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St. James Plaindealer - St. James, MN
  • Butterfield City Council approves refinance of 2009 and 2010 bonds

  • Shannon Sweeney of David Drown Associates met with Butterfield City Council to discuss the refinancing options on the 2003, 2009 and 2010 bonds. All regular council members were present.
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  • Shannon Sweeney of David Drown Associates met with Butterfield City Council to discuss the refinancing options on the 2003, 2009 and 2010 bonds. All regular council members were present.
    The 2009 bonds were issued as general obligation water and sewer revenue bonds, of which $255,000 in principal amount is outstanding.
    The 2010 bonds were issued as general obligation sewer revenue bonds, of which $209,000 in principal amount is outstanding.
    Refinancing these bonds will bring the interest rate down to 2.5 percent with a net savings after issuance costs of $35,464.
    The city was eager to refinance while interest rates are still very low.
    “This is kind of a no brainer,” said Council Member Ken Pankratz.
    The movement to refinance the bonds at an interest rate of 2.5 percent passed unanimously.
    Sweeney also discussed the possibility of refinancing the 2003 housing project bonds.
    There was some difficulty in the planning to refinance these bonds because the term is a little longer for the housing bonds. He is hoping to drop the net interest rate from 4.5 percent to 3.5 percent, but is still in the planning process and a more specific plan will likely be available in the future.
    Following the refinancing of the bonds, the Butterfield City Council turned the discussion to the Jack Gersch garage request.
    Gersch would like to build a garage on his property, but is dealing with some zoning issues from the county and city since the garage he has planned does not meet the minimum specifications.
    No decision was reached, but it was recommended that Gersch go to the Watonwan County Board to resolve  the zoning problems.
    Kevin Bottin, a representative of St. Matthews’ Luthern Church met with Butterfield City Council Nov. 5 to discuss Butterfield’s possible acquisition of the St. Matthews’ Luthern Church cemetery.
    The concern is that if all the people who now maintain the cemetery move on, there will be no one to take care of the land. The church has money in a cemetery fund right now, about $70,000 and the city already has a 2/3 stake in the land.
    Butterfield City Council Members expressed interest in helping the church, but could only provide approximate figures. They agreed to get Bottin more precise numbers for the next meeting.
    Engagements for the 2012-2016 Audit were up for approval at the meeting and were accepted unanimously by the Butterfield City Council. The current auditor is generally liked by the Butterfield City Council and only charges the city when it is necessary to work with them in person.
    “It takes about four years to get through the hick-ups,” said Mayor Larry Larry Simenson. “We haven’t had any problems with him.”
    Butterfield and St. James will pursue a written agreement for the use of equipment.
    Page 2 of 2 - Specifically, who is responsible should the equipment being used fail.
    Currently, Butterfield and St. James share equipment without any issues, but there is no agreement as to who is responsible for the maintenance of the equipment should it break. Steve Sunde drafted an agreement making whoever is using the equipment at the time of the issue responsible for resolving that issue. The motion passed unanimously.
    The meeting concluded with a maintenance report from Keith Pankratz.
    City of Mt. Lake is looking to televise more sewer and storm sewer lines in Butterfield, to see what kind of shape the pipe is in.
    There were also a few concerns with the ponds in the area, specifically that the meters were giving inaccurate readings.
    “The sensor in the pond is 16 inches off,” said Pankratz. “I want to make it known it’s not a reporting issue, it’s an engineering issue.”
    Tenants at EDA apartments require a back-up generator now that the facility is designated senior living. Butterfield City Council discussed the possible installation of a generator for the whole apartment building, but tabled the idea until the pricing for installation has been received.
    The meeting concluded with all minutes approved and all agenda items discussed.
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