Number
031036
Version
SUBSTITUTE 1
Sponsor
THE CHAIR
Title
Substitute resolution approving the form and authorizing the execution and delivery of a loan agreement among the Redevelopment Authority of the City of Milwaukee, the Milwaukee Board of School Directors, and the City of Milwaukee, a promissory note, bond indenture, and an intergovernmental agreement in connection therewith. (Comptroller)
Analysis
This resolution authorizes entering into agreements related to the issuance of up to $200,000,000 of General Obligation Notes ("Notes") and/or Redevelopment Authority of the City of Milwaukee Bonds ("Bonds") for the purpose of paying Milwaukee Public School's ("MPS") unfunded prior service liability ("UPSL") to the Wisconsin Retirement System ("WRS"). The Notes and Bonds will provide the amount required to payoff the UPSL, which is estimated at $167,364,354 as of June 30, 2003.
Under current WRS 2% payment requirement, interest assessment, and assuming a 3% growth in MPS covered payroll, the UPSL will never be paid off. With the combined City and RACM financing, the total debt service will approximate the projected WRS payments, and be fully retired in 40 years.
The agreements include: Intergovernmental Agreement regarding MPS payments to the City for the Notes; Loan Agreement between MPS and RACM to secure the Bonds; Promissory Note to evidence the Loan Agreement; and a Bond Indenture pursuant to which the Bonds are issued.
Body
Whereas, Pursuant to Section 119.50 of the Wisconsin Statutes, the City of Milwaukee, Wisconsin (the "City") through its Treasurer holds all school moneys of the Milwaukee Board of School Directors ("MPS"), such moneys to be disbursed by the City Treasurer on the written order of the Superintendent of Schools, countersigned by the auditing officer of the City; and
Whereas, MPS, pursuant to the authority of 2003 Wisconsin Act 43, enacted August 11, 2003, is borrowing money from the Redevelopment ...
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