May 22 - City Council Recap

Eyes on Main Street - May 22, 2013

There is a preconstruction meeting this Friday that Paul Morken and Robert Vogel are attending in Winona. The projected project start date is June 3. The public open house with MnDOT and Mathy is in room 103 at Spring Grove Communications on Wednesday, May 29, 5-7:00 pm. This room is at the end of the hall using the library entrance

Mike Bubany, David Drown Associates, discussed the General Obligation Bonds for the Main Street Project. "Combining the impact of the increased taxes and utilities, the average home will be impacted by approximately  $25.15 per month. We had projected between $20-$30 per month in earlier meetings, so we are right on target under today's interest rate market. This amount is subject to change if interest rates rise or fall before the sale date."

Interest rates went up slightly this week making it $25.60 per month.

David Drown Associates, Inc. recommends the bonds be sold through a competitive process to ensure the lowest overall cost of borrowing. Key elements of financing would be:

• February 1, 2034 final maturity.
• Callable anytime after 2/1/2021 at par plus accrued interest.
• Offer up to 1.25% discount allowance.
• Standards and Poor's Rating.
• Full Continuing Disclosure.

The council passed the resolution to issue the bond. On June 18 the Sale of the Bond Issue begins with closing on or around July 8, 2013. The first Bond payment will be due February 2014.

There is currently $150,000 left in the contingency fund for the project.

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