City of Madison, Wisconsin | Legislative Information Center
Share to Facebook Share to Twitter Bookmark and Share
File #: 56203    Version: 1 Name: Redemption of $11,195,000 Sewer System Revenue Bonds, Series 2008-B
Type: Resolution Status: Passed
File created: 6/5/2019 In control: Attorney's Office
On agenda: 7/2/2019 Final action: 7/2/2019
Enactment date: 7/5/2019 Enactment #: RES-19-00504
Title: Resolution authorizing the redemption prior to maturity of the City of Madison $11,195,000 Sewer System Revenue Bonds, Series 2008-B
Sponsors: Satya V. Rhodes-Conway

Fiscal Note

This resolution authorizes the early repayment of the Series 2008-B Sewer System Revenue Bonds.  The current remaining principal on these bonds is $4.605 million.

 

Sewer Utility had a cash balance at the end of 2018 of approximately $26.660 million.  Sewer cash reserves in the City's investment fund are earning approximately 2% annually. The true interest cost on the bonds is approximately 4.213%.

 

Reduction in principal and interest costs through this redemption will help to improve bond coverage (ratio of net Sewer System revenues to revenue bond debt service) over the next several years. The bond covenants require that the Sewer Utility retain a 1.25 to 1 ratio of net revenues to debt service.

 

Title

Resolution authorizing the redemption prior to maturity of the City of Madison $11,195,000 Sewer System Revenue Bonds, Series 2008-B

Body

NOW, THEREFORE, BE IT RESOLVED, that the Common Council hereby authorizes the redemption prior to maturity of all the outstanding City of Madison $11,195,000 Sewer System Revenue Bonds, Series 2008-B, and authorizes the Mayor, City Clerk and Finance Director to execute any documents necessary to effect such redemption, all in a form approved by the City Attorney.