Wisconsin Rapids council approves parameters for $2.92 million general-obligation notes to fund roads, sidewalks

The Wisconsin Rapids City Council on June 23 approved a resolution setting parameters for the sale of general-obligation promissory notes not to exceed $2,920,000 to fund routine capital projects, including road, sidewalk and infrastructure work and the East Jackson Street project in Taxing District No. 7.

Kayla Thorp, municipal advisor with Ellers, presented the city’s pre-sale report and a timetable for the issuance, saying the city will hold a due-diligence call with bond and disclosure counsel and Moody’s the week of June 29, distribute an official statement on July 9, take bids July 16 and close on the notes July 29. "We will def distribute that official statement to the market on July 9th ... and we will take bids on the notes on July 16th," Thorp said.

Thorp told the council the issuance size and structure reflect a reduced need after the city was re-awarded an LRIP grant for the East Jackson Street project. The parameters set a maximum issue size of $2,920,000, a cap on true interest cost of 4.25 percent and maturity limits. She said the city’s project costs are about $2.8 million, with issuance costs of roughly $106,000, yielding a financing amount near $2.92 million.

Thorp and city staff explained the financing impact: because a portion of the borrowing is supported by Tax Increment District No. 7 revenues, the net property-tax effect is limited. "This will only account the new money will only account for about $171,000," Thorp said, describing an estimated one-year levy increase in 2027 that the city expects to see before debt service begins to drop. She offered an illustrative homeowner example: over 10 years the average cost on a $350,000 home would be about $244.

Councilmember Perky moved to adopt the parameters resolution; the motion was seconded by Ryan Austin and passed unanimously, 7–0.

The resolution authorizes staff to proceed with the sale provided the bids meet the council’s parameters and allows staff and the city’s municipal advisor to delay the sale if market conditions warrant. The council reviewed tables in the pre-sale packet that summarized existing debt, amortization schedules, cost-of-issuance estimates and a debt-capacity analysis showing the city at roughly 22 percent utilization of statutory debt limits.

Next steps: staff will complete the disclosure and due-diligence work with bond counsel and Moody’s, the official statement will be distributed to the market on July 9, and bids will be received July 16 if market conditions remain acceptable. The council’s action tonight set the parameters; final award of bids and closing remain administrative matters for staff within those parameters.