City finance adviser outlines $5 million every‑other‑year borrowing plan to accelerate road work

Kevin Mullen, a director in the public finance practice at Robert W. Baird & Co., told the Muskego City Committee of the Whole on Aug. 26 that the city could accelerate road work by establishing a recurring borrowing pattern and described one illustrative scenario of $5 million issued every other year.

Mullen said the example was conceptual, not a formal proposal, and that the figures were meant to show how the city could move from a “pay‑as‑you‑go” approach toward a sustained capital improvement program. "If you were to borrow $5,000,000 in 2026," he told aldermen, "you'd then have a payment in 02/1927. . . . If that borrowing is spread out over that 15‑year period, assuming an interest rate of 4.3%, we've been conservative in that estimate." He added the rate assumption included about 50 basis points above current observed yields to be conservative.

Mullen framed the plan as a way to address the city’s road‑rating backlog faster than current maintenance funding allows. He said, under the city’s current pace, many streets would remain in lower condition ratings for decades and that a program of recurring bond issues would allow a more steady, predictable replacement schedule.

Why it matters: The finance presentation tied directly to the budget choices Muskego aldermen must make this fall. The committee is balancing an operating deficit of roughly $1.6 million and ongoing commitments the city now funds from operating levy dollars, including a $750,000 annual operating allocation for…