TOWN OF BRADFORD
SELECTMEN’S BOND HEARING
FEBRUARY 4, 2014
7:00PM
Sonny Harris, Selectmen opened the Bond Public Hearing at 7:10pm with Marcia Keller, George Cilley, Everett Kittredge, Eileen Kelly , Cheryl Behr and Marge Cilley present.
Selectmen John Pfeifle and Harold Wright were absent.
Everett Kittredge questioned if someone was going to explain the structure of the bond.
Eileen Kelly responded by reading part of the following Article Six:
To see if the Town will vote to raise and appropriate One Million Four Hundred Sixty Six Thousand Dollars ($1,466,000) (gross budget) to renovate the Bradford Town Hall at map 16, lot 92 and to authorize the issuance of not more than One Million three Hundred Thousand Dollars ($1,300,000) of bonds or notes in accordance with the provisions of the Municipal Finance Act (RSA Chapter 33.) Further to authorize the Selectmen to issue and negotiate such bonds or notes, to determine the rate of interest thereon, the term and other details. The balance of One Hundred Sixty Six Thousand Dollars ($166,000) will be raised from donations and grants with work proceeding as commitments are made.
Eileen went on to list what the bond amount will cover, being:
Enlarge and replace foundation at southern end of the building
New plumbing and heating for whole building which will result in energy savings.
Fire protection for all of the building
The first floor will furnish office space for all the town offices: Selectmen’s, Planning Board, Zoning Board of Adjustment, Welfare Officer, Building Inspector Town Clerk/Tax Collector. Also there will be a meeting room for scheduled weekly meetings. The bathrooms will be located in the front northwest corner of the building
A priority of the Town Hall Restoration Committee is to use local qualified workers.
Cheryl Behr received the following information regarding Interest Rates and length of availability for fixed rates.
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We are happy to offer the following rates for the restoration of the Town’s municipal building.
Option 1: 3.25%, Fixed for 15 years, 15 year amortization
Option 2: 4.50%, Fixed for 20 years, 20 year amortization
Option 3: 3.25% Fixed for 15 years, 30 year amortization, Interest rate adjusts once at the end of the initial fixed rate period. New rate to be based on the 15/15 Federal Home Loan Bank Boston Amortizing Advance Rate plus 3.00% margin less the municipal discount. If new rate was calculated today it would be 3.92%.
Option 4: 4.50% Fixed for 20 years, 30 year amortization, Interest rate adjusts once at the end of the initial fixed rate period. New rate to be based on the 10/10 Federal Home Loan Bank Boston Amortizing Advance Rate plus 3.00% margin less the municipal discount. If new rate was calculated today it would be 3.45
We are unable to offer a 30 year fixed rate this year. You may have to try the Municipal Bond Bank for that long of a fixed rate. Options 3 and 4 above are variable rates but they do have a 30 year amortization. As always, Lake Sunapee Bank will waive any bank processing fees for the Town. We would require an Opinion Letter from the Town’s Legal Counsel but that should be the only cost involved for this financing.
The above options are based on current rates. If rates change dramatically between now and when you are ready to start the project, your final rate may be different. We will try to hold these quoted rates for as long as possible and also provide the Town with rates that are as low as possible.
I would be happy to answer any questions or provide payment information if you would like.
Thank you for the opportunity to provide this information!
Marie
Discussion included finding space to hold the up-coming Town Meeting.
Meeting adjourned at 7:35pm
Respectfully submitted
Marjorie R. Cilley
Secretary