Number
241172
Version
Original
Sponsor
THE CHAIR
Title
Certification that obligations can be sold and issued, and declaring official intent to be reimbursed from proceeds of obligations issued under City borrowing resolutions recently adopted or to be considered for adoption by the Common Council.
Analysis
Resolution certifies that obligations can be issued and declares official intent for the City to be reimbursed from proceeds of obligations issued.
Body
Whereas, the Common Council (“Common Council”) of the City of Milwaukee (“City”) has adopted or currently has before it for consideration various borrowing resolutions authorizing the issuance of municipal obligations to finance the property, projects, or programs (the “Projects”) as detailed in the attached exhibit; and
Whereas, section 67.10(6), Wis. Stat., provides that a first-class city may enter into contracts (“Contracts”) in anticipation of the sale of municipal obligations and make expenditures (“Expenditures”) prior to the sale of such municipal obligations for the Projects for which municipal obligations have been authorized if such city’s commissioners of public debt have made certain certifications; and
Whereas, funds for the Expenditures will be provided on an interim basis from the City’s existing cash resources or temporary borrowings (“Temporary Advances”); and
Whereas, pursuant to the budgetary and financial policies and practices of the City, the Temporary Advances are not available to fund the Expenditures on a long-term basis; and
Whereas, it is reasonably expected that the Expenditures will be financed, in whole or in part, on a long-term basis with tax-exempt municipal obligations; and
Whereas, section 1.150-2 of the IRS Regulations and section 54A(d)(2)(D) of the Internal Revenue Code of 1986 (collectively, “Reimbursement Tax Law Rules”) describe the circumstances under which tax-exempt and tax credit debt may be issued to finance reimbursement expenditures, includin...
Click here for full text