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CASSELBERRY CITY COMMISSION <br />Minutes of July 11, 2011— Workshop <br />Page 2 of 2 <br />General Fund unrestricted reserves would be largely depleted <br />Eliminates CRA debt payments <br />i Option 2 — Reissue and Extend Long -Term ($5,305,000) <br />20 -year schedule minimizes annual debt service <br />Land sale proceeds can be used to pre -pay loan <br />High debt service would strain General Fund, but Fund Balance would be preserved <br />• Option 3 — Substitute Exempt Note to Fund City Projects ($5,305,000) <br />Lock in historically low interest rates now <br />Could be used for Neighborhood Infrastructure Program (or other municipal uses) <br />Recurring appropriation for Neighborhoods could fund debt service <br />Some capacity remains for other borrowing <br />• Option 4 — maximize Exempt Note to Fund City Projects ($6,730,000) <br />Lock in historically low interest rates now <br />Could be used for Neighborhood Infrastructure Program (or other municipal uses) <br />Recurring appropriation for Neighborhoods could fund debt service <br />Ver, 1� ittle capacity remains for other borrowing <br />A copy of the PowerPoint presentation is attached to and made a part of these minutes. <br />Discussion: Discussion ensued regarding the four debt options presented and concerns regarding decreases in <br />revenues and the need for maintaining sufficient funds in reserves. The City's Financial Advisor, Mr. Craig <br />Dunlop of Dunlop & Associates, answered questions from Commission members regarding various percentage <br />rate options and prepayment penalties and timelines. He advised that if the Commission agreed to move <br />forward, he would bring several options back for their consideration. At the conclusion of the discussion, <br />Mayor Glancy announced that there was support for Option 3 from three of the Commissioners, which <br />constituted a majority, and directed staff to proceed with that option. Mr. Newlon stated he would regroup and <br />come back to the Commission with answers for implementation of Option 3. <br />4. ADJOURNMENT <br />Mayor Glancy adjourned the workshop at 7:05 p.m. <br />DATE MINUTES APPROVED BY CITY COMMISSION: <br />ATTEST: <br />_a4,� d�fa,,_e� <br />Donna G. Gardner, CMC <br />City Clerk <br />