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Platteville council authorizes parameter sale for up to $1.585 million in utility revenue bonds
Summary
Council adopted Resolution 25-17 authorizing a parameter sale of Water and Sewer System Revenue Bonds not to exceed $1,585,000 to fund wastewater and water projects (including Pine Street water main replacement); sale planned for Dec. 3 with staff authorized to award within parameters.
The Platteville Common Council on Nov. 10 adopted Resolution 25-17 authorizing a parameter sale of Water and Sewer System Revenue Bonds not to exceed $1,585,000 to finance improvements to the city's water and wastewater systems, including the Pine Street water-main replacement project.
Staff introduced the presale report and financial advisor Brian (participating remotely) summarized the process: the city will offer the bonds competitively in the open market, obtain ratings, and the parameter sale will allow staff to award the sale on a non-meeting day (planned for Dec. 3) provided bids fall within the council-approved parameters. Brian said staff will apply $400,000 of utility cash to reduce the total borrowing and that the current structuring yields a combined debt-coverage metric presented in the presale materials.
"We're going out to the open market on a competitive basis," Brian said, adding that the parameter sale is used to allow closing before year-end and to give staff authority to accept bids that meet the parameters. Staff emphasized the bonds are revenue bonds (pledging utility revenues rather than general-obligation authority) so they do not count against the city's GO debt.
Council moved and seconded adoption of the resolution; the motion carried. Staff said they will report sale-day results back to the council after award and close the financing before the end of the calendar year if market conditions permit.
