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Brodhead council authorizes parameters for up to $3.93 million note, accepts bond counsel contract
Summary
The Brodhead Common Council adopted Resolution 2025‑019 setting parameters for the sale of up to $3,930,000 in general obligation promissory notes to fund street projects and TID 9/Crosswinds Development, and unanimously accepted a contract with Quarles for bond counsel. Bids will open Aug. 6, with proceeds expected by Aug. 26.
The Brodhead Common Council on June 24 authorized parameters for the sale of not-to-exceed $3,930,000 in general obligation promissory notes to finance street projects and obligations tied to TID 9, which includes the Crosswinds Development. The council also voted to accept a contract with Quarles for bond counsel.
Dave Ferris of Ehlers presented a presale report laying out the proposed financing and schedule. Ferris told the council the city is roughly 42% under its statutory debt limit (5% of market value) and discussed expected underwriting and market timing. He said bids will open Aug. 6 and, if parameters are met, proceeds are expected by Aug. 26. Ferris described the role of underwriters in improving coupon presentation and noted the city will hold a review call with Moody’s during the week of July 21. "It is a legal term for a tax levy," Ferris said in explaining the debt-service levy language in the documents.
Ferris told the council that if TID revenues fall short the city could levy taxes to cover part of the debt, but added that the developer’s agreement provides protections that reduce that risk. He said staff hopes for an A1 rating and that, depending on market conditions, interest rates could be in the low 4% range.
Mayor Simpson asked for council action to accept the Quarles contract; Alderperson Baxter moved to accept the contract as written, seconded by Alderperson Burkhalter, and the motion carried unanimously. Later in the meeting the council moved to adopt Resolution 2025‑019, authorizing the mayor or treasurer to approve sale terms if bids fall within the resolution parameters. Alderperson Burkhalter moved to pass the resolution, Alderperson Naramore seconded, and the motion carried with all ayes.
Paul Boening of Ehlers is scheduled to present the sale at the council’s August meeting. The resolution defines parameters and contingencies but does not finalize the specific bid; the final sale will occur only if bids conform to the approved parameters and the authorized official signs the closing documents.
