Brown Deer approves parameters to issue up to $13.3 million in general-obligation notes to refinance debt, fund projects

The Village of Brown Deer Board of Trustees on a roll-call vote approved Resolution 26-01, authorizing the sale of general obligation promissory notes with parameters that would allow borrowing of up to $13.3 million to refinance prior debt and fund capital projects.

Brad Vigu of Baird, a financial advisor, told trustees that the estimated issue size is $12.1 million and described the largest component as a refunding of previously issued 2018 debt. "These are general obligation promissory notes," Vigu said. "The village is pledging its taxing authority to secure repayment of debt to investors," and the refunding portion — about $7.715 million, he said — is expected to reduce the village's borrowing costs.

Vigu outlined other components the offering would support: water-enterprise work estimated at about $740,000, stormwater projects around $300,000 and roughly $250,000 tied to TID 5 projects. He told the board the financing timeline would include a pricing date on March 19 and a closing on April 8, with flexibility for final terms to be set by village staff and Baird at the time of pricing. The resolution delegates authority to finalize terms to the village's authorized officer.

Vigu described potential savings from refinancing and said the estimate for interest based on current markets was just over 3 percent, with the resolution preserving flexibility if rates move away from expectations.

The motion to adopt Resolution 26-01 passed on a roll-call vote with the trustees recorded as voting "Aye": Trustee Johnson; Trustee Gries; Trustee Thompson; Trustee Owens; Trustee Woods; and Trustee Booker.

Next steps cited by staff and Baird include finalizing the official statement and investor disclosures, completing a rating call, setting final interest rates and terms at pricing, and closing the transaction in early April.