City reports $2.5 million Public Works GO loan for roundabout at low interest

Hill told the committee the city’s only outstanding debt will be a $2,500,000 Public Works GO loan taken to fund the roundabout; he said the loan carries an interest rate of 1.71% and that the city will draw the loan proceeds as project costs are incurred. "That actually should say 2,500,000, because we went out and got the additional 500,000," Hill said when describing the loan increase.

Committee members asked about optimal timing for draws and whether the city should draw the full amount now at the low interest rate or keep proceeds invested until needed. Hill said staff are considering draw timing to balance interest earnings and project cash-flow demands.