The proposed 30 year Bonds exceed the 20 year limit imposed by the County’s Debt Policy.
Section 1.51(3) Length of debt and timing of bond issues. Debt will be structured to provide for the shortest repayment period, while minimizing large fluctuations in property tax or other revenue requirements for debt retirement. The amortization period will be based upon a fair allocation of costs to current and future beneficiaries of the capital and infrastructure assets, and to revenue streams used to finance the annual debt service payments. Generally, the County would like to issue short-term promissory notes with less than a five-year amortization period for general capital improvement projects. Depending upon the project, financial condition of the County, and the local economy’s ability to pay, notes may extend to a ten-year period. If notes are not able to be paid off in less than ten years the County may issue bonds that will require a longer term debt schedule, but in no case should it exceed a 20-year repayment schedule. Call features should be included to provide flexibility. Under no situations will the financing term exceed the useful life or average useful lives of the assets to be financed. To help protect the County’s bond rating, orderly, infrequent bond sales will be scheduled in an organized fashion to assure the markets of the stability of the County’s financial decisions. (Emphasis Added)
https://library.municode.com/wi/marathon_county/codes/code_of_ordinances?nodeId=CH1GEGO_DEMAPO
Section 1.51(7) Conduit financing. Conduit financing is debt issued by Marathon County to finance a project of a non-County third party. The County may sponsor conduit financing for those activities (economic and industrial development, health facilities, the arts, etc.) that have a general public purpose and are consistent with the County’s overall goals. Unless a compelling public policy rationale exists, such conduit financing will not in any way pledge the County’s full faith and credit. The County prior to the approval of such financing may review information regarding the financial feasibility of the project and financial capacity of the entity. (Emphasis Added)
This post is the opinion of David Baker