City adopts resolutions to move forward with financing for utility infrastructure projects

The Madison City Commission took action on several items needed to move forward with utility infrastructure projects in the city, that will include funding through the U.S. Department of Agriculture (or USDA) Rural Development.  

On Tuesday, commissioners approved a resolution authorizing the issuance of a Wastewater Revenue Bond.  City Finance Officer Sonya Wilt said the just more than three-point-two-million dollar bond will have an interest rate of one-point-eight-seven-five for forty years and will be paid through the city’s sewer surcharge.  The commission also adopted a resolution authorizing a loan with the USDA for wastewater system improvements. In addition, commissioners approved a resolution establishing a sewer surcharge for sewer system improvement.  Wilt said the surcharge will be up to six-dollars and is currently built into the base rate.  City Utilities Director Brad Lawrence said the surcharge will not require an additional charge.  

Commissioners on Tuesday also adopted a resolution authorizing the issuance of a Storm Sewer Sales Tax Revenue Bond.  Wilt told commissioners that the just more than three-point-four-million dollar bond will also have a one-point-eight-seven-five interest rate for forty years.  She said the difference between this bond and the wastewater revenue bond is that this one will be paid using sales tax instead of a surcharge.

Along with the bond resolution, commissioners also adopted a resolution authorizing a loan with USDA for storm sewer facility improvements.

Other resolutions adopted by commissioners Tuesday include one approving a legal services agreement with Meierhenry Sargent LLP, and also a placement agent agreement with Colliers Securities LLC for its work with the bonds.