Fitzgerald moves ahead with borrowing

DES MOINES – State Treasurer Mike Fitzgerald said Monday he expects the state of Iowa will be ready to borrow more than $600 million for infrastructure projects and other upgrades by mid-July.

If all goes as expected, Fitzgerald said he expects money will be available for state projects beginning with improvements to the Iowa Veterans Home in Marshalltown by early August.

The Democrat-led Legislature approved in April and Gov. Chet Culver last month signed a package of measures that authorizes up to $830 million in “I-JOBS” bonding for disaster recovery, transportation, sewer, water, telecommunications and other infrastructure improvements.

Fitzgerald said his office has been working with three bond rating agencies and will meet with them next week to prepare the official statement and arrange for pricing the bond issue either by the last week of June or the middle of July.

The state treasurer said he's trying to hurry things along to take advantage of favorable interest rates that will hold down the cost. Part of the challenge, he said, is match funds with project time lines while abiding by federal regulations governing how long states can borrow and reinvest proceeds until they are expended.

Fitzgerald said the state plans to borrow another $105 million about one year from now to round out the bonding package. A separate $115 million in revenue bonds will be issued by the University of Iowa for flood repair and replacement projects at the Iowa City campus, he added.