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Council approves one-year loan approach for new recreation and aquatic center
Summary
Coralville staff recommended and the council approved short-term financing for the recreation and aquatic center; staff recommended Hills Bank & Trust for a one-year loan at about 4.2% to bridge expenses until permanent bond financing this year.
Finance Director Ann Hester told the council on May 26, 2026 that three local institutions responded to the city's request for short-term financing for the Recreation and Aquatic Center. Piper Sandler recommended Hills Bank & Trust. Hester said the bank proposed a one-year loan with a proposed interest rate of about 4.2% (Councilmember Hai Huynh confirmed an interest figure of 4.23% in discussion).
Hester said the short-term loan is intended to carry the city until permanent financing through a bond issue later this year; it will be effective in fiscal year 2026 and the city may pay it off in June 2027 with no prepayment penalty. The original proposal request discussed with the bank was $2.5 million to cover incurred expenses, but staff said the bank indicated it could hold the same rate if the loan were for $1.5 million instead. Councilmembers discussed timing and whether design fees and soil borings were included; Hester confirmed those items are included in the short-term loan amount.
The council adopted Resolution No. 2026-76 authorizing and approving the bank proposal and awarding the sale of general obligation urban renewal bonds related to city financing plans.
