Long Prairie council approves internal loan to fund half of rescue fire truck purchase

The Long Prairie City Council on Nov. 18 unanimously approved a resolution authorizing an internal loan of up to $261,452.50 from the Municipal Liquor Fund to finance half the purchase of a walk-in/walk-around rescue fire truck.

Resolution No. 24-11-18-31, introduced and moved for approval by Council member Jim Kreemer, states the city will reimburse the Liquor Fund from future tax levies or other available city funds and sets semiannual payment dates on Feb. 1 and Aug. 1. The resolution specifies interest will accrue from the date of each initial disbursement at a rate set by the clerk and that principal and interest are prepayable without penalty.

The resolution also notes the internal borrowing is not to be treated as a general obligation of the city and does not pledge the city’s full faith and credit; it allows the council to amend terms, including forgiving outstanding principal and interest to the extent permitted by law. The council’s motion to adopt the resolution was seconded by Council member Lilah Gripne and approved without recorded dissent.

City Administrator/Clerk Candace Bruder and council members discussed repayment mechanics and the city’s declared intent to reimburse itself from the proceeds of tax-exempt bonds in the future, language that appears in the resolution text. The resolution directs that payments be made semiannually commencing on the first payment date after receipt of the first tax-levy proceeds following any disbursement.

The council took the action at the Nov. 18 meeting after other routine business and the formal motion and vote were recorded in the meeting minutes. No public comment opposing the loan was recorded in the transcript. The council adjourned at 8:10 p.m.