At the August 12 meeting of the Chatfield City Council, a resolution was approved calling for a public hearing on September 9, concerning the proposal for the issuance of healthcare facility revenue bonds for the Chosen Valley Care Center project. Councilor Josh Broadwater was absent.
City Clerk Joel Young said the care center has been working with the city for a couple of months. The city received a request from Chosen Valley Care Center to consider acting as the issuer of 501(c)(3) revenue bonds in the amount not to exceed $10,500,000. The loan to Chosen Valley Care Center, Inc. is to be used to help finance construction, expansion, renovation, and equipping of the existing skilled nursing facility.
The care center will agree as the borrower to pay all principal and interest on the bonds. The city is to act as a conduit; it will be borrowing the funds on behalf of the care center. The bonds will not affect the city’s credit rating. The city will receive an administration fee.
Other business in brief
•Public Services committee had discussed a request from Police Chief Shane Fox to remove the 20 mph speed limit from James St., Margaret St., and a portion of Burr Oak Ave. Fox reports that the 20 mph speed zone is not enforceable unless an engineering and traffic investigation by the state determines a 20 mph speed zone is appropriate.
A 30 mph speed zone would be consistent with the rest of the city and be enforceable. The committee favored a 25 mph speed limit for safety reasons. Fox noted that a 25 mph speed limit on a residential roadway is enforceable if adopted by the jurisdiction with authority over the roadway.
Councilor Mike Urban said he would like to see the limit stay at 20 mph. Parents in the 1990s advocated for the 20 mph limit due to safety concerns. Urban wanted clarification on what is enforceable. It was decided to have the issue looked into further before a vote is taken on a speed limit.
•Councilor Paul Novotny reported on the Public Works committee meeting. The pumps at the waste water treatment plant are original since 2006. One pump was replaced with a loaner pump some months ago. It was recommended that both existing pumps should be replaced with new pumps at a cost of $6,100 for each pump. The purchase of two new pumps was approved. The working pump will be kept for a spare and the loaner/rental will be returned.
•Storm damages were reported to both Olmsted and Fillmore Counties. Young suggested there is roughly $150,000 worth of work to be done. Quotes will be brought back to the council. Storm damage repair costs (with disaster declaration) will be eligible for a reimbursement of 75% from the state. The city will stand 25% of the repair costs.
•The second quarter financial report was submitted by Kay Cole. Actual fund revenue and expenses are generally in line with budget predictions with a few overages.
•Mayor Russ Smith said Western Days went off without a hitch. He thanked the Western Days committee for all the work they do. Councilor Pam Bluhm congratulated the city crew; they were awesome. Other councilors agreed.