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Pella Council authorizes $5.62 million in bonds to fund street, sewer and recreation center work
Summary
The council approved issuance of $5,620,000 in General Obligation Capital Loan Notes, Series 2026B, to fund University Street/Baseline Drive extension and sanitary sewer for the Pella Indoor Recreation Center; bonds carry a 3.93% interest rate and Aa3 rating.
On May 19 the Pella City Council adopted the final resolutions authorizing issuance of $5,620,000 in General Obligation Capital Loan Notes, Series 2026B, to finance construction of the University Street and Baseline Drive extension and sanitary sewer for the planned Pella Indoor Recreation Center. The financing package received a final rating of Aa3 and an interest rate of 3.93% on a 20-year term, with final maturity on June 1, 2046; the bonds are callable after June 1, 2033.
Finance staff presented the bond recap and recommended appointments and certificates needed to complete the issuance. Council appointed UMB Bank, N.A., West Des Moines, as paying agent, bond registrar and transfer agent by adopting Resolution No. 7072, and then approved Resolution No. 7073 to authorize issuance and levy taxes to pay the notes. Both actions carried on unanimous roll call votes.
Councilmembers emphasized that proceeds will fund specified capital projects (University Street/Baseline Drive extension and sanitary sewer necessary for the Indoor Recreation Center) and that the city will levy taxes as required to repay the notes. No members of the public addressed the council on the bond issue during the meeting.
The bond authorization concludes the council’s formal local approvals required to issue Series 2026B under the terms presented.
