Mike Bubany, David Drown Associates, Inc., explained what is involved with the issuance of a $225,000 tax abatement note during a public hearing at the April 22 Chatfield City Council meeting.
The General Obligation tax abatement note will be used to pay for Main St. lighting. The $225,000 noted includes funding for the lighting and fees for the bond counsel, financial advisor, and the Minnesota Rural Water Association.
Bubany explained one of three options to pay for the lighting is to use tax abatement authority. A number of parcels were identified that will benefit from the lighting. There will be no difference in the calculation of property taxes on these parcels. The abatement will start with taxes payable next year.
Since this is a small bond, Bubany said going through the Minnesota Rural Water Association will result in lower fees. A local lender, F & M Community Bank, has entered into an agreement with the city for the loan. The interest rate will be fixed at 3% with a seven year payment schedule.
There were no comments from the public.
A resolution was approved authorizing the tax abatement and a resolution was adopted authorizing the issuance, sale, and delivery of a $225,000 GO tax abatement bond.
Other business in brief
•Another public hearing was held on language for a Flood Plain Ordinance. Kristi Trisko noted the FEMA studies for Olmsted and Fillmore Counties were not done at the same time. The Fillmore County map/study has now been completed; the Olmsted County study had been completed earlier.
There were no comments from the public. The first consideration of the Floodplain Ordinance was approved as recommended by Trisko. City Attorney Fred Suhler noted a few sentences had been the only additions to the existing text.
•Trisko reported that Dean Arndt wants to take down an existing garage and replace it with a 26-foot by 32-foot detached storage garage. He owns a residential property (4 Main St. N) in a district zoned B-2 (neighborhood commercial). A conditional use permit for the post-frame construction of the garage was approved as recommended by Planning and Zoning.
•EMS week is May 19-25. An open house is being planned.
•Mayor Russ Smith reported on an earlier meeting of the Committee of the Whole. Concession issues were discussed for the new swimming pool, along with pool hours.
•City Clerk Joel Young noted the first quarter financial report was included in the packet. Revenues and expenditures were listed by department.