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Nisswa: City to issue $1.7 million in bonds to fix streets

Nisswa will issue $1.7 million in street reconstruction bonds to pay for improvements to city streets in the next two years.

The city council on Wednesday, May 9, adopted a five-year plan outlining what streets would be improved and agreed to issue general obligation street reconstruction bonds not to exceed the $1.7 million to pay for improvements. No citizens attended a required public hearing May 9 regarding proposed street improvements.

Roads to be improved

The five-year plan includes four roads slated for improvements this year — from early July to late September - and four scheduled for construction in 2019. City Administrator Jenny Max told the council the estimated costs will be updated after the bidding process determines true costs. The following road projects include basic reconstruction (mill and overlay):

• Hyland Avenue: half mile for estimated total cost of $215,600.

• Mission Road: 1 mile for estimated total cost of $273,175.

• Gull Lake Drive: .8 mile for estimated total cost of $269,500. The road will go from 24 feet to 22 feet wide.

• St. Columbo Road: .55 mile for estimated city cost of $110,250. The city owns part of this road, and Crow Wing County owns part. The county will pay 40 percent of the total project cost, and the city 60 percent.

Projects proposed for 2019 are Hazelwood Avenue, 1.1 miles estimated at $416,500; Lower Cullen Road (north) from Roy Lake Connection to the intersection with Highway 371, .35 mile estimated at $110,250; Nisswa Lake Lane, .30 mile estimated at $82,075; and Smiley Road (south), .56 mile estimated at $171,500.

The total estimated cost of the eight projects is $1,648,850. The estimated average annual cost, including principal and interest payments, is $265,000, with payoff estimated in early 2026. Anticipated interest paid would be $230,000.

Max said two current bonds will be paid off in 2024 and 2025. The city's goal then would be to keep the debt service for road projects level, with next set of bonds being issued after the current set is paid.


The council last adopted a five-year street reconstruction plan for 2014-18 and issued approximately $731,000 in street reconstruction bonds to finance four street segments: Roy Lake connection between Highway 371 and Lower Cullen Road, and Lower Cullen Road and Main Street between Roy Lake Connection and the Nisswa Fire Hall; Main Street between the fire hall and pedestrian tunnel; Old County Road 18 between Main and Church streets; and Old County Road 18 between Church Street and the new County State Aid Highway 18.

Previously, the city did street maintenance and reconstruction as part of its annual operational budget. The city has determined that combining smaller yearly improvement projects into one larger project is more efficient and cost-effective, so agreed to pay for improvements by using a bond and spreading payments over several years.

The city used this approach on the Highway 371 and CSAH 18 improvements.