7/26/2013 10:19:00 AM East Side bond $2.57 million at 3.25%
by Ken Haggerty
The Cannon Falls city council approved the bond sale to finance the East Side street and utility project at its July 16 meeting.
The best bid was from BOSC, Inc. with combination of interest rates and costs resulting in a net interest of 3.24%. Baird was the only other bidder.
The total amount was for $2,575,000, which was under the original estimate of $2,610,000 as the bonds were bid with a premium.
George Eilertson, Northland Securities, said the city has a AA- rating from Standard and Poors, which he called a very strong credit rating that helped in the process.
Eilertson said Standard and Poors likes the location of Cannon Falls between two strong economies in the Twin Cities and Rochester. He said the city's strong reserves and good financial management also helped in the rating.
The bonds are for 20 years with a refinancing "call date" available in 2020.
Brewster's new sign
A variance and zoning changes were approved to help clear the way for a facade remodel at Brewster's bar and grill at 115 Fourth Street South in downtown Cannon Falls.
The changes will allow an electronic digital sign approximately 3' by 5' on the south facing exterior of the business.
The zoning changes put restrictions on how "flashy" a dynamic digital sign can be, with language limiting how often signs can flash, how bright and how big they can be.
Raw Bistro curb and gutter
The city is applying for a grant with the Minnesota Department of Employment and Economic Development to get about half the cost covered for curb, gutter and storm drainage work at Raw Bistro, the pet food company operating in the old Lorentz Meats building near Third Street North and Cannon Street.
Estimated cost for the project, which includes 400 linear feet of curb and storm gutter and some establishment of boulevard and gardens to help in water retention, is $50,787. City and Raw Bistro would split cost not covered by the State.
There is currently no clear delineation of city street and private property at the business. The street would be narrowed to 36 feet and about 10 parallel parking spots would be painted on the street.
New grass rig for CFFD
The Council approved a new grass rig purchase by the Fire Department. The one-ton four wheel drive pick-up will be purchased from Milo Peterson Ford. Heiman Fire Equipment will outfit the rig. Total cost will be about $100,000. The old rig will be sold.
The council approved $2,500 for a debt service review by Northland Securities. Tax Increment Finance District bonds are due to expire at the end of 2013 along with some other old bonds. New bonds have been issued for street and library work and the city wants to make sure they have all the financing in order.
Schmit stops by
State Senator Matt Schmit (D-Red Wing) stopped by to brief the Council on the Legislative session and answer any questions.
Schmit said they tried to take the burden off local property taxes that have gone up over the last decade. He said the State still needs to have honest conversations with local government and that real tax reform is overdue.
He highlighted the $400 million in tax relief for Mayo's Destination Medical Center plan and sales tax exemptions for cities and counties as two positive outcomes of the session
Schmit said next year's session will address bonding and said to make any requests for big regional projects known to him.