Bond Talks Dominate Baxter Estates Board Meeting

At the Village of Baxter Estates' May Board of Trustees meeting, Deputy Mayor Charles Comer spoke about a myriad of details that still needed to be worked out in order for the village to move its offices to the Bird House.

One of those details, municipal bonds related to the purchase of the building, located at 315 Main Street and owned by the Port Washington Water Pollution Control District, were a hot topic on Thursday.

Attorney William J. Jackson, of the law firm of Hawkins, Delafield and Wood, said he would assist with bond counseling and acquisitions in regards to local finance law at the board's June meeting.

"The initial stage of the project is to adopt a bond resolution and I would discuss with you, the Baxter Estates Board of Trustees, about bond issuance for purchasing the building," Jackson said of the bonds which are loan agreements used to provide financing for a borrower. "However, bonds do not pay operating expenses or the lease."

Village Mayor Frederick E. Nicholson said he was concerned about the interest rate of the bonds even though he understands they are generally on the low side compared to other types of loans.

"I heard the interest rates are usually between 2.99 percent and 3.45 percent and we would hope for the lowest rate," Nicholson said. "What security does the village have to put up for a bond?"

Jackson said that the village's taxing power and its ability to raise taxes are keys to pay off debt. "It also has to do with credit, low debt, appropriate reserves and being fiscally sound," Jackson said. "You have to sell the village and be able to sit down and discuss finances."

Trustee Alice Peckelis was inquisitive to what factors drive the market's interest rate. Jackson said the reasons are variable. "For example, there can be disruption in the financial markets, which drive interest rates up," Jackson explained. "But the market is trending upward over the last couple of months."

Jackson added that costs with a Bond Counsel such as himself could be steep due to financing and advising fees in the realm of $35,000. He also said that as Bond Counsel, he is able to advise what is permissible in terms of renting out extra space in the building that is planning to be purchased.

The board's new residence will be more spacious and less costly, according to board members.

"The purchase of the property on Main Street would be no extra burden to the village and we are a fiscally sound village," Nicholson said. "We can definitely cover all the costs in comparison to the rent we are paying now." 

Nicholson added that once details like these are ironed out, the board plans to move its offices as soon as possible. No date for the move has yet been set.