Lindsay Council approves financing bonds
The Lindsay City council established a Financing Authority on Tuesday night.
The Financing Authority oversees and manages any bonds the city has taken out in the past.
“Several years ago the state Legislature decided that bond issues should not be approved at special meetings. So the purpose of this first item is to set regular meetings of the financing authority to coincide with the regular meetings of the city council,” said Doug Anderson of Urban Futures.
Bonds voted on separately by the council and the financing authority were approved on Tuesday. They will be used to repay a loan that was taken out in 2009. Up to now, the city has only being paying interest, but nothing on the principal. According to Anderson, the principal of $1.5 million is due Dec. 1.
“What we’ve come up with is a 10-year bond issue with semi-annual payments and level debt service which will amortize the principal,” stated Anderson.
Council member Pam Kimball wanted to know why it was called a lease agreement between the Lindsay Financing Authority and the city of Lindsay.
“It’s a financing mechanism that allows you to enter into a long term debt,” answered Anderson. ”So it’s set up as a lease revenue bond issue. The loan that we’re refunding was also based on lease payments so it’s basically the same structure as the loan that’s being refunded.
Anderson added that the interest itself would drop from over 12% to about 6%.
In staff reports, Bill Zigler, city planner, reported that the Friant-Kern Canal will be closed for the winter for maintenance. Well 14 and 15 will be operating throughout the winter.
“Well 11 is available on an emergency basis for standby,” said Zigler.
In other news the council:
- Approved $100,000 for one full time and one community services officer under the Supplemental Law Enforcement Services Fund Grant for the Fiscal Year 2012-2013.
- Extended an agreement with the county of Tulare for the Sheriff’s Work Alternative Program for the Fiscal Year 2012-2013. The program involves letting minor criminal offenders who receive no more than three months jail time to serve their time working as laborers in place of serving jail time.