Waupaca County Board authorizes $5.95 million note to refinance 2014 debt

Waupaca County Board Chair Dick R. Koeppen announced the adoption of Resolution No. 46 (2020-21) on March 16, 2021, authorizing the issuance and sale of a General Obligation Promissory Note in the principal amount of $5,954,386.91 to refinance certain outstanding county obligations originally issued as General Obligation Promissory Notes, Series 2014A.

The resolution directs that the note be dated April 13, 2021, be issued in denominations of $100,000 or more, and be sold to First State Bank under the terms of an attached proposal. Interest will be payable semiannually on March 1 and September 1, commencing September 1, 2021; the schedule of principal and interest payments is set forth in the incorporated Pricing Summary and Debt Service Schedule. The resolution also states that the notes are not subject to optional redemption.

The County Board found the refunding will produce debt service savings and expressly pledged the full faith, credit and resources of Waupaca County by levying an irrepealable tax for payment of principal and interest. The resolution creates a segregated Debt Service Fund Account for payments and authorizes a separate Borrowed Money Fund for allocation of note proceeds; it also requires compliance with federal tax rules, including covenants intended to avoid characterization as private activity or arbitrage bonds and designates the note as a “qualified tax-exempt obligation.”

Supervisor Morack moved to adopt Resolution No. 46, and Supervisor P. Craig seconded. The motion carried without a negative vote and the resolution was recorded as adopted March 16, 2021. The resolution authorizes County officers to execute closing documents, engage professional services as needed (including Ehlers & Associates for financial advisory work), and to cooperate with the Purchaser and any fiscal agent for issuance and transfer of the notes.

Why it matters: the refinancing will replace the Series 2014A obligations with the new note and create a dedicated repayment structure that the county says will produce savings. The county’s pledge of an irrepealable tax levy for the debt service means the levy for those payments will be carried onto tax rolls for the years specified in the resolution unless surplus Debt Service Fund monies reduce that levy.

Votes at a glance: The resolution was adopted on a motion by Supervisor Morack, seconded by Supervisor P. Craig, and carried without a negative vote by the 26 supervisors recorded present at the meeting. No roll-call votes with individual yes/no entries were recorded in the published minutes.

Next steps: the note is to be dated April 13, 2021; the Chair and County Clerk are authorized to execute acceptance of the Purchaser’s Proposal and closing documents to complete the sale and delivery of the note.