Wausau finance committee approves parameters for $14.7 million general obligation promissory note, opts to smooth levy impact

The City of Wausau Finance Committee voted July 22 to move forward with a 2025 general obligation promissory note for capital improvements using an amortization schedule that pushes more principal into 2026.

The committee approved the parameters resolution — known in discussion as “option 2” — after hearing staff and the city’s financial advisor outline two amortization alternatives. Option 2 raises the debt-service levy in 2026 to smooth the effect of the scheduled closure of Tax Incremental District (TID) 6 and to reduce total interest costs by about $200,000 over the life of the borrowing.

Mary Anne (staff member) told the committee that the revised borrowing list removed roughly $1 million in TID-related projects from the issue and that the remaining borrowing would fund a $14.7 million slate of capital projects. Phil Costins, financial advisor with Ehlers, said the sale would be conducted on a parameters basis with separate amortization schedules for TID-funded projects and the city’s levy-funded portion.

“We could structure our debt so that we have a higher debt payment in ’26, which would then, number one, reduce our interest overall, and number two, it would smooth out our levy changes,” Mary Anne said during the presentation.

Committee discussion noted several drivers behind the city’s borrowing need. Members cited a $150,000 shortfall related to 2024 lead service line replacement work, more costly street projects (including Cherry Street and Randolph), and planned motor-pool purchases. Committee materials projected the city’s net debt-service levy would rise from about $4.6 million in 2025 to roughly $5.8 million under the smoothing option. The more typical amortization schedule (option 1) was estimated to raise the levy by roughly $675,000.

Costins told the committee the sale timeline would include a rating call with Moody’s Investor Service, a bid date of Sept. 3 and a projected closing (when funds are wired) around Sept. 18. He also said the proposed structure would include a six-year payback for projects tied to TID 3, an eight- or nine-year schedule for other TIDs, and a 10-year schedule for the city-funded portion.

Alder Henke moved to proceed with the promissory notes using option 2; Alder Tierney seconded. The committee approved the motion by voice vote. Members said the smoother levy trajectory should make the upcoming referendum and budget conversations easier to manage.

The item will be forwarded to the Common Council for consideration on Aug. 12; staff and the city’s advisor said council would see the parameters resolution and the final terms when the sale is scheduled.

The committee emphasized that a separate referendum will still be required to fund several ongoing operating positions (firefighters and community outreach staff) because statutory levy limits prevent the city from covering those ongoing costs without voter authorization.

The committee’s action was procedural authorization to proceed with the financing parameters; final bond terms will be set later in the 2025 sales process.