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Vernon County board votes to start 2025 debt issuance process earlier to seek favorable rates
Summary
Board members voted to instruct staff to begin the bond-issuance process sooner rather than later, citing recent municipal sales and the potential to invest proceeds at prevailing LGIP rates; the board noted the underlying debt amount was already approved in the budget resolution.
The Vernon County Board of Supervisors voted to initiate the 2025 debt issuance process now, with the goal of securing favorable market rates and potentially investing proceeds until projects require the funds. A board member moved to "get the process moving for sooner than later," and another member seconded the motion; members voted by voice and the motion carried.
Board members discussed timing and market conditions. Staff recapped a recent municipal sale that priced at about 3.5% and said county counsel and financial advisors expected municipal borrowing rates to be slightly lower for the county given its credit rating; staff noted that issuing earlier (Januaryb1April) often faces less supply in the market and could yield a better rate than later spring issuances. Staff also said borrowing earlier would allow the county to invest proceeds short-term (an LGIP yield cited in discussion was roughly 4.1%) and that interest payments would not begin until the county drew on borrowed funds.
The board clarified the motion was procedural: the board had already approved the debt amount as part of the adopted budget/resolution; this vote authorized staff to pursue timing and to start the issuance process. Members discussed alternatives, including using cash on hand in the short term and bonding later; one member said issuing earlier could allow the county to invest some proceeds and be ahead on project timing, while another warned about long-term debt terms and balloon payments tied to prior borrowings.
Ending: Staff was authorized to begin the issuance process and return with specifics (timing and structure) to the board as rates and final project scopes become clearer.
