Number
160690
Version
Substitute 1
Reference
Sponsor
The Chair
Title
Substitute resolution authorizing general obligation direct loan program and related agreements.
Sections
Analysis
This resolution creates a Direct Loan Program for the liquidity needs of the City. The $150 million will be used to partially replace the EMCP program. The EMCP program expires in May, 2017. Recent changes to rules for Money Market Funds makes the EMCP program unattractive to Money Market Funds.
Body
WHEREAS, the City has existing programs to meet the primary liquidity needs of the City; and
WHEREAS, it is desirable to replace such programs in order to save costs and to diversify the City’s access to liquidity in the event of market disruptions; and
WHEREAS, the City desires to enter into a Line of Credit Agreement for the general obligation promissory notes to provide a revolving direct loan source of liquidity for the City;
NOW, THEREFORE, BE IT
RESOLVED, By the Common Council of the City of Milwaukee in accordance with Chapter 67 of Wisconsin Statutes, that the Commissioners of the Public Debt are authorized and requested to issue and sell General Obligation Promissory Notes (the “Direct Loan Notes”) at private sale and be designated “General Obligation Promissory Note, Series 2016 N11” (“Series 2016 N11 Notes”) and “Taxable General Obligation Promissory Note, Series 2016 T12” (“Series 2016 T12 Notes”); and, be it
FURTHER RESOLVED that the Direct Loan Notes may be issued to refinance certain existing liquidity programs such as the Extendable Municipal Commercial Paper Program, to fund certain cash flow deficits in anticipation of the receipt of taxes or other revenues, to finance certain capital expenditures in advance of a bond or note issuance, for purposes that General Obligation Promissory Notes pursuant to file number 151262 may be issued, and for other purposes as may be determined by the Common Council from time to time; and, be it
FURTHER RESOLVE...
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