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Pen Argyl Borough Monthly Minutes | Archive

Tuesday 27th of August 2019 - Special Borough Council Meeting

            Pen Argyl Borough Council held a Special Council Meeting on Tuesday, August 27, 2019 at 7:00 P.M. in Council Chambers.

 

            The Special Meeting was held for the purpose of Council and the Pen Argyl Municipal Authority to review and take possible action regarding the refunding of the 2016 and 2017 Notes and for other general business purposes.

 

Pledge of Allegiance:                                                                                                            

Council President Joseph LeDonne opened the Council Meeting at 7:12 P.M. with the Pledge of Allegiance.

 

Roll Call:                                                                                                                               

Council Members present and responding to roll call were:  Joseph LeDonne, Tammy Kemp, Charles Kandl Jr., Roberta Cowley and Josephine Hildabrant. Council Members Janell Connolly and Robert O’Donnell were absent.

 

            Also present were Borough Manager Robin Zmoda and Borough Solicitor Peter Layman.

 

Joint Meeting with Borough Municipal Authority:                                                              

Councilwoman Roberta Cowley made a motion to hold a joint meeting with the Borough Municipal Authority to discuss the refinancing of the 2016 and 2017 Notes, seconded by Councilman Charles Kandl Jr.  Unanimous vote by roll call.

 

            John Cuono, Municipal Authority Chairman, called their meeting to order.  In attendance were John Cuono, Michael Zavacky, Rose Rinker, Craig Ealey and Dale Houck.

 

Discussion of refinancing of the 2016 and 2017 Notes:       

 

Scott Kramer, RBC Capital Markets, LLC Managing Director, gave an overview of how interest rates have dropped below the 2016-2017 rates and provided data summarizing the potential savings in refunding.       The market is very volatile, however, a conservative present value saving of $174,664.00 could be realized.   It takes 30-45 days to lock in interest rates and it is recommended to set a target of at least 2% of the net cost of issuance, today the net cost savings would 3.99%.  If the target is not met and a note is not refinanced the Authority runs the risk of some fees and costs for the bond rating call, legal and advertising costs.

                                   

Bond consultant Kevin Reid from Sewer Authority Attorney Terrence Faul’s office was present. Reid stated that the Municipal Authority would have to approve the refinancing of the notes by passing a resolution and the Borough Council would be the guarantor to pay off the notes and would need to pass an ordinance. Potentially by end of September rates could be locked in and then in October a closing would occur. 

 

            The new bond issuance would be for $4,375,000. 

 

            Council President Joseph LeDonne asked the Authority if they were comfortable with the 2% target or the dollar amount savings as a parameter.  The Authority members unanimously agreed to the at least 2% target. 

 

 

            Councilwoman Tammy Kemp made a motion to agree to move forward with the advertising of an ordinance to refinance the 2016-2017 Bank notes to an issuance of 2019 Bonds with a target savings of at least 2%, seconded by Councilwoman Josephine Hildabrant.  Unanimous vote by roll call

 

Adjournment:

            Councilwoman Tammy Kemp made a motion to adjourn, seconded by Councilwoman Roberta Cowley.  Unanimous by voice vote.  Council adjourned at 7:30 P.M

 

 

 

 

Regular Council Meeting – Tuesday, September 3, 2019 – 7:00 P. M.

 

 

                                                                                                Respectfully Submitted,

 

 

 

                                                                                                Robin Zmoda

                                                                                                Borough Manager