Number
081506
Version
Substitute 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the issuance of general obligation notes to pay a general and current municipal expense associated with grant programs.
Analysis
The federal government will provide grant funding to the City for various economic stimulus purposes. The City desires to begin working on these projects prior to the actual receipt of the grant. Until such grants are received, an alternative funding source is required, and usually Contingent Borrowing is used. Contingent Borrowing can also be used to provide a City matching portion, if any, for any of the grants.
This resolution authorizes the issuance of general obligation notes under s. 67.12(12), Wis. Stats., for the financing of the economic stimulus grant programs prior to the receipt of the grant funding.
Body
Whereas, The budget for the fiscal year 2009 (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 at least $50,000,000; 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 federal economic stimulus grant programs; and
Whereas, That under federal economic stimulus grant programs, it is anticipated that funds will be approved but such funds have not been released to the City; and the City desires $50,000,000 to fund the programs pending approval, receipt of the grant funds, and to pay the City’s matching portion, if any; and
Whereas, The Common Council is desirous of issuing and selling up to $50,000,000 of promissory notes for economic stimulus 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 $50,000,000 for the purpose of funding the federal economic stimulus 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, be it
Further resolved, That notes pursuant to this resolution are designated an approved use for Contingent Borrowing as authorized to be issued by Resolution File Number 080960.
Requestor
Comptroller
Drafter
RSL
PD-7511b2W.rtf