Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Council approves $7.27 million promissory note sale, cites lower-than-estimated rate and premium
Summary
The Greenfield Common Council authorized the sale of a $7,270,000 general obligation promissory note; municipal advisor Paul Behning said nine bids produced a 3.23% low rate, generating an estimated $220,000 in interest savings and about $127,000 in additional project funds.
The Greenfield Common Council on March 17 approved the issuance and award of a $7,270,000 general obligation promissory note, series 2026A, the council heard.
Paul Behning of Ehlers told the council the sale drew nine bids and produced a low interest rate of 3.23%, well below the presale estimate of 3.86%. "With that many bidders, the city also benefited from a very favorable interest rate," Behning said, adding the result will save the city about $220,000 in interest costs compared with presale projections and yield roughly $127,000 in additional project funds or to bolster the debt service fund if unused.
Behning also said Moody's affirmed the city's AA2 credit rating and described a statewide shift in Wisconsin from bonds to promissory notes, noting notes give municipalities more flexibility than bonds in allocating proceeds across capital needs. Council members asked for clarification about the difference between bonds and notes; Behning explained the statutory change, administrative efficiencies and fewer restrictions on how proceeds can be used.
After brief council questions, a member moved to award the sale to the recommended low bidder and the council approved the motion by roll call. The motion carried with all members voting in favor.
