As the City of Carroll worked to refund $3,445,000 in General Obligation Capital Loan notes, they set a goal of receiving at least three bids. A refunding option was pursued in an effort to lower interest rates on the 12 years remaining on the notes issued to fund the library and city hall projects. On Monday night, Susanne Gerlach, a director with PFM Financial Advisors LLC in Des Moines, told council members there was very, very good news to come out of the morning’s bid opening.
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She says there were two local banks included and a razor thin margin between the two lowest bidders.
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Gerlach says this favorable rate will result in a significant interest savings.
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Gerlach also explains the city’s recent Moody credit rating, Aa3, and what that means.
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Gerlach says this is the top tier of the Moody ratings, but is limited by that tax base. The council unanimously approved the acceptance of the low bid on the notes that will mature in 2033.