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Howard: <br /> <br />Kraft and Steinbaugh leases. The <br />third one is for the floating rate <br />lease, which is with a company. <br />State Law requires that the <br />questions be divided in this way. <br />The Council has the option of <br />leaving the three questions as they <br />are. That does not mean that you <br />are obligated to issue the Bonds. <br />It only means that the Bonds are <br />authorized to be issued, if the <br />Council makes the decision in a Bond <br />Ordinance that issues the Bonds. <br />Council would therefore maintain <br />flexibility to do what ever you <br />wanted to do with regard to Question <br />No. 3, which is the floating rate. <br />Alternatively, Council can eliminate <br />Question No. 3 right now and not <br />refer it to the people at all. That <br />would have the effect of leaving to <br />Council and the budgetary process a <br />prepayment of that through an <br />appropriated amount at some point. <br /> <br />My personal preference is to have <br />the greatest flexibility in our <br />transaction. I would much rather <br />keep Question No. 3 in as stated <br />and, if needed, not issue the Bond <br />rather than finding out that we do <br />want to do the Bond issue and not be <br />able to. <br /> <br />Davidson: <br /> <br />In each one of the questions it <br />mentions that the interest rate will <br />not exceed 8%. If the Bonds were <br />issued today, approximately what <br />would the interest rate have been? <br /> <br />Briggs: <br /> <br />Around 7%. <br /> <br />Davidson: <br /> <br />The actual Bonds wouldn't be issued <br />unless there were savings on the <br />order of 200,000.00 - 300,000.00. <br />If the interest rate suddenly shot <br />up, then we would just not issue <br />them. We go through the process of <br />authorizing it and providing the <br />market stays somewhere around where <br />they are today, then we go forward. <br />Personally, I feel lease purchases <br /> <br />10 <br /> <br /> <br />