Number
260964
Version
Original
Sponsor
THE CHAIR
Title
Authorizing the Sale and Issuance of Sewerage System Second Lien Revenue Bonds, Series 2026 S6
Analysis
Resolution authorizes the sale and issuance of Sewerage System Second Lien Revenue Bonds.
Body
Whereas, Common Council Resolution File No. 230947 (the “Resolution”) adopted on November 21, 2023 by the Common Council (the “Common Council”) of the City of Milwaukee, Wisconsin (the “City”) authorizes the issuance of Sewerage System Second Lien Revenue Bonds in the aggregate principal amount of up to $100,000,000, in one or more series, as subordinate obligations (the “Second Lien Bonds”) under the senior bond resolution File No. 991863 adopted by the Common Council on August 2, 2001, as amended; and
Whereas, up to $34,756,266 principal amount of Second Lien Bonds have previously been authorized and issued pursuant to the Resolution; and
Whereas, the Resolution authorized and directed that the Second Lien Bonds of each series shall be sold by private sale to the State of Wisconsin Clean Water Fund Program (the “CWFP”) for the aggregate purchase price of up to $100,000,000, on such date or dates and at such price or prices, as shall be determined by the City’s Commissioners of the Public Debt (the “Commissioners”); and
Whereas, the CWFP has presented to the City a Financial Assistance Agreement, to be dated December 9, 2026 (the “FAA”), evidencing a loan to the City of up to $15,948,804, with up to $2,100,000 principal forgiveness, to finance the City’s 2025 combined and sanitary sewer replacement and rehabilitation projects (the “Project”), which loan shall be secured by Sewerage System Second Lien Revenue Bonds in the principal amount of up to $13,848,804 (the “Bonds”) to be issued by the City as a new series of Second Lien Bonds pursuant to the Resolution; and
Whereas, Section 22 of the Resolution delegates to the Commissioners the power to determine, approve, and carry out the terms of the Bonds specified in said section;
Now, therefore, be it resolved by the Commissioners as follows:
1. The Comptroller of the City (the “Comptroller”) is authorized to accept the FAA and negotiate with the CWFP any remaining terms and provisions of the Bonds to comply with the lending requirements of the CWFP. Execution of the FAA by the Mayor and Clerk is authorized by the Resolution.
2. The Bonds are hereby authorized to be issued pursuant to the Resolution to secure the loan under the FAA that will finance the Project. The Bonds shall be designated “City of Milwaukee, Wisconsin Sewerage System Second Lien Revenue Bonds, Series 2026 S6,” shall be issued in the principal amount of up to $13,848,804, and shall be dated their date of issuance.
3. Interest on the Bonds shall be due and payable on each May 1 and November 1, beginning on May 1, 2027. The Bonds shall be issued in denominations of $0.01 or multiples thereof, shall bear interest at the rate of 2.585% per annum, shall mature on May 1, 2046, and shall have annual principal installment payments due on each May 1, beginning on May 1, 2027, in the principal amounts set forth in the FAA. The foregoing terms comply with the parameters set forth in Sections 3 and 22 of the Resolution.
4. The Bonds are not subject to redemption prior to their stated maturity date except as provided in the FAA.
5. In compliance with Section 22 of the Resolution, the Bonds shall be sold to the CWFP at the purchase price of 100% of the principal amount thereof and the true interest cost of the Bonds does not exceed 7% per annum.
6. The Bonds shall initially be issued as a single fully-registered bond in the entire principal amount authorized and registered in the name of the CWFP, or such other name or nominee as designated by the CWFP.
7. The proceeds of the sale of the Bonds shall be deposited by the City into a separate special fund to be established by the Comptroller and named the “2026 S6 Sewerage System CWFP Project Fund”.
8. All other terms, conditions, and details of the Bonds are set forth in the Resolution.
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.
.Drafter
Comptroller
Jesse Hagen PD-8771aW.rtf