City council sets date for public hearing on $4.7 million in bonds

The Decorah City Council has scheduled a public hearing for March 3rd on a proposal to borrow up to $4.7 million.

The money raised by the bond sale largely would be used as the financing for the Highway 9 sewer and water main project.  The project to extend utility service to the Decorah Business Park off Highway 9 carries an estimated price tag of $3.6 million.

The bond issue would also pay for $300,000 in engineering costs and other expenses.  Another $330,000 would be used to pay back previous spending on the project.

City Manager Chad Bird says it's also possible that $425,000 of the bond revenues would be used to pay off a 2008 note that is carrying a four percent interest rate.  It's expected the new bond would carry around a 1.5 percent interest rate--saving the city $28,000 in financing costs.

March 3rd's public hearing on the bond issue would be held at 7:45 p.m.--following a public hearing on the proposed 2014-2015 City of Decorah budget.