Council authorizes parameters to sell up to $20.2 million in GO notes to finance fire station and related costs

The West Bend Common Council approved a resolution on Aug. 4 authorizing parameters for sale of not-to-exceed $20,200,000 general obligation promissory notes (series 2025B) to finance the city’s capital needs including reimbursement of earlier costs for the new fire station.

Phil Costin of Ehlers presented the presale report and told the council the issue would be a 20-year general obligation borrowing (the maximum term allowed for this type of debt under state law) with an early-call provision after eight years. Costin said the sale would be competitive, non bank-qualified because the city expects to borrow more than $10 million in the calendar year, and structured as a parameter sale so the city can set maximum interest-cost and maturity parameters tonight and accept bids later if market conditions are acceptable.

Key details presented: Costin described a maximum true-interest-cost ceiling the council set at 5.25 percent and an issue size not to exceed $20.2 million. He outlined a tentative schedule: official rating call with Standard & Poor’s and distribution of an official statement, a possible bidding date of Sept. 10 and a closing set for Sept. 25, but he cautioned staff would move the sale date if market conditions were adverse. He said documentation will show the amount sold, winning bidder, final rates and the tax impact analysis and that staff will report final results to council after sale.

Why it matters: the borrowing funds construction of the new fire station and will reimburse previously incurred professional-service and engineering costs. Costin noted the city plans a second borrowing in 2026 to finish the project and that the city is seeking grants which could reduce the total amount to be borrowed later.

Council action: after the municipal-advisor presentation the finance committee and council recorded motions to approve the resolution establishing sale parameters; council votes to authorize the resolution were recorded in the meeting minutes and resolution No. 25 was approved.

What remains: Costin said a rating call with S&P is scheduled toward the end of the month, an official statement will be prepared, and sale timing will be determined to seek favorable market conditions. The council will receive full disclosure of the winning bid, final rates and the tax impact once the sale is completed.

Speakers quoted in this article are limited to those who spoke on the record at the Aug. 4 meeting as listed in the transcript.