Number
031674
Version
Substitute 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the refunding of all or any part of General Obligation Corporate Purpose Bonds, Series Y, 2003 B6, and General Obligation Refunding Bonds, Series of 2002-A. (Comptroller)
Analysis
Resolution authorizes the issuance and private sale of General Obligation Refunding Bonds to refund a portion of the General Obligation Corporate Purpose Bonds, Series Y, 2003 B6, and General Obligation Refunding Bonds, Series of 2002-A.
Body
Whereas, Pursuant to resolutions of the Common Council, the City of Milwaukee (the "City") has sold and issued:
General Obligation Corporate Purpose Bonds, Series Y, dated September 1, 2002, in the amount of $42,965,000;
General Obligation Refunding Bonds, Series of 2002-A, dated October 15, 2002, in the amount of $159,985,000; and
General Obligation Corporate Purpose Bonds, Series 2003 B6, dated October 16, 2003, in the amount of $39,405,000;
and
Whereas, As of December 31, 2003, the following unpaid amounts for principal are outstanding for the above issues (the "Outstanding Bonds"):
Y Principal = $ 40,525,000
2002-A Principal = $154,765,000
2003 B6 Principal = $39,405,000
; and
Whereas, The Common Council of the City is interested in refunding all or a portion of the Outstanding Bonds; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that it hereby and herewith authorizes the Commissioners of the Public Debt to issue and sell at a private sale general obligation refunding bonds (the "Refunding Bonds"), under the provisions of § 67.04(3) and § 67.08(2), Stats., for the purpose of refunding all or a portion of the Outstanding Bonds, subject, however, to the terms and conditions hereinafter enumerated; and, be it
Further Resolved, That the Outstanding Bonds to be considered for refunding are hereby designated, and if refunded, would be called for redemption on or as soon as practical following their first optional date of redemption, if any, at a redemption price of par plus accrued interest to the date fixed for redemption; and, be it
Further Resolved, That the City further directs the proper City Officials, to give notice of redemption of the Outstanding Bonds to be redeemed by mail, postage prepaid, not less than 30 days prior to the date fixed for redemption, to any registered owner of Outstanding Bonds being redeemed as of a record date 45 days prior to the redemption date, and otherwise as may be required by any agreement with a securities depository therefor. Such election to redeem shall be irrevocable upon issuance of the Refunding Bonds; and, be it
Further Resolved, That the City Comptroller is authorized and directed to transfer the balance in the Debt Service Fund account for the Outstanding Bonds being refunded to the Escrow Account, if any, for the Outstanding Bonds; and, be it
Further Resolved, That the cost of issuing the Refunding Bonds, including the costs of the escrow and verification, and marketing same shall be deducted and paid from the proceeds of the sale of the Refunding Bonds; and, be it
Further Resolved, That the refunding bonds authorized herein may be sold in a total aggregate amount not to exceed $15,000,000, and in one or more series of bonds; and, be it
Further Resolved, That the Refunding Bonds shall;
(1) bear interest at a maximum coupon rate not to exceed 6.00% per annum;
(2) have a maximum True Interest Cost Rate (TIC) not to exceed 5.00%;
(3) be sold at a price of not less than 99% of the principal amount thereof plus accrued interest thereon from their date to the date of delivery and payment therefor; and
(4) be sold at private sale to the Public Debt Amortization Fund; and, be it
Further Resolved, That the Refunding Bonds shall be designated "General Obligation Refunding Bonds, Series 2004" with an alphanumeric suffix as designated by the Commissioners, and shall be dated as of the date of issue, or 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; that the Commissioners of the Public Debt shall specify the due dates for, and the amounts of, the payment of principal of said Refunding Bonds, not to exceed 20 years, and interest thereon, the redemption provisions thereof, if any, the Refunding Bonds to be callable at par with the initial call date to be no later than ten years from the date of the Refunding Bonds 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 provided, however, that the payment of the Outstanding Bonds to be refunded does not extend beyond the period provided in § 67.07, Stats.; and, be it
Further Resolved, That a direct annual irrepealable tax shall be levied in each year that such Refunding Bonds are outstanding, in an amount sufficient to pay, and for the express purpose of paying the interest on the Refunding 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 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, the proceeds of said taxes shall be used solely for paying the principal and interest on the Refunding Bonds so long as any Refunding Bonds of said issue remain outstanding; and, be it
Further Resolved, That interest on or principal of the Refunding 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 the Refunding Bonds shall be in a form approved by the City Attorney and the Commissioners of the Public Debt and shall be signed by those officers whose signatures are required by law, and shall be a general obligation of the City; and, be it
Further Resolved, That a global certificate shall be issued for each stated maturity of Refunding Bonds and registered only in the name of the Public Debt Amortization Fund; and, be it
Further Resolved, That the City hereby authorizes and directs the appropriate officers and employees of the City to take all action necessary or appropriate to the issuance, sale and delivery of the Refunding Bonds.
Requestor
Comptroller
Drafter
RSL
3/22/2004
PD-6762cW.doc