189.2007
RESOLUTION ESTABLISHING PRINCIPAL REDUCTION POLICY
FOR BOND PAYMENTS ON PUBLIC IMPROVEMENT WATER
TRANSMISSION ENHANCEMENTS SERIAL BONDS
RESOLUTION NO.: 189, 2007
INTRODUCED BY: Mr. Richard Sanford
WHO MOVED ITS ADOPTION
SECONDED BY: Mr. Roger Boor
WHEREAS, by Resolution, the Queensbury Town Board established Capital Project Fund
No. 141 to fund the design and construction of transmission enhancements to the Town of
Queensbury’s water system and established initial appropriations and estimated revenues for
Capital Project Fund No. 141 in the amount of $3,020,000.00, and
WHEREAS, Public Improvement Serial Bonds were issued in 2003 in the amount of
$2,880,333.00 to be repaid proportionately by Water Funds #40 and #47 over 20 years with a
final payment to be made in September of 2023, and
WHEREAS, construction of such water transmission enhancements has been completed,
and
WHEREAS, unexpended bond proceeds in the amount of approximately $1,112,341.00
remain in the Capital Project Fund No. 141, and
WHEREAS, it has been determined after the Town Fiscal Manager’s consultation with
Fiscal Advisors, the Town’s Financial Advisor on this bond issue, that such unexpended proceeds
should be used to reduce the annual principal payment of the Water Enhancement Bonds issued,
and
WHEREAS, the Town Board wishes to offset the annual principal payment over the life
of the bond,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby authorizes and directs that the
Water Enhancement Public Improvement Bond 2003 annual principal payment from Water Funds
#40 and #47 be reduced by funds from Capital Project Fund #141, such amount to be determined
by dividing the monies available in the Water Enhancement Bank Account by the amount of
payments remaining on the life of the bond, with the calculation to be performed annually by the
Town’s Fiscal Manager or Accountant to determine the next fiscal year’s payment using the
March 31 bank balance of such account, and
BE IT FURTHER,
RESOLVED, that the unexpended funds from this bond issue shall be maintained in a
segregated defeasance account with an annual interest rate not to exceed 4.1%APR with such
account to be maintained by Glens Falls National Bank or its successors, and
BE IT FURTHER,
RESOLVED, that the Town Board hereby authorizes the Town Fiscal Manager or
Accountant to adjust amounts used from this fund to offset principal payments as necessary to
maximize use of said funds and minimize the unexpended balance at the end of the term of the
bond, and to amend the project budget annually to reflect use of interest earned on bank accounts
for principal reduction payments, and
BE IT FURTHER,
RESOLVED, that the Town Board hereby establishes appropriation code 141-9710-6010
Bond Principal and amends the Capital Budget by reducing available appropriations in Account
No.s: 141-8340-2899 –Capital Construction, 141-8340-4400 – Misc. Contractual, 141-8340-
4403 – Engineer Surveyor and 141-8340-4417 – Contingent Account and increasing
appropriations in 141-9710-6010 – Bond Principal, and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Fiscal
Manager and/or Accountant to take such other and further actions as may be necessary to
effectuate the terms of this Resolution.
th
Duly adopted this 16 day of April, 2007 by the following vote:
AYES : Mr. Boor, Mr. Sanford, Mr. Strough, Mr. Brewer, Mr. Stec
NOES : None
ABSENT: None