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File #: 161123    Version: 0
Type: Resolution Status: Passed
File created: 12/13/2016 In control: FINANCE & PERSONNEL COMMITTEE
On agenda: Final action: 1/18/2017
Effective date:    
Title: Resolution authorizing the issuance of $25,000,000 general obligation notes, to pay a general and current municipal expense associated with the Community Development Block Grant and other grant programs.
Sponsors: THE CHAIR
Indexes: COMMUNITY DEVELOPMENT BLOCK GRANT, GENERAL OBLIGATION BONDS, GRANTS
Attachments: 1. Comptroller Letter, 2. Fiscal Impact Statement, 3. Hearing Notice List

Number

161123

 

Version

Original

 

Reference

 

Sponsor

THE CHAIR

 

Title

Resolution authorizing the issuance of $25,000,000 general obligation notes, to pay a general and current municipal expense associated with the Community Development Block Grant and other grant programs.

 

Analysis

This file provides alternative funding source for budgeted expenditures. The debt will be issued only if the CBDG or other grants are not received. This file does not increase authorized expenditures for the grant programs.

 

The federal government provides grant funding to the City for various community purposes. The City, in turn, provides grant funding to various community organizations. The City has good estimates on the amount of grants to be awarded, but the actual grants are usually not received until later in the year. However, the various community organizations are relying upon a steady funding source from the City.

 

In order to facilitate the even payment of grants to the organizations, the City advances funding in anticipation of receiving grants from the federal government. Until such grants are received, an alternative funding source is required, and usually Contingent Borrowing is used.

 

This resolution authorizes the issuance of general obligation notes under s. 67.12(12), Wis. Stats., for the financing of the City's Community Development Block Grant and other grant programs prior to the receipt of Community Development Block Grant and other grant funding.

 

Body

Whereas, The budget for the fiscal year 2017 (the “Fiscal Year”) of the City of Milwaukee authorizes contingent borrowing in the form of general obligation bonds or notes, for any purposes not contemplated at the time the budget was adopted in the amount of $200,000,000; and

 

Whereas, Section 67.12(12), Wis. Stats., authorizes the issuance of general obligation notes for the purpose of paying a general and current municipal expense, such as expenses associated with the Community Development Block Grant and other grant programs; and

 

Whereas, For the Fiscal Year, under the City of Milwaukee Community Block Grant Agreement it is anticipated that grant award funds will be approved but such funds have not been released to the City; that under other grant programs, it is anticipated that funds will be approved but such funds have not been released to the City; and the City needs $25,000,000 to fund the programs pending approval and receipt of the grant funds; and

 

Whereas, The Common Council is desirous of issuing and selling up to $25,000,000 of promissory notes for Fiscal Year operation costs in the event such grants are not received as anticipated; now, therefore, be it

 

Resolved, By the Common Council of the City of Milwaukee, that the Commissioners of the Public Debt are authorized to sell and issue general obligation short-term promissory notes under s. 67.12(12), Wis. Stats., in an amount not to exceed $25,000,000 for the purpose of funding the difference between the amount budgeted and the grants received for the Fiscal Year for the Community Development Block Grant Award Program, and other grant programs; and, be it

 

Further Resolved, That said promissory notes shall be issued pursuant to amounts provided for in the Fiscal Year’s budget for Contingent Borrowing and such notes shall be issued on or before November 1, 2017.

 

Requestor

Comptroller

 

Drafter

RSL

PD-8321yW.rtf

 

1/30/17 technical correction dkf