Fiscal Note
This resolution acknowledges that the Utility’s initial/interim Capital expenditures on eligible Capital projects will be requesting reimbursement through the Safe Drinking Water Loan Program's reduced interest rate loan program. No appropriation is required.
Title
Resolution Declaring Official Intent to Reimburse Expenditures from Proceeds of Borrowing (various alder districts, citywide)
Body
WHEREAS, Madison Water Utility, on behalf of the City of Madison, Dane County, Wisconsin (the “Municipality”) intends to complete, or has significantly completed, several public works improvements projects, as identified within Projects: 4837-07, 4837U08, 4837-09, 4837-10, 4837-11, 4837-12 and 4837-13 in the Wisconsin DNR Safe Drinking Water Loan Program 2024 Fiscal Year Project Priority List (the “Projects”); and
WHEREAS, the Municipality expects to finance the Projects on a long-term basis by issuing tax-exempt bonds or promissory notes (the “Bonds”); and
WHEREAS, because the bonds will not be issued prior to completion of the eligible Projects, the Municipality must provide interim financing to cover costs of the Projects incurred prior to receipt of the proceeds of the Bonds; and
WHEREAS, it is necessary, desirable, and in the best interests of the Municipality to advance moneys from its funds on hand on an interim basis to pay the costs of the Projects until the Bonds are issued; and
Section 1 - Expenditure of Funds. The Municipality shall make expenditures as needed from its funds on hand to pay the costs of the Projects until Bond proceeds become available.
Section 2 - Declaration of Official Intent. The Municipality hereby officially declares its intent under Treas. Regs. Section 1.150-2 to reimburse said expenditures with proceeds of the Bonds, the principal amount of which is not expected to exceed $20 million under the State Fiscal Year 2024 Projects.
Section 3 - Unavailability of Long-Term Funds. No funds for payment of the Projects from sources other than the Bonds are, or are reasonably expected to be, reserved, allocated on a long term basis, or otherwise set aside by the Municipality pursuant to its budget or financial policies.
Section 4 - Public Availability of Official Intent Resolution. This resolution shall be made available for public inspection at the Madison Water Utility office within 30 days after its approval in compliance with applicable State law governing the availability of records of official acts including Subchapter II of Chapter 19, and shall remain available for public inspection until the Bonds are issued.
Section 5 - Effective Date. This resolution shall be effective upon its adoption and approval.