Beloit council authorizes sale of about $16.02 million in general obligation notes

The Beloit City Council on a voice/roll-call vote authorized the city to pursue a competitive sale of approximately $16,020,000 in general obligation promissory notes to fund capital projects from the city’s 2023–2025 capital improvement plans.

The action came after Greg Johnson, financial advisor with Ehlers, summarized a presale report showing the borrowing would finance projects carried over from multiple years and that the total principal and interest for the notes is estimated at $21,626,239. Johnson said the transit-related portion of the borrowing will be repaid from transit system revenues and amortized over 10 years, while most other CIP projects would be amortized over 10 years and street reconstruction over 20 years.

Johnson told council the Internal Revenue Service allows reimbursement of capital expenditures if required documentation is in place and that Ehlers and the city’s bond counsel had reviewed the documents. He also said the city’s projected general obligation debt remains well under the practical limit set by state law; the presale report projected the city would remain below 5% of equalized value and retain capacity for future financings.

City staff said the resolution authorizes staff and the city’s financial advisors to proceed through the debt issuance process. Staff expects to conduct a competitive sale on March 17 and return to council to present bids for award.

Council members voted to approve the resolution. The passage is the first step in the debt issuance process; award of the notes will be made after the competitive sale and presentation of bids to council.

The resolution was described as routine financing to support previously approved capital projects; councilors asked no substantive questions during the presentation.