Iowa County weighs bond structure for radio towers, schedules public hearing in January
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Summary
A caller identified as Heidi presented two 10-year financing options for new radio towers: a 'level' structure with a higher early levy (~83¢) and a 'blend' option (~74¢). The board directed staff to set a hearing date (proposed Jan. 16) and to prepare offering documents and a rating call as part of the bond timetable.
The Iowa County Board heard a financing presentation for planned radio towers and related equipment and moved to set up the bond-authority process needed to sell bonds for the project.
A caller who identified herself as Heidi walked the supervisors through two financing approaches the county could use for a roughly 10-year borrowing: a level 10‑year payment that would keep payments fairly constant on the new issue (resulting in a higher levy in early years, cited in the discussion at about 83¢ per $1,000) and a blended 10‑year schedule that would smooth the levy out at a lower near-term rate (about 74¢). Heidi said municipal market rates were only modestly affected by a recent 0.25 percentage-point federal funds rate cut and that municipal pricing had not materially declined since the market had adjusted for the expected move.
Process and timing: Heidi told the board the steps required to enter the bond market, including a rating call, preparing an official statement and scheduling required public hearings and notice. She proposed setting the resolution to schedule the public hearing on Dec. 19 (administrative scheduling) and then holding the hearing on Jan. 16, with a pricing/lock-in target of Jan. 30 and a potential bond closing and proceeds availability in late February (Feb. 26 cited in the meeting). Staff also said they would prepare an 'not-to-exceed' figure for the hearing notice and consider including an option to refund older 2016 bonds later if rates fell significantly.
Why it matters: The financing approach affects near-term property tax levies and the county’s flexibility in future years. Board members asked about trade-offs — higher short-term levy to save overall interest vs. lower short-term levy for a steadier tax impact — and asked staff to bring the preferred structure back for final confirmation at the January meeting.
Next steps: County administration will finalize hearing dates and public-notice publications, coordinate a rating call the week of Jan. 12, prepare the official statement for board consideration (target Jan. 23), and return to the board on Jan. 16 to confirm the selected structure before finalizing bond pricing.