Des Moines, IA - State Treasurer Michael Fitzgerald announced today that the state will save about $6 million on the Iowa Statewide Interoperable Communications System. This new, state-of-the-art system was expected to cost the state about $50 million. By paying a portion in cash and borrowing the remainder at low interest rates, the state will instead pay about $44 million. “Restructuring the original financing plan and locking in low interest rates contributed to significant savings,” Treasurer Fitzgerald said.
Treasurer Fitzgerald: $6 Million Savings for Iowa Statewide Interoperable Communications System
The Iowa Statewide Interoperable Communications System will equip Iowa’s public safety agencies, first responders, schools and utility workers with a wireless digital communications platform. This platform provides for a secure and seamless network, connecting state and local agencies from all corners of the state. Construction of the system is underway, with completion expected in 2018.
The State borrowed $32.8 million with an interest rate of 1.64%. The interest cost over the next nine years will be $2.75 million.
In June, Iowa’s overall AAA credit rating was reaffirmed by Standard & Poor’s. “This strong rating allows us to cost-effectively invest in the State’s infrastructure, including the Iowa Interoperable Communication System,” Fitzgerald said. “Our careful approach to financial management, diverse economy and low debt burden continue to pave the way for our future.”