Waunakee approves revenue bond sale for water and electric projects after competitive bids

The Village of Waunakee approved a resolution awarding the sale of revenue bonds for the village’s water and electric systems after a competitive sale held earlier the same day.

Casey Griffith, senior financial specialist with Eller & Company, told the board the sale was successful and that Moody’s affirmed an A1 underlying rating for the utility. Griffith said bond insurance obtained by the underwriter added an additional rating and that six bids were received; the low true interest cost bid was roughly 4.2358 percent.

The bond proceeds are for water-system improvements including well drilling, a water tower, a well building, engineering and associated financing costs. Griffith said the presale estimate showed a principal of $4,940,000 but that after bidding the issue size was reduced; he described the principal amount discussed during his presentation as $4,800,000 and noted the final net bond size was about $75,000 less than the presale estimate.

At the meeting a board member moved to approve a resolution described on the floor as awarding $4,865,000 in water and electric system revenue bonds, series 2025A, and the board approved the motion by voice vote. The motion carried.

Griffith also reviewed debt-service and coverage calculations based on audited financial statements and the planned repayment to the sewer utility for an interfund advance. He said the coverage ratios for the combined utility debt and repayments were “very, very good” based on available net revenues.

Board members asked no substantive questions after the presentation and thanked Griffith for the work on the sale. The resolution references the sale documents and will be signed as presented at the meeting.

The board did not provide a roll-call vote tally in the meeting record; the approval was recorded by voice vote with the clerk announcing “motion carries.”