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Committee approves parameters for $10.9 million GO promissory notes to fund capital plan
Summary
The finance committee recommended a resolution authorizing up to $10.9 million in general obligation promissory notes (Series 2025A) to fund Waukesha’s capital improvement program; the resolution sets parameters including a not-to-exceed interest rate and allows flexibility on award dates and call features.
The Waukesha City Finance Committee voted April 29 to recommend a resolution authorizing the issuance of up to $10,900,000 in general obligation promissory notes, series 2025A, to fund the city’s 2025 capital improvement program.
A representative from Baird presented the financing plan and timeline, explaining the city typically issues tax-exempt municipal notes to spread capital costs over the useful life of projects. The Baird presenter said the city’s current Moody’s rating is Aa2 and that the firm expected Moody’s to affirm that rating; Baird used a planning interest-rate estimate of about 4.4% and set a not-to-exceed interest parameter of 5% for the resolution.
The presentation described the structure: annual principal payments beginning Oct. 1, 2026, final payment Oct. 1, 2034, semiannual interest payments, and a planned closing date on May 20, 2025, when the city would receive proceeds. Baird said proceeds will be invested until needed for project costs and that the issuance is levy-supported (general obligation) rather than paid from utilities or TIFs. The firm also described a call feature that may be adjusted by a year depending on market conditions.
The resolution establishes a narrow set of parameters so staff and advisors can finalize sales terms outside a regular council meeting if market timing requires. After discussion, a committee member moved to approve the parameters resolution; Alderman Moulton seconded. The full Common Council was scheduled to consider the parameters resolution at its May 6 meeting, and Baird planned to market the notes with an anticipated award on or around May 8 and closing on May 20.
Committee members asked about trade-offs between shorter amortizations and layering future borrowings; Baird recommended a schedule intended to keep annual levy-supported debt service relatively level. No amendments were made at the committee meeting, and the motion passed on a voice vote with the item recorded as passing.
The committee did not vote on the final sale; the motion authorized staff to proceed within the stated parameters and return any final bond documents as required by municipal procedures.
