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Council approves minor amendment to industrial revenue bond for Oberlin Filter
Summary
The Waukesha Common Council unanimously approved a resolution allowing a minor amendment to a $7.08 million industrial development revenue bond for Production Service Company (Oberlin Filter). City staff said the change reflects a bank acquisition and indexing adjustments and does not expose the city to financial risk.
The Waukesha Common Council on Nov. 18 approved a resolution authorizing an amendment to a $7,080,000 industrial development revenue bond issued in 2015 for Production Service Company, commonly referenced in materials as Oberlin Filter.
City staff explained the amendment is procedural: a bank that originally held the debt was acquired and there have been regulatory changes to how interest rates are indexed. “This is really just a bank,” a staff presenter said, adding that the bond amount is unchanged and the city is acting only as a conduit. Staff emphasized the city will not issue or lend money or incur a financial obligation under the amendment.
Council members said the finance committee had already reviewed the request and described the change as cleanup language necessary to let the borrower proceed with its lender. One council member asked what would happen in a borrower default; staff said a letter of credit held by the borrower and the lender relationship would address any default and that the city carries no liability.
The council moved and — with no objections — approved the resolution unanimously.
The resolution authorizes staff to execute the amendment to the 2015 industrial development revenue bond on the terms presented. There was no further discussion about project scope or city financial exposure after staff’s assurances that the city’s role is ministerial.
