RANIER — The Ranier City Council Monday agreed to adopt a resolution to sell $480,000 in general obligation improvement bonds.
The bonds, which will be used for the Three Points North water project, are a common type of municipal bond that is secured by a state or local government’s pledge to use legally available resources, including tax revenues, to repay bond holders.
Most general obligation pledges at the local government level include a pledge to levy a property tax to meet debt service requirements, in which case holders of general obligation bonds have a right to compel the borrowing government to levy that tax to satisfy the local government's obligation.
Todd Hagen of Ehlers and Associates Inc., the independent financial advisor for the city, explained that the interest rate on the bond is 3.95 percent and the city will pay back the state about $45,000 annually beginning in 2013.
Hagen added that the project is expected to cost less than the bond amount, however, “it will be nice to have a little extra cushion” should other expenses occur.
In other business Monday, the council accepted the city’s 2011 audit performed by Don Zierke of Miller McDonald Inc.
Mayor Ed Oerichbauer reported that Zierke referred to the city as being in “good financial conditions.”
The council also agreed Monday to contribute to local summer festivities. The group agreed to donate $200 to the city of International Falls for its Fourth of July celebrations and $100 to the Northern Minnesota District Fair scheduled for July 13-15.
The council also agreed to waive the Ranier Community Center rental fee for the Rainy Lake Orchestra to use the facility during the week of Aug. 12-17.
Resident Tara Nelson updated the council on the upcoming Ranier Days event scheduled for Aug. 11. Nelson encouraged the council to spread the word that “everyone and anyone is welcome” to the annual celebration.
The Ranier Liquor Store’s year-to-date net profit of $14,452 is down from last year’s profit of $18,013, according to the report.
