3/12/1980 - Laserfiche WebLink

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MAR 121990 �o 42 Pa EW9 MR. HOUGH STATED THAT ANOTHER THING IN FAVOR OF THE BONDS IS THAT FOR THE LAST 30 DAYS THERE HAS NOT BEEN A MBIA INSURED BOND OFFERED IN FLORIDA, AND HE BELIEVED THERE IS A GOOD MARKET FOR THEM RIGHT NOW, WHICH WOULD BE A PLUS, COMMISSIONER DEESON INFORMED THE BOARD THAT HIS OPINION AND FEELINGS HAVE CHANGED TREMENDOUSLY IN THE LAST TWO TO THREE WEEKS. WHEN WE WERE LOOKING AT A 7-8% NOTE, HE WAS INCLINED TO LEAN TOWARD NOTES, BUT IN VIEW OF THE LAST FEW WEEKS, HIS CONSER- VATISM HAS WON OUT, AND HE PERSONALLY FEELS WE SHOULD LOCK IN THE RATE ON A BOND ISSUE BECAUSE HE IS GREATLY CONCERNED ABOUT COST IF RATES CONTINUE TO CLIMB. HE TENDED TO BELIEVE THEY CAN'T, BUT WOULD STILL FAVOR THE BONDS. ATTORNEY COLLINS POINTED OUT THAT AN EMERGENCY ORDINANCE REQUIRES A 4/5 VOTE, AND HE BELIEVED IF THE BOARD MAKES THE DECISION, THEY WILL HAVE TO PASS AN EMERGENCY ORDINANCE. HE NOTED THAT SUCH AN ORDINANCE WOULD APPLY TO ANY ISSUE,NOT JUST THIS PARTICULAR ONE. COMMISSIONER DEESON LEFT THE MEETING AT 11.:20 O'CLOCK A.M. TO COUNT ABSENTEE BALLOTS AND RETURNED AT 11:30 O'CLOCK A.M. ATTORNEY COLLINS REQUESTED MR. BLAND TO SUMMARIZE WHAT HAS HAPPENED TO THE AAA BOND MARKET IN THE LAST YEAR. MR. HOUGH ANSWERED THAT THE TRIPLE A MARKET TODAY IS PROBABLY TYPICALLY AROUND 8-3/4 - 9-1/4%, DEPENDING ON THE SIZE OF THE ISSUE, AND IT HAS BEEN DOWN AROUND 6% IN THE LAST 12-18 MONTHS. HE ALSO COMMENTED THAT THE PRIME RATE HAS BEEN UNDER 10 IN THE LAST 28 MONTHS, AND IT IS HARD TO KEEP TRACK. IN FURTHER DISCUSSION, IT WAS NOTED THAT THE FINANCE OFFICER AND THE INTERGOVERNMENTAL COORDINATOR FAVOR THE NOTES. COMMISSIONER WODTKE ASKED IF WE WENT WITH THE NOTES FOR TWO YEARS, LOOKING AT THE INSURED BOND RATE RIGHT NOW, WHAT WILL THE BOND RATE HAVE TO DROP IN ORDER FOR US TO ACCOMPLISH WHAT YOU ARE DISCUSSING? MR. BLAND EXPLAINED THAT IN TWO YEARS YOU WILL BE PAYING INTEREST ONLY ON THE NOTES. HE MENTIONED THAT INSOFAR AS THE BONDS