...Fiscal Note
Madison Water Utility (Utility) has been approved to receive $2.93 million in principal forgiveness and $2.93 million as a low-interest loan from the Safe Drinking Water Loan Program (SDWLP) for completing construction of the treatment facility. The SDWLP loan has an attractive annual interest rate of 2.145% and is repayable over a 20-year period.
Under the proposed nationwide PFAS litigation settlements, the Utility is expected to receive an estimated settlement payment of $3.50 million over a 12-year proposed settlement payment period (2024-2036). The estimated payment would adequately cover the projected principal and interest payments on the $2.93 million low-interest loan from the SDWL Program.
The principal forgiveness portion of the SDWL Program ($2.93 million) along with the estimated PFAS settlement amount ($3.50 million) would pay for the Utility’s Well 15 PFAS treatment facility project ($5.89 million), resulting in no direct financial impact on the Utility’s rate payers.
The attached resolution authorizes the issue of $2,932,862 in revenue bonds to the SDWLP. The DNR, who administers the SDWLP, plans to close the Utility’s loan on July 24, 2024.
...Title
Authorizing the Sale and Issuance of up to $2,932,862 Subordinate Water Utility Revenue Bonds, Series 2024B; and Providing for other Details and Covenants with Respect Thereto
...Body
Whereas, the City of Madison, Wisconsin (the “Municipality”) owns and operates a water system (the “System”) which is operated for a public purpose as a public utility by the Municipality; and
Whereas, certain improvements to the System are necessary to meet the needs of the Municipality and the residents thereof, consisting of the installation of new treatment equipment for the removal of per- and polyfluoroalkyl substances at Well No. 15, including modifications to the existing building and below-grade reservoir, removing existing treatment equipment from service, and other...
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