The May 15, 2001 Special Town Board Meeting called to discuss and act upon the Legal and Business matters for Open Space and Executive Session was called to order by Supervisor Anderson at 7:35 p.m. The Pledge of Allegiance was recited. Clerk Johansen called the roll with Supervisor Anderson and Trustees Manser, Gillen, and Kupar present. Trustee Judy was absent. Assessor Rottmann and Road Commissioner Gallucci were also present.

Supervisor Anderson moved discussion of business matters for open space. R. Manser introduced David F. Phillips with Speer Financial, Inc.

D. Phillips stated his company’s focus is advising clients on bond issues. He distributed a packet of information to the Supervisor, Trustees, and Clerk. Referring to articles in the packet he stated his company does not compete with underwriters. Underwriters are employed to buy bonds and resell them. There are two ways to sell debt. The first is by a negotiated sale in which the Board would pick someone. The second is by a competitive sale in which the Board would take bids and pick the low bid. He pointed to the example of Waukegan in his packet where his company advised the sale.

At 7:40 p.m. Trustee K. Judy arrived and took her seat.

A competitive sale is the best rate on that day. A negotiated sale is a fair test - is it fair to the Township? A competitive sale is to be sure the bid is fair because the underwriter’s client is his investor. They want the highest rate of return. The Township wants the lowest.

J. Kupar asked if the underwriter is the market maker? Answer is yes. J. Kupar asked how can they be fair to us? Answer is the Township’s job is to get the best rate for the taxpayers.

The Township saves $60,000 to $80,000 of interest cost with bond insurance.

N. Anderson asked do we start with a triple AAA rating? Answer is yes, with insurance. N. Anderson asked can’t we qualify for triple AAA without insurance? Answer is the insurance guarantees the rating but you may not get the AAA without insurance.

K. Judy provided D. Phillips, the Supervisor, Trustees, and Clerk with a copy of the Campton Township Open Space Plan.

D. Phillips stated typically there is more aggressive growth at first and less later. If we assume 7% growth across the term this is too aggressive and doubtful. We may look at double digit growth in assessed value at first, then single digits later. We don’t want too aggressive assumptions. See a 5% growth in assessed valuation from last year to this year, but that will taper as growth goes on. Be conservative on assessed value and interest rates.

D. Phillips stated his fee is a flat fee of $18,000.00, so he does not benefit by the recommendations he makes.

D. Phillips stated Moody’s investor service is a rating agency. The rating fee and insurance premium you get for the fee so that the bonds are more secure. The insurance premium is a percentage of the total debt service. We don’t take bids on Council or Moodys. Those are fill in the blanks.

D. Gillen asked you get fees from none of the others, just us? Answer is yes.

R. Manser asked does your firm do investment? Answer no, we recommend an investment advisor.

D. Phillips stated we are a disclosure agent for you. That is $1,000.00 to $1,500.00 per year.

K. Judy stated the official statement has to be updated each year.

J. Kupar asked how do you evaluate the appropriate interest rate? Answer is rate cards every week. We look at our sales. See interest rates bid. Use as markers to drive underwriter. Look at rate cards, our sales, comparative sales. Until bonds are issued you can terminate any of the players.

N. Anderson stated we give you the information on our plan.

D. Phillips departed.

8:20 p.m. Steve H. Larson and Beth Ruyle with Ehlers and Associates, Inc. arrived and were recognized by Supervisor Anderson.

N. Anderson asked them to give a rundown of their services.

S. Larson stated his is an independent financial advisory firm in Naperville for two years. It was Associated Municipal Consultants that merged with Ehlers.

K. Judy asked any township references? Answer is no, but am working with Homer Township on a bond issue for senior citizen housing.

S. Larson stated complicated parts are how to maintain it. Are there tax consequences? Is this a tax free issue? If someone in the private sector is benefiting there are tax consequences.

K. Judy asked what is your role? Answer is there are two options to finance the project. One is to negotiate with the underwriter. Twenty percent are by underwriter fees. Second is a competitive bid sale. Eighty percent are by competitive bid. Their role is to walk us through. Make sure the plan agrees with what we told the public. We could sell part now, and part later. We could sell 10 million now, and 8 million later. The market is the wild card. Underwriter fees would be the same because it is so much per thousand. There is arbitrage and arbitrage rebate. You are reinvesting the money. Arbitrage is the difference between what you sell the bonds for and what you get for investment. There is negative and positive arbitrage.

He distributed his proposal book for Campton Township. He stated he can bring in underwriters that will quote anywhere from $4.00 to $7.00. On larger sales you see lower underwriter spreads.

Steve Larson and Beth Ruyle of Ehlers departed.

At 9:10 p.m. D. Gillen moved to go into Executive Session. J. Kupar seconded. Motion passed unanimously.

At 9:40 p.m. the Campton Township Special Meeting was reconvened by Supervisor Anderson.

R. Manser made a motion that the Board authorizes Supervisor Anderson to write a letter of interest to the Kane County Forest Preserve expressing Campton Township’s willingness to participate in a strategic land acquisition in Campton Township contingent on the sale of bonds. The motion was seconded by J. Kupar, and passed unanimously.

J. Glass stated we need to hire someone to handle Open Space because she does not have time for that. N. Anderson stated he would write a job description. R. Manser made motion that the Board authorizes Supervisor Anderson to start a search for a part time Open Space administrator. K. Judy seconded. The motion passed unanimously.

N. Anderson stated we need more legal work done for Open Space. Do we want to keep John Noble for Township work and hire another for Open Space? He doesn’t know if Noble is interested in continuing. He hasn’t heard from him. Is this two different positions? R. Manser moved that the Board authorize Supervisor Anderson to begin a search for a new legal representative for Campton Township. D. Gillen seconded, and the motion passed unanimously.

R. Manser asked what do we do about the underwriters? K. Judy stated an attorney can sort this out. N. Anderson stated we can spend money for anyone we need to do this for us. We can hire anybody we need. K. Judy stated we need someone we can trust. We need a point person. J. Kupar stated the attorney is the advisor. We need financial people to work with him. R. Manser stated Speer deals with many governments. Both are good. R. Manser made a motion that the township hire Speer Financial to act as a financial advisor to Campton Township for the Open Space bonds. J. Kupar seconded the motion. In a roll call vote Trustees Manser, Gillen, and Kuper voted aye; Supervisor Anderson voted aye, and Trustee Judy voted no. The motion passed.

D. Gillen moved to adjourn. R. Manser seconded the motion, and the motion carried unanimously. The meeting was adjourned at 10:45 p.m.

Respectfully Submitted,

Richard Johansen, Clerk