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City Moves Closer to New Road Bond

Article Date: 
27 August, 2010 - 06:00

In a public hearing on Tuesday, with no public comment, the city made the final steps to approve at $101,000 road bond.  The city is bonding under the Build America Program made available from the Federal Economic Stimulus plan.  Under this plan the city can borrow at a discounted rate.  
The city has applied for the loan from the CIB (a fund set up by the state to allow for discounted borrowing for these type of projects).  The loan will be ten years in duration and will be at an effective interest rate of just under 2.7%.
The bond will be repaid from class B and C road funds the city receives from the state.  The state is required to maintain these funds to repay the loan, so there should be no increase in taxes to pay for this bond.  
The final approval had not been received from the CIB so the city council could not vote on the final bond resolution, but expects to do so either at a special council meeting, or at the next council meeting.