Waukesha board accepts 10-year loan commitment to fund road and traffic-signal projects

Trustee Chad Niles, Village President, led a discussion of municipal loan commitment letters and recommended proceeding with a 10-year loan through Waukesha State Bank to finance road projects and a $60,000 traffic-signal expense.

The board discussed competing offers, costs and legal fees before voting to approve the commitment letter for a 10-year loan from Waukesha State Bank.

Village Finance staff reported a Waukesha State Bank offer with a five-year rate at 3.60% and a 10-year rate at 3.85%, with a $1,000 bank loan fee and estimated legal fees of $12,500 from Quarles & Brady if the village proceeds with a tax-exempt bond structure. Citizens Bank provided higher interest quotes (about 5%–5.25%). Baker Tilly financial-advisory input, shared with the board, favored moving ahead with the bank bond structure so road work could continue without delay.

Trustee Bob Sigler moved to accept the Waukesha State Bank 10-year commitment letter and Trustee Roger seconded the motion. After further discussion about amortization and taxpayer impacts, the board voted to approve the 10-year loan commitment; the motion passed on an aye vote.

The board noted that the Waukesha State Bank bond is not prepayable; if rates fall later the village would not be able to refinance to change terms immediately. Staff said the 10-year option was slightly less per-residence than the previous year’s loan and that detailed tax-roll payment calculations could be supplied later.

The board approved the commitment so staff could finalize paperwork and proceed with the financing to keep the year’s road projects on schedule.