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Waunakee OKs parameters to issue up to $7.025 million in general obligation notes
Summary
Trustees approved a parameters resolution authorizing staff to issue and sell up to $7,025,000 in general obligation promissory notes (Series 2026A), splitting borrowing across two years to manage IRS rules and aiming to keep each year under $10 million for bank-qualified status.
The Waunakee Village Board approved a parameters resolution on April 16 authorizing the issuance and sale of general obligation promissory notes not to exceed $7,025,000 to fund capital projects in the village’s two-year capital improvement plan.
A finance presenter recommended splitting the village’s planned borrowings across two years to avoid possible IRS arbitrage complications, to keep each calendar year’s tax-exempt borrowing under $10 million (which preserves bank-qualified status), and to better match the timing of expenditures, particularly a large shop addition that is not scheduled until 2027. The presentation identified about $3.9 million of projects in the 2026 CIP and proposed pre-borrowing roughly $3 million toward the shop addition.
The parameters resolution sets maximum limits (including a 4.5% maximum interest cap) and delegates authority to staff to sell the notes within those parameters. The presenter estimated the deal’s true interest cost conservatively and explained the schedule for rating and sale documents: a Moody’s rating call and due-diligence, an official statement distribution in early May and bids expected in mid-May with funds delivered in early June.
Trustees discussed levy impacts and noted the issuance could increase the debt service levy in 2027–28 as the shop addition’s costs are absorbed. The board approved the resolution and delegated sale authority to the village administrator and finance director under the stated parameters.
