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
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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
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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.
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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.
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