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Beloit council authorizes sale of about $16.02 million in general obligation promissory notes
Summary
The Beloit City Council authorized staff to proceed with a competitive sale of $16,020,000 in general obligation promissory notes (series 2025A) to fund multiple capital projects spanning the city's 2023–2025 capital improvement plans.
The Beloit City Council on February 2025 authorized staff to proceed with a competitive sale of approximately $16,020,000 in general obligation promissory notes (series 2025A) to fund projects across the city’s 2023, 2024 and 2025 capital improvement plans.
The authorization, presented as resolution 2025-026, allows city staff and financial advisors to move forward with the sale; a competitive bidding date was set for March 17, with award to follow. Greg Johnson of Ehlers reviewed the presale report during the council meeting and summarized the financing plan.
Johnson said the $16,020,000 borrowing figure includes project costs and transactional expenses. He told the council the total estimated principal and interest on the notes is $21,626,239 and that the city built in a cushion for potential interest-rate changes between now and sale. “The total borrowing amount is $16,020,000,” Johnson said.
The presale report divides the financing by repayment source and estimated useful life of assets: the transit-related portion is amortized over 10 years and paid from transit revenues; most other CIP projects are also amortized over 10 years and repaid by the debt service levy; larger street reconstruction projects are amortized over 20 years. The report projects the debt service levy to increase by about $545,000 from 2025 to 2026 and to rise similarly over the next two years before stabilizing under the current CIP.
Johnson also noted the city remains well within statutory debt capacity: the presale analysis projects outstanding general obligation debt at substantially less than the state-imposed limit (a 5% limit on equalized value), leaving the city with tens of millions of dollars of capacity over the near term.
Council members held no additional substantive discussion after the presentation and approved the resolution by roll call. The ayes were recorded from Councilors Blakely, Adama, Levy, Forbeck, Dench and Terrell.
The resolution is the first step in the debt issuance process; staff and the city’s financial advisors will return to council with results of the competitive sale and a recommendation to award the notes.
