Number
200738
Version
Original
Reference
191402
Sponsor
Ald. Murphy
Title
Resolution Authorizing the Sale and Issuance of General Obligation Refunding Notes.
Sections
Analysis
On April 20, 2020, the City issued $120,000,000 of General Obligation Revenue Anticipation Notes that mature on January 29, 2021 at a rate of 1.35% in order to fund State shared revenue payments comprising approximately 35% of the City’s general fund revenues. The majority of these revenues are received at the end of the year. Given the timing of the receipt of State Aid payments, this borrowing is done on an annual basis.
Due to the decline in market rates, the City could potentially lock in a rate around 1.50% for 10 years on the RANs, which would be lower than the rate paid for 2018 and 2019.
This Resolution authorizes refunding of the Series 2020 R3 GO Notes with 10 year GO Notes.
Body
Whereas, s. 67.12(12), Stats., authorizes the issuance of General Obligation Notes for paying any general and current municipal expense and refunding of any municipal obligations; and
Whereas, on April 20, 2020, the City issued its General Obligation Promissory Notes, Series 2020 R3 (the “Series 2020 R3 Notes”) that mature on January 29, 2021 in the amount of $120,000,000 and are callable on December 1, 2020; and
Whereas, the City desires to refund the Series 2020 R3 Notes with refunding promissory notes (the “Notes”) that mature within 10 years in order to fund the anticipated recurring annual deficits due to the timing of the receipt of State Aid; now, therefore, be it
Resolved, by the Common Council of the City of Milwaukee in accordance with sec. 67.12(12), Stats., that the Commissioners of the Public Debt are authorized and requested to issue and sell general obligation refunding notes (the Notes) in an amount not to exceed $120,000,000 for the purpose of refunding the Series 2020 R3 Notes issued for cash flow purposes; and, be it
Further Resolved, after the date that moneys...
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