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Galesville council approves $1.375 million promissory notes to fund West Side Project
Summary
The Galesville City Council unanimously authorized $1,375,000 in General Obligation Promissory Notes, Series 2025A, to finance the West Side Project after deciding to use cash from reserves to pay for Campus Court drainage repairs. The 20-year financing carries a true interest cost near 4.41% with prepayment allowed beginning in 2034.
The Galesville City Council on July 24 unanimously approved Resolution 2025-007 authorizing the issuance and sale of $1,375,000 in General Obligation Promissory Notes, Series 2025A, to help fund the West Side Project.
Council members were told that staff recommended using cash from the city’s unassigned general fund balance to cover Campus Court drainage repairs and increasing the borrowing amount to cover the remaining West Side Project costs; bond counsel advised that the West Side Project is eligible for tax-exempt financing. The council was informed that three bids were received and that the winning offer came through Northland Securities representing Bluff View Bank, with a true interest cost of roughly 4.41% over a 20-year term. The loan documents provide for optional prepayment beginning in 2034.
Motion to adopt the resolution was made by Council member Ryker Todd and seconded by Council member Dave Carlson. The clerk recorded votes of Carlson-yes, Grover-yes, Larson-yes, Seely-yes and Todd-yes; the motion carried 5-0. The resolution is filed as Resolution 2025-007 Authorizing the Issuance and Sale of $1,375,000.00 General Obligation Promissory Notes, Series 2025A.
The council’s action follows earlier staff discussions and a consultation with the bond attorney that led to the decision to apply reserve cash to Campus Court repairs. The council did not specify additional implementation dates for the West Side Project in the meeting record. The meeting record shows the council can prepay the notes starting in 2034.
Next steps: the resolution authorizes the sale of the notes; the meeting record does not state further scheduling for project bidding or construction.
