Two Rivers council approves $2.565 million in general obligation promissory notes for 2026 capital projects
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Summary
After extended debate and public comment, the Two Rivers City Council voted 8–1 on Feb. 16 to authorize the sale of up to $2,565,000 in general obligation promissory notes to finance 2026 capital improvement projects, with closing targeted for April 8, 2026.
Two Rivers — The City Council voted on Feb. 16 to authorize the sale of up to $2,565,000 in general obligation promissory notes to fund 2026 capital improvement projects.
Finance consultant Justin (Barrett), presenting the plan of finance, said the issue is structured as a 10-year financing with an estimated interest rate near 4% and a maximum parameter rate of 4.5%. He told the council the borrowing would be split between a $2,215,000 levy-supported portion and a $350,000 electric-utility-supported portion, with the bonds callable beginning April 1, 2033 and a closing targeted for April 8, 2026.
The vote followed more than 30 minutes of technical briefing and council discussion about debt capacity and long-term debt-service modeling. Councilmember Adam Mahoske objected to the size of the levy-supported portion and said the council’s long-term model assumes $2 million in annual borrowing rather than the $2.215 million in this issue: “I will vote no,” he said, arguing the increase could, if repeated, “significantly impact taxes.”
Several other council members defended the borrowing plan as prudent given rising construction costs and the city’s capacity to manage debt. One council member noted that the city’s policy aims to maintain at least 40% of borrowing capacity in reserve and that recent valuation growth increased available capacity.
Resident Catherine Dahlke had urged caution during public comment before the vote, saying it “puzzles me that we’re borrowing this money now when, in fact, you don’t need to borrow it today,” and noting that some project costs and public survey results were expected later in the spring.
Roll-call vote: Doug Brandt — Aye; Tim Petrie — Aye; Bonnie Schimelunas — Aye; Scott Steckmeister — Aye; Adam Mahoske — No; Darla LeClaire — Aye; Mark Bittner — Aye; Shannon Derby — Aye; Bill LeClaire — Aye. Motion carried.
Next steps: staff and bond counsel will prepare the official statement and complete sale preparations; the presentation noted an anticipated authorization signature in March and a closing on April 8, 2026.
