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Wednesday, October 1st, 2014
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Commonweal Theatre to refinance debt


Fri, Jan 10th, 2014
Posted in Lanesboro Government

A public hearing was held prior to the Lanesboro City Council meeting on January 6. Councilman Keith Eide was absent. The hearing was in regard to the nonprofit theatre corporation’s request to amend and reissue its commercial development note that had been issued in 2006.

Mike Bubany, David Drown and Associates, explained that with the 1982 Tax Equity and Fiscal Responsibility Act the rules were made more stringent. A city can get a lower rate as a tax exempt entity and this can be extended to non-profits. Commonweal Theatre Corporation can take advantage of the tax exempt rate with the city acting as a conduit in the reissuance of the revenue note. There will be no liability to the city if the city agrees to the requested changes in the original note.

Bubany emphasized that it wouldn’t affect the credit rating of the city in any way. He added that any local government entity could act as the conduit for the theatre. It just made sense for that entity to be Lanesboro as the theatre is located here. There is a limit on the amount any city can designate as “qualified tax exempt obligation” during the period of one year and that is $10 million. Bubany noted that Lanesboro will not be affected by that limit.

With the amendment of the note the Commonweal Theatre will save 1.5 to 2 percent on interest rates. F & M Bank is the sole holder of the debt.

Hal Cropp, speaking for the theatre board, pointed to the downturn in the economy in the years after the original note was issued. He acknowledged that over $450,000 of pledges had to be written off. However, since 2011 funds gained through operations have covered all interest payments on the debt. Principal payments have to come from capital campaign fund raising.

In 2010 a fund raising campaign was started with a target of $1,000,000. Over $450,000 in cash and pledges has been received to this point.

The restructuring of the debt will reduce the annual principal and interest payments to $37,000. They currently are $120,000. The reduction in the debt service will allow the theatre to establish reserve funds for operations, building and equipment, along with new programming.

Charles Aug explained the restructuring of the debt is comparable to the refinancing of one’s home. It will lower the interest rate for the first five years from 5.53 percent to 4.00 percent. It will reduce debt service cost and solve .....
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Lanesboro City Council approves budget and levy

Fri, Dec 6th, 2013
Posted in Lanesboro Government

The Lanesboro City Council approved the 2014 Budget and Levy at their regular meeting on December 2. The levy was set at $503,747. The Truth in Taxation Hearing was held during the meeting. No residents came forward with concerns or questions. ..... 
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Lanesboro discusses Amish vendors

Fri, Nov 8th, 2013
Posted in Lanesboro Government

A crowd of people, including several from the Amish community, attended the Lanesboro City Council meeting on November 4 to discuss vendors doing businesses at Sylvan Park. Mayor Steve Rahn explained the Amish have been selling food and other items ..... 
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Lanesboro looks at employee health insurance

Fri, Oct 11th, 2013
Posted in Lanesboro Government

At the regular city council meeting on October 8, City Administrator David Todd spoke to the council about the Affordable Care Act and city employee health insurance. According to Todd, the city has three choices. They can do nothing at all, since t ..... 
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Lanesboro City Council talks trees

Fri, Sep 6th, 2013
Posted in Lanesboro Government

Lanesboro Street/Park Director Andy Drake approached the city council regarding several ash trees at Sylvan Park and around town that are dying. He said they trimmed the dead parts off the trees last year, but they need it again. He suggested they b ..... 
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Lanesboro City Council approves Conditional Use Permits

Fri, Aug 9th, 2013
Posted in Lanesboro Government

By Jade Sexton Two public hearings were held before the regular city council meeting in Lanesboro on August 5. The first one was from Richard Horihan, owner of RLH Grain. Horihan had requested a Conditional Use Permit (CUP) to put up a new drying b ..... 
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David Todd takes over as City Administrator in Lanesboro

Fri, Aug 2nd, 2013
Posted in Lanesboro Government

David Todd came to Minnesota all the way from Maryville, Mo. to start a new life and a new job. In June, he took over the position of the city administrator of Lanesboro, Minn. Todd is now living in Rochester, Minn. with his wife, Hilarie and the ..... 
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Lanesboro looks at Capital Improvement Plan

Fri, Jul 5th, 2013
Posted in Lanesboro Government

By Jade Sexton Mike Bubany of David Drown Associates spoke to the Lanesboro City Council about the Capital Improvement plan for the next several years. Using a spreadsheet, Bubany showed the council what the effect would be on taxes, utility rates ..... 
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Lanesboro City Council hears audit report

Fri, Jun 7th, 2013
Posted in Lanesboro Government

Jason Boynton of Smith Schafer and Associates presented the 2012 audit report at the regular Lanesboro City Council meeting on June 3. Boynton went over the main points of the revenues and expenditures. The property tax revenue was very close to ..... 
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