05-28-91 MinutesBOAI{D OF 8~EII~-iSORS
MINUTE8
](AY ~, 1991
~Lr. M. B. Sullivan, Chairman
5fr. G. ~. Applegate
Mr+ Lane ~, Ram~ey
County Administrator
Staff in Attendance:
Ms. J. Amy Davis, E×eo.
Asst, to Co. Admin.
Mrs. bori~ R, De~ar~,
Asst. CO. Admin.~
L~gi$. Svc~. and
Intergovern. Affairs
Ms. Joan 8. Dolezal,
Clerk to th~ Board
~r. Bradfur~ 8. Kammsr,
Deputy Co. Admin.,
~anagement SeFvice~
~. eteven L. Mica~,
County Attorney
Dir., New~ & Public
Mr. Ja~a~ J, L. stegmaier,
Dir., Budgmt & Management
Mr. Sullivan called the meeting to o~der at 8:00 a.m.
Room ~0~ of the Adminietra~iun Building.
(DST) in
Mr. SulliYun stated due tc the nature of the information to be
discussed, it was insppro~riat~ for an executive eee~ion,
therefore, the Board would be holding a public work
Mr. R~e¥ and ~-t. Stegmaier rsvi%wed in detail a memorandum
sent to the Board ~egarding options for financing sshool
projectm as it related to:
· . Issuance of debt in th~ amount of $~9.9 milllsn versus
$45.2 million versus $80.2 million,
Debt and debt affer~ability ratios,
3. Budgetary impact of higher debt service,
4. 80urces of revenue to offset increased debt ~ervice
payments,
5. Debt ~srvioe/ex~enditure ratios.
the County might exceed debt s~rvice to expenditure~ ratio cap
of 11 p~rcent but~ moreover, how the money would be managed.
Mr. Ste~aier reviewed the discussions with Moody's and the
fact that they felt as long as the~e were no u~er dramatic
changesr if the County borrowed $80 million, it would not be a
~r~blem as l~ng as:
t. No other borrowing WeS done to accelerate %he Capital
Improvement ~rogram over %he next couple of years.
2. The County documents savings on all projects.
Increase in debt service as follows noeds to ba ~unde~
with current on-going funds:
a. $3 million in 1992
$2 million in 1993
o. $2 million in 1994
ae stated the rating agency felt if these were met, the rating
would net be affected.
5ir. Stegmaior r~viewed the iupect of new debt service end what
would Be reqllired if Scenario f3 of $$0 mill~on was approved
which were: '
o A ~ cent increase in the real estate tax rate.
o A 2 percent meals
O A reduction in planned e×panditures.
o A change in economic outlook that would cause revenuo to
increase £a~ter tha~ th~ B percent aggumed here. For
example, a 7 percent ~ncrease in revenue from real estate
tax could add an additional $2 million in revenue.
Ha indicated if Scenario #1 ($29.9 million) and $ceaario
($A5.2 million) wero approved, there would be no need for new
There was considerablo discussion regarding the major
developments planned that were not be~n~ constructed; that the
School System had anticipatod a 5 percont incxoa~e in school
children du~ ho growth; the need to have cash in hand before
appropriating £unds; the ~ cent tax increase which was
provide for the planned school construction but due to the
downturn ~n :he econo~y, and growth was not available fur this
but ms,dod far regular operating expenses; tho possibility
The Board requested ~4~. Ramsay to prepare a ~cenar~o on how
many building ~ermit~ wore issuod vorsus
After further discussion, it was on motion of the Board,
resolved, that th~ Board authorize staff to issue $29,9
million in ~cnds in Revembsr, ~991 (FYgZ} to complete all
directed s~aff to take necessary ~eps to issue
bring forward whatever formal actions are necessary to issue
vote: Unanimous
Tho ~oard indicate~ they felt this was the best financial move
to take at this time due to the economy. Mr. Ramsay indicated
ha w~ll he looking at reducing County projects ~uoh as
llhraries, public ~afety training facilities, ~tc. to dofer
$10 million in projects. Mr. Daniel expressed great concern
that no appropr~ation~ be ma~e in the ~u~ure unles~ oath was
in hand.
91-372 5/28/91
adjourned at 9:30 e,~. until 2:00 P.m. on June 12, 1991.
Vote: U~animo~s
chain
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