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you to do. You pull out of the reserve the amounts that are tied to those bonds that you're <br />refunding, and you drop them into the refinancing itself. <br />Committee Chair Dr. Varner asked if, at some point in time, the City would be better off <br />applying the debt service reserve and reducing the bond, and paying the bond off sooner as <br />opposed to going through the convoluted process being presented. <br />Mr. Julien responded, In effect, that's what we are doing. As Phil mentioned, for federal tax <br />purposes, we have to account for reserves. If you look at the savings schedule and the project <br />budget, there's money going into the refunding, paying for refunding from your dollars that are <br />on -hand, and then we're pulling out a lower amount —that would be that reserve for these bonds, <br />as safety net for these. We have to show something to the market —that there's a reserve there, <br />just to avoid them assigning unnecessary risk. That step is necessary. So, we're applying more <br />than we're putting back, so if you look at the savings schedule, the net impact is at $600,000, in <br />gross savings. We have to account for that. <br />Committeemember Randy Kelly moved to send Substitute Bill No. 67 -16 to the Common <br />Council with a favorable recommendation and Regina Williams- Preston seconded, which carried <br />by a voice vote of four (4) ayes. <br />With no further items on the agenda, Committee Chair Dr. David Varner adjourned the meeting <br />at 4:17 p.m. <br />Respe Submitted, <br />Dr. David Varner, Committee Chair <br />4 <br />