CITY OF ANTHONY

Recorded

March 24, 2010

Special Meeting

The Board of Commissioners of the City of Anthony, Kansas met in Special session at 2:00 p.m. with Mayor Barbara Muse presiding and the following Commissioners present: Hall, Tedder, Hammersmith, and Dickey. Absent: None. Also present were Angie Hartman , Assistant City Clerk; Grant K. Sechler, Jr., City Superintendent; Amber Schmitz of the Anthony Republican; Mike Lanie, Joe Brummer, Gwen Warner, John Haas, and Kevin Cowan.

John Haas, of Ranson Financial Consultants and Kevin Cowan, of Gilmore and Bell were present to discuss the proposed Water Project and Downtown Rebuilding.

WATER PROJECT - USDA FINANCING

John Haas presented a break down of fees totaling $204,150.00 for total temporary financing cost. His recommendation is for the City to proceed with a Revenue Bond for the financing. It will allow the City to use its General Obligation Bonding ability to finance future City project requirements. This issue is too large to be placed locally. He will conduct a Public Sale to reduce underwriting and interest expense. The underwriting and interest expense is based upon a temporary note with a one year maturity. With a Revenue Bond, the City has to adopt a Resolution, publish in the newspaper and have a fifteen day protest period. The City will still get Grant money to pay for the project. USDA will require the Water Rates to be approximately around $40.00 for 5,000 gallon usage. Haas said it is very important to communicate with the community the need for the increase. The Commission agreed to pursue with a Revenue Bond.

Commissioner Tedder made the motion to have John Haas work with USDA on pursuing the financing. The motion was seconded by Commissioner Hall. Motion carried.

DOWNTOWN REBUILDING

Kevin Cowan reported that if the 1% CID Sales Tax is passed, a Sales Tax Revenue Bond could be done to help finance the Downtown Rebuilding Project. Mike Lanie asked if the City could proceed with a General Obligation Bond for 50% of the cost and if the corporation could borrow the remaining balance. Cowan said this would help the City get the funds for the project, with the corporation being responsible for the daily business. John Haas will get figures to Mike Lanie and try to help them obtain financing for the remaining balance.

The Commission agreed to allow the Downtown Rebuilding Group to take control of the Downtown Rebuilding Project. They also discussed the CID Sales Tax paying back the demolition costs of the two buildings that weren’t directly affected by the fire. Joe Brummer mentioned using money from renting or leasing space to pay for the Bond Issue.

Mayor Muse made the motion that the City Commission meeting be adjourned. The motion was seconded by Commissioner Dickey. Motion carried.

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Angie Hartman, Assistant City Clerk

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Barbara Muse, Mayor