Royalton sets public hearing to discuss possible refinancing of city complex loans
By Jennie Zeitler, Staff Writer
A proposal to refinance two Royalton City Complex loans has been assembled by David Drown Associates in Minneapolis.
With the interest rates of the two loans currently at 4.5 percent and 5.5 percent, refunding the bonds to reduce the interest rate to 2.75 percent would reduce the city’s annual payment by about $6,000 per year, or $60,000 over the remaining 10-year term.
“The new bonds issued will be converted from lease revenue bonds to general obligation (GO) capital improvement plan bonds,” said David Drown in a letter to the city.
To control the cost of issuing new bonds, Drown suggested using the Minnesota Rural Water Association’s Midi loan program.
“The current loan balances are $100,000 on the 4.5 percent loan and $450,000 on the 5.5 percent loan,” said Mayor Andrea Lauer. “There is a possibility to combine these into one loan.”
A resolution setting a public hearing Wednesday, Nov. 7 at 7:15 p.m., during the next regularly scheduled Royalton City Council meeting was approved. David Drown will be at the meeting to answer questions.
Bellevue Township payments toward Royalton Fire Hall verified
The Royalton City Council received information confirming the dates and amounts of payments made by Bellevue Township toward the 1985 Royalton Fire Hall, at the Council meeting Tuesday.
After considerable research by the city to track down documentation regarding those contributions, the city could confirm that the township made 12 payments between April 1, 1996 and Dec. 31, 2007 for a total of $48,696.
“That information will be shared with Bellevue Township and likely when we do the next contract with them, the information will be part of that conversation,” said Mayor Andrea Lauer.
Other business that came before the Royalton City Council Tuesday included:
• Approving the date change for the November meeting, due to the General Elections Nov. 6. It will be Wednesday, Nov. 7 at 7 p.m.;
• Approving the purchase of materials for two bridges to be replaced at Memorial Park, from Royalton Lumber for $1,670.81. City maintenance worker Lee Popp offered to build the bridges in his free time, which the Council approved. Council Member Ed Zimny noted that the rails along the side should be installed vertically rather than horizontally so children can not climb on them and fall;
• Approving the establishment of the correct 20-foot wide alley in the block between Driftwood and Elm, and North First Street and North Second Street. Letters will be sent to residents of that block with instructions to clear the city’s alley of trees or structures;
• Hearing Council Member Ron Verley explain that the city’s noise ordinance applies to noise levels heard outside, not inside buildings. The issue was turned over to Planning and Zoning for more research on the applicable state ordinances;
• Accepting a bid by Burski Excavating for a new lift station and more powerful pump at $162,470. This was the third lowest of five bids, however it was the first bid that provided for the specified equipment;
• Adopting a computer use policy;
• Approving the renewal of the refuse and recycling contract with Waste Management with no price increases for the duration of the five-year-contract;
• Approving an agreement to partner with the city of Pierz in making a master trail and sidewalk plan. Short Elliott Hendrickson (SEH) agreed to work with both cities for a cost of $9,500. A grant of $4,500 was received from the Initiative Foundation, $2,500 will come from Pierz and $2,500 from Royalton;
• Approving Mayor Andrea Lauer to explore conversations with SheerWind regarding posible utilization of a guaranteed energy saving program with an energy performance contract through the Minnesota Department of Commerce;
• Setting the Nov. 7 meeting as a time for public input on Parks and Trails ordinance 27, Nuisances ordinance 34 and Administrative ordinance 45; and
• Opening the city’s compost site west of town and south of Newman’s Manufacturing every Saturday during October from 10 a.m. to 2 p.m.
The next regularly scheduled meeting will be Wednesday, Nov. 7 at 7 p.m. at City Hall.