Title
Issuing Water Utility Revenue Refunding Bonds, Series 2026
Body
BACKGROUND
The City of Madison previously issued its $38,420,000 Water Utility Revenue Refunding and
Improvement Bonds, Series 2016, dated December 28, 2016 (2016 Bonds), pursuant to a
resolution adopted by the Common Council on December 6, 2016. After the scheduled
payment on January 1, 2026, the 2016 Bonds will be outstanding in the aggregate principal
amount of $18,835,000 with a final maturity date of January 1, 2037. The 2016 Bonds were
issued to refund the then outstanding principal amount of the $27,185,000 Water Utility
Revenue Bonds, Series 2007 and to finance capital improvements for the Utility’s capital
projects included in the 2016 Capital Improvement Plans.
The 2016 Bonds maturing in 2027 and thereafter (Callable Bonds) are subject to optional
redemption on any date beginning on January 1, 2026. Based on current market conditions,
a refunding on or shortly after January 1, 2026 of the Callable Bonds can produce net
present value debt service savings for the City of Madison Water Utility.
Attached is a draft resolution entitled “A Resolution Authorizing and Providing for the
Issuance and Establishing Parameters for the Sale of Not to Exceed $_____ Water Utility
Revenue Refunding Bonds, Series 2026, and Certain Related Details”. The City of Madison
Water Revenue Refunding Bonds are expected to be issued in early calendar year 2026 to
complete this pending refunding transaction (2026 Bonds).
The final form of this resolution will include the parameters for the City of Madison to
complete the sale of the 2026 Bonds to complete the refunding for debt service savings of
the Callable Bonds, authorize an authorized officer to award the 2026 Bonds to a purchaser
to be determined by competitive bid, and complete the refunding transaction. If the
parameters are not met the 2026 Bonds will not be sold or issued and the refunding will not
occur.
Also attached is a summary of the pending refunding transaction and draft resolution as
prepared by Baker Tilly Municipal Advisors, who is the municipal advisor to the City of
Madison.