4/27/1989 - Laserfiche WebLink

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APR 27 1989 BOOK 76 PGE 721. Charlie Vitunac, Jim Chandler, Terry Pinto, and this group here, solved a very big problem for us in a very quiet way. Commissioner Scurlock went on to explain how you have to continue to demonstrate need in order to prove your eligibility to FmHA and how staff negotiated FmHA down to where we could prove our eligibility if we could demonstrate going to the commercial market would necessitate a 15% increase in rates when at first they had required that we show it would cause a 25% increase. Financial Advisor Art Diamond introduced Arthur Ziev of Gulfstream Financial Associates to go over the details of the sale of the bonds, which was done at a very favorable rate to the county. Mr. Ziev thanked Commissioner Scurlock for his compliments and confirmed that the team spent long hours and did a lot of hard work to accomplish this. He then informed the Board of the problems in getting the insurance for this issue, and described how he, Director Pinto and Director Baird, had to spend a great deal of time on the phone with FGIC and at the last minute finally received the insurance commitment. Mr. Ziev next reviewed the technicalities of going into the market yesterday and repricing the bonds when the market moved a bit. He advised that usually underwriters want to lower the price so the yield goes up, but they did the reverse and that repricing actually saved another 11 basis points to the county. He advised that the exact size of the issue is $6,510,000, and 5.9 million will be used to pay off the FmHA loan. Mr. Ziev again wished to commend staff on their incredible job in managing to get this through. Commissioner Bird, simply out of curiosity, wished to be informed about the issuance cost and how it is divided up. Commissioner Scurlock noted that we require them to itemize those costs. J 11