LRB – RESEARCH AND ANALYSIS SECTION

NOVEMBER 29, 2006 AGENDA                           ITEM 20, FILE 061008

FINANCE & PERSONNEL COMMITTEE                                         JAMES CARROLL  

File #061008 is a resolution authorizing the Commissioners of Public Debt to market general obligation revenue anticipation notes pursuant to the provisions of Ch. 67 Stats.

Background and Discussion

1. This resolution authorizes the City of Milwaukee to issue general obligation revenue anticipation notes (RANs) to finance the City’s operating budget until the City receives shared revenue payments from the State of Wisconsin. The City anticipates receiving the payments in July and November.

2. The City of Milwaukee annually issues short-term RANs in anticipation of receiving shared revenue payments from the State of Wisconsin.

3. The City of Milwaukee anticipates receiving at least $200 million in shared revenue payments in 2007 from the State of Wisconsin.

4. Shared revenue from the State of Wisconsin will provide approximately 35% of the City’s General Fund operating revenue for 2007.

5. The RANs will be repaid from the November shared revenue payment.

6. The maximum amount of the sale of the notes will total no more than $90,000,000.

Fiscal Impact

Assuming the issuance of RANs in the amount of $50 million at an interest rate of 4%, the Comptroller’s Office estimates 2006 debt service expenditures of $1.5 million. 

Cc:  Marianne Walsh       Prepared by:

Craig  Kammholz      Jim Carroll,  X8679   Mark Nicolini      LRB Fiscal Review

                W. Martin Morics                                                                                   November 27, 2007

                Richard Li

                Mike Daun