City Of Spirit Lake Moving Forward With Re-Financing An Outstanding Water Revenue Bond

Wed 10-28-2020

(Spirit Lake)-- The city of Spirit Lake is moving ahead with plans to refinance a water revenue bond. City Attorney/Administrator Gregg Owens told the city council Tuesday the city already has the financing available to cover the cost of the refinancing...Owens & Bond Refinancing 

"What we're paying is money already designated and on hold for that bond. It's not money coming out of other reserves or depleting cash from any other source. So that's why from a budget standpoint, it's a $400 and some thousand dollar payment net versus the full 700 because we've already got some set aside. So now that will no longer be set aside. That will be applied to the bond, the 400 new will be applied to the bond, it will be paid off and that's going to take a lot of strain off the Water Department for the next three years. Our cash position will be sound, it will be just slightly tighter than it was, but it's going to give us more opportunities with respect to rates and it's also going to give us an opportunity in the next few years to improve our bond rating for the Water Department."

With two members absent, the council voted unanimously to proceed with the re-financing.

Owens also updated the council on several projects currently underway, including work on a sewer lift station on 12th Street; some sanitary sewer re-lining, and Erie Avenue, which Owens says will likely remain closed yet through this weekend.