Number
041195
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution authorizing the issuance of revenue anticipation notes for the purpose of financing the operating budget on an interim basis. (Comptroller)
Analysis
State shared revenue payments comprise about 35% of the City's general fund revenues. The majority of these revenues are received at the end of the year. However, City expenditures occur relatively evenly throughout the year. This causes a cash flow problem where expenses occur prior to the receipt of revenues. This cash flow borrowing permits the City to pay for expenses today in anticipation of receiving the State shared revenue payments later in the year. The Revenue Anticipation Notes are repaid from the November State shared revenue payment.
Body
Whereas, s. 67.12(1), Stats., authorizes any municipality entitled to receive deferred payments from the State to issue municipal obligations in an amount not to exceed 60% of the total actual and anticipated receipt of deferred payments in the fiscal year; and
Whereas, Pursuant to s. 79.02, Stats., the City of Milwaukee is anticipating receipt of shared revenue payments from the State of Wisconsin in 2005 (the "Budget Year") the amounts of $36,036,955 and $204,209,414 in the months of July and November, respectively, of the Budget Year; and
Whereas, The foregoing amounts represent 36% of the City's General Fund operating revenues for the Budget Year; and
Whereas, Operating expenditures are incurred on a uniform basis throughout the year; and
Whereas; The City must finance the operating budget on an interim basis between now and the receipt of State shared revenue payments in July and November of the Budget Year; and
Whereas, The City is interested in borrowing to finance the operating budget on an interim basis and pledges the anticipated revenue included in the budget for the Budget Year due and not yet paid as security for repayment of such obligati...
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