Finance committee backs resolution to issue up to $10.9 million in general obligation notes

The Waukesha City Finance Committee voted to recommend a resolution authorizing the issuance of up to $10,900,000 in general obligation promissory notes to support the city's capital improvement (community investment) program.

Brad, a municipal finance representative from Baird, presented the proposed structure and timetable. He said the notes would be tax-exempt under current law and that the city expects Moody's Investor Service to affirm an AA2 rating for the issue. "Your current rating is double A 2. We've actually already heard or had the call with Moody's ... and we expect that the AA2 is gonna be affirmed," Brad said.

Baird outlined key terms: a not-to-exceed principal of $10.9 million, a planning interest-rate assumption of about 4.4 percent (the presentation used a not-to-exceed interest rate of 5 percent), annual principal payments beginning Oct. 1 next year, the first interest payment due Oct. 1 this year (to be included in proceeds), and a scheduled closing on or about May 20. Baird said marketing to investors and final award were expected in the days after the city council meeting, with a likely market award around May 8.

Brad also described optional call features and the trade-offs investors may demand for earlier call dates. "We do wanna have the flexibility. This call feature might slide 1 year, just based on current market conditions," he said.

Committee members took no substantive amendments to the parameters. A committee member moved to approve a resolution authorizing issuance and establishing parameters for the sale of the notes; Alderman Moulton seconded. The motion passed by voice vote.

City staff and Baird will prepare the official statement, pursue the bond rating affirmation, and proceed to marketing and sale under the parameters set by the committee. The full city council is scheduled to act on the parameters resolution at its May 6 meeting.