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Committee approves amendment to $7.08M industrial revenue bonds for local manufacturer
Summary
The finance committee unanimously approved a resolution to amend the $7,080,000 industrial development revenue bonds (series 2015) for Production Service Company/Oberlin Filter to update regulatory language and interest-rate indexing following a bank ownership change; staff said the amendment does not change principal or term and has no impact on the city.
The Waukesha City Finance Committee on Nov. 11 approved a resolution to authorize amendments to $7,080,000 in industrial development revenue bonds, series 2015, issued for Production Service Company (a parent of Oberlin Filter).
City staff explained that industrial revenue bonds are conduit financing that use the city’s tax-exempt bonding authority while the issuers—and not the city—repay bondholders. Staff said the bank that originally issued the bonds was acquired and regulatory language and interest-rate indexing needed to be updated. Jeff (city staff) told the committee the amendments “are not changing the amount of the bond, the term of the bond. It's just, the adjustable interest rate for these bonds.” He added that the amendment “really has no impact on the city.”
Committee members asked clarifying questions about the project’s history and job impacts; staff noted the facility opened in 2016 and that the firm wanted to remain located in the city. With a motion and second the committee approved the resolution by voice vote, 4-0. The committee did not attach additional conditions during the meeting.
