Burlington, IA – Burlington plans to issue $6.4-million in bonds after the first of the year.
City Manager Doug Worden says $3.4-million would be used to refinance bonds issued in 2001 and 2002.
He says the older debt carries interest rates of more than 4%.
Worden says the new debt would carry a much lower rate of around 1.5%.
He says that would save the city $50,000/year for the next five years in interest payments.
The remaining $3-million would be used to replace Cascade Bridge.
The structure remains closed to vehicular traffic due to its deteriorating condition.
Burlington is waiting for a new engineering report to determine how to proceed with the project.
State historical leaders want to see if there is a way to repair the current bridge instead of replacing it.
The Burlington City Council will have two new members after the first of the year, so the panel could reverse course on the project.
If that is the case, the money borrowed could go towards other projects.
The proposed $6.4-million borrowing plan does not include the up to $500,000 the city has pledged to the expansion of the Des Moines County Animal Shelter.
Worden says that money would also be borrowed after the first of the year.
Public hearings have been held on both proposals.