City Council okays new General Obligation refunding bonds

The Grand Marais City Council approved a change in bond financing that will result in savings of about $125,000 for the city over the coming years.

Council voted for the change at the October 13 meeting.

Bruce Kimmell, senior municipal advisor for Elhers attended the meeting virtually and presented the Pre-Sale Report for the proposed $1,530,000 General Obligation Refunding bonds, Series 2021A.

The Series 21A bond issue includes financing for the City’s outstanding General Obligation Refunding Bond, Series 2013A, which has seven years left to be paid off.

The refunding is expected to reduce debt service expense by approximately $124,933 over the next nine years, Kimmell said the Net Present Value Benefit of the refunding is estimated to be $102,480, which is equal to 5.46 percent of the principal.

Following the presentation by Kimmell the council passed a motion authorizing Ehlers to assist the city in the sale of the bonds.

The bonds will be issued for a term of eight years, with principal payments made February 1 each year and interest payments made every six months.

Council will meet on November 10, 2021, for the purpose of considering the proposals to and awarding sale of the bonds.

In other city business council held a discussion about ATV use in the city, with that topic being revisited in the future. Council board assignments were revisited with some changes made following the appointment of Tracy Benson to replace Kelly Swearingen as a council member after Swearingen resigned due to personal reasons.

Council approved the hire of Greg Lykins as an Apprentice Line worker. Greg is currently employed with the city and works as a Water/Wastewater Operations Specialist. He will remain in his current position until that is filled.