Monday, November 1, 2010

BOARD OF FINANCE
BOARD OF SELECTMEN
SPECIAL MEETING
OCTOBER 22, 2010
Page 1 of 4

Attendance: Board of Finance
Chairman Janet Brunwin, Robert Brinton Jr., Chip Spear, Sally Huyser,

Attendance: Board of Selectmen
First Selectwoman Derrylyn Gorski, Selectman Donald Shea, Selectman Steven Thornquist joined the meeting at 6:20 p.m.

Visitors: Attorney Kevin McSherry

Chairman Brunwin and First Selectwoman Gorski called the meeting to order at 6:10 p.m. The meeting was held in the Selectmen’s Conference Room of the Bethany Town Hall.

A brief discussion took place between the Boards regarding the necessary resolutions to be passed.

Chairman Brunwin then moved the following resolution for the Board of Finance:

RESOLVED, that the Board of Finance recommends that the Town of Bethany issue its refunding bonds, in an amount not to exceed $6,500,000, the proceeds of which are to be appropriated: (1) to fund one or more escrows, the balance held in such escrows, together with the investment earnings thereon, to be applied by the Town to the payment in whole or in part, as to be determined by the First Selectman and the Treasurer, of the outstanding principal of and interest on the Town’s $5,035,000 General Obligation Refunding Bonds, Issue of 2003 (consisting at original issue of $618,000 General Purpose Bonds and $4,417,000 School Bonds) and $3,845,000 General Obligation Bonds, Issue of 2006 (consisting at original issue of $3,845,000 General Purpose Bonds), including the payment of interest accrued on said outstanding bonds to the date of payment, and (2) to pay costs of issuance of the refunding bonds authorized hereby, including legal fees, consultants’ fees, trustee or escrow agent fees, underwriters’ fees, net interest and other financing costs and other costs related to the payment of the outstanding bonds described above.
Chip Spear seconded the resolution as moved by Chairman Brunwin. Chairman Brunwin called for a vote. The vote taken was unanimous.
Selectman Donald Shea then moved the following resolution for the Board of Selectmen:
RESOLVED, that the Board of Selectmen recommends that the Town of Bethany appropriate $2,085,000 for costs in connection with various road improvement work including milling and paving, catch basin replacement and drainage improvements and curbing, and for costs in connection with the financing of the project. The project is contemplated to include work on all or portions of the following roads, and such other roads as may be determined from time-to-time by the Board of Selectmen: Wooding Hill Road, Perkins Road, Hunters Trail, Crestwood Road, Falcon Lane, Miller Road, Schaffer Road, Clay Road, Knollwood Road, Bethmour Road #1, Bethmour Road #2, Valley Road, Tawney Road, Collins Road and Russell Road. The Board of Selectmen shall determine the scope and particulars of the project and may reduce or modify the scope of the project, and the entire appropriation may be expended on the project as so modified or reduced. The appropriation may be spent for design, construction, materials, equipment, engineering, clerk of the works and other consultant fees, legal fees, net interest on borrowings and other financing costs, and other expenses related to the project or its financing.
FURTHER RESOLVED, that the Board of Selectmen recommends that the Town of Bethany authorize the issue of $2,085,000 bonds or notes and temporary notes to finance said appropriation.
FURTHER RESOLVED, that a special town meeting be held at Bethany Town Hall Gym, 40 Peck Road, in the Town of Bethany, on the fourth day, November, 2010 at 7:30 p.m. to consider and vote upon a resolution with respect to the above recommendations.
First Selectwoman Gorski seconded the resolution. First Selectwoman Gorski called for a vote. The vote taken was unanimous.
First Selectwoman Gorski called for a resolution authorizing the issuance of bonds.
The following resolution was moved by Selectman Shea and seconded by Selectman Thornquist:
RESOLUTION OF BOARD OF SELECTMEN AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $6,500,000 REFUNDING BONDS FOR PAYMENT IN WHOLE OR IN PART OF THE OUTSTANDING PRINCIPAL OF AND INTEREST ON THE TOWN OF BETHANY’S $5,035,000 GENERAL OBLIGATION REFUNDING BONDS, ISSUE OF 2003 AND $3,845,000 GENERAL OBLIGATION BONDS, ISSUE OF 2006, AND COSTS RELATED THERETO
RESOLVED,
