City of Milwaukee - File #: 160691

• File #: 160691
• Version: 2
• Type: Resolution
• Status: Passed
• File created: 9/20/2016
• In control: COMMON COUNCIL
• Final action: 11/4/2016
• Title: Substitute resolution authorizing general obligation direct loan program, related agreements, and refunding of outstanding debt.
• Sponsors: THE CHAIR
• Indexes: BONDS, GOVERNMENT, DEBTS, PUBLIC

Date	Ver.	Action By	Action	Result	Tally
11/11/2016	2	MAYOR	SIGNED
11/4/2016	1	COMMON COUNCIL	SUBSTITUTED; Minutes note: Ald. Coggs moved substitution of the file with Proposed Substitute A.	Pass	15:0
11/4/2016	2	COMMON COUNCIL	ADOPTED	Pass	15:0
10/26/2016	0	FINANCE & PERSONNEL COMMITTEE	RECOMMENDED FOR ADOPTION; Minutes note: appearing: Richard Li - Comptroller	Pass	4:0
9/20/2016	0	COMMON COUNCIL	ASSIGNED TO

Number
160691

Version
SUBSTITUTE 2

Reference

Sponsor
The Chair

Title
Substitute resolution authorizing general obligation direct loan program, related agreements, and refunding of outstanding debt.

Sections
Analysis

This resolution creates a Direct Loan Program for the liquidity needs of the City. $30 million of the line will be used to refund the 2012 V10 variable rate bonds, and $50 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 make the 2012 V10 and EMCP programs unattractive to Money Market Funds.

Body
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 Revolving Loan Agreement for the general obligation promissory note to provide a revolving direct loan source of liquidity for the City; and

WHEREAS, the City desires to refund the City’s General Obligation Corporate Purpose Multimodal Bonds, Series 2012 V10 (the “Series 2012 V10 Bonds”) with the revolving loan;

NOW, THEREFORE, BE IT

RESOLVED, By the Common Council of the City of Milwaukee in accordance with Chapter 67 of Wisconsin Statutes, that the Comptroller is authorized and requested to issue and sell General Obligation Promissory Note (the “Direct Loan Note”) at private sale and be designated “General Obligation Promissory Note, Series 2016 N9”; and, be it

FURTHER RESOLVED that the Direct Loan Note 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, and for other liquidity purposes as may be determined ...