HomeMy WebLinkAboutMinutes - 3/13/1996 - Finance and Personnel Committee `'' FINANCE COMMITTEE MINUTES
March 13 , 1996
Members Present : Chairman Lawson, Bill Baird
Others Present : Mayor Cuda, City Clerk Althoff, Bill Bolger,
and Harold Warren of Warren & Associates
Alderman Lawson called the meeting to order at 6 : 36 P.M. Lawson
stated that the purpose of the meeting is to meet with municipal
finance advisor Harold Warren of Warren Associates to discuss the
feasibility of issuing bonds for the financing of City
improvements to the south wastewater treatment plant and
construction of the east of the river sanitary sewer lines .
Mr. Warren noted the City of McHenry currently has little bond
debt with only two outstanding bond issues . An issue of
alternate bonds, dated May 1, 1990 for the construction of the
municipal building and a second bond issue relating to water and
sewer improvements payable from revenues of the system.
Mr. Warren suggested if council wished to utilize bonds to
finance these projects the east of the river construction will be
� payable from sales tax receipts generated by area businesses and
the south wastewater treatment plant will be payable from
earnings of the system. 1995 figures from the Illinois
Department of Revenue indicate approximately $350, 000 in sales
tax revenues from the east of the river businesses . Warren also
stated his preliminary projections indicate the bond issue could
be paid off in 13-15 years .
Some discussion ensued regarding the time frame between
authorizing the issuance of bonds and the actual bond sale.
Current market interest rates were also discussed. Warren
informed council that although they could authorize a six million
dollar bond issue, there was no obligation to sell the full six
million. Approximate costs for the east of the river sanitary
sewer lines remain at $3 , 500, 000 and for the expansion of the
south wastewater treatment plant an additional $3 , 500, 000 . Lawson
noted $2 , 000, 000 was available in the capital development fund to
offset the $3 , 500, 000 south wastewater treatment plant expense .
Further discussion regarding the procedure for issuing bonds
followed. Alderman Baird questioned what recourse was available
to council if a petition was filed objecting to the bond
issuance. Warren informed the committee the City would have to
bring the issue to a referendum question or conceivably drop the
project .
�
Finance Committee Meeting
March 13 , 1996
`' Page Two
The committee directed Mr. Warren to provide a cost proposal for
his services for consideration.
Motion by Baird, seconded by Lawson to adjourn the meeting at
7 : 25 P.M.
Voting Aye : Baird, Lawson
Voting Nay: None
Absent : Bates
Motion carried.
The meeting was adjourned at 7 :25 P.M.
Respectfully submitted,
� �
� �-�.� '�.�,��
David Lawson Chairman
�
L