HomeMy WebLinkAbout04. 14-445
OCTOBER 14, 2014 14-445 RESOLUTION
(CARRIED___7-0___ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: AMEND RESOLUTION 14-411 AUTHORIZING BORROWING FROM
STATE LAND TRUST ($1,250,000.00)
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the Common Council by Resolution 14-411 amended the 2014 Capital
Improvement Program for the purpose of including street and utility construction, including
the grading of lots, within the Southwest Industrial Park to be funded through a State Trust
Fund Loan; and
WHEREAS, a new application was necessary for the State Land Trust Fund Loan
for a 10 year loan for these purposes; and
WHEREAS, by the provisions of sec. 24.66 of the Wisconsin Statutes, all
municipalities may borrow money from the State Land Trust for such purposes in the
manner prescribed; and,
WHEREAS, by the provisions of Chapter 24 of the Wisconsin Statutes, the Board of
Commissioners of Public Lands of Wisconsin is authorized to make loans from the State
Trust Funds to municipalities for such purposes. (Municipality as defined by sec. 24.60(2),
Wisconsin Statutes, means a town, village, city, county, public inland lake protection and
rehabilitation district, town sanitary district created under sec. 60.71 or 60.72, metropolitan
sewerage district created under sec. 200.05 or 200.23, joint sewerage system created
under sec. 281.43 (4), school district or technical college district.)
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the City of Oshkosh, in the County of Winnebago, Wisconsin, is authorized
to borrow from the Trust Funds of the State of Wisconsin, a sum of up to One Million Two
Hundred Fifty Dollars ($1,250,000.00) for the purpose of completing street and utility
construction, including the grading of lots, within the Southwest Industrial Park.
The loan is to be payable within 10 years from the 15th day of March preceding the
date the loan is made. The loan will be repaid in annual installments with interest at the
rate of 3.5 percent per annum from the date of making the loan to the 15th day of March
next and thereafter annually as provided by law.
BE IT FURTHER RESOLVED, that there shall be raised and there is levied upon all
taxable property, within the City of Oshkosh, in the County of Winnebago, Wisconsin, a
direct annual tax for the purpose of paying interest and principal on the loan as they
OCTOBER 14, 2014 14-445 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED, that no money obtained by the City of Oshkosh by
such loan from the state be applied or paid out for any purpose except for the purpose of
completing street and utility construction, including the grading of lots,within the Southwest
Industrial Park without the consent of the Board of Commissioners of Public Lands.
BE IT FURTHER RESOLVED, that in case the Board of Commissioners of Public
Lands agrees to make the loan, that the City Manager and Clerk of the City of Oshkosh in
the County of Winnebago, Wisconsin, are authorized and empowered, in the name of the
City to execute and deliver to the Commission, certificates of indebtedness, in such form
as required by the Commission, for any sum of money that may be loaned to the City
pursuant to this resolution. The City Manager and Clerk of the City will perform all
necessary actions to fully carry out the provisions of Chapter 24 Wisconsin Statutes, and
these resolutions.
BE IT FURTHER RESOLVED, that this preamble and these resolutions and the
"aye"and "no"vote by which they were adopted, be recorded, and that the Clerk of this City
forward this certified record, along with the application for the loan, to the Board of
Commissioners of Public Lands of Wisconsin.
BE IT FURTHER RESOLVED that the appropriate city officials are hereby
authorized and directed to take such further action and to sign all documents necessary to
accomplish said purposes.
CITY HALL
215 Church Avenue
P.O.Box 1130 -
Oshkos 5 903-1130 v�`y �� Oshk�sh
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TO: Honorable Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorney
DATE: October 9, 2014
RE: Amend Resolution 14-411 Authorizing Borrowing from State Land
Trust ($1,250,000)
BACKGROUND
By resolution 14-411 adopted on September 9, 2014, the Council amended the
2014 Capital Improvements Program to add additional grading work in the
Southwest Industrial Park to be funded through a State Trust Fund Loan. After
the passage of that resolution, it was determined that although the City had filed
a previous application for borrowing in an amount sufficient to account for this
additional funding, the City would need to file a new application for the State
Trust Fund Loan to specify the new lower amount and to modify the loan purpose
to specifically include the newly proposed grading work. In addition, the term for
the loan was adjusted to be a 10 year loan with a 3.5% interest rate, as opposed
to the 20 year 4.25% interest rate loan identified in the original resolution.
ANALYSIS
The proposed resolution amends the previous resolution to comply with the State
Land Trust requirements, to specifically identify the purpose of the loan and to
include the modified term and interest rate. The term was adjusted to be
consistent with other State Trust Fund Loans in TID's which have historically
been 10 year loans and to obtain the more favorable interest rate associated with
the shorter term loan.
FISCAL IMPACT
As noted at the September 9th meeting when this was originally considered, it is
anticipated that the State Trust Fund loan will be repaid from the proceeds of
land sales in the Southwest Industrial Park. The change from a 20 year loan at
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4.25% interest to a 10-year loan with a 3.5% interest rate will mean a higher
yearly repayment but the City will see a savings in interest with a lower rate over
a shorter repayment term.
RECOMMENDATION
Staff recommends adoption of the proposed resolution.
Respectfully Submitted, Approved:
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Trena Larson Mark A. Rohloff
Finance Director City Manager
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nn . Lorenson
City Attorney