December 8, 2020Asheville City Council
From the minutes, not yet reviewedCouncil directs staff to seek a lower bond loan rate, saving about $60,000 a year.
In June 2020, the City set up a bond loan with Bank of America that it draws on as needed, up to $25 million. The first draw was $5.1 million. Interest rates have dropped since then. The City says the new rate will save about $60,000 a year at current rates and balances.
- Passed with the routine items, in one vote, without discussion.
- The money, in the minutes' words: “The first drawdown on the loan was $5.1 million against a not-to-exceed total amount of $25 million.”
What that means
- Consent agenda:
- Routine items Council approves together in one vote, without discussion. Any member can pull an item out for its own vote.
- Bonds:
- Bonds are loans the City pays back over many years, with interest.
Official title: Resolution directing the City Manager and Chief Financial Officer to pursue a rate modification on the existing 2020 General Obligation Bond Draw Program
Carried unanimously, as part of the consent agenda
From the minutes: The amended motion made by Councilwoman Turner and seconded by Councilwoman Mosley carried unanimously by roll call vote.
Read the motion as recorded
“RESOLUTION NO. 20-229 - RESOLUTION DIRECTING THE CITY MANAGER AND CHIEF FINANCIAL OFFICER TO PURSUE A RATE MODIFICATION ON THE EXISTING 2020 GENERAL OBLIGATION BOND DRAW PROGRAM”
Open the minutesConsent agenda, item Q