City of Milwaukee - File #: 191878

• File #: 191878
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 3/24/2020
• In control: COMMON COUNCIL
• Final action: 4/14/2020
• Title: Substitute resolution authorizing the sale and issuance of General Obligation Revenue Anticipation Notes.
• Sponsors: THE CHAIR
• Indexes: GENERAL OBLIGATION BONDS

Date	Ver.	Action By	Action	Result	Tally
4/16/2020	0	MAYOR	SIGNED
4/14/2020	0	COMMON COUNCIL	ADOPTED	Pass	15:0
4/9/2020	0	FINANCE & PERSONNEL COMMITTEE	SUBSTITUTED; Minutes note: Appearing remotely: Richard Li, Comptroller's Office Ald. Lewis moved substitution of the file with Proposed Substitute A. (Prevailed 5-0)	Pass	5:0
4/9/2020	1	FINANCE & PERSONNEL COMMITTEE	RECOMMENDED FOR ADOPTION	Pass	5:0
4/6/2020	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
4/6/2020	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
3/24/2020	0	COMMON COUNCIL	ASSIGNED TO

Number
191878

Version
SUBSTITUTE 1

Reference
180864

Sponsor
THE CHAIR

Title
Substitute resolution authorizing the sale and issuance of General Obligation Revenue Anticipation Notes.

Analysis
On April 2, 2020, the Commissioners of the Public Debt received bids for the RANs. Due to the troubled financial markets, the Commissioners rejected all bids and recommended to the City that GO Notes be issued by the City pursuant to the Revolving Loan Agreement with US Bank approved by file 180864 with terms similar to those of the RANs. This file increases the authorization of that file for 2020 GO Note purposes.

Body

Whereas, Common Council Resolution File No. 191402 (the “RAN Resolution”) adopted by the Common Council (the “Common Council”) of the City of Milwaukee, Wisconsin (the “City”) on January 21, 2020 authorized the issuance of General Obligation Revenue Anticipation Notes of the City in the aggregate principal amount of $150,000,000 (the “RANs”); and

Whereas, none of the RANs authorized by the RAN Resolution have heretofore been sold or issued; and

Whereas, on April 2, 2020, the Commissioners of the Public Debt received bids for the RANs, and due to the illiquidity in the municipal market created by the novel coronavirus crisis, the Commissioners rejected all bids and recommended to the City to issue the RANs as Direct Loan Notes pursuant to Common Council Resolution File No. 180864 (the “Direct Loan Resolution”); and

Whereas, the Direct Loan Resolution limited the aggregate principal amount GO Notes to $200 million, which is insufficient to accommodate the replacement of the RAN borrowing with the issuance of GO Notes; and

Whereas, the City now desires to increase the limit provided in the Direct Loan Resolution to authorize and permit the issuance of its tax exempt general obligation promissory notes in place of the RANs:
NOW THEREFORE, be it and it hereby is Resolved, By the Common Council of the City of Milwaukee as follows:

1. The issua...