The Spring Valley City Council began their April 10 meeting with Mike Bubany, of David Drown Associates, advising the group on the negotiated sale of the 2023A bonds.
“While I’m here to talk about what is probably pretty simple, meaning we are borrowing money to pay for these projects, there is a lot of information you need to know,” Bubany started. “Whenever the city goes to borrow money we have to cite the statutory authority we are using to borrow the money. One of the most common is in Chapter 429 that says you can issue debt as a city, but you have to assess 20% of the cost to adjacent landowners. You are not meeting that 20% test.”
He noted this would normally not be an issue, but a portion of this year’s street improvements, Territorial Avenue and Broadway Avenue will not include utilities work.
“So I’m using a different piece of authority for that called tax abatement authority. This is one where we hold a public hearing and we identify parcels that benefit from the improvements and I have to show that the parcels identified their taxes over the life of the bonds equals the principal amount of the bonds,” Bubany explained. “This is a paper exercise only. When we establish the tax levies and we send them to the county they will spread them across the entire city like they do every other levy you have. Their taxes are calculated the same exact way, their taxes are spread exactly the same way, nothing untoward is happening to them.”
In terms of the bonds for the projects, the bonds issued will total $1,540,000. Bubany suggested the council consider doing a competitive sale with a call option of February 1, 2031.
The council approved a resolution providing for the competitive negotiated sale of the 2023A bonds. A resolution calling for the public hearing, set for May 8, on the approval of tax abatement for the purpose of financing public infrastructure was approved.
Bucknell station pumps
Public Works Director Chad Hindt explained to the council that a grinder pump at the Bucknell station broke down and parts are no longer available for the pump, so the city is now looking at purchasing two new pumps.
City Administrator Deb Zimmer noted the purchase had been discussed previously, but it was not slated for at least another year.
“We were hoping to do this next year, but it happened now. We are down to one pump right now and one pump will handle it, but if that pump goes down then we have nothing,” Hindt said.
The council approved the purchase of the pumps for $51,725.
The council approved the quarterly ambulance write-off totaling $4,876.60.
Pay estimate nine for the 2022 Fremont Improvement project for $10,498.05 was approved.
The council reviewed the 2023 Farmer Street and CSAH 8 work order from Bolton and Menk. It was noted the cost of the consultant fee will be split with 48%, or $131,165, will be paid by Fillmore County and the remaining 52%, or $140,400, will be covered by the city of Spring Valley. The work order was approved.
The city will now only require cats and dogs to be licensed once per lifetime at the cost of $25.
The city approved the street closure request for this year’s Fins and Films event on July 14 and 15.
The council approved the ambulance billing conference attendance.
The Pearson Bros. Chip seal quote was approved with the total not to exceed $89,100.
Spring Valley Economic Development Authority (EDA) Chris Hahn asked the council to sign a letter of support for a regional transit management organization for southeastern Minnesota, which was approved.
Parks and Recs Director John Fenske shared he had received helmets for the fourth, fifth and sixth youth programs. He noted the Kingsland Athletic Boosters paid for $8,200 of the $11,000. Fenske also announced that Spring Valley Chevrolet will be sponsoring the Parks and Recs program again. The sponsorship includes approximately $2,500 in equipment and a $1,000 donation.
The summer Park and Rec activities are now online at https://www.springvalley-mn.com. Discounted priced will be in effect until May 25, 2023.
The next council meeting will be held on Monday, May 8 at 6 p.m.