A representative from Baird presented at Tuesday night’s Sturgeon Bay Common Council meeting with good news for the city’s bottom line. Two refunding bonds had bids submitted at historically low rates. A $1,235,000 taxable bond had a low bid from BOK of Dallas, Texas submitted at 1.547 percent. A nontaxable general obligation bond with principal of $2,180,000 saw a low bid of 1.907 percent. Bradley Viegut said that people are fleeing to safety. Before the emergency rate cut by the Federal Reserve Tuesday, the yield curve was inverted with 30-year treasury rates below the Fed Funds target rate.
The city will save roughly a quarter-million dollars in interest payments compared to what was estimated. The council also voted to end the Sturgeon Bay Economic Development Revolving Loan Program. They are folding the funds into a joint program with the county. The county will be responsible for the administration of the funds, but they cannot be comingled because the federal funds available to the county are subject to a different tax treatment than those available to Sturgeon Bay. The goal is to apply Sturgeon Bay’s portion to the development at the former west side school.