St. Michael bond refund to save $275,000 in interest
The St. Michael City Council adopted a resolution amending the five-year capital improvement plan (CIP) that will save the city $275,000 in interest.
Financial consultant Mark Rff reviewed the amendment and bond refunding with Mayor Jerry Zachman and councilors Kevin Kasel, Joe Marx, Nadine Schoen and Chris Schumm.
He said that as part of the refunding of the lease-revenue bonds for the city hall/library/senor center, an amendment to the CIP is required. He said refunding would save the city $275,000 in interest, and would start seeing the savings in 2014 at about $20,000 to $25,000 per year.
The council unanimously adopted the resolution.
In other news, water representative Kelly Daleiden was present to review results of a utility rate study.
She said, overall, St. Michael has some of the lowest rates in the state, especially since St. Michael’s system treats water with iron and manganese, and other cities do not.
Daleiden said sewer/water access charges generally pay for the plant costs, and utility fees cover maintenance, improvement and treatments.
In other action, the council:
HEARD that staff has scheduled a meeting with the STMA School District, Albertville staff and FYCC to discuss an athletic field use policy and to make sure the two cities are consistent on fees.
HEARD that the recent Economic Development Authority meeting discussed a downtown vision, and a proposal for a daycare facility on one of the vacant properties.
ADOPTED assessment for delinquent sewer/water/stormwater utility accounts and billing, and directed that a duplicate be transmitted to the county auditor.