PRESCOTT – With interest rates at historic lows, the Prescott City Council made the decision to not only refinance debt from acquiring the Sears property, but to refinance debt from 2010.

Sean Lentz, a senior municipal advisor for Ehlers Public Finance Advisors, gave the city council a brief rundown of what to expect for the proposed refinancing. The purpose of the June 28 agenda item was to lock in a fixed interest rate.

The proposal is for refunding a general obligation promissory note in the amount of $3,870,000, which was used to provide interim financing to purchase the 130-acre Sears property. The proposal also refinances $595,000 in debt, which is the amount remaining from the city’s 2010 land purchase to create the Eagle Ridge Business Park.

The refunding issue will pay off the interim note and structure the city’s repayment schedule.

The total savings over the same term (but with a lower interest rate) is $47,265 over the next five years. Debt service will be paid from Tax Increment District #5 revenues.

Following the issuance of these notes, the city’s total general obligation debt principal outstanding will be $11,851,500, which is 56 percent of its debt capacity limit. Its remaining general obligation borrowing capacity will be about $9 million.

The sale of the notes is expected to be awarded at the July 26 city council meeting, with an estimated closing date of Aug. 17.

Other business

•The council approved replacing the existing central air conditioning at Freedom Park for $20,200 (funds coming from the reserves). River Falls Heating will complete the installation.

•The council approved a rail purchase for the main lift station, costing $7,880.

•The Coulee River Trails Committee performed a clean-up at Magee Park, reported Alderperson Bailey Ruona. The next step is to map out trails.

•City Administrator Jayne Brand reported the new courtesy dock has been installed on the riverfront. She also cautioned property owners that the city may impose water conservation restrictions when work is done on the water tower, since it’s been running for 20 hours per day.