A primary focus of the meeting was the financing plan for the Public Utilities Commission’s acquisition of a new transformer and switch gear. George Ersson from Northland Securities detailed the financing structure, which involved the city issuing general obligation debt on behalf of the PUC. This approach allowed the PUC to secure more favorable interest rates due to the city’s taxing authority. The debt, amounting to $2,500,000, is structured over a 20-year term with a true interest cost of approximately 4%. The bonds will mature in 2043, with a call date set for December 2032, providing an option for refinancing under improved market conditions.

The city’s A+ credit rating from Standard & Poor’s, reaffirmed after a recent review, played a role in securing the favorable terms. The city’s stable operating performance and robust fund balances contributed positively to maintaining this rating. The council also discussed upcoming projects, emphasizing the need to manage debt levels carefully to avoid significant levy increases for residents.

The council member raised questions about how utility fees would be structured to cover the debt service, noting a planned small rate increase for utility customers through 2029. The necessity of replacing aging equipment and improving reliability to accommodate future growth was also highlighted. The council unanimously adopted the resolution related to this financing plan.

Meanwhile, attention was given to the maintenance and safety issues at the local library. Kelly Kleen, the library branch supervisor, reported urgent needs, including the absence of fire and carbon monoxide detectors and aging furnace issues. Water damage affecting ceiling tiles and chipping paint were among the maintenance concerns earmarked for next year’s budget. Kleen expressed a desire to conduct a detailed walkthrough of the library with a city representative to prioritize these needs, emphasizing the urgency of addressing the safety features.

The discussion also touched on budget allocations for library maintenance, revealing a general line item for building repairs but a lack of specific allocations for library-specific needs. Kleen suggested involving someone with construction experience in the walkthrough to better identify and prioritize maintenance requirements.

The meeting also addressed the operations and financial health of the city’s golf course. Despite challenges from a summer storm causing temporary closures and lost revenue, the course projected a potential surplus over budgeted numbers. Revenue figures stood at $447,000 against a budgeted projection of $465,000, with additional funds expected from FEMA reimbursement for storm-related expenses.

Discussion around the management of the JGA projects at the golf course raised concerns about oversight and the process for approving projects initiated by the JGA. Suggestions included establishing a threshold for project costs that would allow JGA to proceed without prior approval for smaller projects while requiring detailed presentations for larger ones. This approach aimed to improve transparency and ensure clear communication between the JGA and the city.

The council also reviewed sewer rates, proposing an increase of over $4 for the average residential customer. This incremental increase was seen as a more manageable strategy compared to infrequent, larger hikes.

Finally, the council unanimously supported a resolution to accept plans for road improvements in collaboration with a grant from Wasa County. This project includes enhancements to rural roads, such as South Main Street, and is scheduled for the upcoming year.