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HomeMy WebLinkAbout08-472DECEMBER 9, 2008 08 -472 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: EXPRESS OFFICIAL INTENT REGARDING CERTAIN CAPITAL EXPENDITURES TO BE REIMBURSED FROM THE PROCEEDS OF AN OBLIGATION INITIATED BY: CITY ADMINISTRATION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 2164523 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 O O O 0 O O ° J O F ;� O co N O N O .N.. c ai o m F t0 O N r V O FA 69 f9 (9 U) fA 6916-3. 69 fA 603 6 U? 69 V) U) fA U3 fA Z C o C) o Q ° o 0 O O M U) T 69 fA fA U) U) O O p , , , p , i , , i , O W r V tV N n j U> U! 69 U) 69 69 U) fA 69 E9 6a 69 69 UJ UT 6A 69 UA O O p O , , , , O Q . O V 60 LO V (n CO CO O 69 69 69 U3 69 U) U} 69 69 613. 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QQ Zy J W ZF � o Z C7 � � F F- 0 =) � X C7 ' � � U m0Q Z0Q OF F-0Q OF a'0Q 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