Duluth City Council gives go-ahead to issue millions in new debt

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By KBJR News 1

Story Published: Nov 20, 2008 at 10:38 PM CDT

Story Updated: Nov 21, 2008 at 3:40 PM CDT

The Duluth City Council held a special meeting Thursday night to decide whether to issue about $4.2 million in new debt.

All four bond resolutions passed and the money will be used for capital improvements, maintenance and equipment purchases.

Duluth Mayor Don Ness asked councilors to approve issuing around $4.5 million in new debt, with about $1.6 million set aside for capital improvements.

"These are improvements to city facilities that actually will, are needed to avoid more costly effects to our infrastructure," said Ness.

However, there were a few dissenters who weren't on board with the mayor's idea of using credit.

"I kind of made up a little, a little bonding card here, for my...the way I feel about it," said Councilor Jay Fosle, as he held a mock-up credit card that said 'City of Duluth' on it.

Some councilors while they're supportive of the bonding resolutions, a change of course is desperately needed.

"We need to get this trend going in a different direction. In 2009 we're looking at about $13.5 million dollars in bond runoff," said Councilor Todd Fedora.

Officials say, per capita, the city's general obligation debt equates to $333 a person.

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