On Monday, Breckenridge City Council passed a resolution awarding the sale of $2,545,000 general obligation bonds, series 2012A, after a recommendation by public sector advisor Springsted, Inc.
The bonds will be used to fund capital improvement projects in the city. There were nine bids accepted for the bonds by Springsted Inc., on behalf of the city Monday morning.
“We had a very successful bid sale,” said Doug Green, Springsted, Inc. “A month ago we were projecting 2.3 percent, with a 15-year payoff. The market has changed over the last month in our favor, and we received a bid at 1.8 percent, so it’s very good news.”
The winning bidder was Raymond James & Associates, Inc.
Green said the city was given a very good credit rating, an A1, by Moody’s Investors Services. The company awarded the credit rating because of the city’s stable finances and healthy reserves, strong management, small tax base and wealth indices.
The average Minnesota city with an A1 credit rating is more than twice the size of Breckenridge, Green told the council.
Projects to be funded by the bonds include street, water, sanitary sewer and storm sewer improvements to Heritage South Addition and Gewalt Park Addition, as well as the acquisition and installation of various items of capital equipment, and the construction and equipping of various improvements to the fire halls within the city.
The council also passed a resolution adopting a post-issuance compliance procedure and policy for the bonds.
The city will use temporary financing negotiated with Bremer Bank to fund the street, water, sanitary sewer and storm sewer improvements in the North Golf View Heights area. The city intends to offer the sale of up to $750,000 in bonds for the North Golf View Heights project. It’s anticipated the bonds, including accrued interest and principal, will be repaid with bond proceeds from a long-term obligation issued in 2013. The council is expected to award the bonds on Monday, Oct. 15. The interest rate paid by the city during the construction period is fixed at 1.95 percent. No bank fees are associated with the bonds.
In other news, Indigo Signworks, Inc., has offered to install a temporary electronic message board sign at the four-way stop on Minnesota Avenue/Highway 75 to allow the city to monitor its effectiveness. The public will also be asked to provide input on the sign.
“They’re proposing to put it up there for a week, and they’re not charging us anything,” said City Clerk/Treasurer Beverly Wilson.
The city is considering adding a permanent electronic message board to that intersection, along with three other “Welcome to Breckenridge” signs near entrances to the city.
Attorney Janel Fredericksen was appointed to the city’s Civil Service Commission after a recommendation by Mayor Cliff Barth.
During the comments part of the meeting, Alderman Matt Kammerer said the Boy Scouts will be holding a post-election meatball dinner at Breckenridge Lutheran Church.
County Attorney Tim Fox said he’s received several calls from residents complaining of people walking or driving on the dikes and levies. Fox and Barth reminded the public that the majority of the areas are private property and the public is not allowed on them.
“These are not walkways, they’re not trails, they’re private property,” Fox said. “Police can issue them a citation…You can’t have any vehicles on them — four-wheelers, snowmobiles…they just destroy them.”
“People need to understand that,” Barth said. “It’s not like Wahpeton. Wahpeton has that walking path all the way down, we don’t have that here.”
More “No Trespassing” signs are being ordered and will be installed along the areas in Breckenridge.
Alderman Stacy Hennen said there are 18 applicants for the public utilities director position and those would be reviewed this week.
The next city council meeting is at 5:30 p.m. Monday, Oct. 15.