Harrison board OKs parameters for up to $9.5 million notes to fund two capital projects

Justin Fisher of municipal adviser Baird told the Village of Harrison board the village plans to keep each financing at or below $10 million and use about $3 million in reserves to reduce the borrowing need. "The not to exceed borrowing amount is gonna be $9,000,500 dollars," Fisher said during a presentation of the plan of finance and a market update.

The board voted to approve Resolution B-2025-11, authorizing parameters for the sale of general-obligation promissory notes not to exceed $9.5 million. Fisher described a 20-year maturity structure, a conservative estimated interest rate near 4.75% and a maximum parameter rate of 5%, and said the notes would be callable beginning March 1, 2033. He also noted Moody's affirmed a Aa1 bond credit rating for the village, which supports lower borrowing costs.

Why it matters: The financing will fund two larger building projects (a public-works facility and a fire station) budgeted to keep each debt issue below $10 million and preserve future borrowing capacity. Fisher showed long-term illustrations that, under conservative growth assumptions, would leave substantial capacity for future debt.

Board members asked how interest-rate moves could affect the sale and what the borrowing would mean for taxpayers. Fisher said short-term Federal Reserve moves do not always translate to lower long-term rates and estimated the debt-service mill rate impact at roughly $0.30 per $1,000 of assessed value (about $30 per $100,000 of valuation) under the model presented; trustees noted the board retains budgeting control and could pull other revenue levers to reduce tax impacts.

Next steps: Staff will complete bid processes for the public-works facility and the fire station, refine final borrowing amount based on bids, and return with final sale timing; Fisher said closing could occur in late June 2025 if market conditions align.