Suamico approves $3.14 million general obligation promissory notes to refinance debt

The Suamico Village Board on Monday voted unanimously to approve Resolution 25012, awarding the sale of $3,140,000 in general obligation promissory notes, series 2025A.

The action, moved by President Van Razon and seconded by Trustee Andrews, followed a presentation that explained the final sale amount and how proceeds and fees affected the note size. A financial presenter explained the sale produced a reoffering premium that allowed the village to reduce the note amount from earlier estimates and to apply a portion of the premium to next year's interest payment.

The village received a reoffering premium of just under $200,000, the presenter said. State statute requires that $167,000 of that premium be applied to interest due on the notes; the presenter said that, together with lower-than-expected bond counsel and underwriting fees, is why the board approved $3,140,000 after a presale estimate of about $3,820,000.

Director Downey told the board the sale occurred the same day and that the final issue size reflected where bids came in. The presenter said the village's bond rating was affirmed at AA and that the debt was restructured in a way intended to keep the levy for debt service roughly level in the near term.

Board discussion noted the village's debt percentage rose from about 6.67% before the new notes to about 9.35% with the new issue, a number described by the presenter as well below typical levels for many Wisconsin municipalities. Director Lempke and other trustees emphasized ongoing efforts to reduce debt burden; staff said debt-service levy as a share of the total levy has hovered around 22% and was expected to decline in 2028.

The board conducted a roll-call vote; Trustees Andrews, Eckert, McKeefrey, Romas and Stevens and President Van Razon voted aye. The motion carried 6-0.

Board members and staff said they would provide more detailed amortization and levy-impact numbers to trustees on request.