City of Madison Community Bonds
The community bond* order period is Oct. 3, 2018 – Oct. 9, 2018.
Upcoming Information Sessions
The City will be holding two informational sessions to allow residents to ask questions about the new program.
Tuesday, Sept. 25 at 6:00 pm
Olbrich Botanical Gardens
3330 Atwood Ave.
Wednesday, Oct. 3 at 6:00 pm
Warner Park Community Recreation Center
1625 Northport Dr.
2018 Community Bond Program
The City of Madison is offering community bonds to our residents! By buying community bonds, you can invest in the future of our city, and earn tax-exempt interest at the same time.
Bonds are usually sold in denominations of $5,000, but the City has lowered this amount to $500. By offering smaller bond amounts, we are making the bonds more accessible to residents and community investors.
The City will use the funds from the community bond program for the expansion of Olbrich Botanical Gardens. The new learning center at the Gardens will welcome learners of all ages, interests, abilities, and backgrounds. An energy-efficient greenhouse will grow even more flowers and plants for the gardens.
The Olbrich Botanical Gardens Expansion project is also supported by the Rooted & Growing Capital Campaign. You can donate to the Rooted & Growing campaign and learn more about where your donation will go at olbrich.org/rootedandgrowing.cfm.
We will sell up to $2.1 million in bonds on a first-come, first-served basis on orders between $500 and $50,000.
Order Community Bonds
Residents will be able to buy community bonds for one week only, Oct. 3, 2018 – Oct. 9, 2018.
We are issuing bonds through broker-dealer Neighborly Securities. You can register a Neighborly account today to get ready for the order period.
When the community bond order period starts, you can use this account to place your order.
Frequently Asked Questions
Who can purchase City of Madison community bonds?
Anyone can purchase City of Madison community bonds. If the community bonds sell out, bonds will be issued to residents of the City of Madison first, followed by Dane County, then Wisconsin, and the United States.
What is the interest rate return?
The preliminary interest rates will be determined at the start of the order period, on Oct. 3, 2018.
What is the maturity?
Community bonds are available in 1 to 10 year maturities. The preliminary interest rate on each maturity will be determined on Oct. 3, 2018.
Is the community bond interest tax-exempt?
Community bonds are exempt from federal taxes only. Under state law, interest on community bonds is not exempt from state taxation.
Is there a limit to the number of community bonds I can order?
No. The City will issue bonds on a first-come, first-served basis on orders between $500 and $50,000.
For orders over $50,000, the amount above $50,000 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.
When are community bonds available for purchase?
You can order community bonds for one week only, Oct. 3, 2018 – Oct. 9, 2018.
Can the community bonds be partially redeemed prior to maturity?
No. Community bonds and interest will only be paid at maturity.
* "Community bonds" are 2018 Series D City of Madison Promissory Notes