Park Falls to consider $5.2M bond resolution

PARK FALLS — The Park Falls Common Council’s Committee of the Whole reviewed two financing resolutions at its Sept. 9 meeting, to include approving a short term debt expenditures prior to grant reimbursements, and another for $5.2 million in bond purchases to be considered by the full council.

The resolution to reimburse expenditures of up to $1.5 million for the sanitary sewer, watermain and storm sewer replacement along city streets including First Avenue North and First Avenue South received unanimous committee approval. The city expects to borrow on a long-term basis by issuing tax-exempt bonds, promissory notes, to provide interim financing to cover costs of the project prior to anticipated project proceeds becoming available.

The board forwarded another resolution authorizing the sale of up to $5.2 million in general obligation bonds to the full council at the Sept. 23 meeting. The funds would be used to restructure $4.1 million in 2020-2021 short-term bills.

Justin Fischer, managing director of Baird Financial, was present at the meeting to present on the current bond climate and the fiscal health of Park Falls. Some of the discussion focused on the municipal bond timeline of the new Tax Increment Financing District No. 5.

Earlier this year the council approved the closing of TID No. 3. Approved in 1997 and revised in 2000, TID3 encompassed 30.84 acres of the Park Falls Industrial Park from downtown to the north side.

Starting in early 2024 approximately $450,000 remaining in the expiring TID3 was transferred into the new TID No. 5 that includes the area of the former Shopko store in the south, to the new housing developments on Ninth Street North across from Weathershield.

It is a volatile year for interest rates after the 2023 peak and the impact of anticipating actions of the Federal Reserve on prime interest rates, he said. The Fed appears to be ready to cut rates at its September meeting but the actual basis points are still unknown. The positive side for municipal bonds is that they are nearly 1% lower than the same time a year ago, he said.

The city of Park Falls is currently in a good situation with the TID5 having increased approximately $12 million in taxable revenue. TID5 had a base value of $8,211,000 when it was created in 2019, and an amendment later increased the base value to $14,774,000, he said. At present, the infrastructure and other contributions has increased the TID5 value to $26.7 million which creates the $12 million in tax incremental rebate that is being taxed to create around $277,000 in new tax revenue and provides confidence that TID5 will ultimately become self-sufficient and not rely on taxpayer funds.

The city of Park Falls valuation is now at about $173 million, he said. General obligation borrowing capacity transfer rules allow for up to 5% of utilized valuations which after debt obligations is just over $550,000 in available capacity for 2024.

The maturity structure for the bond would be from 2025 to 2040, he said. The current estimated interest rate for 20 year financing is at 4.4%.

In other business, the committee approved a $2,000 title search investigation to Gowey Abstract & Title Company, Inc., for the former Park Falls Paper Mill Office Building that the city acquired ownership from the new mill owners in the sale. The need for an extensive study, according to city attorney Bryce Schoenborn, is that the city’s engineering firm, MSA, is drafting the legal description of the property in order to bifurcate the building from the rest of the parcel for future mixed-use development opportunities.

The title search goes back more than a century and the investigation will identify any pertinent documents related to the property and its use over decades of changes in use, legal action, bankruptcies and different ownerships. The information will help the city avoid potential problems with.development.

During the open comment portion of the meeting, Alderwoman Dixie Weidman said that ever since the city offices have moved into the public library building there has been an increase in pedestrian traffic across State Highway 13. Motorists are not seeing or do not observe the pedestrian pavement markings and leave pedestrians to wait. She suggested that the public works department look into the possibility and the process to install pedestrian crossing signs on State Highway 13 and if possible, before the November general election.

The former city hall that will become the YMCA in 2025 will likely have similar pedestrian issues on the highway, she said, also recommending consideration for signage.

“The cars aren’t slowing down or stopping and as the YMCA opens it will only get worse,” she said.

There was no action taken upon the committee’s return from executive session to discuss legal matters related to Cornerstone Properties and ESA Solar.

The committee approved contractor payment No. 3 to Janke General Contractors in the amount of $670,655.10. The payment is for phase one sewer and infrastructure work in 2023 and phase two in 2024.