Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the General Obligation Bonds topic
No spam. Unsubscribe anytime.
Bettendorf officials outline $21M bond sale to fund streets, bridge and first phase of police station
Summary
Finance staff told the council a bond sale scheduled for next Tuesday will seek bids on just under $21 million in general obligation bonds split among CIP work, an urban-renewal bridge finish and a first $10 million phase for a police station; projected levy impacts were described as smaller than referendum estimates due to growth in assessed value.
Bettendorf City finance staff briefed the council on an imminent general obligation bond sale that will seek bids next Tuesday at 10 a.m. for just under $21 million in par bonds, with expected premium bringing net proceeds to nearly $22 million. The package is structured in three parts: $8,485,000 for the city’s capital improvement program (streets, alleys, sidewalks and resurfacing), about $2.845 million tied to urban renewal to finish the Gateway Bridge over Middle Bridal, and roughly $10 million as the first phase of police station construction approved by referendum.
Finance director (identified in the transcript as “Finance director Shat”) said the city’s presale summary from financial consultants projected a true interest cost of 3.92 percent and that the structure complies with the debt management policy the council revised in December. Under current projections, the FY2027 regular GO debt levy rate is expected to remain at about 4.85, with an additional roughly 23 cents per $1,000 of valuation for the referendum-approved police bonds, bringing that portion to about 61 cents; the finance director noted that strong growth in assessed values reduced the levy impact compared with earlier referendum estimates.
The finance director said the city expects the bond issue to fit within the council’s $9 million annual GO-issue target and a target amortization of 15 years for GO debt. He also warned the council that assumptions could change over time—project costs, inflation or changes in issue size could alter the outlook—but said the current plan would drive the city’s outstanding GO debt downward over the next decade if the policy is followed.
Staff also noted potential borrowing needs in enterprise funds: wastewater projects at the regional treatment plant include a large modernization program (the transcript reports “about $2,527,000,000” in improvements) and the city expects to borrow roughly $6.5 million to cover its estimated 20 percent share of some work. Additional sewer-related projects identified in a McClure study were described as potential future needs totaling up to about $30 million, though those are not part of the planned bond issue this year.
Next steps: bids will be received at next Tuesday’s sale and the council is scheduled to approve the winning bid later that night at its regular meeting. The finance director said he expects to report a positive result to the council after the sale.
