Fiscal Note
The proposed resolution amends subsection 4.08(2) of the Madison General Ordinances to allow for an alternate interest rate on projects where special assessments are levied to fund a water main to serve on properties provided private water service by a private supply cooperate, and which are funded by the Safe Drinking Water Loan Program (SDWLP) loan issued by the State of Wisconsin Department of Natural Resources. For this type of projected, it is anticipated only one project will qualify for the unique treatment. The interest rate on the SDWLP loan is 2.145%.
Title
Amending Subsection 4.08(2) of the Madison General Ordinances to allow for an alternate interest rate on certain installment payments.
Body
DRAFTER’S ANALYSIS: This ordinance amends the City’s interest rate calculation methodology associated with certain special assessments that are paid by installments. As allowed for by Wis. Stat. Sec. 66.0715(3)(b), and as provided for by MGO Sec. 4.08(2), the applicable interest rate for installment payments is set by the Common Council at the time an assessment is levied. The interest rate is established based upon the prior year’s general obligation borrowing rate. This ordinance would allow a different rate to be used for projects where the special assessments are being levied to fund a water main to serve properties provided private water service by a private water supply cooperative, and which are funded by a Safe Drinking Water Loan Program loan issued by the State of Wisconsin Department of Natural Resources. For this type of project, the interest rate shall be the loan rate associated with the SDWLP loan. It is anticipated that there will only be one project that will qualify for this unique treatment.
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The Common Council of the City of Madison do hereby ordain as follows:
1. Subsection (2) of Section 4.08 entitled “Special Assessments-Payment in Instal...
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