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
- 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.
- The City of Milwaukee annually issues short-term
RANs in anticipation of receiving shared revenue payments from the State of
Wisconsin.
- The City of Milwaukee anticipates receiving at
least $200 million in shared revenue payments in 2007 from the State of
Wisconsin.
- Shared revenue from the State of Wisconsin will
provide approximately 35% of the City�s General Fund operating revenue for
2007.
- The RANs will be repaid from the November shared
revenue payment.
- 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