2011-12-07-AC-min - Laserfiche WebLink

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December 7, 2011 Bonds: Mr. Addelson reported that the highly favorable current interest rate environment created an opportunity to refinance four bonds that were issued in 2003 for library and school projects with advance refunding bonds. The original bonds were callable in 2013, but advance refunding bonds can be issued in anticipation of the call. Refinancing does not require authorization by Town Meeting. Bids ranged from 1.865% to 1.749 %. A total of $19m in bonds was issued on 12/1 /11 to replace an existing debt obligation of $22m, saving $2.4m in debt service over the life of the bonds. The proceeds of the issuance, including a bond premium of $2.85 million, will be held in escrow until the original bonds are called in 2013. The lion's share of the debt refinanced was excluded debt, so the savings will accrue primarily to taxpayers. Reserve Fund Request: Mr. Addelson requested that the Committee meet briefly before the health benefits executive session on 12/15/11 to consider a Reserve Fund request by the Town Manager. Funds will be requested to secure a vacant home at 80 Oak Street that is unused, uninhabited, and structurally unsound in many places. A Board of Survey inspected the property on 11/4 and recommended that several actions, including boarding up windows and removing a chimney, be taken to protect public safety. The current estimate of the cost is $40k. Mr. Addelson will look into whether the costs can be recovered through a lien on the property. Civil Service. Mr. Bartenstein reported briefly on conversations with the Town Manager and the Human Resources Director, Denise Casey, about the recent decision to engage an assessment center to assist with the selection of a police sergeant, and about the Town's historical and future participation in the state's Civil Service system. Debt exclusion for Estabrook reconstruction projects: The Committee discussed whether and how to take a position on the upcoming debt exclusion referendum since no action has yet been taken by Town Meeting and the matter is likely to come before the 2012 Annual Town Meeting only if the debt exclusion passes. A motion was made and seconded to support the appropriation of funds to replace Estabrook School if voters approve the exclusion of debt service for the project from the usual limitations of Prop. 2 V2 at the Special Election on January 24, 2012. Vote: Approved 7 -0 -0 SUMMARY OF ACTION ITEMS: Tonight's minutes will be reviewed by Ms. Garberg. Mr. Parker will post an agenda for the Reserve Fund request to be discussed on 12/15/11. Adjourn. The meeting was adjourned at 9:59 p.m. Respectfully submitted, Andrea Yepez Recording Secretary Approved February 29, 2012 2