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Council approves short-term loan plan and bond award to bridge Recreation Center costs
Summary
Coralville approved a one-year loan recommendation and authorized a bond sale to bridge financing for the new Recreation and Aquatic Center, accepting a Hills Bank & Trust proposal at an interest rate around 4.2% to cover interim expenses before permanent bond financing.
The Coralville City Council on May 26 authorized short-term financing and a related bond action to carry expenses for the Recreation and Aquatic Center until permanent financing is arranged later in the year.
Finance Director Ann Hester said the city solicited proposals from three local institutions and recommended Hills Bank & Trust for a one-year loan with a proposed rate of about 4.2 percent. The initial discussion centered on a $2.5 million loan at that rate to cover expenses incurred to date; Hills Bank indicated the same interest rate could apply if the loan needed to be $1.5 million higher. Hester said the loan will start in June to capture expenses incurred up to that point, including design fees and soil borings, and that there is no penalty for early repayment.
Council then approved Resolution No. 2026-76 authorizing and approving a bank proposal and awarding the sale of general obligation urban renewal bonds. City officials described the short-term loan as bridge financing the city plans to retire with permanent bond financing later in the year.
What happens next: staff will proceed with short-term loan execution and bond issuance planning; permanent financing is expected later in the year and will be subject to future council action.
