Finance committee authorizes start of $4 million capital borrowing, hears Baird presentation

The Middleton Finance Committee voted March 19 to authorize two linked resolutions to begin the city’s 2024 capital borrowing of roughly $4,000,000.

Bill (staff) introduced the item as the first step in the borrowing process. Brad from Baird, the city’s financial advisor, walked the committee through the financing plan and markets, saying the issue is a general obligation promissory note that “pledges its taxing authority for the repayment of the note” and noting an estimated budgeting rate of “3.36%.” He added that if the city locked the issue in immediately the market rate would likely be “closer to 3.05–3.13%.”

Brad highlighted that the proposed notes have a rapid amortization schedule, paid off in eight years, which Moody’s views positively. He told the committee Moody’s had “affirmed the Aa1 of the city,” a high rating that reduces borrowing costs.

Committee members discussed timing and the two-resolution approach: a set‑sale resolution directs staff to proceed to market, while a separate parameters/award resolution finalizes rates and terms at or before award. Several members favored adopting both resolutions to preserve flexibility if full council meeting dates shift.

The committee approved the two resolutions by voice vote and will forward them for council action and the subsequent award process. The award resolution and closing timeline remain dependent on council scheduling and final market conditions.

Next steps: council consideration of the resolutions and a later award resolution that finalizes interest rates and terms, with closing penciled in for late April pending schedule and market conditions.