County GO bond rate ‘very good’ on four-year term; board sets hearing for 140th Street road assessment

By Mary Zielinski
Posted 4/11/24

WASHINGTON

The Washington County Board of Supervisors Tuesday gave unanimous formal approval to the purchase agreement for the sale of $2,361,000 in general obligation bonds that will finance a …

This item is available in full to subscribers.

Please log in to continue

E-mail
Password
Log in

County GO bond rate ‘very good’ on four-year term; board sets hearing for 140th Street road assessment

Posted

WASHINGTON

The Washington County Board of Supervisors Tuesday gave unanimous formal approval to the purchase agreement for the sale of $2,361,000 in general obligation bonds that will finance a number of needed county projects, including a new maintenance building, radio tower, emergency services and other operations. Response to the plan drew interest from 28 community area banks, resulting in a 3.78% interest rate, below the current average of 4 to 5% for such bonds. The bond term is four years, which further reduces the county’s bond cost by $203,000.

Chip Schultz of Northland Public Finance, Des Moines, told the board that the number of banks interested in the county bond issue “were signs of confidence” in the soundness of the county’s finances and repayment ability., He added that with an averaged-out debt service rate of less than 4%, it was “a very good rate,” adding, ”I wish I could borrow money at that rate.”

The final payment will be made at the end of 2028.

The board unanimously accepted the engineer’s report about the proposed 140th Street Secondary Road Assessment District to cover costs for paving and other road improvements, totaling $442,885 that will be divided between the county and the owners of the 93 individual parcels along 140th Street within the Stone Ridge Estates Subdivision who had petitioned the county for the cost sharing agreement. The board was told that there were 69 owners who had petitioned the county for the improvement and for the cost sharing agreement. Of the 93 parcels, there are owners who own more than one. Among the owners, the vote for the project was 71 yes to 13 no, with 9 failures to respond.

However, before the project is finalized, the required public hearing about the proposal will be held at 7 p.m. Thursday, May 16 in the Washington County Courthouse, a move to facilitate attendance for all interested.

The $442,885 is to be divided equally between property owners and the county with the proposed 140th Street Secondary Road Assessment District, which will amount to $39 a month per parcel for ten years, with no interest charge. It was noted that the assessment “is the same for everybody” and has a term of 10 years. Final plans and bidding letting is expected to be in late May or early June.

A similar arrangement between the county and citizens was made in the county some 10 years ago to cover costs of a sewer system. The 140th Street project is for paving a quarter mile east of Vine Avenue and providing a gravel road for an additional half-mile. The work is estimated to be done this year.

In other business, the board accepted the Secondary Roads Fiscal 2025 Five-year Road Plan, as well as the department’s required FY25 Iowa Department of Transportation budget. It is an annual procedure.

The board hired Dustin L. Flake as Information Technology (IT) Assistant Systems Administrator, effective April 18 at $28.50 per hour; Timothy Schlock as full-time equipment operator in Washington, effective May 22 at $25.91 per hour; and Chandler Hershberger and Jackson Zahradnek as summer interns for the county engineering department at $18 per hour, effective May 20.

The board approved a wage increase for Justin A. Peterson, equipment operator, secondary roads, Rubio, from $25.91 to $26.11 hourly.

The board approved a secondary road use request for Iowa Gravel Series/Kalona Horseshoe, a gravel bike race that starts and ends at the Kalona Historical Village, May 11, starting at 7:30 a.m.

The board discussed a request for funding for South Iowa Area Crime Commission (SIACC) service agency to aid with cost of computers for juveniles in detention at a cost of $1,000 (from each of 13 counties). The move is to remove the use of administration computers by the juveniles. However, it was noted Washington County does not use the computer system and should not pay for something it does not use. However, the board agreed there could be further discussion regarding a future system and would revisit it.

The board learned that detours resulting from local road work may continue for two to three months.

Washington County Board of Supervisors, Washington, Iowa, GO Bonds, county roads