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Platteville council approves $8.24 million note sale to fund aquatic center and infrastructure
Summary
The Platteville Common Council on Sept. 23 voted to adopt Resolution 25-13 authorizing the competitive sale of approximately $8,240,000 in general obligation promissory notes (Series 2025A) to finance the planned aquatic center, street and stormwater projects, and equipment purchases.
The Platteville Common Council voted Sept. 23 to authorize the competitive sale of approximately $8,240,000 in general obligation promissory notes, Series 2025A, to finance the city's planned aquatic center and other capital needs. Kayla, a staff presenter, told the council the primary driver of the borrowing is the aquatic center, which is budgeted at roughly $7.1 million; the package also includes about $740,000 for street work and $225,000 for equipment purchases.
Kayla said the notes will be issued under Wisconsin Statute 67.12.12 and are expected to be bank-qualified. She told the council the city's existing S&P rating is double-A minus and staff anticipate an affirmation of that rating for this sale. "The primary driver of the sale is to fund the aquatic center," she said, outlining a timeline that includes investor distribution on Oct. 21, a sale on Oct. 28 and an estimated closing around Nov. 13 when proceeds would be available.
The presale report in the council packet estimated about $3.9 million in total interest over the 20-year life of the notes, for a combined principal-and-interest payment of about $12.1 million. Kayla said the structure is intended to smooth levy impacts; staff estimated an approximate $299,000 levy increase for debt service in 2026 (noting that estimates can change if sale-day premiums reduce borrowing needs) and lower impacts in subsequent years as other debt obligations roll off.
Councillors asked whether the city can prepay principal early; Kayla answered that securities terms generally prevent prepayment before specified call dates (anticipated in 2032) but that staff monitor refunding opportunities if interest rates decline. After discussion, Council member Bob Gates moved to adopt Resolution 25-13; Tony McFall seconded. The council conducted a roll-call vote and the motion carried.
Next steps: staff will proceed with the official statement and sale schedule outlined in the presale report; the council will receive a sale-award recommendation when bids are opened in late October.
