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File #: 991686    Version:
Type: Resolution Status: Passed
File created: 2/8/2000 In control: FINANCE & PERSONNEL COMMITTEE
On agenda: Final action: 2/29/2000
Effective date:    
Title: Substitute resolution authorizing the Commissioners of the Public Debt to market general obligation "corporate purpose bonds" pursuant to the provisions of Ch. 67, Stats.
Sponsors: THE CHAIR
Indexes: GENERAL OBLIGATION BONDS, MUNICIPAL BORROWING
Attachments: 1. 991686A0.DOC
NUMB:
991686
VERS:
SUBSTITUTE 1
REF:
 
XXBY:
THE CHAIR
TITL:
Substitute resolution authorizing the Commissioners of the Public Debt to market general obligation "corporate purpose bonds" pursuant to the provisions of Ch. 67, Stats.
ANLS:
This substitute resolution authorizes the Commissioners of the Public Debt to issue and sell City of Milwaukee general obligation "corporate purpose bonds" in the amount of $181,983,677.
BODY:
Whereas, General obligation bonds have been authorized in the 1997, 1998, 1999 and 2000 municipal budgets; and
 
Whereas, Initial resolutions have been adopted authorizing the issuance of such general obligation bonds; and
 
Whereas, In 1999 a corporate purpose resolution was adopted combining general obligation bonds authorized under various initial resolutions into one issue designated "corporate purpose bonds" and some of the authorized "corporate purpose bonds" were not sold; and
 
Whereas, It is the intention of the Common Council to rescind the authority of the corporate purpose resolution adopted in 1999 as it relates to bonds which were authorized but not sold in 1999 and to combine general obligation bonds authorized under the various initial resolutions into one issue and to designate such bonds as "corporate purpose bonds"; now, therefore, be it
 
Resolved, By the Common Council of the City of Milwaukee that the authority of Common Council Resolution File No. 981566 adopted March 2, 1999, being a resolution combining general obligation bonds authorized under various initial resolutions into one issue designated as "corporate purpose bonds" as it relates to bonds authorized but not sold in 1999, be and hereby is rescinded; and, be it
 
Further Resolved, By the Common Council of the City of Milwaukee in accordance with sec. 67.05(13), Stats., that the Commissioners of the Public Debt are authorized and requested to issue and sell general obligation "corporate purpose bonds" in the aggregate amount of $181,983,677 for each of the public purposes provided by the underlying initial resolutions as set forth herein and in the amounts shown:
 
                                                        Initial
                                                        Resolution
                                                        File No. and       Resolution          Bonds to
Purpose                                           Adoption Date       Amount             Be Sold
 
Providing financial assistance
to blight elimination, slum
clearance, redevelopment                12/17/99
and urban renewal projects               991333            $ 2,200,000     $ 2,200,000
 
Public buildings for
housing machinery and                    12/17/99
equipment                                          991320             6,024,000        6,024,000
 
                                                        12/17/99
Harbor improvements                        991321               2,100,000      2,100,000
 
Police Department                            12/17/99
facility construction projects              991322             21,000,000     21,000,000
 
                                                        12/17/99
Bridge and viaduct improvements     991323                 145,000          145,000
 
Sewage disposal - sewer                 12/17/99
improvement and construction          991324              6,419,000         6,419,000
Street improvements and                12/17/99
construction                                      991325              19,550,453      19,550,453
 
                                                       12/17/99
Library improvements                       991326                          880,000   880,000
 
Fire Department facility                        12/17/99
construction projects                         991331              1,500,000        1,500,000
 
Public improvements in
anticipation of special
assessments levied against              12/17/99
property                                            991332                3,827,923       3,827,923
 
Project costs in accordance
with project plans for Tax
Incremental Districts and
providing financial assistance to
urban renewal projects authorized   12/17/99
under s. 66.045                                 991330               8,000,000       8,000,000
 
 
School Board borrowing for
Milwaukee Public School                 12/17/99
capital purposes                                991327           17,000,000      17,000,000
 
                                                         1/18/00
Parks and public grounds                  991441                 708,000         708,000
 
Providing financial assistance to
blight elimination, slum clearance,
redevelopment, and urban renewal
projects under secs. 66.405 to
66.425, 66.43, 66.431, 66.4325,       11/24/98
66.435 and 66.46.                              981126            1,880,000      1,805,000
 
