1993.03.26_FAB_Minutes_RegularY
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TOWN OF HIGHLAND BEACH
FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
Friday, March 26, 1993 9.30 A.M.
Chairman S. Myron Browner called the Regular Meeting to order in Com-
mission Chambers at 9:30 A.M.
Deputy Town Clerk Doris Trinley called the roll. Present were the
Chairman, Vice Chairman Victor P. Hadeed and Members Fred Firstenburg
and Frank A. Magarace. Member Thomas J. Reid was absent.
Also present were Town Manager Mary Ann Mariano, Finance Director
Michael Seaman, Commissioner John F. Rand and members of the general
public.
Upon MOTION by MR. FIRSTENBURG/MR. HADEED, the Minutes of the March 16
Regular Meeting were approved.
NEW BUSINESS
Discussion and Recommendation re Refinancing of General Obligation
• Bonds, Series 1979.
For the record, Chairman Browner noted questions had arisen regarding
some aspects of the bond refinancing, i.e., what would happen if the
Town could not sell the new issue of bonds or if the old issue had
been called. In this regard he said he had been told, and assumed it
would be put in writing, that the underwriter will write the Town a
check for the issue on day one of the call and that money would be
available in an interest bearing bank account, which is why there is a
discounted rate of $1,351,200 to $1,344,560.
The Chairman also urged a close examination of the insurance policy to
verify, as was so advised, it does state that in the event the Town
were unable to make the payments, the insuror would step in and meet
the payments on a timely basis until the Town could resume its
responsibilities.
Finance Director Michael Seaman and Town Manager Mary Ann Mariano
assured Mr. Browner that the statements he had made in answer to
questions raised were indeed correct.
Asked to give his thoughts on the refinancing, Commissioner Rand said
he thought it made a good deal of sense and had worked to bring it
about. He also noted the timing was propitious to take advantage of a
$123,000 savings to the Town over the next 10-11 years.
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Financial Advisory Board
Regular Meeting - Minutes
March 26, 1993 Page 2 of 2
MOTION by MR. MAGARACE/MR. HADEED was then made as follows:
THE FINANCIAL ADVISORY BOARD RECOMMENDS TO THE TOWN
COMMISSION THAT IT ACCEPT THE PROPOSAL OF STIFEL,
NICOLAUS & CO., INC. TO REFINANCE GENERAL OBLIGATION
BONDS, SERIES 1979, UTILIZING THE LEVEL SAVINGS CASE.
Motion met with unanimous favorable votes and will be transmitted to
the Town Commission through Mrs. Mariano's office.
Town Manager Mariano advised the members of the process which would
be initiated pursuant to their recommendation. She noted the subject
is on the agenda for the March 30 Workshop Meeting under Commissioner
Rand's report, following which the Commission would direct staff and
the Town Attorney to take the necessary procedural steps to get the
refinancing done.
There being no further business to come before the Board at this time,
the meeting was adjourned upon MOTION by MR. MAGARACE/MR. HADEED at
9:40 A.M.
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APPROVE:
. Myron rowner, airman
ATTEST:
DATE:
V ctor P,� Ha ee Vice Chairman
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Are Hi rrs ienu r g
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Frank A—Magarace