At the May 23 meeting of the Chatfield City Council, councilors approved a resolution to issue a $1,469,000 General Obligation Utility Revenue Note 2022A to finance improvements for the city’s water and sewer systems. Councilors Josh Broadwater and David Frank were absent.
Mike Bubany, David Drown Associates, Inc. appeared remotely to review aspects of the note and to detail his recommendation. Because of expected continued rising interest rates, he suggested they “lock in” quickly.
F & M Community Bank has offered to purchase the note to be paid back over 20 years at an interest rate of 3.2% per annum (the last payment scheduled for February 1, 2043). The intention is to close for the funds on June 13. This is earlier than the city will actually need the funds, but Bubany recommended accepting the deal now to take advantage of a more favorable interest rate. He explained the city could save $60,000 or more in interest by locking in with a direct bank placement now, as opposed to a competitive public sale, and by taking advantage of the Minnesota Rural Water Mega Loan program.
Southern Minnesota Initiative Foundation
Alissa Oeltjenbruns briefly reviewed SMIF’s leveraging of local investments and partnerships to make a difference in southern Minnesota. SMIF is a non-profit that serves 20 counties (including Fillmore and Olmsted Counties) and concentrates its efforts on early childhood education, economic development, and community vitality.
For every donation of $1, a total of $29 has been invested back into Fillmore County communities. Chatfield Public Schools were awarded 160 books through an Early Literacy Grant.
Oeltjenbruns noted there are not enough childcare providers. SMIF is providing free training for providers and a consultant to help determine the childcare shortage in a community.
SMIF works as a gap lender, partnering with financial organizations, to help aspiring entrepreneurs.
Communities under 10,000 population are eligible for Small Town Grants.
Other business in brief
• Mayor Russ Smith proclaimed the week of May 22-29 as Professional Municipal Clerks Week, extending appreciation to Chatfield’s Professional Municipal Clerks, including Joel Young, Beth Carlson, Kay Wangen, Julie Elder and Desiree Schlichter for the vital services they perform. This will be the 53rd annual Professional Municipal Clerks Week. Smith said they have a thankless job.
• The council adopted an updated fund balance policy. There is an annual review of the policy to keep it current. Wangen was credited for her work on the policy updates.
• The recent citywide clean-up payment was approved in the amount of $14,472.55.
• The Polco service agreement (civic surveying and engagement platform) was approved at cost of $15,500 for two years.
• A Memorandum of Understanding between Chatfield (fiscal agent) and SE MN Together in support of the Transit Management Organization Project was approved. The city could be reimbursed a maximum of up to $5,000 for its costs incurred by acting as the fiscal agent.