plans that were recently submitted as part of the proposed FY 22 budget. Councilor discussion included whether there was such a thing as too much assigned fund balances and where or not this action would impact potential grant funding or resulted in a commitment that could not be reconsidered. Staff noted that the City’s capital needs are significant and it would be difficult to overfund its assigned fund balances. In addition, this Order is an indication of the Council’s intent and can be revisited if it became necessary. Motion made and seconded to recommended passage of the Order to the City Council, motion passed unanimously. Meeting adjourned at 6:30. A true and correct copy of the minutes and attached resolutions adopted April 21, 2021, by the City of Bangor Finance Committee, at a meeting thereof duly convened and conducted via ZOOM at Bangor, Maine. Attest: _____________________________ Debbie Laurie, Finance Director City of Bangor, Maine March 30, 2021 13070298.1 Exhibit A CITY OF BANGOR - FINANCE COMMITTEE RESOLUTION APPROVING $1,000,000 LOAN AND THE DETAILS OF THE CITY'S CITY OF BANGOR, MAINE $527,500 SRRF GENERAL OBLIGATION BOND WHEREAS, pursuant to Council Order 20-253 adopted by the Bangor City Council on August 24, 2020, the City Council authorized a $1,000,000 loan through the Maine Municipal Bond Bank's (the "Bond Bank") School Revolving Renovation Fund ('SRRF") under the Maine School Facilities Finance Program, to finance improvements and repairs to the Bangor High School roof (the “Project”); WHEREAS, $527,500 of such loan is expected to be repaid and the balance of which is not expected to be repaid, but is expected to be forgiven by the Bond Bank; WHEREAS, the City now desires complete the $1,000,000 loan transaction and to issue its $527,500 2021 SRRF General Obligation Bond to finance a portion of the costs of the Project, including costs of issuance; and WHEREAS, the Finance Director, with the approval of the Finance Committee has been charged with responsibility for establishing the details of such bonds; NOW, THEREFORE, the Finance Committee of the Bangor City Council hereby resolves that the $1,000,000 loan and issuance of the City’s $527,500 2021 SRRF General Obligation Bond to be dated and issued on or about April 28, 2021 for the Project, and the maturities, interest rates and pricing set forth in the attached Schedule 1, be and hereby are approved. 13070298.1 Schedule 1 $1,000,000 SRRF LOAN AND 2021 SRRF GENERAL OBLIGATION BOND – INTEREST RATES, PRINCIPAL REPAYMENT AND PRINCIPAL FORGIVENESS SCHEDULE Payment Date Total Principal Principal Net Principal Interest (10/01) Amount Forgiveness Payable Rate 10/1/2021 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2022 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2023 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2024 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2025 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2026 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2027 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2028 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2029 $100,000.00 $47,250.00 $52,750.00 0% 10/1/2030 $100,000.00 $47,250.00 $52,750.00 0% Totals: $1,000,000.00 $472,500.00 $527,500.00 REDEMPTION PRICE UPON OPTIONAL REDEMPTION The principal amount of the SRRF Bond and the Loan (less the forgiven principal portion of the Loan which the City is not required to repay) may be redeemed at any time on or after the date the Project has been completed and the City has delivered to the Bond Bank the completion certificate required by Section 4.3 of the Loan Agreement, without premium. 13070298.1