Minutes-04/07/1964

After you issue the bonds and get them out of the way, they are going to insist that your sewer rental is going to be enough to pay for the financing and maintenance. If we set this up to cover maintenance and this fund begins to show a profit, I would suggest you invest excess funds in government bonds @ 4.1% and have them mature in 1974. Then at that time, cash your government bonds and call in your sewer bonds. You can't make them optional (for water) immediately. Do that in ten years. Services furnished by Carlton Beh: Would come down for hearing and express it to the people. Advise various contractors on how it is to be financed. Contractors will know they will have cash. Attend hearings and lettings, encourage contractors to come in and bid on the job, attend all meetings, set up the bond schedule, guarantee to be here to bid on the night they are sold, pay for the bond attorney services and also his final approving opinion that will accompany the bonds when they are sold, which you have to have when marketing the bonds. It would run about $3,000. This is within the figures on the estimate--assessable costs. No vote of the people is required on G.O. bonds for sewer (Section 408.A of the Code). The only restrictions you have on this is that in your hearing on the Resolution of Necessity even to overrule one objector it takes 3/4 of the vote of the Council. For 60% of the people in the assessment schedule and 75% of the assessed cost, it takes a unanimous vote of the Council to overrule. Even if, theoretically, 100% of the people are against them, if the Council votes unanimously to carry it through, it is legal. The bond attorneys have to get in on the first hearing. That is jurisdictional. It will take Carlton Beh a week or ten days to prepare the Resolution of Necessity after being notified by the Council if they wish to use their services.