Norwalk approves $5.924M loan to finance Central Iowa Water Works buy‑in
Summary
Council approved a State Revolving Fund water revenue loan to finance Norwalk’s $5.924 million purchase of membership/equity in Central Iowa Water Works, with a marketable rate near 3.26% and closing scheduled in mid‑December.
The Norwalk City Council on Nov. 6 approved a loan agreement to finance the city’s buy‑in to Central Iowa Water Works using the Iowa Finance Authority’s State Revolving Fund.
The loan: Finance staff told council the loan principal is $5,924,000 with origination and servicing fees; the effective loan rate was presented at about 3.26%. Jean (Finance) said closing was expected Dec. 19 and that funds would be deposited and the city would issue a check promptly.
Why it matters: The buy‑in secures Norwalk’s share of regional water infrastructure and will bring the city into Central Iowa Water Works’ regional system. Using a State Revolving Fund loan spreads the buy‑in cost over time at a rate staff described as favorable compared with current market alternatives.
Public input and vote: No public comments were offered during the public hearing. The council passed a resolution authorizing the loan; roll‑call votes were recorded in the meeting minutes.
Ending note: Staff will return with closing documents; the loan will be repaid from the water enterprise fund per standard practice.
Quote: "The rate will be 3.26%. It's a little lower than the third quarter rate," Jean said while summarizing the loan structure.
