Speedway Park Board Approves Bond Issue(posted June 17) No taxpayers, supporters nor remonstrators attended the Speedway Park Board's June 18 public hearing to issue a bond amount not to exceed $1,995,000 to improve Leonard Park and Meadowood Park. With no signals to rely on from the taxpayers, the board passed the confirmatory resolution that prescribed three actions with its 5-0 vote. In addition to authorizing a bond issue, it approved an additional appropriation to the budget, so the council could spend the bond money once received. It also set a common construction wage committee to determine the wage in the contract. Attorney Kim Blanchet explained the common construction wage committee will look at wages representing the unskilled, semi-skilled and skilled levels in every trade that is to be involved with the parks' construction and improvements. Herschel Frierson of Crow Chizek, who is handling the financial details of the bond issuance, explained the board could not occur a debt greater than two percent of one-third of the town's $658,876,570 net assessed valuation. Frierson expected the bonds to be issued to both individuals and institutional buyers by late August or early September. He said buyers have different "sweet spots" and prefer bonds less than $10 million. He also recommended a using a bank to handle making the payments to investors. The management fee is about $500- $600 per year. He also noted the bonds would be sold competitively by either a notice of bond sale or notice of intent. Frierson preferred the later where 24 hour notice is given to the buyers that bonds will be up for sale. This will allow Frierson to choose a different day if a lot of other municipal bonds are for sale that day. The notice of bond sale does not give him the flexibility to wait and watch the market in case it is having a volatile day. The notice of bond sale specifies an exact day the bonds will go on the market. The interest rate is still unknown at this time for this 20 year bond. |
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