The Pella City Council approved resolutions at its regular meeting Tuesday night in accordance with the issuance of $3.2 million in general obligation bonds.
The council approved the sale of the bonds to FTN Financial Capital Markets of Memphis, Tenn., at its March 4 meeting. Money will be used to fund improvements at the existing indoor swimming pool facility.
According to paperwork supplied to the council, the true interest rate of the bonds is 1.52 percent over a nine-year period. The City’s low interest rate was due to its bond rating of AA3. The bonds will be repaid at a rate of approximately $400,000 a year through Local Option Sales and Services Tax funds (LOSST).
Council members congratulated the staff for getting this process done. Earlier in the meeting, the council heard from two representatives of the Pella Swim Team regarding the team’s accomplishments this year. They expressed their gratitude for the City’s support of the team and for having the facility available to the swimmers. Councilor Bruce Schiebout asked about the condition of the boiler inside the indoor pool facility. It made it through the winter he was told.
In a separate action later in the meeting, the council approved the most recent audit report.
According to the auditors, as read by City Administrator Mike Nardini, the City of Pella’s net assets are worth $105,745,877, or the value of assets after deducting liabilities. Assets of the City’s governmental activities exceed liabilities by $44,125,576; business-type activities exceed liabilities by $61,620,301 and revenues for governmental activities exceeded expenses by $2,501,040.
The City’s business-type activities in the last fiscal year saw greater expenses than revenues, to the amount of $2,197,420. This is attributed to higher depreciation charges and decommissioning costs for the power plant.
By the end of the fiscal year, the City’s general fund had an unrestricted fund balance of $2,057,037, or working capital of nearly 42 percent of annual expenditures. The independent audit, required by state law, was done by Van Maanen, Siestra and Meyer, PC.