City of Milwaukee - File #: 050609

• File #: 050609
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 9/7/2005
• In control: FINANCE & PERSONNEL COMMITTEE
• Final action: 9/27/2005
• Title: Substitute resolution authorizing the Commissioners of the Public Debt to market general obligation notes, in the amount not to exceed $15,000,000, pursuant to the provisions of Chapter 67, Wisconsin Statutes, for purchase by the Public Debt Amortization Fund.
• Sponsors: THE CHAIR
• Indexes: GENERAL OBLIGATION BONDS, MUNICIPAL BORROWING, PROMISSORY NOTES

Date	Ver.	Action By	Action	Result	Tally
10/6/2005	1	MAYOR	SIGNED
9/27/2005	1	COMMON COUNCIL	ADOPTED	Pass	15:0
9/21/2005	1	FINANCE & PERSONNEL COMMITTEE	RECOMMENDED FOR ADOPTION	Pass	5:0
9/16/2005	1	CITY CLERK	DRAFT SUBMITTED
9/13/2005	0	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
9/9/2005	0	FINANCE & PERSONNEL COMMITTEE	REFERRED TO
9/9/2005	0	FINANCE & PERSONNEL COMMITTEE	REFERRED TO
9/7/2005	0	COMMON COUNCIL	ASSIGNED TO

Number
050609
Version
Substitute 1
Reference

Sponsor
The Chair
Title
Substitute resolution authorizing the Commissioners of the Public Debt to market general obligation notes, in the amount not to exceed $15,000,000, pursuant to the provisions of Chapter 67, Wisconsin Statutes, for purchase by the Public Debt Amortization Fund.

Analysis
This resolution authorizes the Commissioners of the Public Debt to issue and sell City of Milwaukee general obligation notes in the amount of $15,000,000 to effect a draw on the Public Debt Amortization Fund to reduce the Debt Service levy.

The PDAF is authorized by State Statues to purchase and cancel debt of the City. However, the State Statutes do not permit a direct transfer from the PDAF to the Debt Service Fund.

An increase in Contingent Borrowing Authority was approved in the 2005 Budget with the understanding that a portion of the increase would potentially be used for this resolution’s purpose.

In 2004, the draw on the PDAF was effected by a refunding of outstanding debt. While that method would still work, it proved cumbersome to avoid accounting and State Reimbursement issues. The proposed method was devised as the most direct method, consistent with State Statutes, to effect a transfer from the PDAF to the Debt Service Fund to reduce the Debt Service Levy of the City.

Body

Whereas, Section 67.12(12), Wisconsin Statutes permits the issuance of General Obligation Notes for any public purpose; and

Whereas, The 2005 municipal budget authorizes $50,000,000 of General Obligation bonds and notes in contingent borrowing for purposes not contemplated at the time the budget was adopted; and

Whereas, The Common Council desires to use up to $15,000,000 of the contingent borrowing for the public purpose of supplementing the balance of the Debt Service Account; and

Whereas, The Public Debt Commission approved resolution number 050914-1 establishing a draw on the Public Debt Amortization Fund (PDAF) for 2006 purp...