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City Of Carroll Receives Favorable Interest Rate On Bonds For Carroll Rec Center Project

The City of Carroll received better-than-anticipated interest rates for the sale of $5.4 million in General Obligation Local Option Sales and Service Tax Bonds for the Carroll Rec Center project. Susanne Gerlach with PFM Financial Advisors, the firm that managed the bidding process, says city leaders should be pleased with how much interest investors showed in these bonds.

The market rate as of Monday stood at 3.7 percent, but the winning bid came in significantly below that mark from First National Capital Markets, Inc. of Omaha, Neb. at 3.4955 percent. Gerlach says the competitive bidding process will save the city a significant sum over the life of the bonds.

Municipal bond rates have risen more than two percent since December 2021, and PFM is anticipating that trend will continue for quite some time. Gerlach says it shows the level of uncertainty that currently exists in the U.S. bond market.

The council approved a resolution during last night’s (Monday) meeting directing the $5.4 million bond sale to First National Capital Markets. The proceeds from these bonds will be used to pay for the bulk of the estimated $7.35 million in improvements and renovations to the Carroll Rec Center. Construction got underway near the end of August with work expected to be finished no later than Oct. 2023.

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