Wausau finance committee authorizes bonds, notes to close lead service line project financing

The Wausau Finance Committee on Oct. 28 authorized financing measures to close funding for the city's 2025 lead service line replacement project, including up to $311,838 in taxable general obligation water-system promissory notes and up to $4,596,236 in water system revenue bonds.

City staff told the committee the promissory-note authorization is paired with a $9,450,172 state financial assistance agreement and the revenue bonds are paired with a $5,407,742 financial assistance agreement. Mary Anne, a city staff member presenting the item, said the financial assistance agreement will be before City Council on Nov. 11 and that the transaction's closing is scheduled for Nov. 26. Staff said principal forgiveness and participation in the state Safe Drinking Water Program will reduce the city's borrowing costs.

Committee members clarified which costs are the city's obligation and which will be paid for homeowners or the utility. Staff said the homeowners' portion of lead-service-line replacement will be handled separately and the water utility will be responsible for retiring the debt on the city's portion. After brief discussion, members moved and approved the authorizations on voice votes.

The committee did not adopt the state financial assistance agreements at the meeting; staff said the agreements would be included on the Nov. 11 City Council agenda and the closing is set for Nov. 26.

Actions taken at the meeting were limited to authorizing the issuance and sale of the notes and bonds; details of the financial assistance agreements were described as forthcoming to council.