Denison council weighs two 2026 bond packages and $650,000 Wellness Center request; audits raise bond-rating concerns

City staff and councilors discussed two bond-package options at the Jan. 6 Denison City Council meeting, including street and infrastructure projects and a requested borrowing to support a proposed Wellness Center.

Finance staff presented two example packages. The first option listed combined projects with a total of $1,855,807.40, including major street segments and a $650,000 request for the Wellness Center. The second option listed alternative street segments and municipal needs with a total of $1,755,730.28 and included the Wellness Center request at $650,000 in one option set. Staff reported the city’s financial advisor, DA Davidson, believes the city could borrow about $2.5 million with a minimal levy-rate change.

Council discussed the Wellness Center Committee’s request for $650,000 toward construction and noted the committee’s fundraising shortfall partly stemmed from an anticipated New Markets Tax Credit that did not materialize. Council directed the fundraising committee to approach the county about splitting half of the Wellness Center cost and asked city staff to return to DA Davidson for updated bond estimates. City Manager Garcia raised concerns that delayed FY23/24 and FY24/25 audits (not yet released by the State of Iowa) could negatively affect the city’s bond rating; council asked staff to solicit requests for proposals for auditing services.

No formal bonding motion or borrowing ordinance was adopted at the meeting; the council indicated a preference to further explore the roughly $1.8 million option and to obtain updated financial numbers before taking action.