Delafield approves parameters resolution for 2025 $1.765 million general obligation note

The City of Delafield Common Council on March 17 authorized a parameters resolution to issue up to $1,765,000 in general obligation notes to finance capital projects included in the 2025 capital plan.

Phil Costa of Ehlers, the city’s municipal advisor, briefed the council on the presale report and described a ten-year note structure with a typical prepayment option after year seven. Costa told the council the issue would be bank-qualified and that the city’s current Aa2 rating from Moody’s supports broad market interest. He said the city expects a true interest cost near 3.25–3.5% in current market conditions and set a not-to-exceed true interest cost cap of 4.75% in the resolution.

Costa outlined the schedule in the presale report: a Moody’s rating call scheduled for March 31, distribution of the final official statement on April 7, a parameter sale date currently set for April 17 (subject to change) and an estimated closing and receipt of funds on May 8.

He summarized the planned uses of proceeds as general obligation financing for streets, public works equipment, police equipment and the city’s contribution to Lake Country Fire capital. Costa said debt service for the issue would be paid from ad valorem property tax levy rather than from enterprise funds or TIF revenues.

Council members asked about rating sensitivity; Costa said each rating grade typically moves borrowing costs by roughly five to 10 basis points and reiterated the city’s strength as a bedroom community with limited industrial base.

The council approved resolution 2025-01 by voice vote and later confirmed an affirmative roll call on record. The parameters resolution authorizes staff and bond counsel to proceed with preparations for the sale consistent with the established limits and timelines in the presale materials.