Truman studies financing options

TRUMAN – Truman City Council met with Northland Securities on Tuesday to discuss financial matters, including the ongoing storm water project.

City Engineer Greg Mitchell and the city’s bond consultant, Bill Fahey, of Northland were present to discuss a grant agreement with the state of Minnesota, which has $1.4 million earmarked for the Truman project.

But before the grant can be obtained, Truman must submit information to the Minnesota Public Facilities Authority, and bids on the project must be received. But that won’t happen until spring.

The other funding option for Truman to put up $200,000 for initial project costs.

Until bids are approved, Truman is stuck with the question of how it will come up with the money. By spring, Truman will have its finance plan together and be working toward the formal grant application. Mitchell said bids should be in by March at the latest.

Truman Public Utility Commission and the city also sought engagement with Northland Securities to serve as underwriter for the issuance of 2014 Refunding & Restructuring of the Truman PUC Utility Revenue bonds.

Fahey stated that by November, perhaps early December, the bond issue will be settled. It will result in about $95,000 in savings over the life of the bonds and reduce the amount of annual debt service.

The council made a motion to approve an engagement letter with Northland Securities as municipal adviser for the bond sale.