Number
091322
Version
Substitute 1
Reference
091023, 091024, 090555, 091323
Sponsor
THE CHAIR
Title
Substitute resolution authorizing $14,360,000 of contingent borrowing for school purposes.
Analysis
In 1993, the Redevelopment Authority of the City of Milwaukee (RACM) issued bonds to finance the construction of two schools for Milwaukee Public Schools (MPS). The 1993 Bonds were refinanced by RACM in 2003. The 2003 Bonds have a final maturity in 2014, and are callable in 2010. MPS has requested that the City issue GO Debt, reimbursed by MPS, to refinance the remaining $14,360,000 of RACM 2003 Bonds. MPS would reimburse the City for the debt service on the GO Debt.
The refunding was not contemplated in the 2010 Budget of the City, so an allocation of Contingent Borrowing would be needed for the refunding.
Body
Whereas, In 1990, the Redevelopment Authority of the City of Milwaukee (the “RACM”) issued debt (the “1990 Bonds”) to finance for the Milwaukee Public Schools (the “MPS”) the construction of the Grand Avenue School and the Milwaukee Education Center, and the 1990 Bonds were refinanced by RACM in 1993 and 2003 (the 2003 refunding being the “2003 Bonds”); and
Whereas, The 2003 Bonds have a final maturity in 2014, are callable on March 1, 2010, and can be refinanced at a lower interest cost; and
Whereas, MPS has requested that the City issue General Obligation Bonds for school purposes in order to lower the interest rate on the 2003 Bonds, and has agreed to reimburse the City for debt service on the refunding bonds; and
Whereas, The 2010 Budget of the City includes $150,000,000 of Contingent Borrowing for purposes not contemplated at the time of the adoption of the 2010 Budget, and desires to use $14,360,000 of Contingent Borrowing for school purposes in order to refinance the 2003 Bonds;
Whereas, Resolution File No. 090555 has authorized the issuance of Bonds for School Purposes, and if needed, the City desires to use a portion of that aut...
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