Number
050102
Version
Substitute 2
Reference
031036
Sponsor
THE CHAIR
Title
Substitute resolution of the Common Council of the City of Milwaukee, Wisconsin, approving the form and authorizing the execution and delivery of an Amendatory Loan Agreement Among the Redevelopment Authority of the City of Milwaukee, the Milwaukee Board of School Directors and the City of Milwaukee, and other related documents.
Analysis
This resolution amends a loan agreement with Milwaukee Public Schools relating to their 2003 Pension Obligation Financing through the Redevelopment Authority of the City of Milwaukee. The amendment creates the ability to convert the bonds to Index Linked bonds. This will permit MPS to reduce interest rate risk and save interest expense.
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, borrowed money from the proceeds of a sale of Taxable Pension Funding Bonds, 2003 Series D (Milwaukee Public Schools) (the “Bonds”) of the Redevelopment Authority of the City of Milwaukee (the “Authority”) in order to finance the payment of MPS's unfunded prior service liability contributions under the Wisconsin Retirement System; and
Whereas, In connection with such loan, the Authority, MPS and the City, as custodian of MPS's school money, entered into a Loan Agreement (the “Loan Agreement”) whereby the Authority loaned proceeds of the Bonds to MPS and MPS agreed to repay such loan from moneys in the School Operations Fund held by the City; and
Whereas, In connection with the Bonds, the City on behalf of MPS entered into Swap Agre...
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