The City of Staples last week sold bonds to cover the cost of the old Highway 10 Turnback Project that is currently under construction.

One of two bonds raising $1,670,509 was sold at an interest rate of 3.4129 percent and will cost the city $693,242 in interest over the 20 year payback period. A second bond for $1,044,708 received a bid of 3.6061 percent with a net interest cost of $458,497 over the 20 year life span.

Myron Knutson, the city’s long time bond consultant with Public Financial Management, Inc., said both bids were from Wells Fargo Advisors of St. Louis and both were excellent market rate bids.

There were a total of three bids received for each of the two bonds.

At the same meeting, a request for an increase in the city’s contribution to the Staples Fire Department Relief Association was received from the local fire department’s retirement agency. For the past three years,the city has contributed an even $5,180 that has been sufficient to cover the relief association’s retirement needs. However, they have relied on a five percent income on their investments, but this year the investments have barely had a one percent return. Consequently, the city’s amount needed has jumped to $10, 295.

Jeff Kobliska noted the investments were not bad investments, its just that no one is getting any better return with the current economy. In addition to the city contribution, state law requires that two percent of all property insurance payments in the Staples fire protection area goes into the fire relief association for firefighters retirement.

No action was required of the council at this time as the item will be included in the 2011 city budget.

In other matters, the city council:

o TABLED a request from the Staples Transportation for a change in the company’s status as a taxi service to get the city attorney’s opinion.

o APPROVED a subordination agreement for the B& E Apartments at 411 Fourth Street which allows them to participate in the Home Rental Rehab program with the Minnesota Housing Finance Agency ,

o OKAYED a request from the Cass County Ag Society to conduct a raffle Sept. 25.

o APPROVED a resolution authorizing city staff to participate in a Minnesota Landscape Partnership Program.

o HELD a minute of silence as their meeting ended in memory of Don Klein, former city public works director, who had died the week before following his two-year battle with cancer.

o HEARD that Public Works Director Doug Bendorf was working on a rebate proposal for the new Ernie’s grocery store with the assistance of Missouri River Energy Services, the city’s prime supplier of electric energy.