Number
070880
Version
Substitute 2
Reference
Sponsor
The Chair
Title
Substitute Resolution Authorizing a Commercial Paper Program, the Issuance of General Obligation Commercial Paper Promissory Notes, General Obligation Refunding Bonds and Promissory Notes, and related agreements.
Analysis
Resolution 071100 authorizes the issuance of fixed rate general obligation notes for various corporate purposes. Over the long term, it has been historically beneficial to have a portion of long-term debt in variable rate or short-term interest rate, mode. In 2005, the City issued $25,000,000 of the Series 2005 V8 variable rate debt. This resolution creates a Commercial Paper Program, another form of short-term interest rate debt, to permit the issuance of up to $150 million of commercial paper notes (“Commercial Paper”).
Body
Whereas, Common Council Resolution File Number 071100 adopted on January 15, 2008 authorizes the issuance of fixed rate Promissory Notes 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, In order to provide a short-term interest rate component to the City’s debt, the City desires to authorize a Commercial Paper Program where Commercial Paper may be issued from time to time; and
Whereas, It is desirable to enter into a trust indenture, a credit enhancement facility, issue and paying agent agreement, and commercial paper dealer agreements to provide for and to support the issuance of the Commercial Paper; and
Whereas, It is desirable to authorize the issuance of general obligation refunding bonds and notes in the event that it is beneficial to refinance all or a portion of the Commercial Paper as fixed rate debt; now, therefore, be it
Resolved, By the Common Council of the City ...
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