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Winterset authorizes up to $33.615 million in interim sewer notes backed by USDA commitment
Summary
The Winterset City Council unanimously approved a resolution Feb. 2 to authorize issuance of sewer revenue bond anticipation notes not to exceed $33,615,000, to be repaid from USDA-backed bonds upon project completion; the resolution capped true interest cost at 5.50%.
The Winterset City Council on Feb. 2 approved Resolution No. 2026-05 authorizing the city to enter into an Indenture of Trust and issue Sewer Revenue Loan Agreement Anticipation Project Notes, Series 2026, in an aggregate principal amount not to exceed $33,615,000. The council’s action followed a motion by Council Member Michael Eller and a second from Council Member Christopher Fairholm; the roll-call vote was unanimous among members present.
According to the resolution, the interim notes will finance a sewer improvement project — described in the resolution as the Project — and may fund a capitalized interest fund and costs of issuance. The resolution states the city has received a commitment from the United States Department of Agriculture — Rural Development (USDA-RD) to provide permanent financing for the Project in the amount of $33,615,000, which would be issued upon substantial completion of construction and used to prepay the interim financing.
The resolution authorizes issuance of the notes in an amount not to exceed $33,615,000, with a true interest cost not to exceed 5.50 percent, and contemplates the marketing of the notes by Piper Sandler & Co. as underwriter. The notes are described as payable solely from the proceeds of the USDA direct loan bonds and certain funds and accounts established under the Indenture.
The council’s resolution references Iowa Code Chapter 384 and Section 76.13 as the statutory authority for interim borrowing in anticipation of bond issuance. Administrative officers (the mayor and city clerk, or their designees) are authorized to execute and deliver the Indenture, the notes and related closing documents to complete the transaction.
The resolution does not set final maturities or interest rates — it establishes parameters and authorizes city officials to finalize terms and execute documents consistent with the resolution. The city’s sanitary-sewer improvement project and engineering fees (Strand Associates Inc., listed in claims) were discussed earlier in meeting materials; the resolution contemplates that project completion and USDA financing will follow standard construction and closing steps.
