Council

sells

bonds for

building

projects

Low bid of

4.7385 percent

By RON LARSEN

Journal Staff Writer

NEW ULM -- The financial package for funding the sales tax referendum project construction was put in place Tuesday night when the New Ulm City Council sold $1,670,000 in general obligation sales tax revenue bonds.

Low bid of 4.7385 percent was submitted by U.S. Bancorp Piper Jaffray, Inc. of Minneapolis, with Citizens Bank and United Prairie Bank, both of New Ulm, as participants in the purchase.

Jon Burmeister whose firm, Public Financial Management of Des Moines, Iowa, handled the sale told the council the bid came in below the projected 4.83 percent rate.

"Moody's Investor Services has reaffirmed the city's A1 bond rating for the sale," Burmeister said, "and its report shows no pressure points which is good news."

He explained that pressure points meant the service found no problem areas.

"Moody's noted the city's cash reserve ratio remains strong because your city officials have demonstrated a conservative budgeting process over the years," Burmeister said.

By strong, Moody's meant that the city has maintained a cash reserve to budget ratio of at least 25 percent. City Clerk/Treasurer Gary Gleisner noted the city's ratio currently stands at 31 percent.

The general obligation bonds were the last to be sold, prior to the awarding of construction bids for building the Fairgrounds Community Center, a performing arts/dining room addition to the Senior Center and renovating Vogel Arena. The combined construction project is projected to cost $11.7 million.

The council set the next meeting date of Dec. 18 as the public hearing on a request for business operation waivers by Mark Wood and Roberta McCrea on a proposed bed &breakfast at 304 S. German St.

Wood and McCrea asked for early action on their request to have seven guest rooms instead of the six that would normally be allowed and to give tours of the facility at which food would be offered, as well as rent the facility for small weddings, family gatherings and like events.

Following a recommendation for denial of a pawn brokers license by the City Clerk, the council delayed the application of Eduardo Ek and Joshua Jones d/b/a Pawn Ekspress at 419 2nd South St. until its Dec. 18 meeting to allow further investigation of the application.

Gleisner had recommended denial after learning Jones had not disclosed a guilty plea to a misdemeanor disorderly conduct charge in 1997.

Mrs. Eduardo Ek, in addressing the council, said this was the first they had heard about the court action, and she urged the council to consider the track record she and her husband have in operating similar stores in St. James and Mankato.

In other action, the council:

* Approved a request for a variance to erect a carport by Ricky Howk. It was approved on the basis the carport conforms to international building code provisions for carports.

* Approved on-sale liquor, cigarette and mechanical amusement licenses for February through June, 2002, for Weigel's Ein Prosit bar which is scheduled to open in February at 5 S. Minnesota St.

* Authorized acceptance of a $1,000 traffic grant award from 2001 Safe & Sober Challenge to the New Ulm Police Department.

* Authorized removal of the 15-minute parking zone in front of SBM Certificate Company, which is in the former Polta Drug building.

* Approved sale of lots in the Soldiers Rest section of the City Cemetery to Brown County for burial of veterans and their spouses at the prevailing lot rate less $50.