Number
030773
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
A substitute charter ordinance relating to authorizing financial agreements and ancillary arrangements with respect to city obligations.
Sections
15-15 cr
Analysis
Currently, subject to a number of limitations, the city issues and manages municipal debt obligations and contingent contractual monetary obligations for the purposes, and by the procedures, specified in the charter and the statutes. The city's authority with respect to the issuance and management of such obligations is derived from a number of statutory sources, including its statutory authority under s. 62.11(5), Wis. Stats., to manage and control city finances, its authority pursuant to ch. 67, Wis. Stats., to issue debt obligations such as general obligation bonds and promissory notes and its authority pursuant to ch. 66, Wis. Stats., to issue debt obligations such as revenue bonds. In addition, in some instances the city manages municipal obligations and contingent contractual monetary obligations of the city and the Milwaukee board of school directors where such municipal obligations and contractual obligations are not issued by the city itself.
This charter ordinance specifically authorizes the city to enter into certain financial agreements and ancillary arrangements with respect to municipal obligations and contractual obligations. These include, without limitation, agreements or arrangements that will provide to the city an interest rate basis, cash flow basis, or other basis different from that provided in documentation for the municipal obligations or contractual obligations relative to the payment of interest. Such agreements or arrangements include without limitation those known as “interest rate swap or exchange agreements,” “forward payment conversion agreements,” and agreements and arrangements providing for payments based on a level of or changes in interest rates, to exchange cash fl...
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