The city of Flandreau could borrow $1.5 million to help pay for the community’s new fire station.
A loan from Rural Development Administration could be extended for 40 years at the interest rate of as low as 2.25 percent, said Jeff Pederson, city administrator. The city can wait until it needs the money in the process of building the approximate $2.7 million project to replace the existing fire station, which the community has outgrown.
The rest of the money could be paid by money on hand, he said.
The project is expected to be built next year so the loan would be needed in 2023 or 2024, he said.
The city can apply now and not be obligated to use it. “This would essentially leave a marker and lock up into a 2.25 percent interest rate,” Pederson said.
City council members voted to move forward with the application.
In other action,
•The city fined Eng Services $15,000 for a breach of contract it said was the result of the sanitation company promising to recycle but instead taking the recycled materials to the Brookings Landfill.
The city and Eng entered into an agreement in 2018 for residents to be able to voluntarily recycle and for Eng to provide a public recycling program. The city paid Eng a fee for each house and Eng was to provide a twice-monthly pickup, the city said.
In June this year, the city found out that has not been happening for 18 months. The contract will be renegotiated this fall, and residents can keep recycling. Materials are being taken to the recycling center in Sioux Falls.
•Pederson reviewed with council members some of the pre-budget planning. On the revenue side, fees for the cemetery and camping need reviewed for possible updating. On the expense side, a review of the aquatic park for upkeep, a professional code writer and the golf course are all items to talk about. Streets, police, fire station prep work, cleaning up the area by the dam and other items also were discussed.