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Sisk: <br /> <br />Davidson: <br /> <br />Sisk: <br /> <br />Mayer: <br /> <br />No. 3, which is the lease purchase <br />on the City Hall. <br /> <br />As long as we have the money <br />available, why pay off a loan that <br />has a current interest rate of 6% <br />with 3.5% money? <br /> <br />When we looked into this, we thought <br />it made sense. This was a single <br />loan that stood out by itself. The <br />interest rate is a bet whether the <br />prime rate goes up or down. Since <br />we had the money held over from a <br />prior year reserve, it was <br />determined that it made sense to go <br />ahead and pay this one off and not <br />include it as part of the refunding. <br />As part of the process of refunding <br />these other issues, we would take <br />that reserve money and pay off the <br />lease purchase on the City Hall. <br /> <br />My concern would be that the City <br />would be paying off the lowest <br />interest rate loan as opposed to <br />taking that reserve and paying that <br />off on a 9-10% loan and reducing <br />that. I would rather see us keep <br />the 6% loan on the books, then if <br />the interest rate goes to 8.2% or <br />8.3%, have the ability to pay that <br />off entirely. <br /> <br />My preference would be to find a way <br />to go through the budget process <br />first and see where the City's <br />priorities are before we make that <br />determination. <br /> <br />Briggs: <br /> <br />The way the resolution is <br />structured, it provides the City <br />with flexibility to resolve the <br />policy issue that you're discussing <br />with regard to the floating rate <br />lease. There are three questions <br />that need to be referred to the <br />people, because of the way the State <br />Law allows General Obligation Bonds <br />to be authorized. One is relative <br />to all three of the Golf Course <br />leases. Two others are for the <br /> <br />9 <br /> <br /> <br />