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Janesville council approves sale of taxable general obligation notes after favorable bids
Summary
The council approved a resolution awarding a taxable general obligation promissory note sale related to the Woodman Sports and Convention Center financing; staff reported a lower-than-expected true interest rate and projected interest savings.
The Janesville Common Council on Sept. 8 approved a resolution awarding the sale of taxable general obligation promissory notes connected to the Woodman Sports and Convention Center financing, following competitive bids that produced a lower-than-expected interest rate.
Finance Director Dave Godak told the council the S&P rating on the issue was double-A stable and that the competitive sale produced a projected true interest rate of 4.606 percent. Godak said the issue was resized during the sale from $7,240,000 to $7,155,000 and that the lower interest rate will save the city about $278,000 in interest expense over the term of the notes.
Vice President Squire moved to adopt the file resolution authorizing the sale; Council member Cass seconded. A council member proposed an amendment to the dollar amount; the amendment was accepted and the motion passed unanimously.
Godak said the lowest bid was from Robert W. Baird & Co. Inc.; the finance director also noted improvements in the city’s ratings in several S&P categories compared with March. The council received an updated resolution with the filled-in numbers in the meeting packet and on the city website.
The adopted resolution authorizes the note sale and levies taxes to pay debt service as required for taxable general obligation promissory notes. No individual council votes were recorded in the transcript; the clerk announced the motion passed unanimously.
