Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Finance committee approves parameters for up to $33.5 million exempt and $10.385 million taxable promissory notes
Summary
The Green Bay Finance Committee on Jan. 28 authorized parameters to issue up to $33.5 million in tax-exempt general obligation promissory notes and a $10.385 million taxable note tied to a pass-through loan for a private developer, and discussed why the city is borrowing via promissory notes rather than bonds.
The Green Bay Finance Committee on Jan. 28 approved a resolution authorizing issuance and establishing parameters for the sale of not-to-exceed $33,500,000 in tax-exempt general obligation promissory notes, series 2025A, and a $10,385,000 taxable general obligation promissory note, series 2025B.
Committee members and staff said the taxable portion reflects a pass-through loan to Newland that was approved previously in a development agreement and therefore must be issued on a taxable basis. Staff said presale reports from Ehlers were included in the packet to show pricing scenarios and term options.
The committee also approved a procedural amendment to the agenda to update the dollar amounts before voting. Committee members moved and seconded the amendment and then approved the final resolution; the meeting record shows the motions carried but does not list a roll-call tally.
The city and its municipal advisors described the city's shift in recent practice from issuing long-term bonds to using promissory notes. Staff said the change simplifies borrowing and gives the city more flexibility to reallocate unspent proceeds. Under the legislative change referenced in the meeting, the allowable repayment term for notes can extend up to 20 years, providing financing features similar to bonds but with fewer statutory restrictions on how proceeds are reallocated.
Staff said Ehlers provided two presale reports showing different breakdowns of the proposed borrowing (exempt and taxable components) and multiple term structures (three, eight, 10 and 20 years were noted as examples). The taxable borrowing is necessary to complete an $8.5 million pass-through component previously authorized in a development agreement with Newland.
Committee members did not request additional changes to the resolution. Staff noted that previous meetings had authorized the underlying projects and that this resolution is the formal action required to issue the notes.
The committee approved the resolution and the staff may proceed with the final issuance steps and sale under the parameters set by the resolution.
