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Port Washington council approves steps to issue $31.8 million in notes to finance public safety building and fire truck
Summary
Council authorized staff to continue work on the issuance of $31.8 million in general obligation promissory notes to fund the city’s new public safety building and a pumper truck, approving the financing report, a municipal advisory agreement and bond counsel engagement by voice votes.
The Port Washington Common Council on April 7 approved staff recommendations to proceed with a $31.8 million financing to pay for a new public safety building and a fire pumper truck.
Carol (Wisconsin Public Finance Professionals LLC) presented a report outlining the proposed sale of $31,800,000 in general obligation promissory notes. The borrowing would provide $1,000,000 for a fire pumper truck and $30,800,000 for the public safety building; staff noted that any unused proceeds could be reallocated to other capital projects in 2025–2026 if authorized in the parameters resolution.
Carol and Mark (city staff) explained the proposed structure: interest-only payments begin in 2026, principal payments ramp up starting in 2028 and the notes would amortize over 20 years with a call/prepayment option after 10 years. Carol presented an estimated true interest cost (TIC) of about 4.10 percent; the sale is expected to generate reoffering premium that can be applied to debt service in early years to reduce levy impact.
Council then voted by voice to: (1) approve the financing report so staff can continue work with Wisconsin Public Finance Professionals LLC; (2) approve a municipal advisory agreement with Wisconsin Public Finance Professionals LLC; and (3) approve engagement of Quarles & Brady LLP as bond counsel. Each motion carried on voice vote with no recorded roll-call opposition; council did not record individual member votes.
Carol outlined timeline and next steps: council approval of a parameters resolution is scheduled for April 15; Moody’s investor presentation is planned for April 21; bids will be taken May 7; and the transaction closing is scheduled for May 22. Staff said the issue will be amortized over 20 years with interest payments beginning in 2026 and that premium from the sale is expected to offset early-year debt-service costs. The estimated net impact on the city’s 2026 debt-service column was presented in staff materials; staff said that applying premium would lower the peak levy effect in early years.
Actions taken (voice votes, no roll-call tally recorded): - Approved report on financing to continue working with Wisconsin Public Finance Professionals LLC on the proposed $31.8M GO notes. - Approved municipal advisory agreement with Wisconsin Public Finance Professionals LLC for the issuance. - Approved engagement of Quarles & Brady LLP as bond counsel for the issuance.
The motions carried by voice votes with no recorded dissent; staff will return with a parameters resolution on April 15 that sets final terms and bidding parameters.
