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195 <br /> <br />February 24, 1987 <br /> <br /> As interest rates have declined during the past months, the <br />_ ~pportunity has been presented by refunding select bond issues to <br /> iramatically reduce the interest payments on a ~ortion of our long <br /> term debt. The final result of this endeavor will be significant <br /> ~avings to the taxpayers of Portsmouth~ currently estimated at over <br /> $1,000,000. <br /> <br /> After interviewing eight firms, the Finance Commission has re- <br /> commended to you that out of eight proposals submitted the firm of <br /> Wainwright and Ramsey, Inc. be selected as financial advisor to the <br /> City to act as an independent consultant during the process of recon <br /> mendation and request the City Counail to authorize me to enter a <br /> contract with Wainwright and Ramsey, Inc. in the amount of $25,000. <br /> The Municipal Finance Commission has also recommended that the firm: <br /> of Craigie Incorporated and Goldman, Sachs & Company be selected as <br /> oint underwriters for this financing. I also agree with this <br /> ecommendation and request that the Council authorize me to proceed <br /> with negotiations with these joint underwriters. Prior to any fina' <br /> ization of terms with the underwriting firms, it will be necessary <br /> for the City Council to approve the transaction. The authorization <br /> being requested at this time is only to proceed with these under- <br /> writing negotiations, with the assistance and advice of the financi~ <br /> advisor. <br /> <br /> In addition, it is necessary to appropriate $75,000 to pay for <br /> the estimated costs associated with the refunding, advanced refund- <br /> lng and original issue bonds. These costs will include bond attorn~ <br /> fees, the financial advisor's contract, printing costs, rating <br /> penses, and other necessary expenses. I am recommending that $25,0(1~ <br /> each be appropriated from the Capital ~mprovement Fund, the Public <br /> Utilities Capital Improvement Fund, and the Port Facilities and <br /> Economic Development Fund. Each of these funds will share in the <br /> savings of this financing, and all costs of the bond issue will be <br /> funded from the savings that are realized. <br /> <br /> I therefore recommend that the City Council authorize the <br /> necessary appropriations of $75,000, and authorize the City Manager <br /> to execute a contract with Wainwright and Ramsey, Inc. and to pro- <br /> ceed with negotiations with the underwriters, Craigie IncorpOrated <br /> and Goldman, Sachs 8 Company. <br /> <br /> Please do not hesitate to contact me if you need additional <br /> information or have questions concerning this matter.' <br /> <br /> On motion of Mrs. Webb and seconded by Mr. Gray, the following <br /> 3rdinance was approved on first reading; authorization be granted <br /> to the City Manager to execute contract with Wainwright and Ramsley, <br /> Inc. and to proceed with negotiati3ns with the underwriters, Craigi <br /> ~ncorporated and Goldman,Sachs 5 Company, as requested, and was <br /> adopted by unanimous vote; <br /> <br /> "AN ORDINANCE TO APPROPRIATE 525,000 FROM THE CAPITAL <br /> IMPROVEMENT FUND, $25,000 FROM THE PUBLIC UTILITIES <br /> CAPITAL IMPROVEMENT FUND, AND $ 25,000 FROM THE PORT <br /> FACILITIES AND ECONOMIC DEVELOPMENT FUND FOR BOND ISSUE <br /> EXPENSES." <br /> <br /> 87-68 Letter from the City Manager recommending adoption <br /> an ordinance to appropriate $45,000 from the Capital Improvement <br /> Fund for necessary repairs to the Cavalier Manor and Neighborho3d <br /> Facility municiaal pools. <br /> <br />"The Director o~ Parks- and Recreation and the <br /> <br /> ier M~nor and the Neighborh~ <br /> ~t <br /> an~ both <br /> wi~ll ~ttemvt to comp, <br /> <br />.gi e~r <br /> <br /> <br />