Bonds Refinancing Hearing
October 13, 2004
The hearing was called to order at 6:53 p.m. by Chairman Maxwell D. Sargent. Selectman Robert I. Buker and Larry G. Elliott were also present along with Business Administrator James Coffey and Selectmen’s Secretary Iris Campbell.
Mr. Coffey explained that this was a chance to refinance two sewer loans at a lower interest rate.
Mr. Elliott asked if this would extend to length of the loans.
Mr. Coffey answered no.
Mr. Elliott asked if we lower the debt will the water and sewer rates go down.
Mr. Coffey said that we have no control over how the Water and Sewer Commissioners set the rates. However, these two loans are now being paid by all taxpayers and by refinancing them at this time along with the new transmission line the burden of payment switches to the users.
Mr. Sargent made the motion: WHEREAS, the Town of Hillsborough, New Hampshire (the "Town") issued through the United States Department of Agriculture Rural Development a loan in the amount of $1,180,000, dated January 10, 1985 (the "1985 Loan") and a loan in the amount of $435,000, dated November 23, 1987 (the "1987 Loan") (the 1985 Loan and the 1987 Loan are sometimes hereinafter collectively referred to as the "Refunded Loans"), the outstanding balance amount of which are about $449,093.09 and $218,956.01, respectively;
WHEREAS, it appears likely that bonds issued today would have a net interest cost less than the net interest cost on the Refunded Loans; and
WHEREAS, the Town may be able to realize debt service savings by issuing certain Refunding Bonds, the proceeds of which would be utilized to refund the Refunded Loans and to pay certain other costs relating thereto;
NOW THEREFORE BE IT RESOLVED that the Town, acting by and through its Board of Selectmen, hereby authorizes the issuance of Refunding Bonds pursuant to the provisions of RSA 33:3-d, the proceeds of which shall be utilized to refund the Refunded Loans, to pay the redemption premium, if any, applicable thereto and to pay the costs of issuance of the Refunding Bonds;
IT IS FURTHER RESOLVED that the Town Business Administrator is hereby authorized to issue, negotiate, sell and deliver such Refunding Bonds and to determine the rate of interest thereon and the maturity and other terms thereof, and to take any other action deemed appropriate by such individual to effectuate the sale and/or issuance of said Refunding Bonds;
IT IS FURTHER RESOLVED that any such other documents as shall be required in connection with the issuance of the Refunding Bonds shall be signed on behalf of the Town by the aforementioned individual, or such other individuals as may be required by state law or as may be specified by bond counsel; and
IT IS FURTHER RESOLVED that all actions heretofore taken by the Town consistent with the foregoing are hereby confirmed, ratified and approved.
Mr. Elliott seconded the motion.
The Board voted all in favor.
Hearing adjourned at 7:06 p.m.
Respectfully submitted,
Iris Campbell
Selectmen’s Secretary
| 
