Monona committee approves $3.15 million promissory note to fund 2026 capital projects

The City of Monona Finance & Personnel Committee on March 16 approved a resolution authorizing the issuance and sale of a $3,150,000 general obligation promissory note, Series 2026A, to fund 2026 capital improvement projects. The motion passed by voice/roll call after committee discussion of sale proceeds and pricing.

Jeff, a presenter for the city’s financing team, told the committee the sale produced a $220,188 net premium, which increases available project dollars to roughly $3.2 million and should generate approximately $50,000–$75,000 in interest income. "We are issuing $3,150,000 of promissory notes for our CIP," Jeff said, and summarized yields from 2.57% on the near-term maturities up to about 2.99% in 2033, with a true interest cost at closing of 3.61%.

Jeff also noted the city's AA+ rating from S&P and a prior referendum to exceed the levy cap as factors that helped market reception. "S&P is particularly happy with the fact that we did have a referendum to exceed the cap for our operational [budget]," he said, citing that the rating and fund balance reduce pressure on operations.

A committee member moved to approve the resolution; the motion was seconded. In a roll-call portion of the vote as recorded in the meeting, Alder DePula and Alder Wood voted aye and the motion carried. The committee did not record any no votes or abstentions on the floor.

The committee instructed staff to circulate the sale bid sheet to members after the meeting; staff indicated they would distribute that document to the committee.

Next steps: the resolution approved authorization to complete the sale; staff will deposit the net premium into the debt service fund to offset the first interest payment and move forward with project disbursements.