LITTLEFORK — The Littlefork City Council Thursday discussed refinancing a 2002 bond.
Mayor Shane Williams was absent, requiring Deputy Mayor Loren Lehman to preside over the meeting.
The council unanimously approved a 2010-20 resolution to initiate a “trigger” resolution to refinance a bond issued for the Jackpine Chateau Assisted Living Community.
City Clerk Mike Fairchild gave the council an update on a $1.2 million bond issued in 2002 for the assisted living facility.
“You guys already approved to refinance this, but we need to do a trigger resolution that starts the process,” he said. “This means that the facility can start shopping for interest rates and get the best offer locked in.”
Fairchild continued by saying that the facility’s occupancy played a role in the process.
“Right now it’s a general obligation revenue bond that the assisted living facility could have tried to pay for just through rent, but the way it is set up, it would have never made payments because it isn’t full,” he explained. “By passing a resolution tonight, we can hopefully push this back or get rid of it all together. It is going to be a lengthy process, but our goal is to save some money and protect the taxpayers.”
“Is this going to cost us money to refinance?” asked Councilor Kevin Sather.
That’s possible, replied Fairchild, however he added that costs can usually be built into the bond sale.
In other business, a committee will be formed to consider making recommendations to improve Lofgren Park. The city has $9,000 budgeted for the park. Decisions are expected to be made before winter.
Maintenance Supervisor Keith Barstad told the council that he had shut down the park for the season. With the mornings getting colder, he said he drained the water system and prepared the tennis court for winter.
The council also discussed establishing campsites at the park.
Lehman informed the council that the city’s website put together by Fairchild and Deputy Clerk Sonja Pelland is up and running.
“It is a work in progress, but we’re pleased with it and are always taking suggestions,” Fairchild said.
The website can be found at www.cityoflittlefork.com.
Fairchild presented the city code book that the council had budgeted for this year. The book consists of codes and ordinances as well as state statutes that govern the city.
“The book itself cost $880 and if we spend another $250, we can get the software to load it onto the website that will provide a search engine,” Fairchild said. “I think it is well worth it.”
The council considered forming a committee to review the book and decide if the software is necessary to purchase.
Fairchild presented the Littlefork Municipal Liquor Store report. For the month of September, net sales were $37,314, which was an increase of $4,765 from last year.
However, the year-to-date store sales were $289,600, which is a decrease of $17,000 from 2009.
