City of Decorah edges closer to borrowing $5.2 million

The Decorah City Council Monday night a bond purchase agreement to pay for three different costs.

The city is borrowing $4,120,000 to pay for the Highway 9 sewer and water project; $405,000 to refinance an earlier bond issue and roughly $700,000 for a new fire truck.

Bonding consultant Clifton "Chip" Schultz of D.A. Davidson & Co expects the city to pay 2.85 percent interest on the ten-year bonding for the sewer and water project and 1.42 percent interest on the 5 year notes for the fire truck and the bond issue refinancing.

The city council will vote JUly 21st on issuing the bonds.  Schultz told city council members Monday night that there has been strong interest in the bond issue from banks in the Decorah community.