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File #: 160690    Version:
Type: Resolution Status: Passed
File created: 9/20/2016 In control: FINANCE & PERSONNEL COMMITTEE
On agenda: Final action: 11/22/2016
Effective date:    
Title: Substitute resolution authorizing general obligation direct loan program and related agreements.
Sponsors: THE CHAIR
Attachments: 1. Comptroller Letter, 2. Fiscal Impact Statement, 3. JPMorgan Line of Credit Agreement, 4. Hearing Notice List, 5. Comptrollers Certified Resolution

Substitute 1


The Chair

Substitute resolution authorizing general obligation direct loan program and related agreements.


This resolution creates a Direct Loan Program for the liquidity needs of the City. The $150 million will be used to partially replace the EMCP program. The EMCP program expires in May, 2017. Recent changes to rules for Money Market Funds makes the EMCP program unattractive to Money Market Funds.

WHEREAS, the City has existing programs to meet the primary liquidity needs of the City; and

WHEREAS, it is desirable to replace such programs in order to save costs and to diversify the City’s access to liquidity in the event of market disruptions; and

WHEREAS, the City desires to enter into a Line of Credit Agreement for the general obligation promissory notes to provide a revolving direct loan source of liquidity for the City;


RESOLVED, By the Common Council of the City of Milwaukee in accordance with Chapter 67 of Wisconsin Statutes, that the Commissioners of the Public Debt are authorized and requested to issue and sell General Obligation Promissory Notes (the “Direct Loan Notes”) at private sale and be designated “General Obligation Promissory Note, Series 2016 N11” (“Series 2016 N11 Notes”) and “Taxable General Obligation Promissory Note, Series 2016 T12” (“Series 2016 T12 Notes”); and, be it

FURTHER RESOLVED that the Direct Loan Notes may be issued to refinance certain existing liquidity programs such as the Extendable Municipal Commercial Paper Program, to fund certain cash flow deficits in anticipation of the receipt of taxes or other revenues, to finance certain capital expenditures in advance of a bond or note issuance, for purposes that General Obligation Promissory Notes pursuant to file number 151262 may be issued, and for other purposes as may be determined by the Common Council from time to time; and, be it


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