Trending
When Fort Dodge city officials went to the bond market on Monday to borrow the money to pay for some upcoming projects, they received some remarkable interest rates.
A bond issue that will total up to $9.3 million has an interest rate of less than 1 percent.
Another bond issue totaling up to $8.5 million has an interest rate of 1.88 percent.
The council approved both bond issues unanimously Monday evening.
The debt will be paid off with a combination of property tax revenue and money from tax increment financing.
The $9.3 million will be borrowed from a group of financial firms led by Robert W. Baird & Co. Inc., of Milwaukee, Wisconsin.
The biggest single piece of that bond issue is $3.25 million earmarked for storm sewer and street projects. A full list of the projects to be completed with that money was not available Monday.
Refinancing a bond issued in 2012 is the other major piece of the latest issue. A total of $2.95 million is being refinanced in a move that will save $234,000.
These additional projects will be financed with money from that bond issue:
• $700,000 for continued Municipal Building renovations.
• $700,000 for an addition to the firehouse.
• $500,000 for new trail construction.
• $250,000 for work at the aquatic center.
• $225,000 for airport improvements.
• $200,00 for parks improvements.
• $200,000 for the Blanden Memorial Art Museum.
• $150,000 for improvements at the Fort Dodge Public Library.
• $50,000 for repairs at Citizens Central.
The $8.5 million bond issue includes $6.7 million to reimburse Crossroads Plaza Development, the new owners of the Crossroads Mall, for demolition costs.
It also includes $1,550,00 for blight removal and demolition.
The money was borrowed from Piper Sandler & Co., of Chicago, Illinois, which offered a 1.88 percent interest rate.