Janesville council awards $22.16 million in general obligation notes at 3.11% true interest rate

The Janesville Common Council adopted Resolution No. 2025-2307 on March 10, 2025, awarding $22,160,000 in general obligation promissory notes, series 2025, to the lowest bidder and establishing interest rates for the issue.

Finance Director Dave Godek presented the sale to council members, saying the notes were marketed the same day and that S&P Global maintained the city’s long-term rating at double-A with a stable outlook under its updated methodology. Godek reported a projected true interest rate of 3.1092% and said Piper Sandler & Co. was the low bidder. He also reported that the issue received a premium of a little north of $862,000, and that the interest rate is roughly one percentage point lower than a prior comparative measure and about 18 basis points below the city’s estimate.

Why it matters: The note sale will fund projects authorized by the city and affects the property-tax levy required to pay the debt. Godek told the council the lower-than-expected borrowing cost reduces the tax burden associated with interest payments compared with earlier estimates; he said the transaction produced roughly $400,000 in savings relative to prior projections used when structuring the issue.

Council action and vote - The motion to adopt/file Resolution No. 2025-2307 was moved by Council Member Nino and seconded by Council Member Jackson. The motion passed unanimously (6-0). - Key sale terms disclosed by staff: $22,160,000 principal amount; true interest rate 3.1092%; low bidder Piper Sandler & Co.; premium reported just north of $862,000; S&P rating retained at double-A, stable.

Speakers and materials Finance Director Dave Godek presented the financing packet prepared with the city’s municipal financial advisor, Carol Worth, and answered member questions. No members requested changes to the transaction at the March 10 meeting.