The Sherburne County Board is helping to keep the levy down by saving taxpayers money in the long run.
Tuesday, the board approved a recommendation by the auditor/treasurer’s office to pay off the 2005 Heritage Center Bond early. The original bond amount was $1.965 million.
The decision by the board is expected to save the county more than $115,000 over the life of the bond.
The board first discussed the option of paying off the bond back in September, 2013. At the time, Auditor/Treasurer Diane Arnold said the call date would be in early 2014. But it was later determined the county’s paperwork was incorrect and the actual call date was Feb. 1, 2015.
In order to pay off the bond, the board approved a transfer of $373,809 from the land and building fund and $486,286 from the debt service fund. Combined with an existing balance of $241,203 in the Heritage Center Bond Fund, the county will pay the outstanding balance of $1,106,298 by the Feb. 1 call date.
If the county chose not to pay off the bond early, taxpayers would have been paying another $193,582.50 in interest through 2021.
Instead, the county will be making one more interest payment of $26,298 as part of the early payoff. Arnold said the county will have a reduction of more than $50,000 in potential interest earnings by paying off the bond early. But even taking that into account, the overall savings will be close to $120,000.
The early payoff also reduces the county’s 2015 debt service by $184,308, which would have been paid this year as part of the annual bond debt.
Administrator Steve Taylor said once the bond is paid off, the county and History Center must enter into a lease for the property.
“Staff is now working on drafting that lease agreement,” he told the board. “Expect to see a lease in the next month or so for your approval.”
Tax Abatements
The board approved the following property tax disaster abatements:
$159.14 to James and Doris Partridge because of a fire that partially damaged their house and attached garage on Fair Meadows Drive in Big Lake in September, 2014;
$267.89 to Harold Kenerson because of a fire that totally destroyed his house and attached garage on 284th Ave, in Zimmerman in February, 2014;
$109.34 to Kris and Amy Hicks because of a fire that destroyed their house and garage on 108th Street in Zimmerman in July, 2014;
$638.92 to Joshua Ketter because of a fire that damaged his house and garage on Zumbro Street NW in Elk River in February, 2014;
$1970.42 to Andrew Carlson because of a fire that destroyed his house and garage on 144th Street in Zimmerman in January, 2014.
• Approved a memorandum of understanding with Law Enforcement Labor Services, Inc. Dispatcher Unit, providing the same employer contribution to the cafeteria plan for 2015 as provided to non-union employees and other bargaining units;
• Approved a 2014-2015 Off Sale Liquor License to Kinitski’s (formerly Palmer House), contingent on background check and approval from the county attorney’s office, the sheriff’s office and Palmer Twp.