Public buildings for housing             11/24/98
machinery and equipment                  981127           6,582,500       2,371,250
 
                                                          11/24/98
Harbor improvements                          981128                  580,000         214,000
 
Police Department facility                   11/24/98
construction projects                            981129             13,000,000      6,897,490
 
                                                          11/24/98
Bridge and viaduct improvements       981130               3,920,000      3,920,000
 
Sewage disposal- sewer                    11/24/98
improvement and construction             981131          21,915,000       11,895,752
 
Street improvements and                    11/24/98
construction                                         981132           10,096,067        6,115,567
 
                                                         11/24/98
Library improvements                         981133                   550,000         100,000
 
Public improvements in
anticipation of special
assessments levied against              11/24/98
property                                              981134                 4,214,988      4,214,988
 
School Board borrowing for
Milwaukee Public School                   11/24/98
capital purposes                                  981136            27,000,000      11,320,000
 
Project costs in accordance
with project plans for
Tax Incremental Districts
and providing financial assistance
to urban renewal projects                  12/18/98
authorized under s. 66.045                 981254          10,800,000         10,800,000
 
Project costs in accordance with
project plans for Tax Incremental         1/20/98
Districts                                                  971424         8,300,000          6,079,180
 
                                                            1/20/98
Street improvements                            971428         11,117,320           2,385,807
 
                                                            1/20/98
Parks and public grounds                    971429            2,559,000          1,547,000
 
                                                           1/20/98
Library improvements                         971430          2,160,000            750,000
 
Public improvements in
anticipation of special
assessments levied against                 1/20/98
property                                                971431             4,122,743        4,122,743
 
Purchase of sites for and                    1/20/98
construction of engine houses              971432              700,000          111,000
 
                                                            1/20/98
Bridge and viaduct improvements          971434           2,909,000         2,909,000
 
                                                             1/20/98
Parking facility improvements                  971436               312,000           298,000
 
                                                              1/20/98
Harbor improvements                            971437                2,204,000        339,000
 
Buildings for housing machinery            1/20/98
and equipment                                        971438          10,050,756       1,233,530
 
Providing financial assistance to
blight elimination, slum clearance,
redevelopment, and urban renewal
projects under secs. 66.405 to
66.425, 66.43, 66.431, 66.4325,            1/20/98
66.435 and 66.46                                   971439          3,206,000        3,206,000
 
Providing financial assistance to
blight elimination, slum clearance,
redevelopment, and urban renewal
projects under secs. 66.405 to
66.425, 66.43, 66.431, 66.4325,            1/17/97
66.435 and 66.46                                   961420         17,500,000      2,311,000
 
Buildings for housing machinery           1/17/97  
and equipment                                       961421         10,399,614           64,000
 
                                                              1/17/97
Harbor improvements                             961422           870,000          370,000
 
                                                           1/17/97
Parking facility projects                         961423          3,690,000        1,166,000
 
Purchase of sites for and                     1/17/97
construction of engine houses              961425            1,560,000         147,000
 
                                                              1/17/97
Bridge and viaduct improvements            991426         2,998,000        1,209,000
 
                                                            1/17/97
Street improvements                             961428           5,737,267          735,000
 
                                                            1/17/97
Parks and public grounds                     961429               500,000         151,000
 
Public improvements
in anticipation of special
assessments levied against                   1/17/97
Property                                                 961431            3,840,994       3,840,994
 
; and be it
 
Further Resolved, That the general obligation "corporate purpose bonds" herein authorized shall be sold by the Commissioners of the Public Debt at such times as the Commissioners shall determine to be prudent and appropriate; and, be it
 
Further Resolved, That the Commissioners of the Public Debt are authorized to prepare the forms and establish the procedures required in the issuance and sale of general obligation "corporate purpose bonds" herein authorized in accordance with the provisions of Ch. 67, Stats., and the provisions of the City of Milwaukee ordinances, such bonds to be in a form approved by the City Attorney and to be executed by those officers of the City whose signatures are required by law; and, be it
 
Further Resolved, That the general obligation "corporate purpose bonds" herein authorized shall be sold at a price of not less par and accrued interest thereon; and, be it
 
