Council authorizes amendment to sewer revenue loan to secure low‑cost sponsored loan for Highway Creek restoration project

The Ames City Council on Sept. 30 approved an amendment to an existing sewer revenue loan to capture a sponsored low‑interest package for a Highway Creek water restoration project. Staff explained the program lowers the interest rate on the existing loan and adds a 0% loan for the sponsored project portion. City staff presented a comparison showing the current loan at roughly 3% interest with 17 years remaining; the amendment reduces the base interest rate to 2.5 percent and adds a $337,000 0% sponsored loan, which lowers the combined debt service compared with the status quo. Staff said the program is winding down as interest rates rose nationally and the city was able to take advantage of the opportunity while it was available. Council opened and closed a public hearing with no speakers and adopted a motion authorizing the loan and disbursement agreement to issue the $337,000 sewer revenue bonds for the sponsored project portion.