HomeMy WebLinkAbout2014_12_19 Housing Authority Minutes TOWN OF MAMARONECK HOUSING AUTHORITY
BOARD MEETING MINUTES
12/19/14
In attendance:
Board Members: Rick Cherry-Chairman, Sal Iacono -Treasurer, Bob Kirby- Secretary,
Caroline Silverstone and Dolores Batallia
Financial Advisor: Rick Tortora, Principal, Capital Markets Advisors, LLC
Town Board Liaison: Tom Murphy-Not present
The Board Meeting was called to order promptly by Chairman, Rick Cherry, at 8:30 AM. The
minutes from the last meeting on December 11, 2014 were approved by the Board in a
unanimous vote.
The Chairman indicated that the new Town Board Liaison, Tom Murphy,named by the Town
Supervisor Nancy Seligson in June,could not attend today's meeting but will attend future
meetings if they are held in the evening hours.
1. Bond Refinancing: The Treasurer, Sal Iacono, invited our financial advisor, Mr.
Richard Tortora of Capital Markets Advisors LLC,to present to the Board
additional analysis he prepared for the refinancing of the Housing Authority
bonds. Mr. Tortora discussed two options: First option,refinance the existing
bonds with the same maturity date plus $500,000 new bonds (i.e., "Series B")
with a 20 year maturity(i.e.,2035 maturity date). The new bonds would support
new capital expenditures discussed in Item#2. Second option,refinancing the
existing bonds(as before)plus $600,000 new bonds to support new capital
expenditures with room for increases to current estimates. The Board voted
unanimously for the $600,000 option. Rick Cherry, Board Chairman, also
proposed a bond refinancing with the new money bond with a 15 year maturity(versus
20 year) and to adjust the principal repayments to back end the payments over the 15
years to more evenly schedule the debt service. Richard Tortora agreed to provide this
analysis quickly. FYI,there are a number of items the Board needs to provide Capital
Markets Advisors with in the weeks to come --audited financial statements for the past
five years and both current year 2014 budget reconciled with actual results and a
projected 2015 budget. The Board will also have to formally approve the Bond
Resolution to give the go-ahead and participate in a Town of Mamaroneck Board
meeting in January, 2015 to reaffirm the Town's guarantee (i.e., "backstop")to receive
a AA credit rating for the refinancing. The Housing Authority will also provide a Bond
Authorization to our Bond Counsel and schedule a public hearing in February,2015.
Mr. Tortora gave an estimate that these events would take place over a period of 4 - 6
weeks before the fmal pricing and completion of the refinancing takes place.
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2. Major Capital Projects: In order to derive an accurate borrowing amount for the
new bond issuance (i.e., "Series B"), Bram Fierstein and Sal Iacono will revise the
cost estimates for the following projects: Cedar siding replacement, Roof Repair,
Driveway repair/replacement, and possibly Window replacements. At present,the
estimates are as follows: Cedar Siding Replacement $550,000
Roof Repair 350,000
Driveway Repair/Replace 120,000
Total $1,020,000
A portion of the current$650,000 L/T Reserve will be used for these expenditures
but Mr. Tortora's explanation of the "arbitrage rule" requires that all of the new
borrowings be spent within two years of the initial borrowing.
3. Engineering Report: The Board Chairman made a motion to spend up to $10,000 for a
revised report to get an accurate new capital expenditures total that will impact the
amount of the new bond financing. The Treasurer, Sal Iacono, seconded the motion and
indicated he would work with Bram Fierstein to initiate the process. The Board voted
unanimously to approve the expense.
4. The next Board Meeting will be scheduled for the first week of January to discuss the
Bond Refinancing with the Town Supervisor,Nancy Seligson and Town Administrator,
Steve Altieri.
The Board Meeting adjourned at 9:45AM.