By MaryHelen Swanson

Three new libraries in Chisago County are another step closer to becoming a reality this week.

Last Wednesday, June 30, the Chisago County commissioners met jointly with the countyís Housing and Redevelopment and Economic Development authority board (HRA-EDA).

The commissioners, two were absent, and HRA-EDA board acted on the bond sale and lease-purchase agreement for the new libraries to be constructed in the Chisago Lakes area, Wyoming and North Branch.

Some funds from the $6.7 million bond sale are also to be used to purchase the Rush City library and make some upgrades of that facility.
The countyís financial consultant, Carolyn Drude of Ehlers and Associates, was on hand for the action.

She noted that there had been two bids received that morning for the public project revenue bonds.The two were extremely close in interest rates.

The bid was awarded, by action of the HRA-EDA, to Bernardi Securities, Dougherty & Company, Northland Securities, for $6.662,057 at five percent interest. The net interest cost is $4,397,420. Cost of issuance is $66,000.

Drude had not figured the cost to individual taxpayers at this time, but reminded all of the estimates she formulated last August when the library issue was being discussed initially.

At that time, on a $6.5 million bond, a $175,000 home would have an increase in taxes of $34 a year, a $225,000 home, $44 and $300,000 home $58. Commercial or industrial property valued at $300,000 would have a tax increase of $102, at a half million value the increase would be $180 per year.

Currently these estimates would be different because of the change in the countyís tax capacity.

With principal and interest, the county will be paying approximately $530,000 a year on this new debt service, according to a chart created by Drude.

The county will lease the libraries from the HRA-EDA and the payment will go to the HRA-EDA which is the authority that has accepted responsibility for the bond sale.

The board action on the lease-purchase was taken by Commissioners Lora Walker, Rick Olseen and Ben Montzka. Commissioners Bob Gustafson and Mike Robinson were absent from the special board meeting.

The HRA-EDA board unanimously approved the bond sale.

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