City council approves $5.2 million bond issuance

The Decorah City Council has approved a $5.2 million bond issue that raises money for the Short Street project and refinances two previous bond issues.

The bonds will be financed locally, with Decorah Bank & Trust as the lead bank and Farmers and Merchants Savings Bank, Fidelity Bank & Trust, Northeast Security Bank and Viking State Bank & Trust as the participating banks.

$3,135,000 of the bond proceeds will be used to pay for the Short Street project, with Local Option Sales Tax revenues paying off that portion of the bond.  $1,615,000 of the bond proceeds will be used to pay off the previous two bond issues, at a savings of $107,647.52.  The final $450,000 would pay for sewer and water projects, with sewer and water charges paying off the bond.

City council members approved the bond issue Monday night on a 7-0 vote.