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Council backs $1 million bond sale

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

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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