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HomeMy WebLinkAboutMinutes - Municipal Property Corporation Board - 2/28/2007 MINUTES OF THE ORO VALLEY MUNICIPAL PROPERTY CORPORATION SPECIAL MEETING KACHINA CONFERENCE ROOM 11,000 N. LA CANADA DRIVE FEBRUARY 28,2007 CALL TO ORDER: 4:00 p.m. PRESENT: Tom Vetrano, Treasurer Kent Russell ALSO PRESENT: Stacey Lemos, Finance Director Scott Ruby, Bond Counsel, Gust Rosenfeld Mark Reader, Financial Advisor, Stone & Youngberg Kathryn Cuvelier, Town Clerk REVIEW AND DISCUSSION OF THE PROPOSAL TO ISSUE EXCISE TAX REVENUE REFUNDING BONDS, SERIES 2007 Director StaceyLemos explained that the purpose of this study session is to brief Finance . MPC members of a proposed issuance of Town of Oro Valley Excise Tax Refunding the p p Bonds, Series 2007 in an amount not to exceed $20,000,000. She explained that staff is recommending the refundingbecause the market conditions of approximately 4.4% are reco g o lower than the current rates on the outstanding bonds, and the minimum 2% savings threshold requirement is currentlyexpected to be met. It is proposed that the debt service on the new bonds be structured to capture significant debt service savings in the Water ' ' Fund in the earlyyears, so that those funds may be used to help offset some of the Utility future costs of financing the delivery of CAP water to the Town of Oro Valley. Ruby, representing the firm of Gust Rosenfeld explained the legal aspects of the Scott p g proposed transaction. Also, Mark Reader, representing the underwriting firm of Stone & explained the financial aspects of the proposed refunding and distributed a 5 Youngberg, year index Exempt showingTax Exem t Interest Rate Trends. He also distributed a summary of Outstanding Excise Tax Revenue Debt as of January 1, 2007. The next meetingwill be held on March 14, 2007 at 2:30 p.m. to review and approve the Resolution authoringthe Excise Tax Revenue Refunding Bonds, Series 2007. This meeting will be held in the Kachina Conference Room. ADJOURNMENT A MOTION was made by Kent Russell to adjourn the special meeting at 4:40 p.m. MOTION seconded by Tom Vetrano. MOTION carried 2—0. 02/28/07 Minutes,Oro Valley Municipal Property Corporation 2 Prepared by: Kathryn E. Cuvelier, CMC Town Clerk