The Lake View City Council has approved a resolution to enter into a loan agreement not to exceed $900,000 for the reimbursement of several purchases and projects in the community. City Administrator, Theresa Pudenz says with the big purchases and projects, the capital fund was significantly impacted. By utilizing this general obligation bond, the council will reimburse the account, by not effecting taxpayers too much.
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Pudenz says the loan will reimburse the city on three major purchases that were made during this fiscal year.
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The city council has approved of three separate loan agreements of $300,000 each through local banks, Farmers State Bank, First State Bank and Iowa State Bank. Each loan is at a 3.5% fixed rate for the first five years, then every five years will be a rate review to match percentages from the Treasurer of the State. Pudenz says there was some concern over if this would increase taxes for Lake View residents. She says while she doesn’t have the projections for the debt service levy, with paying for the loan with over revenues coming in, the tax increase should be kept minimal.
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Pudenz wants Lake View community members to know that this is just a precautionary tool, to ensure funding will be available in the general fund and the capital fund account in case additional high expenses should arise.