Council approves up to $16.47 million in general obligation notes to fund 2025 capital plan
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Summary
The Fond du Lac City Council unanimously adopted a parameters resolution authorizing up to $16,470,000 in general obligation promissory notes to finance the 2025 capital improvement program, with an estimated interest rate of about 4% and a closing targeted for Oct. 1, 2025.
The Fond du Lac City Council on Wednesday adopted a parameters resolution authorizing the sale of not-to-exceed $16,470,000 in general obligation promissory notes to fund the city’s 2025 capital improvement projects. The council voted unanimously on the measure after a presentation from the city’s finance advisers.
The financing will be structured as a general obligation promissory note series 2025, with principal maturities running from March 1, 2026, through Feb. 1, 2035. Justin Fisher, managing director at Baird, told the council the estimated interest rate for the offering is 4 percent, with a not-to-exceed cap of 4.5 percent. "The estimated interest rate on this financing, 4% and a not to exceed parameter of 4.5%," Fisher said.
The presentation outlined timing and market context: a tentative sale in the week of Sept. 2 and a closing targeted for Oct. 1, 2025. Fisher said the city went through the bond rating process with Standard & Poor’s and had its AA- rating affirmed. Director of Administration Tricia Davy introduced the plan and summarized staff work leading to the issuance.
Councilmember Heisler moved approval; Councilmember Mullen seconded. The council then voted and the motion passed unanimously.
The plan will support projects already approved in the 2025 capital budget. Fisher showed an illustration of how the new levy-supported debt service would layer onto existing obligations and noted that, even after issuance, the city would retain borrowing capacity under the 5 percent equalized value statutory limit. He estimated that after the financing the city would still have roughly $140 million in available borrowing capacity (about 58 percent of the statutory limit), according to Baird’s projections.
The council asked several policy and market questions during the presentation; Fisher and staff responded that short-term yields have been falling and that continued volatility is likely over the next 6–12 months. No amendments to the parameters resolution were proposed during the council discussion.
The director of administration will have authority under the resolution to complete the sale within the parameters approved by the council and to sign final documents as needed.