Marengo secures 4.15% interest rate on bonds

MARENGO — Heidi Kuhl, of Northland Public Finance in West Des Moines, was pleased with the 4.15% interest rate the City of Marengo received for the bonds funding the new swimming pool.

The market has seen a drop in interest rates in the last month, Kuhl told the city council last week.

The $3.8 million in bonds will finance the new swimming pool and pay costs associated with issuing the bonds. Principal and interest payments will not exceed $125,000 in fiscal year 2024 and payments for the remaining 19 years will be paid by tax increment financing and debt service funds, Kuhl said.

Northland Securities is the underwriter of the issuance of the bonds.

The city maintained its A+ rating with the S&P, which helped with the bond interest.

The final maturity date will be June 1, 2043 with an optional call date of June 1, 2032.

Final documents will be presented to the city council for approval during its Dec. 6 meeting.

The council approved the bond purchase agreement unanimously. Councilman John Hinshaw was absent.