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Finance Committee adds $2.5M taxable borrowing for TID incentive, approves presale parameters for notes

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Summary

The committee approved resolutions authorizing up to $7,255,000 in taxable notes and $28,190,000 in tax‑exempt notes, adding $2.5M in taxable borrowing for a TID 28 developer incentive and approving presale parameters and maximum interest rates.

The City of Green Bay Finance Committee on Jan. 27 approved resolutions setting parameters for multiple promissory notes, including a taxable series not to exceed $7,255,000 and a tax‑exempt series not to exceed $28,190,000, and added $2,500,000 of taxable borrowing to cover a developer incentive in TID 28.

Harry Allen of Ehlers, the city’s bond advisor, explained the presale reports and market assumptions, saying the taxable issue is necessary because certain upfront incentives and developer shortfalls trigger a taxable status. Allen noted presale rate assumptions of approximately 3.84% for tax‑exempt paper and 5.1% for taxable paper, and projected a potential step‑up in the debt levy from about $13.1 million in 2026 to a worst‑case $15.9 million in 2027. He also said refunding a prior $2.0 million issue would lower interest costs and remove a developer shortfall payment for 2026.

A committee member asked about repayment terms and whether added borrowing fits within the TID term; staff confirmed the borrowing will be repaid from TID revenue streams and not by the levy. The resolutions set maximum interest rate caps (tax‑exempt 4.25%, taxable 5.5%), designated two staff members to award the sale on behalf of the council, and allowed maturity adjustments at sale. The committee approved the resolution by voice vote.

Staff said Moody’s indicated a likely future rating upgrade tied to the 2025 audit but it would not affect this sale. The tax‑exempt sale was planned for Feb. 19 with proceeds in March and closing dates described for the tax‑incentive portion.

The action authorizes staff to complete the sale if market parameters are met; final sale terms will be set by designated officials on sale day.