HomeMy WebLinkAbout10/27/1999 CDC
MINUTES
THE COLONY COMMUNITY DEVELOPMENT CORPORATION
WORK SESSION
PARKS & RECREATION MEETING ROOM
OCTOBER 27, 1999
Present: President Susan King
Treasurer Vicki Briggs
Member Sue Walden
Member John Sanders
Member Bunker Hill
Member Richard Boyer
Staff: Gene Ramsey, Cindi Lane
Guests: Doug Hartman, First Southwest Company
Tony Johnston, Finance Director
Dwayne Brinkley, Brinkley Sargent Architects
Pam Nelson, Parks & Recreation Director
Joan Sveinsson, Library Director
Item #1.0. Call to Order: The work session was called to order by President
Susan King at 6:05 p.m.
Item #2.0. Discussion of financing options: Doug Hartman gave a
presentation of possible ways to finance future projects the city council and 4B
board decide to proceed with upon completion of the master plan results from
Brinkley Sargent Architects.
Mr. Hartman said that the 4B would need to give 60 days public notice and have
a public hearing regarding long term financing plans. He discussed two types of
long term financing; revenue bonds and certificates of obligation.
Main points of sales tax revenue bonds include:
-Bonds issued by the CDC
-Payable solely from sales tax revenues of the CDC
-(The interest rate would be higher)
-There would be a requirement for "coverage" - perhaps as much as 125% of
available funds to cover annual debt requirements.
-There would be a debt service reserve fund - lesser of 10% of bond issue or
average annual debt service.
Based on the sales tax history of The Colony, the CDC could be funded an
amount of approximately $4.581 million with estimated annual commitment of
$446,000.
Main points of certificates of obligation include:
-There would be no coverage requirement
-There would be no debt service reserve fund and
-The Certificates would sell at lower interest rates
The CDC could fund some $6.447 million with an annual commitment to pay the
City about $556,000.
There is no ceiling of financing the city can pursue.
The interest rate is determined by the city's commitment of the maximum of debt
it will place in one year. If the city exceeds the $10 million cap, the interest rates
would be adjusted.
Regardless of the type of financing, the 4B pursues, it will affect the financing cap
of the city.
It was agreed to meet with Brinkley Sargent Architects to determine the master
plan and priority to recommend to the city council. After becoming comfortable
with the project priorities, the 4B will meet with the city council.
There being no other business, the meeting was adjourned at 7:10 p. m. by
President King.
Cindi Lane Susan King
Executive Secretary President
The Coioiiy ~i~ Miiutcs, 10/27,/99 Page 2