The Feb. 24 Prescott City Council meeting began with some good news. City Administrator Matt Wolf informed the council that bids for the Riverfront Project came in under budget, allowing them to lower the amount that needs to be borrowed.

Wolf explained that the separate borrowing is because the 2025 A Series will fund immediate work, while the 2025 B Series approves a small borrowing that can be drawn upon in the future if they are able to move forward with the transient dock downtown.

Joshua Low, associate municipal advisor with Ehlers, Inc., shared that the best news was hearing that less borrowing would be necessary.

“Part of that is because the project cost went down, part of it is because we received a premium bid so we can use some of that money to reduce the borrowing,” Low explained. The A Series funds the Riverfront Phase 2 projects, which are financed through general obligation promissory note securities. These notes are sold to underwriters who then sell them to investors. The B Series, in contrast, is funded through local banks. The City of Prescott received an Aa3 rating from Moody’s Investment Services.

“It’s a very strong rating for the City of Prescott,” Low commented. “This is what the outside community thinks of Prescott. It’s a very nice rating for a community of your size.”

Low explained that Prescott’s credit strengths include a strong financial position, moderate leverage, and its proximity to the Twin Cities in Minnesota—all of which work in the city’s favor.

“They look at your fund balance and see that that’s very high,” said Low. “Those are really nice upsides.”

However, Low also pointed out that Prescott’s credit challenges include “slightly lower” income for its residents compared to other Aa2-rated communities, which is a factor in the City’s Aa3 rating.

“That led you to getting some very nice bids,” Low continued. “The fact that we are held to a limited amount of time for this because it’s all being paid back by tax increment district #4 is really helpful for this financing getting a very low interest rate here.”

He also noted the strong competition for the city’s debt through the multiple bids. Low further explained that, thanks to recent improvements, Prescott should have enough cash flow from TID #4 to cover all payments without needing to levy or rely on other funding sources.

The council approved Resolution 12-25 Providing for the Issuance, Sale and Delivery of $1,550,000 General Obligation Promissory Notes (A Series). The council also approved Resolution 13-25 Providing for the Issuance, Sale and Delivery of a $987,000 General Obligation Promissory Notes (B Series).

Low explained that for the B Series, the mechanics are slightly different, as it involves local banks. The best proposal came from First State Bank and Trust in Hudson, offering a rate of 4.75%.

Alderperson Dar Hintz expressed appreciation for Low's hard work and dedication throughout the process.

Parks Improvement Fund

In 2022, the City of Prescott established a park escrow line to support ongoing maintenance and improvements at local parks throughout the year. In February 2023, the   city council approved the creation of a Parks Improvement Fund, with the plan that any unused funds from the parks escrow line at the end of the year would be transferred into the new fund, along with revenue from room tax. In 2024, $50,000 was budgeted for the Parks Improvement Fund, but only $40,118.98 was spent, leaving $9,881.02. The council approved transferring the remaining balance of the unused Parks Upkeep Fund from the General Fund into the Parks Improvement Fund.

Phase 2 Riverfront Project

Wolf explained that the city plans to replace the remaining streetlights as part of Riverfront Phase 2. He noted that the new lights will match the style and color of those on Broad Street. The total cost for materials and installation will be $104,482, with $25,600 allocated for installation and $78,882 for the lights themselves. Additionally, the streetlights in Mercord Mill Park and one in Jake’s Park will feature banner posts. Pulse Lighting, which replaced the previous streetlights, will handle the installation of these as well.

Hintz appreciated that the project was mapped out, providing a clear sense of where the lights will be installed.

Water Fountain

In 2007, the City of Prescott and the Friends of Freedom Park entered into a Memorandum of Understanding.

“We essentially continue to remain responsible for the management, operation and improvement and maintain and improve the visitor center park by and through the ultimate authority of the council,” stated Wolf.  

Wolf noted that the water fountain at Freedom Park is “starting to age and needs to be replaced.” The proposed new fountain would feature an upper body water bottle filler and regular drinking fountain, with a pet drinking station at the bottom. The cost for the fountain would be $6,659.99, including shipping.

Wolf said there is a $25,000 budget allocated for projects like this at Freedom Park.

“I’m definitely in favor of this new water fountain,” Alderperson John Peterson began. “But (are) there any other projects at Freedom Park that TID #4 could be used for?”

Wolf explained that repair and maintenance projects do not qualify for funding through TID #4, and added that other general maintenance projects would also be ineligible. After discussion, the council approved the purchase of the Elkay Outdoor ezH2O® Upper Bottle Filling Station Bi-Level Pedestal with Pet Station (Non-Filtered, Non-Refrigerated) at a cost of $6,659.99.

Facade Improvement Program

As the expenditure period for TID #4 concludes on March 3, 2025, the City of Prescott plans to use the remaining funds to establish a Facade Improvement Program aimed at supporting downtown businesses and commercial properties. Since the expenditure period ends soon, an escrow agreement must be signed with a fiscal agent to allocate the funds for the program. The fiscal agent will manage and distribute the funds upon request from the city, which has been working with First National Bank to serve as the fiscal agent.

“It’s a way to look at economic and community revitalization,” said Wolf.

The exterior Façade Improvement Program would receive $300,000 from TID #4. From 2025 to 2030 projects would be chosen to receive $50,000 each year. He also remarked that $552,315 is still remaining in TID #4 to account for potential market value corrections and levy reductions preventing fund shortfalls.

“I like this,” Hintz spoke up as the council authorized agreement with First National Bank of River Falls.