City takes step to save on bond

By LUTHER DORR
Mille Lacs County Times

The Milaca City Council took steps at its Feb. 16 meeting to save the city an estimated $36,000 on a bond issue.

The original bond issue is from 2005 to finance city street improvements.

Steve Mattson of Northland Securities showed particulars to council members and the council passed a resolution authorizing the mayor and city manager to approve the sale of bonds in an aggregate principal amount not to exceed $600,000.

Mattson told council members the bond market has gone lower than he thought possible and that it is a favorable time to consider refunding (refinancing) bonds.

Final council approval will likely come in April, City Manager Greg Lerud said, if market conditions are determined to be favorable.

The term of the bonds will not be extended and the debt service schedule shows a payoff in 2023.

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