Number
231766
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution authorizing the sale and issuance of Water System Second Lien Revenue Bonds, Series 2024 W3.
Analysis
This resolution authorizs the sale and issuance of Water System Second Lien Revenue Bonds, Series 2024 W3.
Body
Whereas, Common Council Resolution File No. 191407 (the “Series Resolution”) adopted on January 19, 2021 by the Common Council (the “Common Council”) of the City of Milwaukee, Wisconsin (the “City”) authorizes the issuance of Water System Second Lien Revenue Bonds in the aggregate amount of up to $100,000,000 in one or more series (the “Bonds”) under a Master Resolution File No. 131057 adopted by the Common Council on July 22, 2014, as amended (the “Master Resolution”); and
Whereas, $55,046,538 of bonds have been issued pursuant to the Series Resolution; and
Whereas, the Series Resolution authorizes and directs that the Bonds shall be sold by the City at private sale to the State of Wisconsin Safe Drinking Water Loan Program (the “Program”) or other similar type program, on such dates or dates, at such price or prices as the Commissioners of the Public Debt of the City (the “Commissioners”) determine to be prudent and appropriate within the limits set forth in the Series Resolution;
Whereas, the Program has offered a loan to the City pursuant to the attached Financial Assistance Agreement (the “FAA”) in the amount not to exceed $5,169,504 to finance Program project No. #4851-44 (the “Project”);
Whereas, as security for the loan under the FAA, the City will issue its $5,169,504 Water System Second Lien Revenue Bonds, Series 2024 W3 (the “2024 Bonds”) pursuant to the Series Resolution, and the 2024 Bonds will be sold to the Program; now, therefore, be it
Resolved, By the Commissioners of the Public Debt as follows:
1. The 2024 Bonds shall be sold to the Program in an amount not to exceed $5,169,504 on or before August 1, 2024. The Comptroller of the City (the “Comptroller”) is directed to accept the FAA and negotiate with the Program any remaining terms and provisions of the 2024 Bonds in order to comply with the lending requirements of the Program.
2. The 2024 Bonds shall be dated their date of delivery, issued in denominations of $0.01 or any multiple thereof, and shall mature on May 1 in each year as determined by the Comptroller, with a final maturity no later than May 1, 2043. The 2024 Bonds shall bear interest payable on November 1, 2024 and semiannually thereafter on each May 1 and November 1 at the rate of 2.145% per annum. The 2024 Bonds shall be payable upon presentation and surrender thereof in the office of the City Treasurer as Paying Agent.
3. The 2024 Bonds shall not be subject to redemption prior to their maturity except as set forth in the FAA and agreed to by the Comptroller in order to comply with the lending requirements of the Program. The 2024 Bonds may be subject to annual mandatory sinking fund requirement(s) as set forth in the FAA and agreed to by the Comptroller.
4. There is hereby created and established a special account of the City: the “2024 W3 Account” within the “Water System SDWLP 2021 Project Fund” previously created under the Series Resolution, into which proceeds of the 2024 Bonds shall be deposited and used to pay the Project.
5. No Support Facility will be obtained and no Interest Rate Exchange Agreement (each as defined in the Master Resolution) will be entered into in connection with the issuance of the Series 2024 Bonds.
6. The 2024 Bonds shall be initially registered in the name of the Program, or such other name or nominee as designated by the Program, and shall be in form approved by the Comptroller but shall not be issued as book-entry bonds.
and be it Further Resolved, That this resolution shall be entered upon the permanent record of the Commissioners of the Public Debt and formally communicated by the Secretary to the Clerk of the City.
I hereby certify that the forgoing is a true and correct copy of the original resolution that was duly passed and adopted by the recorded affirmative votes of the following Commissioners: Bernard J. Allen, David Misky, and Mary Reavey, constituting a majority of the members of the Public Debt Commission, at a meeting thereof that was duly called and held at 3:00 p.m. on March 6, 2024, in Conference Room 405 at City Hall, 200 East Wells Street, and at which a quorum was present and acting throughout, and that said copy has been compared by me with the original resolution recorded in the records of the Public Debt Commission and that it is a correct transcript thereof and of the whole of said resolution.
____________________________
Aycha Sawa
Comptroller and Secretary
Public Debt Commission
PD-8674bW.doc
Requestor
Drafter
2/26/2024