Fiscal Note
This is an initial resolution to issue 20-year bonds for certain major streets and bicycle pedestrian projects that were included in the 2017 adopted capital budget. Those projects are listed below by project, borrowing amount, type of project and project number:
Project Title Borrowing Amount Type of Project Project #
McKee Road $3,738,500 Capacity Expansion 10245
CTH M & PD $265,300 Capacity Expansion 10232
CTH M & Midtown Road $1,317,800 Capacity Expansion 10233
Cottage Grove Road $995,000 Capacity Expansion 10230
Monroe Street $300,000 Reconstruction 10251
High Point Road Bridge $1,475,900 Capacity Expansion 10441
Ice Age Junction Path & Bridge $2,400,000 Capacity Expansion 11159
Grand Avenue, Van Hise Avenue $812,200 Reconstruction 10898
Park Place, Mason Street
Gregory, Knickerbocker & Sprague Sts. $768,500 Reconstruction 10899
Woodrow Street $387,000 Reconstruction 10896
Walter & Sargent Streets $750,000 Reconstruction 10906
Atwood Avenue, Fair Oaks Avenue & $405,000 Reconstruction 11127
Walter Street
Gammon Road South $250,000 Reconstruction 11130
$13,865,200
Some of the projects listed above are at the planning and design stage and are scheduled for construction in future years of the 2017 adopted capital improvement plan.
Up to a total of $13,865,200 will be issued for these projects, including the estimated cost of issuance.
Due to the relatively large cost impact and useful life of these projects, along with the overall amount of borrowing in 2017 due to major facilities construction and renovation projects, these bonds will be issued with a 20 year repayment period. Debt service on $13,865,200 is anticipated to average approximately $948,000 annually. This compares with estimated average annual debt service of $1,615,000 annually for 10 year promissory notes. Interest costs on 20 year bonds are estimated to total $5.1 million, compared with $2.3 million for 10 year notes. The debt service and interest cost estimates are based on current interest rates on AAA-rated municipal debt and the City’s practice of repaying debt on a level-principal basis.
Title
Initial Resolution Authorizing Not to Exceed $13,865,200 Bonds for City of Madison for Various Streets and Bicycle and Pedestrian Projects.
Body
BE IT RESOLVED, by the Common Council of the City of Madison, Wisconsin, that there shall be issued the general obligation bonds of the City in a principal amount not to exceed $13,865,200 for the following purposes: (i) street and bridge reconstruction; (ii) capacity expansion with additional lanes and paths. For the purpose of paying principal of and interest on the bonds, there is hereby levied on all the taxable property in the City a direct annual irrepealable tax sufficient for that purpose
BE IT FURTHER RESOLVED, that the City Clerk is authorized to publish a Notice to Electors pursuant to Section 67.05(7)(b), Wisconsin Statutes.