The Madison City Commission took action on a number of different items related to the city’s Water System Improvement project during its regular meeting on Monday.
Commissioners adopted four resolutions regarding the project, including one authorizing the issuance, sale, and delivery of a revenue bond of the city, not to exceed seven-million-749-thousand dollars. The resolution lays out all the information and terms of the bond, including agreements for it’s payment and security, and providing for a special charge or surcharge for the purpose of paying principal of and interest on the bond as they become due.
City Finance Officer Jennifer Eimers said the resolution regarding the bond also includes a description of the project.
Eimers said the information included in the resolution is very standard.
Other resolutions approved by the commission Monday included a legal services agreement with Meierhenry Sargent LLP of Sioux Falls, who will be retained as bond counsel for the proposed project revenue bond. In the agreement it states that the city is intending to obtain a loan from the USDA, and is intending to issue Water System Improvement Project Revenue bonds for the loan, and that Meierhenry Sargent LLP will perform all legal services necessary to give a bond opinion and perform all other customary legal services necessary to the financing.
Commissioners also approved resolutions authorizing bond and grant anticipation notes for the project. They also approved an acknowledgement letter for Dougherty & Company LLC to serve as the placement agent for the water revenue bond that the city anticipates issuing.
Another item approved by the city commission on Monday is a right-of-way certificate with USDA Rural Development for the Water System Improvement project. City Engineer Chad Comes said this involved some easements needed within the Lakeview Industrial Park where the new water tower will be located.