Oak Creek council approves $6.4 million financing package for road program and land purchase

Deputy City Administrator and Finance Officer Max Gagan presented a plan of finance that the Oak Creek Common Council adopted on March 3, authorizing two series of general obligation promissory notes: $4,000,000 in tax-exempt notes for the city’s enhanced surface transportation rehabilitation program and a taxable note to fund a land purchase related to a tax-increment district.

The council adopted parameters resolutions to allow staff to sell the notes when market conditions are favorable and within set interest-rate ceilings. "These issuances are structured to support our surface transportation rehabilitation program and to allow us to close on a key land purchase," Max Gagan said, explaining the delegation to the city administrator or deputy city administrator to finalize the sale within council-authorized parameters.

Justin Fisher, managing director of public finance at Baird, told the council the municipal market has been volatile in the short run but that the city’s credit profile remains strong. "We had a really good call with Moody’s — your outstanding bond credit rating is a double-A2 — and that positioning helped the presentation tonight," Fisher said, noting the team targets the week of March 19 for entering the market and a closing date of April 8, 2026, if conditions allow.

The plan specifies estimated terms: the $4,000,000 tax-exempt notes are illustrated at about a 3.75% interest rate with a maximum parameter of 4.25% and a 10‑year structure maturing 2027–2036; the taxable note was illustrated at about 4.75% with a 5.25% maximum parameter and a maturity schedule aligning with the related TID (final payment shown in 2031). Gagan said the taxable financing is tied to closing on property at the southeast corner of Howell Avenue and College Avenue; the council previously authorized the land purchase on Sept. 5, 2025, and staff indicated the purchase must be completed by the end of the month.

The presentation included a long-term levy-supported debt illustration and a general-obligation capacity chart. Fisher said the city's current equalized valuation gives it substantial borrowing capacity; the presentation noted roughly 71.8% of capacity would remain after these financings under the modeling provided to council.

Council members asked about timing flexibility and whether staff would wait for the rating confirmation; Fisher said the bond rating report would be received within a week and sale timing would depend on market stability. With no further discussion, the council approved the plan of finance and adopted the two related parameters resolutions by roll-call vote.

Where the record is unclear: one early transcript line listed a different taxable principal ($22,400,000), but subsequent presentation and the resolution language consistently referenced a $2,400,000 taxable note for the land purchase. The article reports the amounts as clarified later in the meeting.