By Teri Knight, News Director
The Northfield School Board refinanced $10 million in debt. Superintendent Dr. Matt Hillmann explained that they had a bond sale last week and it was ratified by the Board this week. They thought at the time they would save about $270,000 based on a 1.25 to 1.5% interest rate. Hillmann said, “our bond got sold at 0.37% interest and so that adds another $90,000 of savings for taxpayers. So around $370,000 worth of savings”. Hillmann said that will come back to the taxpayers. The District’s Standard and Poor’s bond rating is AA+. That’s an indicator, he said, of how the District has managed its finances. He said they’re,“Taking tough steps when needed, being proactive in terms of making sure that we’re keeping our financial house in order”. He praised Finance Director Val Mertesdorf and her team. There are only four other districts in the state with that rating. Hillmann’s full interview is HERE.
Franchise fees could replace special assessments
For over a year, the Northfield Council has discussed creating utility franchise fees. This week it was back on their agenda for discussion. Administrator Martig explains, “which would basically be an additional charge on your electric and gas bill and the purpose of that revenue would be to replace the existing revenues that we’re receiving in special assessments for basically our street reconstruction projects”. The typical tool Northfield uses to pay for local road projects is the street assessment. Every taxpayer along the roads being redone is charged a fee based on their frontage to that street. It requires appraisals of the properties, proof that there is value added to the property and holding public hearings. The process is cumbersome and not inexpensive, nor is it an exact science. Also, tax exempt properties are not included in special assessments. As we all benefit from good roads, a franchise fee would mean everyone pays into the pot. Martig said, this“would go away from that special assessment process”. Martig said the City must negotiate with Xcel energy. Council hoped to use a percentage but Xcel nixed that and Council has come back to a flat fee. A typical residential street assessment may be $6800 on a full reclamation project to be paid,generally, over 10 years. Martig said, “the average amount we would have on this franchise fee with both the gas and electric would be $61.50 a year. So a little over $5 a month” for residents. Smaller Commercial users would see about $192 a year. Large commercial users, Martig said, would be anywhere from 25 to 50% more than residents. Passing a franchise fee requires an Ordinance change which requires a public hearing and two readings. Council plans to call for a hearing next week. There will be a public education piece as well. Martig’s full interview is HERE.
Dundas to add temporary lights at City Hall
The Dundas Council considered a quote to add lights in the parking lot behind the new City Hall. In anticipation of the general election on November 3rd, which will take place at the new building, they will add some temporary construction lights. Early ballots for Dundas residents go directly to the County Seat. The City of Northfield is Rice County’s northern service center so they can collect those ballots through October 26th. They are hand delivering them to the County Seat in Faribault. Administrator Teppenadded, “so even if a Dundas resident or Bridgewater Heights resident wants to vote and they don’t want to go down to Faribault, they can go to Northfield’s City Hall. They have our specific ballot, Bridgewater Heights specific ballot, every Township, every City throughout the County”. Teppens full interview is HERE.
