Number
050610
Version
Substitute 2
Reference
Sponsor
The Chair
Title
Substitute resolution amending Resolution File number 041196 for the purpose of permitting the issuance of General Obligation Variable Rate debt.
Analysis
Resolution 041196 authorizes the issuance of fixed rate general obligation bonds for various corporate purposes. Over the long term, it has been historically beneficial to have a portion of long-term debt in variable rate, short-term interest rate, mode. This resolution modifies Resolution 041196 to permit the issuance of up to $50 million of bonds under that resolution as variable rate debt (less than 10% of the City’s outstanding General Obligation debt). This will permit the City to explore the procedural issues with having variable rate outstanding.
Body
Whereas, Common Council Resolution File Number (CCFN) 041196 adopted on February 1, 2005, authorizes the issuance of Corporate Purpose Bonds pursuant to certain terms and conditions; and
Whereas, The debt of the City is substantially all fixed rate for the term of the debt; and
Whereas, It is prudent, and historically beneficial over the long term, to have a portion of the City’s debt with a variable short-term interest rate component; and
Whereas, CCFN 041196 contemplates the issuance of fixed rate bonds; and
Whereas, The Common Council desires to modify CCFN 041196 to authorize the issuance of general obligation debt in a variable rate mode; and
Whereas, It is desirable to enter into a trust indenture providing for the issuance of the variable rate debt and a liquidity facility to support the issuance of the variable rate debt; and
Whereas, The City Comptroller has prepared Official Statements (the forms of which are attached hereto) for the purpose of providing comprehensive financial and economic information respecting the City of Milwaukee in connection with the sale of the City of Milwaukee, Wisconsin, General Obligation Notes and Bonds ("Offered Obligations");...
Click here for full text