FD scores low interest on bond issues
City to fund additional projects with bond funds
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.