New bond refinancing package approved
By Greg Hunt
At the Nov. 1 regular Braham Council meeting, a bond refinancing plan was approved which will net the city a lower 2.98 percent rate while combining four current bonds being paid. The city could see savings of $67,000 by going with the new plan.
City Financial Advisor David Drown walked the council through the options, recommending the new Minnesota Rural Water Association’s “MIDI-Loan” program as the path to take for refinancing the four current bonds which total $960,000 (bonds for the Industrial Park, GO TIF Bond 1999, GO Abatement Bond 2001, and the 2006 Braham Fire Dept. Pumper Lease).
“Braham would be just the third municipal borrower in this new MIDI-Loan program. Along with the low interest rate, the city would save $7,500 alone by not having to purchase a rating for alternative refinancing plans,” explained Drown.
Braham is paying between 4.1 to 5.5 percent interest on the four current bonds which will be packaged under one bond through the MIDI-Loan plan. The old bonds will be called and paid off, with a closing date set for Dec. 15.
In other action, the council:
• Approved a partial payment of $309,450 to Di-Mar Construction on the work completed at the Wastewater Treatment Facility.
• Approved the resolution adding a section of Co. Rd. 54 to the city street system which was turned over to the city by Isanti County this year following the repaving job on the stretch.
• Authorized a Braham Fire Department fundraiser coming in December to assist Shayla Fisher who is undergoing treatment for Hodgkin’s Lymphoma.
Next meeting: Tuesday, Dec. 6, 7 p.m. (Truth-in-Taxation hearing at 6:30 p.m.).