Note: The agenda, minutes, and transcript indicate the meeting actually occurred on June 8, 2023. The date provided for this summary (June 12, 2023) is used as instructed, but the discrepancy is noted.
The Huntsville City Council convened a regular meeting on June 12, 2023 (actual meeting date June 8, 2023) at 5:30 PM in the City Council Chambers. All five council members were present. The meeting opened with an invocation by Dr. Spright E. Simpson III and the Pledge of Allegiance led by Councilmember Jennie Robinson. The agenda and minutes from May 25, 2023, were approved unanimously. The council transacted a range of routine business, set public hearings, passed a fireworks ordinance amendment, and heard presentations from two community organizations.
It's one o'clock on May 22nd, 2023, and the Huntsville City Council is met in special session in the Huntsville City Council chambers. We have one item for discussion today uh regarding purchase of um prin of general obligation warrants. A quorum is present. Mr. Riley, will you please confirm that uh public notice has been given of this special session? It has. Thank you, Mr. Riley. Uh we will then proceed with our one item. Uh one A is a resolution authorizing the purchase by the city of up to six million six hundred and ninety-five thousand principal amount of its general obligation warrants, series twenty twenty a for termination and cancellation by the city. Is there a motion to approve the resolution? So move. Motion by Mr. King, second by Mr. Little. Uh Mr. McCoy, could you please come and explain to us uh the reason we are in special session today, the timeliness of this and and what we are going to be accomplishing here with this with this action. Yeah, I'd be happy to. Josh McCoy, PFM um Financial Advisors of City's municipal advisor. The um the bonds are being um were previously owned by SVB Bank, which um went defunct, and uh FD uh BlackRock was working on behalf of FDIC to liquidate their muni portfolio. So the bonds were offered to the market last week. And um the broker dealer that purchased those bonds has offered them to the city for sale, um and which would allow the city to then pay those bonds off and terminate them just to rip the bonds off versus the alternative um the purchaser could offer those to the market. Um and you know, make a markup and and money that way as well. And so we've evaluated the um the opportunity and believe that the prices offered to the city are fair and reasonable. And um and it's a you know what we believe would be a good uh use of taxpayer dollars. So are there questions for Mr. McCoy? Mr. Clink. Uh is there a cost savings to the taxpayers by doing this or benefit? Yeah, there's there's two benefits on on interest savings. Um with the bonds being terminated, you'll n the city will not have to pay interest incurred for having the debt outstanding, so that that totals about eight hundred um thousand in change of interest savings. And then the price that you are paying the bonds off are at a discount to the stated par. Um that represents of the six point six million outstanding, you'll pay um a little less than five and a half, and so you'll get another million two in savings there relative to to paying them off at par at their maturity date. Thank you. Mr. Mr. Keith. One this is good news, but this is one lump sum, correct? Yeah, there's two maturities, one lump sum payment. Uh thank you. So I g i if I understand correctly, it's about a two million dollar p.m. P.M. on June 8th of 2023, and we are meeting in the City Council Chambers of Huntsville, Alabama. Thanks to all of you who are with us today, as well as those watching online. Please note for the record that all council members are in attendance, and we are convening this session of the Huntsville City Council, and the meeting will be called to order. We will begin our meeting tonight with an invocation led by Dr. Sprite E. Simpson of the West Maston Lake Baptist Church. That will be followed by the Pledge of Allegiance led by Councilmember Robinson.