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Lodi council approves $1.87 million borrowing, utility interim note and shifts $87,000 in fire protection to water rates
Summary
The Common Council on April 21 approved a $1.87 million general obligation promissory note, an approximately $764,000 interim revenue anticipation note for utilities, and a resolution moving roughly $87,000 of public fire protection costs to a direct water charge; the council also approved financing terms for a new fire brush truck with reimbursement from West Point.
The City of Lodi Common Council voted April 21 to approve several financing measures intended to fund street improvements, utility projects and a new fire brush truck.
Alderperson Stevenson and Alderperson Crow moved and seconded approval of Resolution 26-25 to sell approximately $1,870,000 in general obligation promissory notes to pay the city’s portion of the Fair Street project, purchase the Lodi Area Fire Department’s new skeeter brush truck, and cover the city’s share of Wisconsin Department of Transportation Highway 60 downtown projects. Casey Griffiths of Ehlers told the council this meeting served as the pre-sale review; Ehlers will hold a due-diligence call the week of May 4, distribute the official statement on May 12, and the council is scheduled to award the sale on May 19, with an estimated closing on June 16.
The council also approved Resolution 26-26 to issue an approximately $764,000 sewerage, water and electric system revenue anticipation note. Council members were informed the amount increased from $755,000 to $764,000 because of a calculation error; the note is interim financing until loans from the Safe Drinking Water Loan Program and the Clean Water Fund are arranged. The council was told the note is not rated debt and does not affect the city’s debt capacity because it is secured by utility revenues.
The council authorized an agreement to finance the purchase of the skeeter brush truck for the Lodi Area Fire Department and to cover West Point’s portion up front, with the Town of West Point expected to reimburse the city over five years. Alderperson Stevenson recounted that the council had previously expressed reluctance to borrow on behalf of other municipalities but noted a January 2024 intent to finance the truck; the council stated it does not want to assume that type of intermunicipal borrowing risk going forward.
Council members approved Resolution 26-31 to move approximately $87,000 in public fire protection costs from the property tax levy to a direct charge to water ratepayers. The minutes state the Public Service Commission found a prior 2024 version insufficient and that this revised resolution is intended to meet PSC expectations.
Routine project payments and intergovernmental cost-sharing were also approved: Resolution 26-27 authorized final payment to A-1 Excavating for the Sauk Street Project, and Resolution 26-28 approved a cost-sharing and reimbursement agreement with the Town of Lodi for Fair Street work.
All measures in this package were approved by council motion and recorded as carried; where a roll call was recorded the minutes list individual 'Aye' votes. No public comment was offered on these items during the meeting. The council set May 19 as the meeting to award the sale of the promissory notes and the estimated closing date for the sale is June 16.
