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Council approves amendment to 2015 industrial revenue bond for Production Service Company
Summary
The council unanimously approved a resolution authorizing a minor amendment to a $7,080,000 industrial development revenue bond issued in 2015 for Production Service Company (Oberlin Filter), reflecting a bank acquisition and indexing changes; staff reiterated the city has no financial liability under the bond.
The Waukesha Common Council on Nov. 18 unanimously approved a resolution authorizing an amendment to a $7,080,000 City of Waukesha industrial development revenue bond (series 2015) originally issued for Production Service Company, also known as Oberlin Filter.
Staff explained the amendment is largely administrative: a lending bank that holds the bond was acquired and the amendment updates indexing language for interest-rate calculations. City staff and legal counsel emphasized the change does not alter the bond amount and that the city is not lending or committing its own funds; the arrangement allows the manufacturer to access lower-cost capital by issuing municipal bonds through the city's bonding authority.
Council moved and approved the resolution without dissent. Staff said the city remains a conduit (pass-through) for the borrower and has no contingent liability for the borrower's loan performance.
The action updates the city's role in the existing IRB paperwork to reflect the lender changes and regulatory indexing adjustments.
