Fiscal Note
This is an initial resolution to issue 20-year bonds for certain major streets projects that were included in the 2015 adopted capital budget. Those projects are listed below:
East Johnson Street $2,890,000 Street reconstruction
Hoepker Road 1,796,000 4-lane urban boulevard with bike lanes and sidewalks
Milwaukee Street Bridge 1,130,000 Reconstruct Starkweather Creek Bridge and approaches
Reconstruction Streets 3,911,100 Replaces various deteriorated streets
Rural to Urban Streets 2,617,000 Reconstructing streets with substandard pavements to city standards
$12,344,100
Up to a total of $12,650,000 in bonds will be issued for these projects, including the estimated cost of issuance.
Due to the relatively large cost impact and expected useful life of these projects, along with the anticipated overall amount of borrowing in 2015 due to major facilities construction and renovation projects, these bonds will be issued with a 20 year repayment period. Debt service on $12.65 million is anticipated to be approximately $900,000 annually. This compares with estimated annual debt service of $1.4 million for 10 year promissory notes. Interest costs on 20 year bonds are estimated to total $3.9 million, compared with $1.6 million for 10 year notes. The debt service and interest cost estimates are based on current interest rates on AAA-rated municipal debt and the City's practice of repaying debt on a level-principal basis.
Title
Amended Initial Resolution Authorizing Not to Exceed $12,650,000 Bonds of the City of Madison for various street and sidewalk projects.
Body
WHEREAS Section 67.05(1), Wisconsin Statute, requires that a bond issuance under sec. 67.04, Wis. Stat., have a notice of referendum published within fifteen days following the initial resolution’s adoption by the Common Council; and
WHEREAS, initial resolution, RES-15-00653, was adopted on August 4, 201...
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