BOONE, Iowa—It didn’t take very long for the Boone City Council to approve the sale of just over $2-million in general obligation bonds Monday evening. The planned bond sale had been developed during the Council’s budget setting work sessions and just happened to come in with the lowest interest rate the city has seen, 1.023%. UMB Bank of Kansas City was the lowest of seven account managers bidding for the bonds. Next lowest was Robert W. Baird and Company of Milwaukee with a bid of just over 1.034%. Maggie Burger with Speer Financial told the Council they would receive all but about $9,000 of the sale and would be paying interest in the amount of $96,000 over the life of the bonds.
Boone Mayor John Slight said on the KWBG Tuned In Program Tuesday that he had never seen rates that low for the city. Two years ago, the Council approved refinancing and calling several bond issues and received a rate of just over 3.2%. Slight reaffirmed that the proceeds from the bond sale are going to be used for several projects and purchases. Some of the money will go toward the city’s share of the paving of the Industrial Park Road. Also the reconstruction of several blocks of South Marshall Street. Other projects will include the painting of water towers, the purchase of some equipment for the Public Works Department and of course, financing the increasingly popular Boone Downtown Incentive Program. The Council agreed to put $100,000 of the bond sale into the Downtown Program, but also left an opportunity to apply more of the funds to the program should there be a need.
Several millions of dollars in bonds were either sold or refinanced in the past couple of weeks. Piper Jaffrey worked with the Ogden and Boone School Districts on bond sales. Ogden refinanced a couple of million dollars in outstanding debt at less than one-percent interest. The savings amounted to about $250,000 in reduced interest. The Boone School District sold $6.1 million in bonds as the third part of a planned sale to finance the High School renovation project. That interest was at 2.3% because of the term and amount. UMB Bank was the successful bidder for the Ogden School District bonds and Robert Baird was the successful bidder for the Boone School District bonds.