NUMB:
991862
VERS:
SUBSTITUTE 1
REF:
XXBY:
THE CHAIR
TITL:
Substitute resolution relating to the issuance and sale of Bond Anticipation Notes (BANs) in an amount not to exceed $14,560,000 to finance the cost of improvements to the City's Sewerage System, pending issuance of Sewerage System Revenue Bonds.
ANLS:
Section 66.076, Stats. authorizes a municipality to construct, acquire or lease, extend or improve any plant and equipment for the collection, transportation, storage, treatment and disposal of sewage or storm water and surface water including lateral, main and interceptor sewers. It permits payment for any such project or service from revenue bonds issued pursuant to § 66.066, Stats. Section 66.076 also authorizes the governing body to establish sewer service charges and to use such charges for the payment of principal and interest on revenue bonds issued for such purposes. The city has established a sewer service charge.
Section 66.066(2)(m), Stats. provides that if a governing body by resolution declares its intention to authorize the issuance of revenue bonds, the governing body may, prior to the issuance of such revenue bonds, authorize the issuance of BANS for a term of up to five years. It further provides that the governing body may pledge the revenues of the public utility to the payment of principal and interest on the BANs. Section 66.04(2) authorizes the city treasurer to purchase BANs as an investment.
In anticipation of the issuance of revenue bonds for the purpose of the sewerage system of the city of Milwaukee, this resolution authorizes the issuance and sale of BANs in an amount not to exceed $14,560,000 to fund improvements to the city's sewerage system. It is anticipated that the BANs will be purchased by the city treasurer as an investment.
BODY:
Whereas, The 2000 city budget authorizes the issuance and sale of revenue bonds for relief and relay sewer projects within the sewer maintenance fund; and
Whereas, The Common Council of the City of Milwaukee has established a sewer service charge pursuant to § 66.076, Stats., to meet all or part of the requirements for the construction, reconstruction, improvement, extension, operation, maintenance, repair and depreciation of the sewerage system and for the payment of all or part of the principal and interest of any indebtedness incurred thereof; and
Whereas, Section 66.066(2)(m), Stats. provides that if the governing body of any municipality by resolution declares its intention to authorize the issuance or sale of sewerage system revenue bonds, the governing body may prior to the issuance of bonds and in anticipation of their sale, authorize the issuance of BANs by the adoption of a resolution; now, therefore, be it
Resolved, That the Common Council of the City of Milwaukee hereby and herewith authorizes and declares its purpose to issue and sell sewerage system BANs, Series A in an amount not to exceed $14,560,000 to finance the cost of improvements to the city's sewerage system pending issuance of sewerage system revenue bonds; and, be it
Further Resolved, That the Common Council hereby declares its intention to authorize and issue sewerage system revenue bonds in an amount sufficient to retire the outstanding BANs; and, be it
Further Resolved, That the Common Council hereby pledges the revenues of sewer service charges established pursuant to § 66.076, Stats. to payment of the principal and interest on the sewerage system BANs; and, be it
Further Resolved, That the sewerage system BANs, Series A, authorized shall be for a term of up to 5 years and may be payable at such times from the date thereof and at such places as the commissioners of the public debt shall determine. All such BANs may contain a provision authorizing redemption thereof in whole or in part at the option of the commissioners of the public debt on any interest payment date. All such BANs shall bear interest at a rate based on the applicable average State of Wisconsin Local Government Investment Pool rate; and, be it
Further Resolved, That the sewerage system BANs, Series A, shall be payable from sewer service charge revenues pledged from the city's general fund and from the proceeds of the sale of sewerage system revenue bonds. Such sewerage system BANs are not an indebtedness of the city and no lien may be created or attached with respect to any property of the city as a consequence of the issuance of the sale of such BANs; and, be it
Further Resolved, That any funds derived from the issuance and sale of sewerage system revenue bonds issued subsequent to the execution of the sale of sewerage system BANs shall constitute a trust fund and such trust fund shall be expended first for the payment of principal and interest of such BANs and then may be expended for such other purposes as set forth in the resolution authorizing the sewerage system revenue bonds; and, be it
Further Resolved, That no sewerage system BANs authorized hereunder may be issued unless the City's Comptroller certifies to the Common Council the contract(s) with respect to additions and improvements and extensions are to be let and that such proceeds of such BANs shall be required for the payment of such contracts; and, be it
Further Resolved, By the Common Council that the proceeds of the sale of the sewerage system revenue bonds in anticipation of the sale of which the BANs were authorized to be issued herein are hereby pledged to the payment of the principal on the BANs. Sewer service charge revenues pledged shall be used for payment of interest on the BANs; and, be it
Further Resolved, That the BANs herein authorized shall be sold to the City as a legal form of investment for municipal funds under § 66.04(2), Stats.
ZDPT:
Comptroller
DFTR:
City Attorney/TEH:kef
29260 04/03/2000 10:27 AM