By Adam Quandt
During the May 16 regular council meeting of the Long Lake City Council, the CSAH 112 project was once again at the forefront of discussion.
During the meeting, the council listened on the topic of bonding details for the project. There is a proposed $2 million bond issuance in order to cover the cities portion of the project. In order to keep the borrowing down at $2 million, the city would be require to apply around $517,000 in existing funds towards project costs.
If approved, the bonds would be for a 16-year bank qualified term, with bonds being sold competitively in accordance with a pre-set schedule.
The bonds would be issued under general obligation street reconstruction bonds, which require unanimous approval from the council to provide the authority to issue the bonds. Also, under this type of bonding, there is no need for any form of special election in order for the city to use its authority to cover their portion of the project.
“We went back and forth with what we can come up with as a city share,” Councilmember Tom Skjaret said. “We’re using resources that we’ve set aside for this for a number of years. We’re contributing, but we’re being careful.”
Councilmember John Dyvik also pointed out that the city’s cost is largely for the utilities located below the road, rather than the road itself.
“The county road project is what I believe a $16 million project overall, of which our portion is about 2.5 million,” Mayor Marty Schneider said.
Following the explanation of the bonds, the council voted to open the required public hearing during the meeting.
When no public comment was made, the council closed the hearing and voted unanimously to approve the bond issuance.
According to the bonding process, there is still a 30-day reverse referendum period before the city can begin paying project costs using the bonds. If no reverse occurs, the city is tentatively able to begin paying project costs following the July 13 regular council meeting, pending council approval.
The next Long Lake City Council meeting will take place at City Hall on June 6 at 6:30 p.m.