Committee approves three bond refundings, forwards 2026 budget to council without recommendation

The Monona committee on Nov. 17 approved three separate bond refunding measures intended to lower borrowing costs and smooth future payments, and forwarded the proposed 2026 operating budget and tax levy to the full City Council without a committee recommendation.

The committee approved Resolution 25-112846 to issue general obligation refunding bonds (series 2025B). City financial advisers said the par amount was reduced from the $3.9 million shown in preliminary materials to about $3,640,000 after market pricing; a net premium of $236,475 at delivery will offset costs, and the advisers reported a true interest cost of 4.125% for the 18‑year issue. The committee discussed the bonds’ call provisions; staff clarified the maturity language and confirmed the issue has a redemption subject-to-date in 2034, with earlier references to 2031 corrected in the meeting record.

"We have at the day of closing, what we call a true interest cost of 4.125% for that 18 year issue," said Jeff Balaji of Hutchison, the city's financial adviser, describing the market pricing and premium that reduced the par amount.

The committee next approved…