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Finance Committee recommends parameters resolution for up to $12.935 million 2026A promissory notes to fund capital projects
Summary
The committee recommended that the Common Council approve parameters for the issuance of general obligation promissory notes Series 2026A to finance 2026 capital projects, with a not-to-exceed borrowing amount shown in the resolution of $12,935,000 and a true interest cost cap of 4.58%.
The Stoughton Finance Committee on June 9 recommended that the Common Council approve a parameters resolution authorizing issuance of general obligation promissory notes Series 2026A to finance the city’s 2026 capital program.
Staff presented a pre-sale report outlining project categories eligible for financing — street, park and stormwater improvements, projects inside Tax Incremental Finance (TID) districts 8, 9 and 11, EMS equipment, and certain road improvements to be cost-shared with the town of Dunkirk. The packet includes a detailed project list and financial exhibits showing sources and uses, amortization schedules and projected debt service.
The presentation included two numerical references to the borrowing: an estimated total project cost of “approximately $12,954,000” in the narrative and a separate “not to exceed” borrowing amount of $12,935,000 shown in the parameters resolution. Staff also presented an estimated interest cost of $6,151,000 and total estimated principal and interest of about $19,086,000.
Committee members asked how the city’s bond rating will be set; staff said Moody’s will conduct an update call that will incorporate the city’s 2025 audit and other financial metrics. Staff also explained that the packet uses different published equalized-value metrics for tax-rate calculations versus legal debt-capacity calculations, which accounts for slight differences in projected equalized-value growth rates presented in separate tables.
Under the resolution’s sale structure, staff said the city would delegate authority to accept sale results so the sale can be scheduled when market conditions are favorable. The resolution caps the maximum true interest cost at 4.58%; if that parameter is exceeded, the sale would not be awarded. Staff proposed a sale date of July 15 and a closing date of July 30 if the council approves the parameters.
The committee voted to recommend the parameters resolution to the Common Council.
Next steps: the Finance Committee recommendation will be considered at the upcoming Common Council meeting; if approved and the market parameters are met, the sale would occur in mid-July with proceeds available to support 2026 projects on closing.
