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Council backs $1 million bond sale

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News Brainerd, 56401
Brainerd Dispatch
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Brainerd MN 506 James St. / PO Box 974 56401

The Brainerd City Council Monday night approved the sale of a $1 million general obligation bond to help pay for its 2011 street improvements.

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Paul Steinman, the city’s bond counsel, said the city had three bidders for the bond sale.

The city awarded the bid to the bidder, Bosc Inc., from Tulsa, Okla., at a 1.83 percent interest rate. Steinman said the other two bids were very close, indicating it was a competitive process.

Steinman said the bond was resized to $980,000 for the same amount of money borrowed.

Two weeks ago the council rejected a bond sale for a $1.795 million bond on a 4 to 3 split vote, lowering the bond to $1 million.

Council member Bob Olson said Monday the city will be saving about $11,000 in issuance costs by going with the smaller bond. He said the city will save taxpayers about $900,000 over the term of the bond by going with a $1 million bond versus the $1.795 million bond.

“I think that’s very good news as we look at our property tax statements we have just gotten,” Olson said. “Some properties have taken a pretty sizable increase. Any relief we can give our taxpayers is beneficial.”

Olson said when the council hosts its annual truth in taxation meeting, he’ll recommend a reduction in the annual levy. He said he thought he could lower the levy about 6 percent.

JODIE TWEED may be reached at Jodie.tweed@brainerddispatch.com or 855-5858.

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