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Platteville council approves up to $1.21 million promissory note to fund 2025 capital projects
Summary
The Platteville Common Council on June 10 authorized Resolution 25-08 to sell up to $1.21 million in general-obligation promissory notes to fund specific 2025 capital-improvement projects, with staff saying the city remains well under statutory debt limits and may combine this borrowing with planned pool financing to save on issuance costs.
The Platteville Common Council voted June 10 to authorize the sale of up to $1,210,000 in general-obligation promissory notes to finance 2025 capital-improvement projects. The resolution (25-08) passed on a roll-call vote after staff outlined the projects to be funded and the presale schedule.
City financial staff told the council the adjusted amount needed for listed CIP projects is about $1,142,994 plus estimated issuance costs, bringing the total authorization to $1,210,000. Kayla Thop, representing Ellis (the city's financial advisor), said the city anticipates awarding the sale on July 22 with a closing around Aug. 14, at which point the city would receive the funds.
Thop said the city's internal policy limits total debt to about 3.5% of equalized value and that this issuance would put the city at roughly 62% of that internal limit and about 43% of the state's statutory 5% equalized-value limit. Thop added that combining the CIP notes with separate pool-project borrowing, if timing requires issuing pool debt in 2025, could save roughly $40,000 in issuance costs.
Councilors questioned how a previously discussed $225,000 allocation related to the planned $6.9 million pool borrowing (whether it was included or would be added on top). Staff said the $225,000 was reallocated in the adopted CIP and that combining borrowings or updating the analysis to reflect current interest rates could be done at the council's direction.
The presale schedule distributed to councilors lists a due-diligence conference with rating agencies in early July, distribution of the official statement on July 15, award of sale July 22 and an anticipated closing Aug. 14.
The motion to adopt Resolution 25-08 carried. Staff and the council said they would return with any further resolutions if the city chose to combine this issuance with the pool financing to preserve transparency and —paper trail— for the public record.
