City to hold public hearing about Fibrant refinancing on Tuesday

Published 12:10 am Monday, August 15, 2016

By Amanda Raymond

SALISBURY — The City Council will hold a public hearing for the refinancing of Fibrant’s debt on Tuesday.

The council will meet at 5 p.m. at 217 S. Main St.

At the previous City Council meeting, a financial advisor from PFM Group presented information on refinancing the city’s Series 2008 and Series 2013 Certificates of Participation that were used to fund Fibrant, the city’s fiber optic network.

SunTrust Bank was the only bank that submitted a proposal to refinance the debt.

SunTrust agreed to a tax-exempt, 13-year fixed rate commitment of 2.06 percent. The bank does not require a debt service fund or a bank commitment fee.

Three million dollars worth of debt service would be eliminated over the life of the loan and the city would save more than $400,000 a year.

The council will first consider approving a resolution that will make certain findings, including that the proposed contract is necessary or expedient to the city, that no increase in taxes will be necessary and that the city isn’t in default for any of its debt service obligations.

The resolution would also ask the Local Government Commission to approve the contract and would appoint Public Financial Management, Inc. as the financial advisor. Robinson Bradshaw & Hinson P.A. would serve as special counsel.

The council will then hold a public hearing during which those for and against the refinancing will be able to speak.

Afterward, the city will consider approving a resolution that will approve the Installment Financing Contract with STI Institutional and Government, Inc. and allow for the execution and delivery of the associated documents.

In other business, the council will:

  • Consider issuing a resolution to recognize Lynn Raker, an urban design planner who retired from the city, for her 20 years of service.
  • Consider approving the consent agenda, which includes:
    • Authorizing the city to enter into an agreement with Carolina Siteworks for sidewalk installation on one side of Old Concord Road between Harrell Street and Ryan Street for $177,242.55.
  • Recognize the five Summer Youth Employees who participated in the program this year.
  • Hear a report about an incentive request for the Morgan Ridge Brewery rehabilitation project and set a public hearing for Sept. 6.
  • Hear a report about an incentive request for the Washington Building’s upper floor rehabilitation project and set a public hearing for Sept. 6.
  • Consider adopting a resolution that will allow the city manager to approve the purchase order of $4,684,609.80 to Carolina Meter & Supply to buy small water meters for the Advanced Metering Infrastructure Implementation Project.
  • Consider adopting a resolution to allow the city manager to approve the purchase order of $535,943.40 to Consolidated Pipe & Supply Co. to buy large water meters for the AMI Implementation Project.
  • Award a $250,000 contract to Utility Metering Solutions for data integration and program management, again for the AMI Implementation Project.
  • Allow the city manager to execute a Memorandum of Understanding with the Yadkin Pee-Dee Water Management Group.
  • Hear an update on the activities and procedures of Code Services.
  • Consider making appointments to boards and commissions.

Contact reporter Amanda Raymond at 704-797-4222.