Platteville sells $5.90 million in general obligation notes at 3.66% to fund street projects and fire facility

The Platteville Common Council on Oct. 8 authorized the issuance and sale of $5,900,000 in general obligation promissory notes, series 2024B, to fund planned capital projects including multiple street reconstructions, equipment purchases and the planned fire facility.

Finance staff and municipal advisors reported a successful competitive sale earlier that day. Kayla Thop of Ehlers (municipal advisor/underwriter advisor) told the council the sale drew seven bids and the winning underwriter offered a true interest rate of 3.66%, substantially below the planning estimate of roughly 4.6%. Kayla said the issuance also produced a reoffering premium that reduced the amount the city must issue and will be deposited into the debt service account; the premium allows the city to pay its 2025 and part of 2026 interest without levying specifically for those payments.

Why it matters: the lower-than-expected interest rate and the premium reduced near-term debt-service pressure and will lower taxpayer costs compared with earlier planning projections. Kayla presented an estimated tax impact of about $72 over the life of the note on a $300,000 home; she also presented a $58 net reduction tied specifically to the fire-station portion of the borrowing over the life of that portion.

Sale details and timetable - Amount originally planned: $5,975,000 (including issuance costs); after the premium the council approved an issuance of $5,900,000. - Winning true interest rate: 3.66% (Piper Sandler was the winning underwriter as reported by staff). - Bids received: seven; spread between low and high bids was tight (about 3.66% to 3.79%). - Closing/receipt of funds: staff told the council the city expects to close and receive proceeds on Oct. 30.

Council action Councilmember Todd Casper moved to adopt resolution 24-14 authorizing issuance and sale of $5,900,000 general obligation promissory notes, series 2024B; Lynn Parrott seconded. The resolution passed on roll call.

Budgetary context Finance staff said the note proceeds will reimburse eligible 2024 capital expenditures and fund projects planned in the 2025 CIP. Staff reported that the city will remain well under statutory and internal debt limits after the issuance and retains borrowing capacity for future needs.

Ending Council thanked the municipal advisor for the favorable sale results and directed staff to finalize closing documents for the Oct. 30 closing.