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Pella council authorizes engagement and loan proceedings for a third Jordan well (up to $245,000)
Summary
Council authorized proceedings and engagement of bond counsel to pursue up to $245,000 in interim water‑revenue loan notes to fund engineering and design for a third Jordan well; staff said the loan through the state program carries attractive terms with 0% during design.
The Pella City Council on Jan. 20 approved actions to pursue a loan not to exceed $245,000 to fund engineering and design work for a proposed third Jordan well and associated transmission main.
City staff explained the financing structure during a public hearing: the proposal included an interim loan and disbursement agreement with the Iowa Finance Authority and an option to roll the design loan into a construction loan later. Staff said design‑phase amounts under the state revolving/loan program would be charged at 0% while the project is in design, with an expected interest rate of roughly 3% when the loan is rolled into permanent financing at construction completion.
Staff also requested approval of an engagement agreement with bond counsel (the city’s bond counsel was listed with a flat fee of roughly $5,500), and the council approved the engagement and the related resolutions instituting proceedings and authorizing the interim loan (resolutions 6986 and 6987).
Mike, presenting the item, said the third Jordan well is needed to support long‑term water supply for the community and that staff will return with a formal engineering agreement for the drilling and transmission main when available.
Outcome: Council approved the engagement agreement and authorized proceeding with interim loan documents; staff will return with engineering agreements and updated financing documents as the project advances.