(a) That the Town of Bethany issue its refunding bonds, in an amount not to exceed SIX MILLION FIVE HUNDRED THOUSAND DOLLARS ($6,500,000), the proceeds of which are hereby appropriated: (1) to fund one or more escrows, the balance held in such escrows, together with the investment earnings thereon, to be applied by the Town to the payment in whole or in part, as to be determined by the First Selectman and the Treasurer, of the outstanding principal of and interest on the Town’s $5,035,000 General Obligation Refunding Bonds, Issue of 2003 (consisting at original issue of $618,000 General Purpose Bonds and $4,417,000 School Bonds) and $3,845,000 General Obligation Bonds, Issue of 2006 (consisting at original issue of $3,845,000 General Purpose Bonds), including the payment of interest accrued on said outstanding bonds to the date of payment, and (2) to pay costs of issuance of the refunding bonds authorized hereby, including legal fees, consultants’ fees, trustee or escrow agent fees, underwriters’ fees, net interest and other financing costs and other costs related to the payment of the outstanding bonds described above. The refunding bonds shall be issued pursuant to Section 7-370c of the General Statutes of Connecticut, Revision of 1958, as amended, and any other enabling acts. The bonds shall be general obligations of the Town secured by the irrevocable pledge of the full faith and credit of the Town. The Treasurer shall keep a record of the bonds and notes. The First Selectman and the Treasurer are authorized to determine the amount, date, interest rates, maturities, redemption provisions, form and other details of the bonds or notes; to designate a bank or trust company to be certifying bank, registrar, transfer agent and paying agent for the bonds or notes; to designate the persons to sign such bonds or notes by their manual or facsimile signatures in the name or on behalf of the Town; to designate a law firm to approve the legality of the bonds or notes; to designate a financial advisor to the Town in connection with the sale of the bonds; to sell the bonds or notes at public or private sale; to deliver the bonds or notes; and to perform all other acts which are necessary or appropriate to issue the bonds or notes.
(b) That the Town hereby declares its official intent under Federal Income Tax Regulation Section 1.150-2 that costs of the refunding may be paid from temporary advances of available funds and that (except to the extent reimbursed from grant moneys) the Town reasonably expects to reimburse any such advances from the proceeds of borrowings in an aggregate principal amount not in excess of the amount of borrowing authorized above for the refunding. The First Selectman and the Treasurer are authorized to amend such declaration of official intent as they deem necessary or advisable and to bind the Town pursuant to such representations and covenants as they deem necessary or advisable in order to maintain the continued exemption from federal income taxation of interest on the bonds authorized by this resolution, if issued on a tax-exempt basis, including covenants to pay rebates of investment earnings to the United States in future years.
(c) That First Selectman and the Treasurer are authorized to make representations and enter into written agreements for the benefit of holders of the bonds to provide secondary market disclosure information, which agreements may include such terms as they deem advisable or appropriate in order to comply with applicable laws or rules pertaining to the sale or purchase of such bonds.
(d) That First Selectman and the Treasurer are authorized to take all other action which is necessary or desirable to enable the Town to effectuate the refunding of all or a portion of the Town’s $5,035,000 General Obligation Refunding Bonds, Issue of 2003 and $3,845,000 General Obligation Bonds, Issue of 2006, and to issue refunding bonds authorized hereby for such purposes, including, but not limited to, the entrance into agreements on behalf of the Town with underwriters, trustees, escrow agents and others to facilitate the issuance of the refunding bonds, the escrow of the proceeds thereof and investment earnings thereon, and the payment of the outstanding bonds in while or in part.
(e) That the Board of Selectmen, the First Selectman, the Treasurer, the Board of Education, the Superintendent of Schools and other proper officers and officials of the Town are each authorized to execute and file all necessary applications, agreements and documents in order to obtain grants and to accept such grants, to the extent available, to defray all or any portion of principal and interest on or to pay issuance costs with respect to the refunding bonds authorized hereby.
(f) That the above authorization to issue refunding bonds shall lapse on June 30, 2011.
First Selectwoman Gorski called the vote. The vote taken was unanimous.
ADJOURNMENT
Adjournment was called after a motion was moved by Chairman Brunwin for the Board of Finance and seconded by Chip Spear and by Selectman Shea and seconded by Selectman Thornquist for the Board of Selectmen. The motion was called. The vote taken was unanimous. The meeting adjourned at 6:25 p.m.

Respectfully submitted,

June G. Riley
Secretary