By Dave Fidlin
Whitewater officials recently took the second step in a two-pronged effort aimed at funding a series of upcoming capitol improvement projects.
The Common Council on May 20 voted in favor of financing terms associated with plans to take out $4.28 million in general obligation bonds. The vote comes on the heels of a decision May 6 to take out the bonds.
With both steps approved, and a firm decision in place, officials can begin planning for the more than half-dozen projects that will be benefactors of the bond proceeds.
Brad Viegut, a bonding consultant with wealth management firm Baird, came before the council May 20 and discussed the bidding process, which had been finalized early in the morning on that date. Viegut said the bonds hold a 15-year term and carry a 2.36 percent interest rate.
The lower-than-expected interest rate means the city will spend less, in the long run, for the bonds. Viegut said he anticipated the interest rate hovering around 3.06 percent. Because of the lower response, the city stands to save about $280,000 from the prior projections.
The largest beneficiary of the bond proceeds is the imminent East Gateway project within the city’s downtown area. Officials plan to allocate $2.64 million toward street construction, curb and gutter, sidewalks, dam improvements, underground utilities, streetlights, right-of-way acquisition and engineering and design work.
The recently approved performance contract issued to heating and air conditioning company Trane also is included in the bond amount.
Additionally, city officials are allocating $1.18 million toward a series of improvements undertaken by Trane – including emergency generators and unified temperature controls – at the municipal building, Armory and library.
Plans also call for addressing flood concerns with some of the borrowed funds. The city is earmarking $600,000 of the funds toward a drainage project within Basin 15 – infrastructure that primarily serves residents living along Ann, Franklin and Whitewater streets.
