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new Town Hall, in the event of an emergency, other reserves could be accessed. He identified the reserves that could be available from funds that are not allocated to specific items or restricted. O'Malley concluded that existing reserve funds could be used to pay for the Town Hall project and the Town would still have cash reserves. This would be contingent on the project coming in on budget and the careful monitoring of CIP expenses. The unknown in this financing scenario is the impact of the State's budget on the Town. Council discussion ensued. They discussed the effect of borrowing funds and payments on future expenditures; investment interest vs. cost of borrowing interest; and financing vehicles. OPENED PUBLIC COMMENT Bill Madison, bond counsel, explained the financing option available to Council called a Reimbursement Resolution. This would allow the Town to fund thero'ect out of p J reserves and preserve the ability to reimburse the Town for all or part of the project cost by means of an institutional lease. This option would require that the Council approve a Reimbursement Resolution. Madison noted that Council must declare its intent to borrow funds to reimburse the Town for project expenditures no later than sixty days after groundbreaking. Jean Mordo, Planning Commissioner, appreciated the clarification of the Town's financing options. He noted that the Reimbursement Resolution was a new positive • alternative for Council consideration. Roy Rogers, Finance and Investment Committee, distributed a spreadsheet that reflected the repayment of Certificates of Participation (COPS) over a 20 year period. The analysis presented reflected the cost of borrowing and the potential negative effect on Town funds. Rogers explained that the Finance and Investment Committee strongly recommends that the new Town Hall project be paid for from cash reserves. Jim Steiner, resident, former Finance and Investment Committee member, expressed his concern about the impact borrowing costs would have on Town funds. He suggested the Reimbursement Resolution could be a good solution. He would like the Town to reserve cash funds and cut CIP projects. Frank Lloyd, Vice Chair-Finance and Investment Committee, commended Mayor Pro Tem O'Malley on his understanding and analysis of the Town's reserves. He added that he advocates paying for the Town Hall project from reserves and noted that the Town has the necessary funds. CLOSED PUBLIC COMMENT Council thanked Administrative Services Director Joiner and the Finance and Investment Committee for their definitive work on financing vehicles and issues relating to the new Town Hall. They noted that the purpose of tonight's meeting had been to enable Council to have a • dialogue on financing options and as an information gathering process. Council would make 2 Special City Council Meeting Minutes January 29,2004