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COMMISSIONER WODTKE ASKED WHETHER IN THAT CASE, THE PLEDGE <br />OF THE RACETRACK FUNDS REALLY MEANS MUCH. <br />FINANCE DIRECTOR BARTON NOTED THAT THE OTHER CHOICE WOULD <br />BE TO GO TO REFERENDUM AND GENERAL OBLIGATION BONDS, AND MR. THOMAS <br />POINTED OUT THAT WE,WOULD NOT HAVE GOTTEN THE AAA RATING ON THE FIRST <br />ISSUE IF WE HAD NOT PAID FOR THE INSURANCE (MBIA). <br />DISCUSSION CONTINUED IN REGARD TO THE TRIPLE A AND TRIPLE <br />B MARKET. °MR. LEEDY STATED THAT 1/4% BETWEEN BOND RATINGS IS A RULE <br />OF THUMB, AND HE WOULD SAY 3/4% AS A MAXIMUM. HE FURTHER NOTED WE <br />WOULD NOT HAVE TO BUY AN MBIA POLICY. <br />CHAIRMAN LYONS NOTED THAT ACTUALLY WE ARE INSURING THAT THE <br />RACETRACK FUNDS DON T GET AWAY FROM US, HE INQUIRED WHAT INTEREST <br />THE BONDS WOULD CARRY, AND MR. LEEDY ESTIMATED 11 TO 11-1/2% (THIS IS <br />WHAT IS PAID TO THE BOND HOLDER TAX FREE.) <br />INTERGOVERNMENTAL COORDINATOR EMPHASIZED THAT BANKS ARE <br />ALLOWED TO INVEST IN A "B" RATED BOND ISSUE, AND FURTHER NOTED THAT <br />IT ORIGINALLY WAS PLANNED TO SAVE SOME OF THE RACETRACK FUNDS JUST IN <br />CASE OF AN OVERRUN, <br />ON MOTION BY COMMISSIONER WODTKE, SECONDED BY COMMISSIONER <br />BIRD, THE BOARD UNANIMOUSLY AUTHORIZED WORKING WITH LEEDY CORPORATION <br />IN ESTABLISHING A JUNIOR BOND SERIES NOT TO EXCEED $725,000 AND <br />AUTHORIZED THE CHAIRMAN TO EXECUTE THE PROPOSAL MADE BY THE LEEDY <br />CORPORATION DATED APRIL 1, 1981. <br />L J <br />w . <br />20 <br />