City Council Minutes 1992 01 21 - Laserfiche WebLink

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interest free loan and then the last year we are paying 5% on the total balance. Phare: Correct. Howard: Is it possible to pay off the loan prior to the third year? Davidson: When it went through the Finance Committee, there was no prepayment restriction or penalty. Phare: We have some higher interest debt that we should prepay prior to this. Davidson inquired of Mayer if he wanted to set a public hearing for February 4, 1992 on Ordinance 1064, Series 1992, Mayer and Hornbostel agreed. Roll call was taken. Motion passed 6-0. RESOLUTION 8, SERIES 1992 - REIMBURSEMENT OF BOND PROCEEDS Sharon Asti-Caranci, Director of Finance, stated that Resolution 8 will allow the City to reimburse themselves for any costs incurred in relation to the South Treatment Plant before the City closes on the bond from those bond proceeds. The schedule outlines that the City probably wouldn't close on the bonds until April. Expenditures to date are $180,000.00 plus future expenditures of approximately $163,000.00. Griffiths: Mr. Falacienski, Bond Attorney for the City, did not feel it would be of substantial assistance in permitting the City to pay the $180.053.00 already expended to be reimbursed from the bond proceeds. Davidson called for Council comments or questions. Mayer: I'm not sure what the yield restrictions are, and the rebate requirement. Griffiths: In 1986, the Internal Revenue code was changed and the IRS requires that any additional percentage, which is called arbitrage, would have to be repaid to the U.S. Treasury with certain exceptions. That is called the rebate requirement'. It's a rebate, a repayment to the U.S. Treasury if 16