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Council approves notice for $2.5 million equipment bond for power-plant improvements
Summary
The Janesville council voted to publish notice for an equipment-certificate bond, estimated at $2.5 million, to fund transformer and other power-plant equipment; debt service will be paid from electricity revenues, not taxes, and a public comment period will precede final adoption.
The Janesville City Council voted to publish notice of an equipment-certificate financing for improvements at the city’s power plant, an action the council described as the first step in seeking bids for about $2.5 million in equipment work.
Council members approved the resolution to publish the notice and open a comment period, with the council to consider a final financing resolution at a later meeting after bids are opened. The resolution specifies that debt-service payments will come from electric-bill revenue rather than from property taxes.
Council members said the measure differs from typical street-and-utility bonds because it covers equipment rather than capital projects. The city did not yet open bids for the work and has not selected a lender; those steps will follow the public-notice and comment period outlined in the approved resolution.
The vote authorized staff to proceed with publication and the required waiting period; if no comments are received the council will move later to award and adopt final financing terms.
The council discussed the source of repayment and confirmed the city’s intention to fund the payments from electricity revenue. No final borrowing contract or interest rate was set during the meeting; those details will appear in a future meeting when bids and financing offers are presented.
