The Hudson Common Council approved going out for nearly $6 million in borrowing as it began the process to fund its upcoming projects.
The bonding takes care of two years worth of projects at one time, following the strategy the city has used in its last couple bond issues, said Senior Municipal Advisor Sean Lentz of Ehlers Associates.
Hudson will bond for $5,960,000 total. The majority of that is for the fire station with a maximum principal amount of $5,085,000. The remaining $875,000 is for the upcoming street reconstruction projects.
Bonding will fund a significant portion of each of those items. The total cost of the fire station is currently budgeted for $7 million. Finance Director Brenda Malinowski said the remaining cost after bonding will come from the general fund and the capital project undesignated fund balance. The street projects will be funded by bonding and $700,000 of state funding, Lentz said.
The proposed repayment schedule of the bonds is under a 20-year period, Lentz said. After the first eight years, the council can make repayments at any time or refinance the entire debt. Lentz said the payments are expected to be paid back through the city's annual budget.
The repayment of this new debt along with existing debt will not change the debt levy. It will remain the same as it was this year, Lentz said.
The council approved separate resolutions for bonding for the fire hall and the street projects, as well as a resolution to publish approval of those resolutions and a final resolution to combine the projects into a single bond issue for sale.
The city also approved a resolution providing for the sale of general obligation promissory notes in the amount of $2.2 million. Lentz said these notes will fund capital projects that don't fit into the bond categories.
The approvals Monday night were the presale review with the council. The next steps in the process will be putting together the documentation to issue the bonds and a call with a rating agency. The sale is scheduled for April 8, and the city will take bids that morning.
Finance director resignation
The council approved the appointment of City Administrator Devin Willi as interim finance director, after Malinowski announced her resignation.
Mayor Rich O'Connor said her resignation is a tremendous loss for the city, calling her the most talented financial director with which he has worked.
"Brenda, it truly has been my pleasure and honor to work with someone as good at what you do as you are," O'Connor said.
Malinowski thanked the mayor and council. She is taking a new position in Minnesota, and said the move is a decision for her family.
"You have tremendous department heads here, I think you all know it," Malinowski said. "The person that fills my shoes, they will do so great because of the council, the mayor and the department heads."
Second Street redevelopment
The council approved a development agreement for renovation of the former Dibbo's Hotel and nightclub into condos.
Clear View Developers, LLC will renovate the Second Street location into 12 single-family condos with a three-level car lift garage with 20 parking stalls.
The redevelopment lies within the downtown tax increment district.