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Glendale council adopts resolution to sell up to $7.8 million in general obligation notes
Summary
The Glendale Common Council on a unanimous voice vote approved parameters for the sale of up to $7,800,000 in general obligation promissory notes after a presentation from the city's bond advisor; the city’s A1 rating was affirmed.
The Glendale Common Council on Tuesday adopted a resolution authorizing the issuance and sale of up to $7,800,000 in general obligation promissory notes.
The vote followed a presentation from Brad, a representative of Baird, who reviewed the city’s annual financing plan and said the city’s A1 bond rating was affirmed. Brad told council members the financing will fund the city’s 2025 capital-improvement program and include roughly $5.5 million in levy-supported projects, a $300,000 preliminary allocation for a new police facility and a $2,000,000 component supported by water-system revenues.
The council’s resolution establishes parameters for the sale and sets a ‘‘not to exceed’’ interest rate of 5 percent; Brad said current market estimates place likely interest rates near 4 percent. He said staff expects to lock rates by March 31 and close the financing on April 15.
City staff and the advisor described the debt plan as a multi-issue approach rather than a single isolated borrowing, with modeling intended to level off levy-supported debt service in the late 2020s. The presentation also included a placeholder refinancing to address a balloon payment scheduled for 2028; no formal action on that refinancing was taken tonight.
After the presentation, Alder Gellhardt moved adoption of the resolution; Alder Dougherty seconded. The council approved the resolution by voice vote. Mayor Kennedy thanked Brad for attending the meeting.
Why it matters: The notes fund the city’s capital program and the resolutions set sale parameters that allow staff to obtain market pricing and close the financing in April. The financing schedule and the inclusion of water-revenue–supported debt affect future levy-supported debt-service projections.
Looking ahead: Staff said rates will be locked by March 31 and the funds are scheduled to close April 15; council members did not request additional follow-up actions at the meeting.
