City reviews debt structure, accounts

By Katie Friedman Correspondant:

The Maple Lake City Councilmet twice this month, using the op- portunity of a workshop date to ad- dress several matters that arose between its regular May and June meetings.

Debt structure going forward

On Tuesday, June 5, the council voted to structure the issuance of the 2018 Street Improvement Project with the city’s existing debt, as pre- sented by Economic Development Advisor George Eilertson. The council then adopted a resolution for the issuance of General Obligation Improvement Bond 2018A allowing Mayor Lynn Kissock and City Clerk LeeAnn Yager to authorize the sale of the bonds, which are to be locked in to an interest rate not to exceed 3.6 percent.

Eilertson informed the board on the upcoming bond for the 2018 Street Project and how the city’s bonds and overall debt will be struc- tured. Repayment of these bonds is primarily accomplished through special assessments and a tax levy. In the current structure, principal drops from $265,000 to $125,000 in 2025 when the Birch Avenue bond is complete. The new bond is for $945,000, and the city’s goal is to

structure it so that the tax levy stays constant, with no additional burden to taxpayers. It is an option that will not be available for any projects next year, as the city will not have any bonds falling off at that time.

Eilertson and Yager were to par- ticipate in a bond rating call June 26 to allow pricing of the bonds. The council will be presented with a res- olution ratifying that interest rate amount at its July meeting.

In other business June 5 the council:

• Adopted a resolution calling for a public hearing on the proposed es- tablishment of Municipal Develop- ment District 4, to be held Tuesday, July 17 at 7 p.m. The motion is re- lated to a proposed apartment proj- ect.

• Approved construction plans for the upcoming round-a-bout proj- ect at the intersection of County Road Eight, Elm Avenue, and Divi- sion Street, along with related park- ing restrictions. Wright County Highway Engineer Virgil Hawkins, present to discuss construction plans, told council members the county is able to add a requested truck apron and cut back the median on the west side. The council re- quested the median be shortened to accommodate driveways on the

north side, and Hawkins said that could also be done, with the me- dian’s remainder to be painted. The project is slated to begin in late June or early July and to be completed by August 6, before the Gear-Head Get Together.

• Approved entering into a listing agreement with Wayne Elam of Commercial Realty Solutions for the sale of a city lot on Birch Avenue and Division Street, contingent on any potential project’s commence- ment within 12 months.

• Adopted a resolution awarding a contract for the 2019 Airport Slurry Seal and Crack Repair Proj- ect to low bidder Struck & Irwin Paving, at a cost of $134,747. The Minnesota Department of Trans- portation (MnDOT) has agreed to fund the project at a 95 percent level. Cost is expected to be $169,700, with MnDOT’s portion to be $161,215 and the city’s to be $8,485.

• Directed Yager to send a letter to the library board requesting cur- rent financials. A potential relocation site for the library was discussed. The library board has been looking at the terms of a new lease and mak- ing sure the building will meet its needs.

To read the entire meeting summary, subscribe to The Maple Lake Messenger today!

Be the first to comment

Leave a Reply

Your email address will not be published.


*