The City of River Falls approved a bonding plan that allows for one big project to get underway. At its meeting last Tuesday night, council members heard from Sean Lentz of Ehlers Public Finance …
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The City of River Falls approved a bonding plan that allows for one big project to get underway.
At its meeting last Tuesday night, council members heard from Sean Lentz of Ehlers Public Finance Advisors of Roseville MN., who reviewed a $6.25 million general obligation bond sale. Money from the sale will be used for renovations of the building the city purchased last January for its new police station on Prairie Drive in the River Falls Industrial Park, as well as to buy a new fire truck and to refinance existing debt.
The city is expected to move forward this year on renovation of the building. Earlier this year, it approved a proposal from Dell Construction of Eau Claire for $2.33 million for the project. Bonding for the police station also includes refinancing an initial loan to buy the building, which was owned by North Dakota-based Forum Communications, which consolidated its operations out of Wisconsin.
“What we’re proposing here is to put together four different purposes into one general obligation offer,” Lentz told the council.
The repayment of the bonds will be over 20 years, though on final approval, the council trimmed repayment of the fire truck to 15 years. Prior to that move, repayment of everything at 20 years would mean repayments of $381,000 annually starting in 2021.
The fire truck purchase from Pierce Manufacturing for $627,861 replaces 31-year-old engine 7. The truck is currently being built, and financing it with the police building “should yield a lower interest rate than a stand-alone debt issuance option.”
“Our previous fire truck has 31 years of life in it. Having said that, I’d be more comfortable looking at something no later than 15 years (of repayment) on that fire truck,” council member Scott Morrissette said.
Lentz said the city is in good shape with its bond rating “It’s at a very strong AA2 currently,” he said.
Resolutions will be done and work toward a bond sale the morning of June 9, and Lentz said he’d appear at the council meeting that night for city review.
“Funds will be available for the fire truck, police station, financing of interim note for the police station and the State Trust Fund loan will be paid off by the middle of July,” Lentz said.
Votes to move forward on the bonding were approved unanimously.
