Lower bond interest to save Mount Ayr thousands
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At their regular meeting Monday, November 4, the Mount Ayr city council finalized plans to borrow up to $2.4 million for future infrastructure projects and approved a change in the policy for connecting new homes to the city sewer service.
Bond purchase agreement
Michael Maloney of the financial services firm of D.A. Davidson appeared before the council to summarize the bonding process, review potential uses for revenue raised by the bonds, and secure approval of a bond purchase agreement to allow sales of the bonds.
Maloney reported the interest rate came in at 2.88 percent for the 20-year bonds, lower than the 3.2 percent he had earlier predicted. Due to the lower interest rate, the city stands to save approximately $220,000 in interest over the life of the bonds.
He added the bonds could be paid off in 6.5 years without penalty.
Revenue raised by the bonds are estimated to be used for infrastructure improvements in the city’s new urban renewal area, including $1.5 million for a street project, $510,000 in storm water improvements, and $264,600 in airport improvements. An additional $300,000 has been earmarked for other street improvements.
New sewer policy
The council approved an update to the policy regarding the connection of new construction to the city’s sewer service.
Effective November 1, if newly constructed homes require a sewer lift in order to be connected to the city sewer, the city will pay for the costs of the lift pump and the labor necessary to dig the pit and install the sewer lift.
The owner of the new house will be responsible for paying for any applicable permits, electricity to operate the sewer pump, and (if necessary) any costs required to bore under an existing street to make the connection.
The new policy changes the existing ordinance that requires the homeowner to pay for all costs necessary to install a sewer lift.
The change in policy is seen as an incentive for the construction of new homes in the city.
Sheriff vehicle
Ringgold County Sheriff Rob Haley met with the council to discuss the purchase of a new vehicle for his department as stipulated in the county-wide law enforcement agreement with the city.
Under the agreement the city furnishes two vehicles for the department on an “as-needed” basis.
Haley said he had received quotes from Glendenning Motors in Mount Ayr and Karl Chevrolet of Ankeny, the dealership approved to offer vehicles to public agencies at a “state bid” price.
Haley said that while Karl Chevrolet offered a moderately lower price on a new vehicle, Glendennings offered a much more generous trade-in value, more than offsetting the difference in the new vehicle prices.
City superintendent Brent Wise asked Haley if he could delay ordering a new vehicle long enough so that the purchase could be worked into the next city budget which takes effect July 1.
Haley replied that he was willing to work with the city, but his preference was to order the new vehicle as soon as was feasible.
The council decided to have the Southern Iowa Council of Governments research grant opportunities to offset the cost of the vehicle prior to moving forward with any purchase at this time.
Other business
In other business the council:
• approved gifting an obsolete fire vehicle to the Tingley Volunteer Fire Department.
• approved a liquor license renewal for Community Grocers (CGI).
