The Sherburne County Board Tuesday approved a contract with Northland Securities that will save the county over $1 million in debt service payments over the next six years.
In 2007, General Obligation Capital Improvement Bonds were issued to fund construction of the county’s public works facility in Becker and the jail expansion project.
The bonds totalled $13,935,000 with an average bond interest rate of 4.58%. The current balance is $8,115,000, with a maturity date of February, 2023.
Administrator Steve Taylor said refunding the bonds at the estimated current interest rate of 1.34% will result in a net debt service reduction of $1,054,000.
The auditor/treasurer’s office received quotes from five bond security firms, with Northland being the lowest quote. Other firms were Ehlers, David Drown Associates, Springsted, Inc. and Public Financial Management, Inc.
George Eilertson, senior vice president of public finance with Northland, said plan is to keep annual debt service payments the same, but shorten the term of the bond by one year to 2022, thus saving more than one million in debt service.
He said contracting with Northland was the first step in the process. The board would pass a formal resolution at the March 17 meeting calling for a bond sale. Financing bids would be received April 20, with the board approving the bids April 21.
The expected bond sale date is about May 5, 2015.
Northland’s fee is $22,400.
Other Business
In other action the board:
• Approved a conditional use permit for Verizon Wireless to construct a 175’ monopole communication tower and 12’x30’ equipment shelter on Big Lake Twp. property near Big Lake Township Hall on Co. Rd. 5;
•Approved the preliminary and final plat of Soperfect Crystal Pines, consisting of two lots with one existing residence on 40 acres on 57th Street SE in Santiago Twp.;
•Approved the preliminary residential plat of Shasta Meadows, consisting of six lots on 34.05 acres on Co. Rd. 1 and 273rd Ave. in Orrock Twp.;
• Approved a two-year extension of the preliminary plat for River Crest Farms, with 41 lots remaining on 227th Street in Big Lake Twp.
•Approved a temporary On-Sale Liquor License for Big Lake Spud Fest for Aug. 1 at Big Lake Fire Hall;
•Approved a one-year consumption and display permit for Del-Tone/Luth Gun Club in Haven Twp.;
•Approved the 2015-2016 Annual County Boat & Water Safety Grant for the sheriff’s department in the amount of $10,998;
•Appointed Keith Streff, director of investigation for the Animal Humane Society, as Hearing Officer for the Sherburne County Dangerous and Potentially Dangerous Dog Ordinance;
•Appointed Kenneth C. Asangwe and Wendy J. Brown as citizen representatives to the Community Corrections Advisory Board, and appointed Kathleen Heaney as prosecution alternate representative;
•Approved a Scope of Work agreement to use a consultant to assist the IT Dept. converting the county’s imaging system to Hyland Onbase. The cost is not to exceed $8,000.
