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January 6, 2005 <br />plans for maternity leave. Linda is also arranging for additional staffing in the Assessor’s <br />Office. Payment for the additional staff will be absorbed in the FY05 budget. <br /> <br /> Debt Management and Moody’s review: <br /> <br /> John Ryan would like the approach to Moody’s to focus on the accomplishments <br />of FY05 and the fact that the town has demonstrated its willingness and ability to pay for <br />whatever necessities arise. The meeting with Moody’s will be January 18, 9 . <br />AM <br /> <br /> It is not expected that the Town will go to market to sell bonds, but rather will <br />roll over Bond Anticipation Notes (BANs) which were scheduled to be bonded this <br />February. <br /> <br /> Our Bond consultant, Cinder McNerney from First Southwest, advised that we <br />not use free cash, and that we add something to the Stabilization Fund as a good-faith <br />effort. The $550K transfer to the Stabilization Fund in the second pro-forma budget is <br />thought of by those backing it as coming from the reduction in the debt service. <br /> <br /> It was recalled that George Burnell spoke of a possibility of putting $500K from <br />the road override funds for FY 2006 only in a Stabilization Fund since the funds couldn’t be <br />spent by the DPW yet anyway. Paul raised the question whether this would help the <br />Moody’s evaluation, since the money could not be unencumbered. <br /> <br /> $38M in exempt notes are coming due. We expect to get $26-28M in <br />reimbursement from the State for school bonds. This is 75% of the 59% reimbursement of <br />the total principal and interest. <br /> <br />3. Discussion of Paul’s Spreadsheet: <br /> <br /> Paul asked the question whether the four items shown in the introduction are an <br />appropriate direction. <br /> <br /> Questions were raised about the “no override in 2006” assumption. It was clear that the <br />Committee was not willing to take this as an assumption at this time. Deborah expressed <br />that before we reduce staff (and services) we should put it to the voters, even if we think it <br />might fail. <br /> <br /> Concern was raised that the 1% COLA in the calculations may be unrealistic. There was <br />not agreement about this. <br /> <br /> There was a question as to whether we should include “critical needs” or rather take the <br />money allocated for this and increase the COLAs. Again there was no agreement on this. <br /> <br />Page 3 of 4 <br /> <br />