Present: Paul Sullivan, Fred Childs (Selectmen) and Russell McAllister (Town Administrator). Mr. Sapia was excused due to previous business commitments.

The Board reviewed several financing proposals from The Provident Bank, Northway Bank, and the NH Municipal Bond Bank for the costs associated with constructing a new library. The results are listed in the table below.

The TA explained that the above table illustrates that financing from the NHMBB at 4.3% represents the lowest financing costs. However, utilizing the NHMBB results in an issuance fee of $9,000, which is not charged by the other two banks. However, if the NHMBB rate of 4.3% holds during issuance, the amount of interest earned from arbitrage—the spread between the interest rate charged and the interest rate earned by the Town—will exceed the NHMBB issuance fee. Even with the $9,000 issuance fee, the cost to the Town of using the NHMBB is $3,009 less than the $790,921 in Northway interest costs. The caveat associated with using the NHMBB is that the interest rate is guaranteed not to exceed 5.75% at the time of issuance. Board members were concerned that there was no guaranteed rate with the NHMBB, as there appeared to be with the other banks. The TA noted that the rates presented were also subject to change depending on when the Town executed the loan agreement in much the way rates may change for home buyers from the time they agree to purchase the property to the time the home buyer actually executes a loan agreement. The TA initiated a conference call with Shelia St. Germain, the acting executive director of the Bond Bank. Ms. St Germain explained that the Bond Bank always used a very liberal upper interest rate figure with their agreement. She explained that the issuance of 67M scheduled for June 13^th occurred within a window of time where no major financial reports were issued by the Federal Reserve or other reporting agency concerning the US Economy so that the projected rate of 4.25-4.30% was unlikely to change unless some global event, such as war, occurred. She further explained that if such an event occurred whatever the market rates for interest were at that time, would also be applicable to all banks because the cost of money affects all lending institutions. Discussion ensued with respect to how bonds are sold, and the positive response investors have towards NH bonds. The Board engaged in an extended question and answer period with Ms. St Germain.

After further debate Mr. Sullivan made the motion to adopt a resolution certifying the vote regarding the authorization of Bonds and approval of the loan agreement with the New Hampshire Municipal Bond Bank in the amount of $1,734,000 and ti name Mr. Sapia (the Chair) as Clerk of the Issuer authorized to execute both the loan agreement and associated resolution. Mr. Childs seconded the motion. The vote was unanimous and so moved.

Jim Kirsch, Code Enforcement, briefly reported on an issue.

There being no further business to come before the Board Mr. Childs made the motion adjourn the meeting. Mr. Sullivan seconded the motion. The vote was unanimous and so moved. The meeting adjourned at approximately 11:58am.

Respectfully,

Russell McAllister

Town Administrator

_______________________

Jack Sapia, Chair

_______________________

Paul Sullivan

_______________________

Fred Childs