The Ames City Council voted unanimously Tuesday to authorize the sale of bonds to fund a capital improvement project for the Fitch Family Indoor Aquatic Center.
On Tuesday morning, the city accepted bids for the General Obligation (G.O.) bonds in an amount not to exceed $18.8 million. The bids were evaluated by the city’s financial advisor, the city’s bond counsel and by city staff to recommend an award to the bidder with the lowest cost, which was provided to the council.
A G.O. bond is a bond issued to cities, counties and states that is backed by the cities’ “full faith and credit” when sold. This means that the city can tax residents to pay the bondholders, sometimes through property taxes.
Ames received four bids from 33 different banks, with the true interest cost ranging from 3.59% to 3.77%.
Before a vote, the city’s financial advisor, Susanne Gerlach, reported to the council that Janney Montgomery Scott was the winning bidder with a 3.5983% true-interest bid. This is an aggregated interest rate of the 20-year life of the bonds, which will have a net-interest cost of $7,665,750.12.
Janney Montgomery Scott is a financial services firm based out of Philadelphia, PA.
In 2024, the city of Ames was assigned an Aa1 bond rating by Moody’s Investors Service. According to Investopedia, this rating is associated with low-risk, low-yield investments.
Ward 2 Rep. Tim Gartin asked what this rating meant for the city’s finances.
“The City of Ames is at the very top rating of the AA category,” Gerlach said. “That means you have strong tax rates[…] You have a lot of stability in your tax rates due to city, hospital and county [rates].”
The council voted 6-0 on the resolution, which accepted the bid and authorized the award and issuance of the G.O. bonds to the firm.
Projects to be funded by the sale of the G.O. bonds include:
Intelligent Transportation System $476,100
Airport Entryway Improvements $680,000
Ada Hayden Heritage Park $700,000
Indoor Aquatic Center: $16,678,016
Estimated Issuance Costs: $275,884
Total: $18,810,000
Electric vehicle contract:
The council also voted unanimously to award a contract to Karl Ford of Story City for the purchase of two 2025 Ford F150 Lightning pickup trucks for the cost of $43,466 each, totaling $86,932.
The electric pickup trucks will replace a four-wheel-drive (4WD) cargo van used by Water Pollution Control and a 4WD pickup truck used by Electric Distribution’s technician for finding underground power lines.
Nolan Sagan, the city’s sustainability coordinator, told the council that Ames currently has two additional Ford F150 Lightning pickup trucks, which have received positive feedback since being implemented.
Before the vote, Sagan spoke to the council about how the purchase of the two electric trucks was in support of the council’s carbon reduction goals, which are outlined in the city’s climate action plan.
“Compared to an internal combustion engine, we’re looking at a 75% emission reduction with electric vehicles,” Sagan said.
The council voted 6-0 to authorize the bid for the two electric trucks, which are both equipped with 4WD.
Each truck will also be eligible for an Inflation Reduction Act Refund of $7,500.
Additional measures:
The council voted unanimously to accept the bike and pedestrian master plan and wayfinding guide. The final draft of the plan, known as “Walk Bike Roll,” will be used to develop future versions of capital programs for walking and biking. Additionally, it will aid in the implementation of wayfinding signs for pedestrians and cyclists.
The council also voted unanimously to award contracts for two maintenance contracts during hearings for the programs. The following contracts were approved by the council:
2024/25 Shared Use Path Maintenance Contract 2 (Stuart Smith Park and State Avenue)
TK Concrete, Inc. of Pella, IA
$106.664.90
2024/25 Water System Improvements Program (N Russell Avenue – Lincoln Way to N 2nd Street)
Iowa Water & Waste System, LLC of Ames, Iowa
$104,910.50
