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HomeMy WebLinkAbout1995-R-01RESOLUTION NO. BPW 95-R-01 A RESOLUTION TO ESTABLISH SINKING FUND ACCOUNTS FOR RETIREMENT OF SERIES A & SERIES C BONDS WHEREAS, the City of Jeffersonville Board of Public Works is the body which has authority to manage the affairs and finances of the Jeffersonville Sewage Utility; and WHEREAS, the City of Jeffersonville borrowed monies to finance the construction of a new wastewater treatment plant in the City and that debt is in the form of interest bearing bonds which the Jeffersonville Sewage Utility is currently paying back; and WHEREAS, the earliest date that the bonds can be paid back in their entirety is January 1, 1999; and WHEREAS, the Jeffersonville Sewage Utility has monies in certain sewage utility accounts at this time in excess of the requirements of state law and its other financial agreements; and WHEREAS, a restructuring of Sewage Utility funds and accounts at this time would permit, the Jeffersonville Sewage Utility to satisfy indebtedness on certain bonds now issued by the City of Jeffersonville resulting in substantial financial savings to the Jeffersonville Sewage Utility. NOW, THEREFORE, BE IT RESOLVED by the City of Jeffersonville BOARD OF PUBLIC WORKS that the City Clerk-Treasurer establish 2 new sinking fund accounts for the Jeffersonville Sewage Utility where funds can be transferred and deposited for the early satisfaction of the Series A & Series C bonds issued to finance the construction of the City of Jeffersonville wastewater treatment facility, which bonds can be paid no sooner than January 1, 1999. Passed and adopted by the Board of Public Works of the City of Jeffersonville, Clark County, State of Indiana, on this 30th day of January, 1995. MOND ~J. P~RKER, (JR. ' PRESIDENT, BOARD OF WORKS ATTEST: C. R/CHARD SPENCEJg,/R. ~'/ CLERK-TREASURER ~ BPW Press Release- 1/30/95 Today Jeffersonville Mayor Raymond J. "Buddy" Parker announced the restructuring of funds held and managed by the City of Jeffersonville Sewer Utility to allow the early payment of bond debts, saving the City substantial sums of money. The procedure was suggested by City Clerk-Treasurer C. Richard Spencer in December after his analysis of the cash flow of the Sewage department. Spencer said if the current cash flow is not interrupted the suggestion could save the city in excess of $818,000.00 in interest payments. The City's Board of Public Works, which is chaired by Parker, voted to create two new sinking fund accounts. The accounts would be funded from several existing soumes: interest on reserve funds, savings realized by hiring a private firm to operate the sewer plant and from funds left over from construction of a new sewer plant. In 1991-92 the city built a new sewage treatment plant. The funds for construction of the plant were received from 2 sources, a federal grant and the city. The city's portion was raised by the sale of bonds. These bond debts are now being paid back by the sewer department from monthly fees paid by sewer utility customers. A large portion of the payments the city makes to retire the sewer bond debts is for interest, not principal. Paying the bond obligations off early could free future revenues which have been earmarked for bond payments. This would be tike a homeowner making extra mortgage payments and paying the debt off several years early. Spencer said the reason this restructuring of funds could not take place earlier is because the information needed for the analysis was unavailable. To have acted sooner would have been highly risky because trends in the cash flow from the new plant were not well established until recently. The city's bonding agreement limits the city's ability to lower sewer utility charges until the bond obligations are paid back. The soonest that two of the series of bonds can be paid back is on January 1, 1999. To have the necessary funds to pay the bonds in full at that time restructuring of funds is necessary now. NEWS TO USE!,, GOVERNMENT OFFICIALS, SCHOOL OFFICIALS, LOCAL BUSINESSES... You need to be aware of the wealth of services and commodities avalla~t le [Q.~alIY. through minority business owners,.. SOUTHERN INDIANA MINORITY BUSINESS FAIR BENEFITS ENTIRE COMMUNITY Southern Indians minority business owners wilt have an opporlamity to show off wares at the Southern Iudiana Minority Business Fair on Februa~ 22. The fair will be from 1-7 P.M, at the Ramada llotd Riverside in Jeffersonville, and will feature businesses owned and operated by e~hnic minorities, women, people with disabilifi~ ~d p~ple 62 or older. Businesses interested in boofl~ space at the fair have until January 31 to apply by calling 1a.ckie .lames at 949-6768. So, if you're not a minority business owner, you won't be too interested in tho Southern Indiana Minority Business Fair, right? W~'ongl The whole point is to identify and promote minori~ owned and operated buslnes~es in ~oufl~ern Indiana, Come meet and talk with people who operate businesses flora Adve~ising to Excavating. It's a ~eat opportunity i~ yotl aro responsible for company purchasing or just in the market for someone to do business. The ownt i$ free and opeu to fl~e public. Starting at 5:00 P.M., th~ Sonfl~m Indiana Minority Business Fair Committee will host "business after hours" in conjunction wifl~ the bnsiness fair, Co-sponsors of the minority business fair are ~BI)~ PNC Bank, Libe~y National Bank, National City Bank and the Sm~thern Indiana Chamber of Commerce. For general information, call Phyllis Wilkin$ at 284.7303.