About this bond issuance
Purpose The proceeds from these community bonds will be used to support the expansion of the Olbrich Botanical Gardens. The new educational space will welcome learners of all ages, interests, abilities, and backgrounds, and an energy efficient greenhouse will grow even more flowers and plants for the gardens.
The City will be holding two informational sessions to allow residents to ask questions about the new program.
Olbrich Botanical Gardens
Warner Park Community Recreation Center
ObligorThe obligor is the organization that holds ultimate responsibility for the bond issuance, and will ensure that investors get repaid.
City of Madison, Wisconsin
IssuerOften the obligor. However, sometimes issuers partner with an authorized conduit financing non-profit within their state or city to issue the bonds.
City of Madison, Wisconsin
AuthorityBefore an issuer can raise money for a project, they must first have the legal authority to do so. This authority is sometimes preceded by a general election, and awarded after the successful passing of a bond measure.
The Notes are being issued pursuant to Wisconsin Statutes, Section 67.12(12) and a resolution adopted by the Common Council on August 7, 2018.
SecurityThe security section is a breakdown of the funds an issuer is planning to use to repay its investors. This repayment can come from a variety of sources, including local taxes.
The Notes are general Notes of the City for which it pledges its full faith and credit and unlimited power to levy direct general ad valorem taxes without limit as to rate or amount. The City will make its first levy in the fall of 2018 for collection in 2019. Each year's levy collections will be sufficient to pay the interest due April 1 and the principal and interest due October 1 in the year of collection.
TrusteeThe trustee is a third-party, often a large bank or financial institution, responsible for all payment flows between an issuer and an investor. This trustee is in charge of processing coupon payments.
U.S. Bank National Association
The City will not designate the Notes as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
Community bonds are exempt from federal taxes only. Under state law, interest on community bonds is not exempt from state taxation.
For orders over $100,000, the amount above $100,000 is subject to pro-rata allocation if the issue is oversubscribed. Pro rata allocations may be adjusted to ensure that no bonds are issued in an amount that is not divisible by the minimum denomination of $500.
Moody’s Investors Service has rated the bonds AAA (with a negative outlook).