HAWARDEN—Michael Maloney from DA Davidson spoke about the bond that the city of Hawarden is taking out to pay for different electrical upgrades during the Hawarden City Council’s regular meeting Wednesday, Aug. 14.
“Today we are locking rates for the financing and the terms,” Maloney said.
The 2019 electric revenue improvement bonds in which DA Davidson is issuing a bond in the amount of $2.34 million dollars, according to Maloney the funds will cover additional transmission upgrades as well as the south feeder loop projects.
“True interest cost, we ended up at 2.93 percent,” Maloney said. “You can’t time the market, but your timing is very good. If you have been following the news interest rates have dropped dramatically and that goes for municipal bond rates as well.”
The bond is set to be paid back in 20 years. The first payment will be in June. Maloney said city staff were very responsive and quick to get information needed to make the bond process go smoothly.
“Mike, Travis (Waterman) specifically you were just really timely in getting us the information and that is why it was an efficient, pain free process. Then, look at the timing you got on your interest rate.”
Council voted unanimously to approve the bond purchasing agreement.
In other matters Aug. 14, the council:
n Heard from Bridget Durst, who works in conjunction with Iowa Department of Natural Resources. Durst gave a presentation on creating a plan to develop a source water protection plan. Durst told council nitrate levels pertaining to drinking water in Hawarden are going down, she said “that’s exciting and great news” and she believes now is a great time for the city to develop a plan to continue improving the water residents use.
“Sign us up,” said council member Tim Kurth. “It seems like a no brainer. There is nothing more important then making water safe for the community.”
“I think it is good for both that and public awareness,” said city administrator Mike DeBruin.
Durst left the contract with DeBruin and the council.
n Held a public hearing with no comments from the public on a proposal to enter into a sewer revenue loan and disbursement agreement. Council then voted unanimously to approve a loan and disbursement agreement and provide issuance and securing the payment of $3,510,000 sewer revenue bond series 2019.
n Heard the third reading of Ordinance 714 that will change the wastewater rates to a base rate of $30 and a consumption rate of $2.25 per 100 cubic feet. Council passed the third reading to approve the rate increase to pay the sewer revenue bond.