At the council meeting on Oct. 17 the city’s financial consultant recommended the city council approve borrowing $1,795,000 to pay for 2011 street and sewer improvements, this loan would be paid by passing a tax levy and citizens paying their share of the improvements with on assessment over a 10 year period.
I made a motion to borrow one million dollars and use present money in the construction fund to pay the balance of the improvement costs.
My recommendation would save the taxpayers $922,000 in taxes over the period of 10 years.
I didn’t receive a second to my motion. There was very little discussion by my five colleagues as to why they weren’t interested in saving the citizens $922,000 in taxes.
It is my belief that none of my five colleagues wanted to state publicly that their reasons are to use money in the construction fund to help pay the overruns on College Drive which will cost over $9 million dollars for one mile of road.
If the citizens of Brainerd are interested in contacting their council representative and ask them to support a tax savings of $922,000; it’s the only way that could possibly get the attention of my five colleagues and have them support my motion.
This savings of $922,000 in taxes is so very important to our citizens. I plan on making the same motion to borrow one million dollars instead of the financial consultants recommendation to borrow $1,795,000 at the council meeting on Nov. 7.
Council President Mary Koep supported my recommendation and spoke in favor at the council meeting on Oct. 17.
I may be contacted at 829-3842.
Bob Olson
Chairman; Safety and Public Works Committee
Brainerd City Council
Comments (8)
Add commentthanks bob
you are the only one who tries to save tax money all the time. the big spenders don't know any better and have a gene that won't let them lower taxes!
I would like to hear why the
I would like to hear why the other member are opposed to this.
If you read the article it
If you read the article it states "...... borrowing $1,795,000 to pay for 2011 street and SEWER improvements, this loan would be PAID BY passing A TAX LEVY and citizens paying THEIR share of the improvements........". So with Bob's recomendations does this save the "taxpayers" the money or the citizens who will have the tax levy? If they use this money and another construction is done, the "taxpayers" will have to pay the interest when we already had money that was borrowed to benefit a few. Does Bob live in this area where he would benefit?
Save Face!
Using the $795,000 to pay down the bond for this year’s projects, the taxpayers of Brainerd will be required to pay $922,000 less over the 10 year term of the bond.
For example:
Approximate tax levy payment for this bond at $1,795,000 in 2013: $147,000.
Approximate tax levy payment for the bond at $1,000,000 in 2013: $54,000.
BrainerdDispatchMember, Olson doesn’t live on any part of the areas that received improvements and the assessed property owners will not see a reduction in their assessments either.
This will be a savings to the taxpayers entirely!
And by the way, the assessed property owners pay taxes on the levy for this bond too.
And by the by the way, your comments make no sense.
And by the by the by the way, nice job at trying to implicate Bob Olson in some sort of favoritism.
Wolfg1, those CC members in support of the College Drive Project made a commitment to the taxpayers that College Drive would not require any local share of tax dollars.
Their interest in ‘not’ using the $795,000 for lowering the overall bond is to save face however, not a single one of them will say this publicly.
They intend using the $795,000 for the College Drive Project and could care less about saving the taxpayers anything…they’re only interested in “saving face.”
Jeff Czeczok
Thanks for the info, Jeff.
Thanks for the info, Jeff.
Lucy's Ward
Wolf, you live in Lucy Nesheim’s ward…don’t you?
Call her up and ask her why she made a motion on Oct 17th to approve the $1,795,000 bond. Then listen to her tell you Bob’s figures are wrong.
Then tell her the City’s Finance Department doesn’t challenge Olson’s figures.
Then she’ll tell you it’s better to use the $795K for future street projects…it’ll be less of a hurt if the City saves this money.
These were just a couple things/reasons she stated as to why the CC should move forward with the $1.795 million bond.
Remember this in November 2012!
JVCzeczok
Vincent, I don't understand
If the bond as approved is not even twice the proposed amount by Bob Olson ($1.0mil vs. $1.795mil), then how does the levy amount nearly triple to $147,000?
If the $750k is used for future projects and is not borrowed how does that not save nearly the same in interest expense?
Also wasn't Goedker opposed to College Drive, what are his reasons for not supporting Bob's motion?
Drinker, good questions...
but I only provide the same information the City Council was provided with by the City's Bond Council, Springstead.
I haven't performed the calculations myself.
If you want to go over the figures yourself, contact City Hall at 828-2307 and request to be provided with the data.
Jeff