Council authorizes up to $20.2 million in notes to finance new fire station

The City of West Bend moved forward with financing for a new fire station, authorizing a parameters sale of general-obligation promissory notes not to exceed $20,200,000 to cover the bulk of the project. Phil Costin, with Ehlers, told the Finance Committee the planned issue will be a single-purpose, 20-year borrowing and that the city will use a competitive sale. “This will be a 20 year issue,” Costin said, adding the offering includes a callable feature after eight years and a maximum true interest cost parameter of 5.25 percent. “If you sold today, you would be closer to 4%.” The presale materials in the council packet identify a planned sale date in September with a closing later that month and note the city intends a second, smaller borrowing in 2026 to finish construction and to allow grant decisions and final costs to clarify the total need. Costin said the city will work with Quarles & Brady as bond counsel and submit materials to Standard & Poor's for a rating before sale. Finance Committee members voted to authorize the parameters resolution at the committee meeting and the full council later approved the resolution by voice vote. Committee and staff presentations said the city's current borrowing capacity would move from about 24% to roughly 28% of the statutory limit after the issue, and that the debt service is modeled on conservative rate assumptions to estimate tax impact. The resolution establishes maximum sale parameters (issue size, interest-cost cap and maturity schedule) and allows staff and municipal advisors to set the final sale date within those parameters. Staff said the city will present final sale results, the winning bidder and the tax-impact analysis to the council after bids are received. No amendments or alternative funding decisions were voted; council members asked clarifying questions about timing, rating calls and how a second 2026 borrowing would be coordinated with the city's capital program. The council passed the resolution authorizing the parameters for the sale of notes; specific sale terms and the identity of the winning bidder will be reported to the council after the competitive sale and closing.