The Faribault County Board of Commissioners met on Tuesday, Feb. 1, and approved the sale of State Aid Highway bonds to Northland Securities in the amount of $9,435,000.
“The true interest rate (TIR) is 1.9406 percent,” county auditor/treasurer Darren Esser said. “I had hoped the interest rate would have been in the 1.6-1.7 percent range, but interest rates have been edging higher.”
Public works director Mark Daly was asked if the County State Aid Highway funding will still cover the cost of repaying the bond.
“Yes, it will,” Daly replied. “I am not as optimistic about the bituminous prices as I was earlier but I believe this is the right thing to do.”
Esser noted the number of companies bidding on the bonds was higher than he had expected.
“We were hoping to have four or five companies bidding,” he commented. “We actually ended up with seven companies bidding. The payback period is 15 years.”
The board passed the resolution awarding the sale of 2022A General Obligation
State Aid Highway bonds to Northland Securities, Inc.
Daly also took time to review the 2022 State Aid Apportionments for the county.
“The State Aid dollars for regular construction increased from $3,153,88 in 2021 to $3,759,463 for this year,” he explained. “The money for State Aid municipal construction also increased from $682,024 in 2021 to $748,286.”
Daly also addressed the money townships will receive in 2022.
“The money for township bridges actually went down a little from $920,028 last year to $913,777 this year,” he said. “However, township road money went up a lot for this year from $491,768 to $735,271. This increase was due to a one-time transfer of $12 million of General Funds which were made available by the legislature during their 2021 Special Session.”
Daly reminded the board there will be five roads, the Unity Trail and four bridges on the schedule to be worked on this year.
Central Services director Lexie Scholten attended the meeting virtually with a couple items of business for the commissioners to address.
“Per Minnesota State Statute 197.60, the County Board is responsible for appointing a Veteran Service Officer (VSO),” Scholten explained. “Jenna Schmidtke’s term actually expired on Oct. 10, 2021. The reappointment would be for a four-year term retroactive to that date.”