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Finance director outlines $142 million in planned general obligation borrowing; committee approves parameters resolution
Summary
Director David Schmidke outlined a parameters resolution authorizing up to $173 million in general obligation promissory notes and said the city expects to issue about $142 million of new money to fund capital projects including TID-funded development, major streets, fleet and Fire Station 6; the committee voted unanimously to recommend the resolution.
The finance director told the committee the city will seek authority under a parameters resolution to issue up to $173 million of general obligation promissory notes, with plans to sell roughly $142 million of new-money debt tied to the adopted 2026 capital budget.
David Schmidke described the borrowing by agency and project type, saying the largest share is funded from tax-increment districts and highlighted that Fire Station 6 and the South Madison Public Health Clinic are two of the single largest projects. He explained that a recent state law change permits 20-year notes (previously the city issued only 10-year notes) and that the resolution sets maximum interest-cost limits and cost-of-issuance caps: "We're issuing about 45% of the authorized debt... We're borrowing $142,000,000 of what we call new money," and later, "Our maximum true interest cost is 5% on the tax exempt and is 6% on the taxable. And then our maximum cost of issuance is $390,000." The committee recorded a unanimous recommendation in favor of the parameters resolution.
Schmidke said the borrowing list includes about 400 projects or programs and that the parameters resolution gives the finance director flexibility to select sale timing and exact terms consistent with the council’s expressed intent.
