Oskaloosa City Council Approves $2.95 Million Bond Issue for Infrastructure Project

The Oskaloosa City Council has approved the issuance of $2,955,000 in General Obligation Capital Loan Notes to fund a series of street and infrastructure improvements, including work on the Southeast Connector Project.

The bonds, designated as Series 2025A, will provide financing for the opening, widening, extending, grading, and drainage of streets, sidewalks, trails, highways, avenues, alleys, and public grounds throughout Oskaloosa. Additionally, the funds will cover construction, reconstruction, and repairs to streets and sidewalks, as well as related improvements such as signage, utilities, traffic control devices, and street lighting fixtures. Acquisition of real estate necessary to complete these projects is also included.

While the bonds are currently set at $2,955,000, the approved amount is subject to change, not to exceed $3,105,000. The council has taken the necessary steps to authorize the issuance of these notes under the provisions of Iowa law.

To ensure repayment of the bonds, the city has levied a direct annual tax on all taxable property within Oskaloosa. This tax will provide the funds needed to cover both the principal and interest payments as they come due. If, at any point, tax proceeds on hand are insufficient to meet payment obligations, the city will use available current funds, with reimbursement made accordingly.

A certified copy of the council’s resolution has been filed with the Mahaska County Auditor, who will be responsible for assessing and collecting the tax in the same manner as other property taxes. The revenue generated will be used exclusively for the repayment of the bond debt.