Further Resolved, That such general obligation tax-exempt "corporate purpose bonds" shall be dated as of the first or fifteenth day of the month in which they are issued, bear interest, payable semi-annually, at coupon rates as determined by the Commissioners of the Public Debt, not to exceed 9.5%; with an issue True Interest Cost Rate not to exceed 7.5%; that such general obligation taxable "corporate purpose bonds" shall be dated as of the first or fifteenth day of the month in which they are issued, bear interest, payable semi-annually, at coupon rates as determined by the Commissioners of the Public Debt, not to exceed 12%; with an issue True Interest Cost Rate not to exceed 10%; that the Commissioner of the Public Debt may establish a call date for some or all of the bonds with a maturity in excess of ten years from the date of issuance; that the Commissioners of the Public Debt shall specify the due dates for, and the amounts of, the payment of principal of said bonds, not to exceed 20 years, and interest thereon, and that such payment schedule shall be entered upon the permanent record of the Commissioners of the Public Debt and formally communicated to the City Clerk; and, be it
 
Further Resolved, That a direct annual irrepealable tax shall be levied in each year that such bonds are outstanding, in an amount sufficient to pay and for the express purpose of paying the interest on said bonds, as it falls due, and also to pay and discharge the principal thereof at maturity, and shall be extended upon the tax roll of the City of Milwaukee and shall be collected by the officers of the City in the same manner and at the same time as taxes for general City purposes for such years are extended and collected, and when so collected, the proceeds of said taxes shall be used solely for paying the principal and interest on such bonds so long as any bonds of said issue remain outstanding; and, be it
 
Further Resolved, That interest on or principal of the bonds falling due at any time when there shall be on hand insufficient funds from proceeds of the tax levy for the payment of such interest or principal shall be paid promptly when due from other funds of the City, which funds shall be reimbursed thereof out of the proceeds of the taxes above levied when such taxes shall have been collected; and, be it
 
Further Resolved, That a Continuing Disclosure Certificate in substantially the form of the draft annexed to Common Council File Number 950621, adopted September 27, 1995, to be dated the date of initial delivery of the Bonds, is authorized to be executed and delivered by the Comptroller; and, be it
 
Further Resolved, That the obligation of the City of Milwaukee under the aforementioned disclosure certificate under the terms therein specified is determined to be contractual for the benefit of the bondholders from time to time; and, be it
 
Further Resolved, That the City of Milwaukee authorizes and directs the appropriate officers and employes of the City to take all action necessary or appropriate to comply with and carry out all of the provisions of the Continuing Disclosure Certificate as amended from time to time. Notwithstanding any other provision of the resolution, failure of the City to perform in accordance with the Continuing Disclosure Certificate shall not constitute a default under the resolution and the Continuing Disclosure Certificate may be enforced only as provided therein; and, be it
 
Further Resolved, That a global certificate shall be issued for each stated maturity date and registered only in the name of Cede & Company as nominee of the Depository Trust Company, New York, New York, for delivery and immobilization by the Depository Trust Company following the closing. The Depository Trust Company will act as securities depository of the bonds. The City will make payment of principal, redemption premium if any, and interest on the bonds on the due dates to the Depository Trust Company, or its nominee, as registered owner of the bonds, in same-day funds. Notices, if any, given by the City to the registered owner of the bonds will be given to the Depository Trust Company, In the event that the securities depository relationship with the Depository Trust Company for the bonds is terminated and the City does not appoint a successor securities depository, the City will prepare, authenticate and deliver at its expense fully-registered certificated bonds in the denominations of $5,000 or in the integral multiple thereof in the aggregate principal amount by maturity then outstanding to the beneficial owners of the bonds; and, be it
 
Further Resolved, That with respect to the issuance of any general obligation corporate purpose tax-exempt bonds, the City covenants with the holders from time to time of said bonds that (i) throughout the term of said bonds and (ii) through the date that the final rebate, if any, must be made to the United States in accordance with Section 148 of the Internal Revenue Code of 1986, as amended (the "Code") it will comply with the provisions of Sections 103 and 141 through 150 of the Code, and the applicable regulations of the Internal Revenue Service adopted thereunder, that must be satisfied in order that interest on said bonds shall be and continue to be excluded from gross income for federal income tax purposes under said Section 103; and, be it
 
Further Resolved, That the cost of issuing the bonds and marketing same shall be paid from the proceeds of the bond sale, or deducted from same, and the project account or accounts credited with the net proceeds of the sale or sales.
ZDPT:
Comptroller
DFTR:
City Attorney
#17123 TEH:kef 2000 Bond Sales
2/22/00