Eischens discusses south shore land acquisition bonds
Bemidji Finance Director Ron Eischens in the city's weekly newsletter, detailed city's bond situation in relation to the south shore.
He said the land acquisition bonds for the south shore redevelopment mature in February 2012 in the amount of $5.78 million.
"At (that) time, the city will assess the risk/benefits of short-term versus long-term financing," he said.
The annual interest on these bonds of $102,000 is being internally funded with city reserves until land is sold.
No tax dollars have been levied to pay interest costs on these bonds.
At a meeting last week, a taxpayer asked what the impact would be of adding the interest on these bonds to the tax levy.
According to the assessor, the increase in city taxes to the owner of an average home ($88,000 value) would be $10 per year, or the business owner ($267,000 value) of $50 annually.