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File #: 200079    Version: 0
Type: Resolution Status: Passed
File created: 5/27/2020 In control: COMMON COUNCIL
On agenda: Final action: 6/16/2020
Effective date:    
Title: Resolution authorizing the issuance and sale of up to $275,000,000 of Revenue Anticipation Notes, and a purpose for Direct Loan Notes, for the purpose of financing the operating budget of the Milwaukee Public Schools on an interim basis.
Sponsors: THE CHAIR
Attachments: 1. Fiscal Note, 2. Hearing Notice List
Number
200079

Version
ORIGINAL

Reference

Sponsor
THE CHAIR

Title
Resolution authorizing the issuance and sale of up to $275,000,000 of Revenue Anticipation Notes, and a purpose for Direct Loan Notes, for the purpose of financing the operating budget of the Milwaukee Public Schools on an interim basis.

Analysis
This resolution authorizes the City of Milwaukee to issue school revenue anticipation notes (RANs) under Section 67.12(1), Wisconsin Statutes, for the purpose of financing the operating budget of the Milwaukee Public Schools on an interim basis. The resolution pledges revenues payable to the School Operations Fund during the fiscal year to the payment of debt service on the RANs. This resolution authorizes and directs the proper City officers to segregate state general school aid revenues payable to the School Operations Fund in June of 2021 to secure payment of the principal of the RANs at maturity, and pledges surplus revenues in the Debt Service Fund to pay interest on the RANs to maturity. Finally, this resolution authorizes the proper City officers to deposit with the City’s Fiscal Agent an amount sufficient together with earnings thereon to pay, when due, the principal of and interest on the RANs.

Body
Whereas, the Milwaukee Public Schools (the “MPS”) is a department of the City of Milwaukee (the “City”) authorized by Sections 65.05, 119.46, and 119.60(1), (2m)(c) and (5), Wisconsin Statutes, to establish a School Operations Fund, and to determine its expenditures and the taxes to be levied therefor; and,

Whereas, MPS is temporarily in need of funds in the amount not to exceed $275,000,000 to meet the immediate expenses of operating and maintaining the public instruction in MPS during its fiscal year commencing July 1, 2020 and ending June 30, 2021 (the “Fiscal Year”); and,

Whereas, annually, the Milwaukee Board of School Directors (the “Board”) deems it necessary and in the best interest of MPS that funds be borrowed and revenue a...

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