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Iowa City begins proceedings for $14.5 million general obligation bond package, sets timeline for sale
Summary
Council approved resolutions to begin issuing up to $14,535,100 in general obligation bonds and set a schedule that includes a Moody’s rating call on April 14, bid opening May 6 and expected closing June 3.
The Iowa City Council on Tuesday approved a series of resolutions to begin the formal process of issuing general obligation bonds that would fund projects included in the city’s amended budget and five-year capital-improvement plan.
Assistant Finance Director Jacqueline Fleagle told the council the package covers multiple projects and that the council’s actions open the bond process. The council voted 6-0 on the resolutions and on a pre-levy authorization covering $14,535,100 in bonds.
Fleagle outlined the near-term timeline: a bond-rating call with Moody’s is scheduled for April 14; the council will consider resolutions to direct advertisement and to approve the official statement at its April 15 meeting; bids will be received and opened on May 6; and the city would plan to close the sale on June 3.
The council packet included a list of the specific 2025 GO bond projects and the portion of each project planned to be funded with bond proceeds; Fleagle said those project details were previously included in the amended budget and five-year CIP. She noted small differences between listed project totals and the bond-issue totals are related to bond issuance costs.
A councilor asked how current market conditions affect bond sales; Fleagle replied that expected interest rates are the primary factor and that the city’s municipal advisor will help guide competitive bidding.
Votes at a glance
- Item 10c: Resolution instituting proceedings for issuance of not-to-exceed $11,300,000 general obligation bonds — Approved 6-0 (Bruce Teague; Councilors Alter, Bergus, Harmsen, Moe, Salah: yes).
- Item 10d: Resolution for not-to-exceed $1,335,100 general obligation bonds (general corporate purpose limit) — Approved 6-0.
- Item 10e: Resolution for not-to-exceed $1,000,000 general obligation bonds — Approved 6-0.
- Item 10f: Resolution for not-to-exceed $900,000 general obligation bonds — Approved 6-0.
- Item 10g: Resolution authorizing the 2025 GO bond pre-levy and levying the tax for $14,535,100 (series 2025) — Approved 6-0.
Jacqueline Fleagle said the projects being financed with the bonds were listed in the council packet; the packet identifies which portions of each project will be paid from bond proceeds but the staff presentation did not read each project line item into the record. The city will proceed with the advertised sale process and return to the council for final bond-authorizing resolutions after bids are opened.
The resolutions passed unanimously with affirmative roll calls recorded for Mayor Bruce Teague and Councilors Alter, Bergus, Harmsen, Moe and Salah.
