Finance Committee recommends parameters for up to $10.9 million in GO notes to fund Waukesha capital program

The Waukesha City Finance Committee on April 29 recommended that the full City Council approve parameters for the issuance of up to $10.9 million in general obligation promissory notes to support the city's 2025 capital improvement program.

Brad, a representative of Baird, told the committee the proposed notes are general obligation (levy-supported) debt intended to share the cost of long-lived capital assets with future taxpayers. He said the notes are being planned under current law as tax-exempt obligations but flagged ongoing congressional discussion about municipal debt tax-exempt status as an uncertainty for future issuances.

Baird said Moody's Investor Service recently reviewed the city and the city's Aa2 rating was expected to be affirmed; that rating helps secure lower interest rates. For planning, Baird used an estimated interest rate of about 4.4% and said final results in the market could be closer to 4.15% to 4.20% depending on market conditions. The proposed structure calls for annual principal payments beginning October 1 (first payment) with final maturity on October 1, 2034, and an optional call feature beginning October 1, 2031 (subject to market negotiation).

Chair moved the resolution authorizing issuance and establishing parameters for sale of not-to-exceed $10,900,000 general obligation promissory notes, series 2025A; Alderman Molson seconded the motion and the committee approved it on a voice vote, forwarding the parameters to the full council for action at its May 6 meeting.

Baird and city staff will prepare an official statement and begin marketing the notes to investors if the council confirms the parameters. Proceeds are scheduled to be received at closing on May 20 and invested until project spending needs arise.