HomeMy WebLinkAboutMinutes - Municipal Property Corporation Board - 3/11/2010 MINUTES OF THE
ORO VALLEY MUNICIPAL PROPERTY CORPORATION
SPECIAL MEETING
MARCH 11, 2010, 4:00 PM
KACHINA CONFERENCE ROOM
11000 N. LA CANADA DRIVE
CALL TO ORDER
President Russell called the meeting to order at 4:00 p.m.
PRESENT: C. Kent Russell, President
Tom Vetrano, Treasurer
Donald Taylor, Secretary
ALSO PRESENT: Stacey Lemos, Finance Director
Tobin Rosen, Town Attorney
Philip Saletta, Water Utility Director
Mark Reader, Financial Advisor, Young & Stoneberg (via
telephone)
Kathryn Cuvelier, Town Clerk
1. APPROVAL OF MAY 11, 2009 MINUTES
MOTION: It was moved by SecretaryTaylor and seconded by Treasurer Vetrano
to approve the minutes of the May 11, 2009 meeting, as submitted.
MOTION carried 3-0.
2. RESOLUTION NO. MPC 10-01 AUTHORIZING AND PROVIDING FOR THE
DEFEASANCE AND REDEMPTION OF THE OUTSTANDING TOWN OF ORO
VALLEY MUNICIPAL PROPERTY CORPORATION EXCISE TAX REVENUE
BONDS, SERIES 2001 AND EXCISE TAX REVENUE REFUNDING BONDS,
SERIES 2003; RATIFYING THE ACTIONS OF ALL OFFICERS AND AGENTS
OF THE CORPORATION AND OTHERS WITH RESPECT TO THE
DEFEASANCE AND REDEMPTION
Advantages of the bond defeasance were discussed:
• Eligible one-time use of cash reserves to provide significant recurring
budget savings.
• Significantly reduces the General Fund's indebtedness.
• Utilizes available invested cash reserves currently earning less than 1% to
pay off debt costing 4%-5% annual interest, thereby saving approximately
$1 million in interest costs over the remaining term of the bonds.
• Remaining cash reserves after defeasance still exceed Town's 25% of
expenditures policy level in General Fund.
03/11/10 Minutes, Oro Valley Municipal Property Corporation 2
• Utilizing cash reserves for this purpose would not be viewed negatively by
bond rating agencies.
• Significantly reduces future year projected budget deficits without
impacting staffing levels or operations.
• Reduction of outstanding debt is viewed favorably by bond rating
agencies.
The summary defeasance analysis showing the principal amounts of each of the
bonds being paid off and the Water Utility Fund's remaining outstanding principal
and interest on the Series 2003 MPC Revenue Refunding Bonds were reviewed.
MOTION: It was moved by Treasurer Vetrano and seconded by Secretary
Taylor to approve Resolution MPC 10-01.
MOTION carried 3-0.
ADJOURNMENT
MOTION: It was moved by Treasurer Vetrano and seconded by Secretary
Taylor to adjourn the special meeting at 4:17 p.m.
MOTION carried 3-0.
Prepared by:
Kathryn E. Cuvelier, CMC
Town Clerk