Committee debates issuance costs, underwriting fees and prepayment terms for bond issue
Members questioned whether to include issuance costs in the bond or pay them up front and discussed prepayment (call) timing; staff recommended a conservative approach and an eight-year call provision starting in 2033 to preserve later refinancing options.
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Committee members pressed staff and the advisor on the cost-of-issuance mechanics and how those costs affect the long-term interest paid by taxpayers. The advisor explained how bids include an underwriter's discount and a purchase price and said the presale budget conservatively assumes an underwriter's discount up to $68,007.50 and rating and counsel fees in the report.
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