SL Council Takes Step That Will Result In City Retiring 94.6% Of Its Debt In 10 Years
(Spirit Lake)-- Some good financial news for the city of Spirit Lake. The city council last (Tues.) evening approved resolutions pertaining to the issuance of $9.5 million in General Obligation Refunding Capital Loan Notes. City Attorney/Administrator Gregg Owens says the move will allow the city to retire 94.6% of its debt in the next 10 years...
"The city has a number of existing older, annual appropriation bonds, notes, debt is the easiest way to describe it. The re-funding accomplishes two things: number one, it allows us to basically re-finance that, and once we have the bond sale we'll know how much that's going to save the city over the next few years. We'll be replacing annual appropriation debt with General Obligation bonds, so we'll get that out of the annual appropriation column and in the general obligation column and put the city in a position where in terms of its debt within the next few years you'll actually see some real and significant progress made in our debt situation which should be unprecedented and something the council has been working hard on for a long time, we're just starting to see the fruits of all that hard labor."
While the city won't become debt free, Owens says it will have greater opportunities to use funds previously used to service the debt on other needs, such as street and infrastructure projects.
Owens adds being on a more solid financial base will afford the city of Spirit Lake much greater financial flexibility within the next two to three years already.