Bond offering finances I-565 ‘flyover’ at Town Madison

MADISON – An expected bond offering will finance major improvements for the I-565 interchange serving Toyota Field and the Town Madison development, city officials said. It will also refinance debt associated with the municipal infrastructure at Town Madison.

“When issued later this month, the bonds will provide 100% of the funding for the final phase of the I-565 interchange,” said Madison Mayor Paul Finley. “This includes ‘flyover’ ramps to move westbound traffic safely and efficiently in and out of Toyota Field and Town Madison, along with easier access from Redstone Arsenal Gate 7.”

Madison is seeking updated S&P Global Ratings (formerly Standard & Poor’s) after new ratings criteria adopted Nov. 2 skewed the city’s Moody’s rating to show a slight downgrade to Aa3 from their previous Aa2 rating.

“Madison remains one of the most highly rated municipalities in Alabama, but by leveraging debt scoring from 10% of the overall score to 30%, it actually penalizes financially strong cities like Madison that wholeheartedly support public education,” said Rushton Rice, president of Rice Advisory, the city’s financial advisory firm. “If you set out to have the best public school system in the country, investment in infrastructure is critical to the overall success.”

The S&P rating for the City of Madison was “AA+”, a rating it has held since 2013. S&P’s report notes Madison’s “very strong economy, very strong financial management policies, historically strong budgetary performance and maintenance of sizable reserves” as the reasons for the high rating.

Madison City Council President Ranae Bartlett wants the council to remain focused on the long-term benefit the Town Madison project will provide Madison.

“Using Rice Advisory’s projections, we should be able to retire these bonds in 10-12 years, setting Madison up for long-term financial success.” Bartlett said. “Our Madison City Schools also benefit greatly as all education funds from both Town Madison and the recently annexed Publix on (U.S.) 72 immediately are added to their general fund.”