Marshfield Common Council Approves General Obligation Bonds for Various Projects

Wednesday, May 10th, 2023 -- 10:00 AM

The Marshfield Common Council approved a long list of general obligation bonds for various projects in the City of Marshfield.

The Council heard an update on the City’s borrowing for 2023 from Dave Ferris with Finance Company Ehlers. He stated that Marshfield is in good shape and commended the city for their focus on becoming financially healthy again after bottoming out a few years ago.

He said many communities that say they need to change their financial habits, usually don’t. The Council then approved the general obligation bonds for eight different projects in the city.

A general obligation (GO) bond is a type of municipal bond in which the bond repayments (interest and principal) are guaranteed by the total revenue generated by the relevant government entity or agency.

In other words, the repayment is guaranteed by both tax revenue and operating revenue generated by various projects. GO bonds are primarily used to subsidize the development of public projects.

Imagine a situation when a municipality decides to launch a new project, but it lacks sufficient capital to finance the initiative. In such a case, the municipality can issue general obligation bonds.

Investors who purchase the bonds provide capital to the municipality. In return, the investors are entitled to a portion of the municipality’s revenues generated from the project, as well as tax revenues.

The revenue streams allow the municipality to honor both the interest and principal payments of the bonds. Since the repayment is secured by the municipality’s total revenues, there is a low probability of default.

Thus, GO bonds are considered safe investments. It is common that such bonds receive strong ratings from credit rating agencies. The Council approved general obligation bonds in the amount of:

• $40,000 for the construction of police facilities;
• $85,000 for fire department equipment;
• $40,000 for fire station projects;
• $3,095,000 for street improvement projects;
• $55,000 for sewer projects;
• $205,000 for parks and public grounds projects;
• $110,000 for UW System College Campuses;
• And $20,000 for airport projects.

The Council then approved the sale of the total amount of bonds from all of those projects, which came to $3,650,000. They also approved the notice to electors relating to bond issues.

This is required because if a city resident is opposed to any of these projects, they have 30 days to get a certain amount of signatures and, if they’re successful, they can stop the project. Finally, the Council approved the officials authorized to declare official intent under reimbursement for bond regulations.

The Council also approved the replacement of a boiler at City Hall. One of their boilers developed a leak and it can’t be repaired. This project was in their capital improvement budget for 2024, so they just moved it forward. The cost for the project is $27,000.

The Council also approved the Greenway Culvert replacement on West 8th Street. The total project cost is $110,000, but the City did receive 50/50 bridge aid from Wood County, so the City will cover $55,000 and the other $55,000 coming from that bridge aid.

The Council also had three Public hearings for asphalt overlay, street construction, sewer construction, and more. There were no speakers for any of the hearings. The Mill in Place & Asphalt Overlay projects include:

• Anton Avenue – 5th Street to 4th Street;
• Becker Road – Maple Avenue to Doege Street;
• Edison Street – Cedar Avenue to Becker Road;
• Lincoln Avenue – 14th Street to ½ mile south (near Pet Motel);
• Vine Avenue – Becker Road to Edison Street;
• 5th Street – Hume Avenue to Anton Avenue;
• 8th Street – Peach Avenue to Felker Avenue;
• St. Joseph Avenue – Arnold Street to Asphalt (north) 1970 LF;
• Laemle Avenue – 21st Street to 5th Street;
• Northridge Street – Hamus Drive to Central Avenue;
• And 5th Street – Anton Avenue to Laemle Avenue.

The Council approved those projects. The special assessment project for Street Construction, Water Service Laterals, Storm Sewer and a project regarding Sanitary Sewer Service Laterals for Arnold Street – St. Joseph Avenue to 700’ West was approved by the Council. Finally, the special assessment project for Sanitary Sewer Construction Projects including:

• Cherry Avenue – 2nd Street to 1st Street;
• Chestnut Avenue – Depot Street to Blodget Street;
• Depot Street – Chestnut Avenue to Central Avenue;
• Palmetto Avenue – Doege Street to Becker Road;
• And 8th Street – Felker Avenue to 175 feet west of Felker Avenue was approved by the Council.

Some final items of note brought up during the meeting include one alderman bringing up some concerns that were brought to him regarding the possible chicken ordinance the City is considering.

Just a reminder, that online survey is available until this Friday and you can voice your opinion about it in person at the Planning Commission Meeting next Tuesday, May 16th. They also heard a brief report on Ehlers’ Public Finance Seminar.

One alderman also brought up an item from an Airport Commission Meeting. Duffy Gaier was honored by the FAA with the Wright Brothers Master Pilot Award for 50 years in aviation during a fly-in event. Family, friends and pilots who had flight checks with Duffy were all in attendance to witness.

Duffy had his first flight in 1959, but didn’t begin training until the early 1960s. Duffy continued pursuing aviation as a hobby and eventually started an aviation business in 1973. From there, he offered flight training and aircraft rental.

He later became a designated pilot examiner where people go to him to seek a pilot license. As a designated pilot examiner, they estimate that Duffy had the pleasure of examining over 6,000 pilots for licenses.

Feel free to contact us with questions and/or comments.