The Huntsville City Council on Thursday unanimously approved borrowing $37 million, according to a press release.

The bond issue will be used to provide $17.4 million for city schools, $8.6 million in funding for the capital plan, and $11 million in road construction.

“We are extremely pleased at the response from the 20 competitive bids we received today and have accepted the low bids at a rate of 3.37 percent,” said Peggy Sargent, director of finance.

Mayor Battle says Huntsville’s top Triple-A credit ratings and robust economy have afforded the city most favorable interest rates and the eye of savvy investors.

“We’re able to save taxpayer’s money and stretch our dollars farther by maintaining a fiscally responsible government,” Battle said.

The city plans to use the capital funds for fire trucks, roadways and other capital requirements.