Finance committee reviews presale report for $5.5 million general-obligation promissory note

Vernon County's Finance Committee reviewed a presale report for up to $5.5 million in general-obligation promissory notes intended to fund capital projects included in the county's 2025 budget. The committee discussed repayment schedules, interest-rate assumptions, projected impacts on the debt levy and an accelerated timeline that would solicit bids in mid-March and, if accepted, close in early April.

The presale report lays out a repayment plan that matches loan terms to project useful life: five-year payback for five-year assets, 10 years for 10-year assets and 20 years for projects with 20-year useful lives. The municipal advisor told the committee the county’s current bond rating is double-A minus and that the projections add a 50-basis-point conservative cushion to current market rates. The report shows individual maturity interest rates rising for later maturities (for example, a higher…