The Finance Committee met 07/22/2024. The first 9 minutes of the meeting were taken up with a presentation by Brad Viegut of Baird on the 2024 General Obligation Notes and Sewerage System Revenue Bond Sales. The city plans to issue $13.5 million in general obligation promissory notes and $12.9 million in sewerage system revenue bonds.
I’ve prepared a transcript of the presentation for download:
The $13.5 million in general obligation notes was intended to be repaid in 10-years and was divided into two portions. The first was $8,777,300 for the city’s 2024 Capital Improvement Program. The second was $4,721,700 for TIF District 13 projects. As you may remember, TIF District 13 covers the Southpoint Commerce Park, and it’s primary purpose is to complete infrastructure for the parcels between Coop Road and Eisenhower Drive.
The city’s overall debt burden would not be increased for 2025. Under the city’s current debt servicing plan there was one additional upward step in the city’s debt expected for 2027 and then it was expected to remain level through 2034.
Of note, the graph of the city’s future debt burden indicated a decrease in debt after 2024, but Mr. Viegut noted that they did not actually expect a significant drop like that. Rather, the graph simply did not include future expected debt and, therefore, showed a drop, but that drop merely indicated “there’s going to be room to layer in future borrowings,” after 2034.
The $12.9 million in sewer system revenue bonds was intended to fund sewer system projects. These would be repaid over a 20-year period.
Baird was going to have a ratings call with Moody’s Investor Service and then market these obligations nationwide. They would then return to a special meeting of the Finance Committee prior to the Common Council meeting on 08/07/2024 with the results. The Finance Committee would vote on it and then the Common Council would vote. After that, the bonds would be issued, with an expected close date of 08/28/2024.
The committee had no questions. Alderperson Brad Firkus commented that he thought the presentation was informative and answered all his questions. “I think this is a pretty decent situation, all things considered. Good to see that we have a leveling off point here. So, gives us an opportunity to at least try and hold that line.”
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1196034&GUID=9D8AB3B5-8608-48AC-9AC8-0850E73E2551
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