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Sleepy Eye OKs bonds for services to Snow property

Sets 2013 levy with 1.9 percent hike

September 12, 2012
By Fritz Busch - Staff Writer , The Journal

SLEEPY EYE - By a 5-0 vote Tuesday, the Sleepy Eye City Council approved $1,415,000 in 25-year Series 2012C General Obligation Improvement Bonds to finance extension of sanitary sewer, water and storm sewer services to an undeveloped part of the city, the former Snow Farm property on the east edge of town.

Bonds purchased from Northland Securities, Inc. of Minneapolis have a true interest cost of 3.065 percent. The City intends to levy special assessments against benefited property and spread a debt service tax levy on all taxable property to pay debt service.

George Eilertson of Northland said 25-year bond principal is deferred to 2016 with a Feb. 1, 2019 call date. He said the City can pre-pay all or part of the bond issue.

"You've coming into the market at a pretty good time with a 2.93 percent average interest rate," Eilertson said. "The money will be available Oct. 4, 2012."

City Manager Mark Kober said the sale will be used to refinance 2007 bond debt.

Mayor Jim Broich said land sales from the project will also be used to pay off the bond debt.

The project construction fund will receive $1,110,837.59 from the bond sale. Engineering expenses are $217,325.24, contingency costs $39,001.17 and cost of issuance $14,900.

The City Council unanimously approved:

- A $1,152,110 preliminary 2013 tax levy certification, including $252,000 in contingency funds and a 1.9 percent ($21,881) total tax increase.

The 2013 city budget, which cannot be raised, but could be reduced before the Dec. 11, 2012 city council meeting, was set at $3,452,160. The figure compares to $3,375.560 in 2012, $3,508,869 in 2011 and $3,274,106 in 2010.

"I think it's fiscally responsible," said City Manager Mark Kober. "It adds about $19 to a $1,000 annual tax bill."

- Heiderscheidt Digging Inc.'s $12,728 low bid to demolish the home at 415 West Main (next to Freedom). Other bids were $14,226 by Mathiowetz Construction and $15,668 by Hoffman Construction.

- Ordered a new 2013 Ford Explorer all-wheel drive Police Interceptor at $40,029.27 from Chuck Spaeth Ford. Cost includes a new camera, cages and lights, graphics, set and tear down of 2009 Ford Crown Vic by Alpha Wireless.

Police Chief John Schueller said the Explorer cost was similar to a Ford Taurus but the Explorer has more interior room for passengers and gear that wouldn't need to be put in a trunk during extreme temperatures, enabling it to work despite very cold or hot outdoor temperatures.

(Fritz Busch can be e-mailed at



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