$8 million bond for Locust Road wins approval

The Decorah City Council has unanimously approved borrowing money for the Locust Road project.

The general obligation bonds will come at an interest rate of 1.49 percent with a 10-year payback.  City council members approved the 10-year payback because it would save $164,000 in costs compared with a 12-year payback.

The bonding will be for $8 million.  City council members had originally discussed borrowing $7 million, but they ended up increasing the borrowing to $8 million in case the city cannot work out an agreement with Alliant Energy to cover the costs of removing power lines along Locust Road and burying them underneath the new road.

If the city does not have to pay $1 million to Alliant Energy, city council members plan to use the additional funds for another road project, such as the resurfacing of East Main Street.