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Minutes for the Finance Committee meeting on April 20, 2006.
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Finance & Administration Committee Minutes
Thursday, April 20, 2006
3:00 p.m.
Members Present were: Darrel Dover, Jim Hargis, Harold Perrin and John Street. Councilman Alec Farmer and Councilwoman Ann Williams were unable to attend.
PAST PENDING ITEMS
Banc of America lease: Mayor Formon discussed the Banc of America lease. He said originally, the lease had a 3.49% interest rate with a $6 million line of credit. But, when Mr. Larry Flowers called Banc of America Monday, one of the staff members named Bridget stated she was unsure whether the interest rate was still good. Mayor Formon tried to get a hold of Mr. Tim Cummins who had worked with the City on the lease deal. They left messages with Mr. Cummins asking to call back. Mr. Cummins returned their call and said the interest rate was still good. Then, on Wednesday they e-mailed Mayor Formon and said the interest rate was no longer good and it would go up to 3.75%. After several attempts to contact Mr. Cummins, Mr. Cummins finally e-mailed back and blamed the City Clerk’s office, saying the ordinance wasn’t published in a timely fashion. Mayor Formon then checked with City Clerk Donna Jackson, who verified the ordinance was published in the Jonesboro Sun a little over a week after it was passed by the City Council. Mayor Formon then stated he tried to call Mr. Cummins back, but did get a hold of a co-worker of Mr. Cummins’. The co-worker stated the mistake was made by Banc of America and they are to blame for the problem. Mayor Formon then contacted one of Mr. Cummins’ superiors, Ms. Hammill in Chicago. Ms. Hammill stated the best Banc of America could do now is 3.65%. Mayor Formon further explained he contacted several of the companies who submitted proposals for the original bid. Bausc stated they probably could give the City a 3.88% interest rate. It was questioned whether the ordinance would need to be published again if the only th...
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