HomeMy WebLinkAbout15. 16-72FEBRUARY 23, 2016 16-72 RESOLUTION
(CARRIED __6-0____ LOST _______ LAID OVER _______ WITHDRAWN_______)
PURPOSE: RESCIND RESOLUTION 16-61 AND AUTHORIZE BORROWING
FROM TRUST FUNDS OF THE STATE OF WISCONSIN IN THE
SUM OF SEVEN HUNDRED ELEVEN THOUSAND THREE
HUNDRED AND 00/100 DOLLARS ($711,300.00) FOR THE
PURPOSE OF FINANCING RAILROAD SPUR, BLIGHT
REMOVAL AND UTILITY INFRASTRUCTURE
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the Common Council for the City of Oshkosh previously approved
Resolution 16-61 authorizing the borrowing from trust funds of the State of Wisconsin for the
purpose of financing railroad spur, blight removal and utility infrastructure; and
WHEREAS, the City has been informed that the borrowing may now be done with a
more favorable interest rate and therefore it is in the best interest of the City to rescind the
previous resolution and authorize borrowing at the more favorable interest rate; and
WHEREAS, by the provisions of sec. 24.66 of the Wisconsin Statutes, all
municipalities may borrow money 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 Seven Hundred
Eleven Three Hundred Thousand and 00/100 Dollars ($711,300.00) for the purposes of
financing railroad spur, blight removal, and utility infrastructure and for no other purpose.
FEBRUARY 23, 2016 16-72 RESOLUTION
CONT’D
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 3.00 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 become
due.
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 purposes of
financing railroad spur, blight removal, and utility infrastructure without the consent of the
Board of Commissioners 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.
FEBRUARY 23, 2016 16-72 RESOLUTION
CONT’D
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 3.00 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 become
due.
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 purposes of
financing railroad spur, blight removal, and utility infrastructure without the consent of the
Board of Commissioners 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.
�
W H�JH
TO:
FROM:
DATE:
RE:
Honorable Mayor and Members of the Common Council
Trena Larson, Director of Finance
February 18, 2016
Ciry olOShkosM1
]15 C�urc� Avenue
PO eav 1130
OsM1kasM1, WI509W-0130
Trrna Larwn
DirecmrofFinanm
Rescind Resolution ] 6-61 and, au[horize borrowing from Trust Funds of The State of
Wisconsin the Sum of $711,300 for Financing Railroad Spur, Blight Removal and
Utility Infrastructure
On Febmazy 23, 2016 the Common Counci] approved Resolution 16-61 to authorize the borcowing
from the Tmst Fuud of the State of Wisco�si� in the Sum of $711,30Q This loari is intended to the
finance the following projects: a railroad spuc, bligh[ removal, and utility infrastructure.
ANALYSIS
The City has been informed that [he borrowing may now be done with a more favorable interes[ ra[e
and therefore it is in the best inte�est of the City to rescind the previous resolutiou and authotize
bocrowing at the reduced interest rate.
FISCAL IMPACT
The loan can now be secured at a 3.00% interest rate over 10 years. This is a reduction of 25%,
which was approved previousty. This will reduce total interest expense for Ihe City over the term of
the loan by approximately $10,700.
RECOMMENATION
Staff recommends Couucil rescind Resolution 16-61 for the borzowiug of $711,300 from the Trust
Funds of the State of Wisconsin for Snancing the railroad spur ($200,000), blight removal
($180,000) and utiliry infrastmcture in the Southwest Industrial Pazk ($331,300).
Respec[fully Submitted, Approved
J)Ik(lG c�1J�(Y� ��.�°'�—
Trena Lazson Mar Rohloff
Director of Finance City Manager