...Fiscal Note
The proposed resolution acknowledges that the City of Madison Water Utility will request reimbursement on eligible capital project expenses through the State of Wisconsin DNR's Safe Drinking Water Loan Programs reduced interest rate loan program. There are no direct fiscal impacts from this proposed resolution.
...Title
Declaring Official Intent to Reimburse Expenditures from Proceeds of Borrowing
...Body
WHEREAS, Madison Water Utility, on behalf of the City of Madison, Dane County, Wisconsin (the “Municipality”) intends to complete several public works improvements projects, as identified within Projects: 4837-U14, 4837-15, 4837-U16 and 4837-17 in the Wisconsin DNR Safe Drinking Water Loan Program 2026 Fiscal Year Project Priority List (the “Projects”); and
WHEREAS, the Municipality expects to finance the Projects on a long-term basis by issuing tax-exempt bonds or promissory notes (the “Bonds”); and
WHEREAS, because the bonds will not be issued prior to completion of the eligible Projects, the Municipality must provide interim financing to cover costs of the Projects incurred prior to receipt of the proceeds of the Bonds; and
WHEREAS, it is necessary, desirable, and in the best interests of the Municipality to advance moneys from its funds on hand on an interim basis to pay the costs of the Projects until the Bonds are issued; and
NOW THEREFORE, BE IT RESOLVED, by the Common Council of the City of Madison, Wisconsin, that:
Section 1 - Expenditure of Funds. The Municipality shall make expenditures as needed from its funds on hand to pay the costs of the Projects until Bond proceeds become available.
Section 2 - Declaration of Official Intent. The Municipality hereby officially declares its intent under Treas. Regs. Section 1.150-2 to reimburse said expenditures with proceeds of the Bonds, the principal amount of which is not expected to exceed $15 million under the State Fiscal Year 2026 Projects.
Section 3 - Unavailability of Long-Term Funds. ...
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