Susan Gerlach, a senior managing consultant with Public Financial Management (PFM), recently solicited bids on behalf of the City of Carroll for issuance of general obligation capital loan notes. The series 2016A notes for use on several items in the capital improvement plan, including the Carroll Rec Center weight room improvements, 2015 street rehabilitation projects and the purchase of a street sweeper were not to exceed $915,000.
The winning bid from the eight received, Gerlach said was one submitted by a local bank, the United Bank of Iowa.
PFM was responsible for notifying lending institutions that the City of Carroll was receiving bids, and she said six local banks were notified of the bid opportunity, with one other local bank, Carroll County State Bank, participating. With excellent market conditions and some projects that came in under budget, the resizing of the final note true interest cost on the bonds will be 0.75 percent. The total net interest, Gerlach said, will be only $7,212 on $910,000 in bonds.
Gerlach said the amount of interest rates bid, the strong competition and a strong Moody’s underwriting credit have helped Carroll secure this favorable bond rate.
