The Oskaloosa City Council passed a resolution Monday for the advertisement for sale of capital loan notes to finance the renovation and additions to the fire station.

The amount of the General Obligation Capital Loan Notes is $4,150,000. Michael Schrock Jr., city manager with the city of Oskaloosa, talked about this in more detail.

“Basically, this authorizes the use of electronic bidding for the bonds,” he said. He said that the $4.15 million is a bond issue that will include the fire station project, it will include a pumper truck, and it will include refinancing the whole debt that had been incurred.

The city will use a maximum of $3,195,000 in General Obligation Capital Loan notes for the fire station, according to city documents.

“Where we are at in the process of the fire station process, we are trying to line up the financial piece of the project. We have to go out and borrow money in order to start paying for the construction of the station,” Schrock said.

Public Financial Management Inc. has issued a recommendation that electronic billing be used for this sale.

To ensure the security and integrity of the process, competitive bidding is encouraged. In terms of budget considerations, that is to be decided by the sale of notes. Also with the budget, there will be a savings of $27,000 to $37,000 in interest costs, which will depend on the rates for refinancing.

Story Provided By Jonathan R. Pitman

The Oskaloosa Herald