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REGULAR MEETING SEPTEMBER 26, 2011 <br /> <br /> <br /> <br />is going to finance the replacement of stations #5 and #9 and the training facility. The <br />City is going to finance that with basically a “mortgage.” He stated that the current plan <br />is that is going to be a seven (7) to ten (10) year mortgage, it is not going to be a bond <br />issue. He stated that they intend to come to the Council yet this year for the approval to <br />secure that financing arrangement. The money that is included in this budget is basically <br />the debt service payment that they would make the mortgage payment that they would <br />make on #5 and #9 and the training facility in 2012. Construction starting in the third <br />quarter or fourth quarter of this year, those facilities won’t be commissioned until <br />probably next mid-summer. <br /> <br />Councilmember Oliver Davis asked if construction would start this year. <br /> <br />Mr. Zientara stated that is the plan. He stated that the plan is to have shovels in ground <br />before December 31, 2011. <br /> <br />Councilmember Dieter reiterated that the administration is going to come back to Council <br />before the end of the year. <br /> <br />Mr. Zientara stated that the financing is already included in the 2011 Budget, and no <br />appropriation is required. He stated that if the Council approves this budget there will be <br />no additional appropriation required in 2012. He stated that what they have to do <br />because they are going to enter into a debt instrument, the Council has to say yes to that. <br />He stated it is just like when we do a bond issue, they are obligated even through the <br />bond has been budgeted and is appropriated within the budget, they are still obligated to <br />come before the Council and have Council specifically approve the issuance of the bond. <br />That’s the same thing that is being done on this particular debt issue. He reiterated that <br />the money is already budgeted in 2011, money is budgeted in 2012 within this, it is no <br />new money appropriation, it is just Council giving approval to incur the debt instrument. <br /> <br />Councilmember Varner asked for clarification on what is the appropriation request is for . <br /> <br />Mr. Zientara stated that in the 2011 budget, #5 and #9 replacements were always there <br />and the Training Facility was always there. Those were to be constructed, shovels in <br />ground, and construction completed in 2011, and that’s not going to happen. <br /> <br />Councilmember Varner asked in this budget what is the appropriation amount. <br /> <br />Mr. Zientara stated that the appropriation in this budget is six (6) months of debt service <br />payment in 2012 on about half million dollars of debt service payment. <br /> <br />Councilmember Varner stated that they are expecting an annual payment of million <br />dollars. <br /> <br />Mr. Zientara stated $1 million dollars. He stated that it is going to be funded by the EMS <br />Capital Fund, not General Fund. He stated that they have cash flowed it and there is <br />sufficient cash flow in the EMS Capital to support this. <br /> <br />Councilmember Varner stated that if the administration comes back with this, will this <br />have a general obligation clause? <br /> <br />Mr. Zientara stated that he doesn’t intend it to. He reiterated that the intention is no. <br /> <br />Councilmember Varner asked Mr. Zientara to get that information to Council. <br /> <br /> This being the time heretofore set for the Public Hearing on the above bill, proponents <br />and opponents were given an opportunity to be heard. <br /> <br />There being no one present wishing to speak to the Council either in favor of or in <br />opposition to these bills. <br /> <br /> <br /> 4 <br /> <br />