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OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK UTILITIES Committee Members Present: Other Council Present: Others Present: Agenda: NOVEMBER 14, 2016 4:00 P.M. Dr. David Varner, Oliver Davis, Randy Kelly, Regina Williams- Preston Jo Broden, John Voorde, Gavin Ferlic, Tim Scott, Karen White Kareemah Fowler, Joseph Molnar, Michael Passavoir, Kathy Cekanski - Farrand Bill No. 67 -16 — Waterworks Bond Refunding Committee Chair Dr. David Varner called the meeting to order with one (1) item on the agenda. Bill No. 67 -16 — Waterworks Bond Refunding John Murphy, City Controller with offices on the 12'h Floor of the County -City Building, served as presenter of the bill. He stated, We have done a number of bond refundings over the years. Since 2012, the City has refunded bonds, and present value savings is $8,900,000. This is a smaller one, but it is still very important and will hopefully generate savings of over $200,000. Philip Faccenda, Barnes & Thornburg, 100 North Michigan Street, South Bend, IN, continued with the presentation. He stated, Those who have been on the Council in the recent past know what John stated, which is that there's been a number of refinancing and refundings, both from the Water side and Sewer side. This bond will be a bond not to exceed $3,720,000, so it's a smaller bond. The majority of that is to take out the 2006 bonds. So, it's a refunding of both the 2000 bonds and the 2006 bonds. Currently, that will leave the City on the large side with four (4) outstanding bonds, and this one will be five (5). So, it would be the two (2) 2009 bonds and two (2) 2012 bonds that are outstanding, and then this one refinances two (2), so you take out two (2) and replace them with one (1). With regard to refinancing, the nice thing about it is that we won't be extending maturity. These bonds will mature at the same time that the `07's would have, now that the `06's would have been maturing. Interest rate -wise, as you probably saw in the ordinance, we are not allowing an interest rate in excess of four percent (4 %). We hope to do quite a bit better than that for the purposes of this kind of refund. Below three percent (3 %) is the target. The Board of Public Works met on November 8`h and approved this refinancing, and 455 County-City Building • 227 W. Jefferson Boulevard • South Bend, Indiana 46601 Phone 574- 235 -9221 • Fax 574 -235 -9173 • TDD 574- 235 -5567 • www.SouthBendIN.gov JENNIFER M. COFFMAN ALKEYNA M. ALDRIDGE JOSEPH MOLNAR CHIEF DEPUTY/ CHIEF OF STAFF DEPUTY/ DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK