HomeMy WebLinkAbout1998-06-30 Board of Selectmen Minutes MINUTES OF SELECTMEN'S MEETING: June 30 1998
Time: 7:30 P.M.
Present: Selectmen: Chairman Bruce MacDonald, George Hines, Sally Hoyt, and Matthew
Nestor; Finance Director: Beth Kiepeis
Bruce MacDonald called the meeting to order at 7:30 P.M. He explained that the meeting was
for the sole purpose of approving the Bond Sale of$11,250,000 and signing the notes and other
paper work related to the bond sale.
Beth Klepeis distributed a summary of the details of the financing of the bonds prepared by the
Town's financial advisor, Fleet Securities, Inc. She explained that four syndicates, each made
up of a number of companies, bid on the bonds and bids ranged from 4.5592 %to 4.5887 %.
Standard & Poor's rated the Town's bonds AA and Moody's rated the bonds Aa3. We attempted
to have the Town upgraded by Moody's to Aa2, but were unsuccessful. Their main concern was
the uncertainty of the Light Department's,distribution to earnings payment in light of
deregulation. Other concerns were the level of average personal income in the Town and the fact
that the Town taxes to the levy limit of Proposition 2 '/2..
Beth pointed out that A.G. Edwards of Boston was marketing the bonds in$5,000 units.
Anyone interested in purchasing a Reading bond, interest on which is exempt from State and.
Federal Taxes, may call Christopher Buckley at 617-439-4200.
The following motion was made, seconded and voted in favor by a vote of 4 to 0.
Motion to Approve Bond Sale:
Moved, that the Board of Selectmen approve the issuance, sale, and delivery of$11,250,000
Municipal Purpose Loan of 1998 Bonds of the Town of Reading. Said bonds shall be dated
July 1, 1998 and shall be issued in denominations of$5,000 or multiples thereof by means of a
book entry system. The board of Selectmen approves the acceptance of the bid of Roosevelt&
Cross, Inc. & Associates to purchase the bonds with a net interest cost of$4,475,887.50 and a
true interest rate of 4.5592 %.
The meeting adjourned at 7:50 p.m.
Respect lly submitted,
Se retary