Published: Tuesday, October 26, 2010, 5: 30 P.m.
The city of Birmingham is set to perform more than 106 million in bond transactions, including $ 39.1 million in new debt for capital projects and intend to use a new competitive bidding process.
City Council members were briefed on the details of transactions and that the bond money will pay Monday meeting budget and the finances.La Commission first read transaction is supposed to take place today the meeting of the municipal Council.
39.1 Million dollars in new debt, supported by the Federal Government under the stimulus Act will be used to fund various projects, including parks, recreational facilities and improvements to streets.
The city will also refinance existing debt $ 67.5 million.Finance Director Tom Barnett says that the city could save approximately 3.5 million dollars doing.
The city should pay a maximum of $632,000 in charge for two transactions.2 millions of dollars could be saved if the city use competitive bidding to select agents, handling operations, Barnett said.
The total amount of binding is higher than total 89 million already provided by Mayor William Bell.Au August Town Hall told the city to refinance existing debt $ 50 million, but that figure increased to 67.5 million to the point where the information was submitted to a Committee on Monday.
Barnett said that the tender two advantages.
"We think given that arrived in the County of links, it will contribute to our image and that gave us a better rate," said.
Is the first time employees can recall process involving does not a team named outside bankers who are paid a commission for the transaction.Régime Barnett, the city would only hire firms Balch & Bingham and Yvonne Green-Davis to assist in the process.In this process, the binding transactions are extinguished bid on the open market, rather than on the city by selecting a team selling.
Councillor Steven Hoyt Monday is opposed to the new process proposed by Barnett, because he said limited minority small business.Normally the city selects the liaison team insists to be the representation of minorities, but without this process, there's no guarantee of diversity, Hoyt said.
"I want to full participation in all aspects, we can have," he said. "There is little to no minority in this process participation because the minority businesses have not the ability to issue dollars.La billion is inclusion as much as possible about the purchase and sale.?
Hoyt said that the issue is not a document or patronage, but enabling minority businesses to increase their capacity large transactions.Qui can only be done by partnerships with major companies, says Hoyt.
"I'm someone write a check," said Hoyt. ""I look for people to be able to participate from the start to finish."
Finance Committee has returned the matter to a Committee full meeting to be held on Wednesday.
Councilwoman Carole Smitherman, who wasn't at the meeting on Monday, was the first to oppose .Smitherman tender said his objection arose because the traditional process of bankers to choose those who sell links means understand local needs and capabilities of bargaining and investigation to ensure that those who eventually purchased bonds provided the best deal for the city.
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