Number
071101
Version
Substitute 1
Reference
Sponsor
The Chair
Title
Substitute resolution authorizing the Commissioners of the Public Debt to market general obligation revenue anticipation notes pursuant to the provisions of Ch. 67, Stats.
Sections
Analysis
State shared revenue payments comprise about 35% of the City’s general fund revenues. The majority of these revenues are received at the end of the year. However, City expenditures occur relatively evenly throughout the year. This causes a cash flow problem where expenses occur prior to the receipt of revenues. This cash flow borrowing permits the City to pay for expenses today in anticipation of receiving the State shared revenue payments later in the year. The Revenue Anticipation Notes are repaid from the November State shared revenue payment.
Body
Whereas, s. 67.12(12), Stats., authorizes the issuance of General Obligation Notes for paying any general and current municipal expense; and
Whereas, s. 67.12(1), Stats., authorizes any municipality entitled to receive deferred payments from the State to issue municipal obligations in an amount not to exceed 60% of the total actual and anticipated receipt of deferred payments in the fiscal year; and
Whereas, Pursuant to s. 79.02, Stats., the City of Milwaukee is anticipating the receipt of shared revenue payments from the State of Wisconsin in 2008 (the “Budget Year”) in the amount of at least $200,000,000; and
Whereas, The foregoing amounts represent no more than 50% of the City's General Fund operating revenues for the Budget Year; and
Whereas, Operating expenditures are incurred on a uniform basis throughout the year; and
Whereas; The City must finance the operating budget on an interim basis between now and the receipt of State shared revenue payments in July and November of the Budget Year; and
Whereas, The City is interested in borrowing to finance the operating budget on an interim basis and pledges the anticipated revenue include...
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