HomeMy WebLinkAbout10/11/1977 FC minutesFINANCE COMMISSION OF MOUNT PROSPECT
Minutes of meeting October 119 1977
Present: Chairman Ronchetto, Commissioners Bachhuber, Beier, Hiehle, Linkman and
Miller, Assistant Village Manager Edward Geick, Deputy Finance Director
Bob Simpson, Ron Norene, Vice President, Paul D. Speer & Assoc., Inc.
The meeting was called to order at 8:00 P.M. by Chairman Ronchetto.
Ron Norene, Vice President of Paul D. Speer & Associates, Inc., municipal finance
consultants to the Village addressed the Commission on the subject of bond financing
of capitol projects. Various avenues to the money markets were discussed as well as
proceedures and degrees of market acceptance of the various loan vehicles. It was
noted by Mr. Norene that large expenditures for new equipment and structures or
reconditioning of old equipment or structures having an expected useful life of ten
or more years would ordinarily be financed by issuance of bonds so as to spread the
cost over the useful lifetime.
The various possibilities for water supply extension were discussed and members posed
questions on these subjects.
Mr. Norene advised the Commission that Mt. Prospect's water and sewer revenue bonds
had recently been downgraded in rating to "A Plus" from "AA" by Standard and Poors Corp.
upon their discovery of a sudden depletion and resulting deficiency in the bond reserve
fund. The Cortmi.ssioners then asked pointed questions as to the reasons for this
deficiency and the best possible ways of restoring this fund to full compliance with
the bond covenant.
Chairman Ronchetto appointed Commissioners Ross Miller and Carl Beier to a subcommittee
to look into the bond reserve fund deficiency and report to the full Commission.
A meeting was scheduled for October 15 at 9:30 A.M. to discuss the three-year budget
projection.
Chairman Ronchetto thanked Mr. Norene for his excellent address and adjourned the meeting.