NU Council approves early retirement of bonds
NEW ULM – The City Council approved the early retirement of Dec. 1, 2014 through 2016 payments of the General Obligation Permanent Improvement Revolving Fund Bonds. The city built extra funds in the debt service through interest, thus allowing the early payment.
Councilor Ken RockVam said that by paying off the debt the City will maintain a lower outstanding debt and keep taxes from increasing in the future.
The Council also approved a recommendation from the EDA to approve the loan from the EDA to the TIF Fund for $70,000. The interest rate is 3 percent, and it will terminate no later than Dec.31, 2034.
This loan is the sixth one made for this purpose and will likely be needed every year until the bonds are retired. The loans will be repaid from TIF monies and special assessments received by the TIF fund.
In other business, the Council approved a resolution allowing Martin Luther College to use the west side of North Highland Avenue from Center Street to 5th North Street on Friday, May 16 and Saturday, May 17. This is an annual request from MLC to allow extra parking during graduation ceremonies. Councilor Les Schultz asked if it were possible to grant automatic approval because the request is made every year.
City Manager Brian Gramentz said that technically, that he could have approved the request without Council approval, but he felt it was best to notify the community why the parking restriction was being lifted. In addition, Gramentz wanted to clarify that MLC will be responsible for covering No Parking signs during those days.