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JUN 3® IW7 <br />500r 68 Facc671 <br />of Tallahassee was an issue done June 17th, and their rates are a <br />little better. Then last week they priced out the City of <br />Jacksonville issue on a Monday morning and had a very good <br />market. Unfortunately last week the market dropped some, and it <br />opened up yesterday on a fairly sour tone caused by a lot of <br />economic indicators as well as the apathy caused by the holiday <br />coming up Friday, but it improved during the daytime. <br />Mr. Zent confirmed that negotiations during the day resulted <br />in an improvement of 15 basis points, which means a lower rate of <br />interest, or a $98,000 difference. He noted that the other major <br />proponent is bond discount. They submitted a proposal showing <br />their discount in the range of $6.05 to $7.50. Bond discount and <br />rates go hand in hand, and they settled on a discount of $7.00 <br />which is a very aggressive market rate. Mr. Zent stated that <br />they have very little expenses in that; it is a very trim budget. <br />He thanked the Chairman, the County Attorney, and the OMB <br />Director, for their help in expediting this and announced that <br />the closing will be in their offices in Tampa. <br />Chairman Scurlock requested that Mr. Zent explain about <br />insurance versus non -insurance for the benefit of the new Com- <br />missioners. <br />Mr. Zent explained that typically they look at an "A" rated <br />bond versus insurance and what you pay for insurance versus what <br />the interest would be if you did not have it. The county was <br />very fortunate to receive bids from two insurers almost identical <br />in nature, one being possibly $3,000-$4,000 higher. One was with <br />a bond reserve account and one without. They chose the MBIA <br />insurance policy which has a little bit better name, and the <br />premium was $48,320. As noted before, the 15 basis point <br />improvement in their price amounted to $98,000 over the life of <br />the issue. There is probably a 25 basis point difference between <br />an insured issue and a non-insured issue; that would translate <br />into dollar savings of approximately $75,000 with the insurance <br />policy; so, it was prudent to go with the insurance. <br />4 <br />