City of Madison - File #: 79781

• File #: 79781
• Version: 1
• Name: Resolution Authorizing the Sale and Issuance of $4,675,000 Subordinate Water Utility Revenue Bonds, Series 2023; and Providing for Other Details and Covenants With Respect Thereto
• Type: Resolution
• Status: Passed
• File created: 9/11/2023
• In control: FINANCE COMMITTEE
• On agenda: 10/3/2023
• Final action: 10/3/2023
• Enactment date: 10/6/2023
• Enactment #: RES-23-00600
• Title: Resolution Authorizing the Sale and Issuance of $4,675,000 Subordinate Water Utility Revenue Bonds, Series 2023; and Providing for Other Details and Covenants With Respect Thereto
• Sponsors: Charles Myadze, Derek Field, Amani Latimer Burris

Date	Ver.	Action By	Action	Result
10/3/2023	1	COMMON COUNCIL	Adopt Unanimously	Pass
9/27/2023	1	WATER UTILITY BOARD
9/26/2023	1	FINANCE COMMITTEE	RECOMMEND TO COUNCIL TO ADOPT (15 VOTES REQUIRED) - REPORT OF OFFICER	Pass
9/19/2023	1	FINANCE COMMITTEE	Refer
9/19/2023	1	COMMON COUNCIL	Refer	Pass
9/12/2023	1	Water Utility	Referred for Introduction

Fiscal Note
This resolution authorizes the sale and issuance of $4,675,000 Subordinate Water Utility Revenue Bonds, Series 2023. Through this resolution, the City is authorizing a loan from the State of Wisconsin Safe Drinking Water Loan (SDWL) of $4,675,000, to be repaid from Water Utility Revenues at an annual interest rate of 2.145% over the next 20 years. The Bonds do not represent an indebtedness of the City nor a charge against its general credit or taxing power (i.e., it is not a general obligation debt). The Bonds will serve as security for the repayment of the SDWL, as required by state law. Proceeds of the SDWL will be used to partially repay a $20 million Bond Anticipation Note (BAN) issued in 2019 in anticipation of the City's participation in the SDWL Program. The BAN is due to be repaid by November 2024. Annual debt service on the SWDL is estimated to be $287,700.


Title
Resolution Authorizing the Sale and Issuance of $4,675,000 Subordinate Water Utility Revenue Bonds, Series 2023; 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 were necessary to meet the needs of the Municipality and the residents thereof, consisting of certain additions, extensions, improvements, renewals, or replacements to the System identified in the Municipality’s 2019, 2020, and 2021 Water Utility Projected Annual Capital Spending Plans (the “2019 BAN Project”), which included the replacement or rehabilitation of water mains along certain streets (the “Project”) specified in Exhibit F to the Financial Assistance Agreement (as defined herein), which Project has been assigned Safe Drinking Water Loan Program Project No. 4837-06 by the State of Wisconsin Department of Natural Resources (the “Department of Natu...