Number
260962
Version
Original
Sponsor
THE CHAIR
Title
Declaration of official intent to be reimbursed from proceeds of tax-exempt obligations issued under City borrowing resolutions recently adopted or to be considered for adoption by the Common Council.
Analysis
Resolution declaring official intent for the City of Milwaukee (“City”) to be reimbursed from tax-exempt note or bond proceeds.
Body
Whereas, the City enacts a capital budget, which contains certain capital expenditures the City expects to finance with temporary advances of the City’s own funds (the “Temporary Advances”) prior to issuing tax-exempt bonds or notes (“Obligations”) to permanently finance such expenditures, as more fully described on Exhibit A hereto (the “Expenditures”); 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 proceeds of the 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 Rules”) describe the circumstances under which tax-exempt debt may be issued to finance reimbursable Expenditures; and
Whereas, Common Council File No. 921116 delegated the responsibility for complying with the “Official Intent” requirements of the Reimbursement Rules to the City’s Commissioners of the Public Debt (the “Commissioners”);
Now, therefore, be it resolved by the Commissioners that:
1. The City reasonably expects to reimburse itself for the Expenditures with proceeds of tax-exempt Obligations;
2. This statement of intent is a declaration of official intent for reimbursement (a “Declaration”) under the Reimbursement Rules;
3. The maximum principal amounts of Obligations to be issued and a general functional description...
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