Keokuk Borrowing Millions
Keokuk is taking steps to borrow more than $10-million.
The proposal cleared a key hurdle during the city council’s recent meeting as no one spoke about two bond issues during a pair of public hearings.
Finance Subcommittee Chairman Roger Bryant says about $4.4-million will be used to rebuild twelve blocks of Grand Avenue, from Triangle Park to Rand Park, this summer.
He says the city was going to wait until construction bids came in before borrowing the money, but the interest rates are simply too low not to act now.
Bryant says the city will try to add a stipulation to the bond issues that allow the city to access the money only when it is needed.
Keokuk previously borrowed the money for Grand Avenue before receiving construction bids.
When the bids came in high, the city simply paid back the money it borrowed, with interest.
The project is expected to cost less than $4-million.
Bryant says any money, designated for Grand Avenue, that is left over will be used for other street repairs.
He says the remaining $6.2-million being borrowed will be used to refinance previous debt.
Bryant says the savings to Keokuk will depend on the interest rate secured.