A discussion of potential ways to reduce interest on bond payments was the main item of discussion at the regular meeting of the Palmer Town Board Monday night. The board also agreed on a procedure to continue paying Wipper Excavating for plowing and other work without interruption. A new tax number of similar identifier was all that was needed, due to the recent death of Eugene Wipper, who had owned the business.
Refinancing
Palmer Township had been contacted recently by Northland Securities, an underwriting firm that deals with townships and similar governmental bodies in refinancing their bond obligations. Monte Eastvold appeared at the board meeting on behalf of the company and provided three basic alternatives for the board to consider that could result in a savings on interest on existing bond payments.
According to figures presented by Eastvold, the township could save as much as $26,922 over the life of the existing bonds. Those methods include paying down the bonds with cash, using a combination of refinancing and cash, or going with a total refinancing to lower the interest payments. In a refinancing arrangement, the underwriter buys the bond issue, and then sells it on to a local bank, Eastvold said.
Treasurer Roger Johnson said that the current balance on township bonds is $605,000, and it will fall to $555,000 after the township makes the next payment in January.
The board was informed that there was no need for immediate action on any of the proposals, and the matter will remain under study for at least the immediate future.
Other Business
Dan Merchant reported that the Briggs Lake Chain Association is continuing to work with the MnDNR to ensure that the curly leaf weed spraying on the lakes next summer continues.
There was one fire call reported in Palmer on the Clear Lake Fire Dept. report for November. There was no sheriff’s report at the Monday meeting.
