HomeMy WebLinkAbout08-472DECEMBER 9, 2008 08 -472 RESOLUTION
(CARRIED LOST LAID OVER WITHDRAWN )
PURPOSE: EXPRESS OFFICIAL INTENT REGARDING CERTAIN CAPITAL
EXPENDITURES TO BE REIMBURSED FROM THE PROCEEDS
OF AN OBLIGATION
INITIATED BY: CITY ADMINISTRATION
WHEREAS the City of Oshkosh, Winnebago County, Wisconsin (the "Issuer "),
now wishes to advance moneys from available funds to pay the costs of Council
approved capital projects to be financed at a later date as described in Exhibit A
attached hereto and made a part hereof (the "Projects "); and
WHEREAS all or a portion of the expenditures relating to the Projects and to be
made from such funds (the "Expenditures ") (i) have been paid within the sixty (60) days
prior to the passage of this Resolution, or (ii) will be paid on or after the passage of this
Resolution; and
WHEREAS the Issuer reasonably expects to reimburse itself or pay for the
Expenditures with the proceeds of an obligation;
WHEREAS, it is necessary to transfer funds from General Fund Equity to
finance the purchases until such time as bonding for the 2009 Capital Improvements
Program is completed.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Oshkosh, Winnebago County, Wisconsin, as follows:
Section 1. The Issuer reasonably expects to reimburse or pay the
Expenditures with proceeds of an obligation.
Section 2. The maximum principal amount of the obligations expected to be
issued for the Projects and to be made from the funds is $19,891,100.
Section 3. That the officers, agents and employees of the Issuer are
authorized and directed to take all action and execute all documents necessary to
consummate this transaction and all actions of the officers, agents and employees of
the Issuer that are in conformity with the purposes and intent of this Resolution,
whether taken before or after the adoption hereof, are hereby ratified, confirmed and
approved.
08 -472
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DECEMBER 9, 2008 08 -472 RESOLUTION
CONT'D
Section 4. The proper city officials are authorized and directed to transfer
necessary funds from Account No. 100- 0071 - 3460 -00000 General Fund Equity to
various accounts as needed.
Section 5. That this Resolution is a declaration of official intent under
Treasury Regulation Section 1.103 -18, or amendments thereto, and shall be made
available for public inspection pursuant to Chapter 19 of the Wisconsin Statutes.
Section 6. This Resolution shall be in full force and effect immediately upon
its adoption.
Adopted December 9, 2008.
Approved December 9, 2008.
Recorded December 9, 2008.
Mayor
(SEAL)
Attest:
City Clerk
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City of Oshkosh
Finance Department
215 Church Ave., PO Box 1130
Oshkosh, WI 54903 -1130
O.IHKO.IH (920) 236 -5080 (920) 236 -5039 FAX
ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Peggy Steeno, Finance Director
DATE: December 3, 2008
RE: Express Official Intent Regarding Certain Capital Expenditures to be
Reimbursed from the Proceeds of an Obligation
BACKGROUND
`Expressing Official Intent Regarding Certain Capital Expenditures to be Reimbursed from the Proceeds
of an Obligation', otherwise known as a reimbursement resolution, allows the City to use available funds
to get approved projects started in advance of the formal borrowing process. Then, once the financing
transaction (borrowing) is executed, the receipted bond proceeds are used, in part, to pay back the initial
funds that were utilized to get the projects going.
ANALYSIS
Authorizing reimbursement resolutions is a very common practice among municipalities around the
state. This authorization will enable staff to proceed with approved projects in advance of the sale of
bonds for financing purposes in 2009. A benefit of this authorization is that interest expense is kept to a
minimum in the early stages of projects when not a lot of money is being expended. In addition, it is
very helpful when the financial market is experiencing uncertainty.
FISCAL IMPACT
There is a positive fiscal impact of proceeding with this resolution. While the City is forgoing interest
income as it uses available cash in the short term, it enjoys the benefit of not having to issue debt and
incur interest expenses until a later date. There is a net savings to the City during this period.
RECOMMENDATION
Staff recommends that Council adopt this resolution.
R pectfully Submitted,
e ,
� L�
Le
Peggy Steeno
Finance Director
Approved:
Mark Rohloff
City Manager