The proper city officers shall segregate annually from the general fund and other funds of the city the moneys under sub. (1) (a)
and credit the moneys to the amortization fund.
The amortization fund may not be considered an offset to the constitutional debt limit.
The commission shall be custodian of the amortization fund subject to the provisions of this chapter.
All necessary work incident to the administration of the amortization fund shall be done by the city comptroller's office.
Expenses incident to the administration of the amortization fund shall be paid from the amortization fund.
The secretary of the commission shall keep a record of all proceedings relating to the amortization fund, and an accurate account of transactions, investments, earnings and expenditures and shall make a report annually on or about January 15 of each year to the common council, and shall permit examination of the accounts and records by any person.
The amortization fund shall be audited annually as part of the annual independent audit of the city's financial records. The commission shall provide annually an independent certified audit of the amortization fund.
The commission shall, when necessary, demand and enforce by proper proceeding the appropriation, segregation and payment of any amortization moneys due under this section.
Disbursements, investments, sale or transfer of securities in the amortization fund shall be by resolution of the commission by majority vote on checks signed by the chairperson of the commission and the city treasurer and countersigned by the city comptroller.
The commission shall cause the proper officer to invest the amortization fund or part thereof as it accrues in any of the following:
Bonds or securities or other evidences of indebtedness of the United States.
Bonds or securities of any instrumentality of the United States or agency thereof if the indebtedness and interest are guaranteed by the United States either primarily or secondarily.
Bonds which are the general obligations of cities or other municipal subdivisions of this state after the bonds have been approved as to the regularity of their issue by the city attorney of the city.
Tax certificates of the city or of the county in which the city is located.
Securities of the city whether a direct obligation thereof or not secured by such tax certificates.
The commission shall cause the proper officer to sell, dispose of, or exchange securities in which the amortization fund is invested and to reinvest the proceeds thereof in any other security enumerated under par. (a)
. If the investment is in tax certificates of the city or county, the city treasurer, commissioner of assessments and such other city officers and employes as the commission may require for the prudent selection, protection and enforcement of the investment shall serve the commission. The time limitations for all actions, proceedings and applications for tax deeds upon such certificates shall be the same as the time limitations applicable to certificates owned or held by the city.
All interest earned by the amortization fund on its investments shall, when it accrues, be added to the fund to augment the fund for the purposes for which the fund is provided.
If the total of principal and accrued interest in the amortization fund is substantially equal to the outstanding general obligation bonds or notes of the city, the fund shall be applied to pay the interest on any outstanding general obligation bonds or notes of the city, and to meet the annual payments on the principal of the debt until maturity thereof. The commission may at any time apply the fund to acquire for cancellation general obligation bonds or notes prior to their maturity dates except that:
The amount of the fund applied may not exceed in any one year 40% of the balance in the fund on the preceding December 31.
The prices of the acquired bonds or notes may not exceed principal plus accrued interest to date of maturity.
The commission may not decrease the fund below $2,000,000 as a result of purchases and cancellations under this subsection.
Nothing in this section may be construed to amend, abolish or take the place of any other sinking fund provided by statute.
Legislative Council Note, 1979: In chapter 385, laws of 1925
, the legislature withdrew s. 67.101 from the statutes. Section 67.101 is amended to reflect current statutory drafting practices, without any intention of making substantive changes in the law. In section 26 of this act, it is declared that s. 67.101 shall be printed in future editions of the statutes. [Bill 458-A]
Debt service fund. 67.11(1)(1)
Each municipality that issues municipal obligations under this chapter, except obligations issued under s. 67.12 (1)
, shall establish and maintain a debt service fund in accordance with generally accepted accounting principles. The fund may include a separate account for each outstanding municipal obligation issue. Revenues from the following sources shall be recorded to the fund accounts as appropriate:
All moneys accruing to the borrowed money fund prescribed by s. 67.10 (3)
which at any stage are not needed and which obviously thereafter cannot be needed for the purpose for which the money was borrowed.
The premium, if any, for which the municipal obligations have been sold above par value and accrued interest.
Such further sums raised by taxation or otherwise, as may be necessary to make all interest and principal payments due in any year. The levying and collection of the taxes or other revenues are authorized; but the governing body may, in its discretion, levy and collect larger sums than the sums so authorized, in order to speed the payment of municipal obligations.
Debt service for municipal obligations issued under this chapter shall be paid from the appropriate debt service fund account created in sub. (1)
. All investments shall mature in time to make required debt service payments. If invested, the funds to provide for debt service payments due prior to the scheduled receipt of taxes from the next succeeding tax levy shall be invested in direct obligations of the federal government or, if authorized under s. 25.50
, in the local government pooled-investment fund under that section. Thereafter, any balance in an account created in sub. (1)
may be loaned or invested under the direction of the municipality's governing body as follows:
In any outstanding municipal obligations for the payment of which the debt service fund is required, at any price not exceeding the principal, accrued interest and a premium not to exceed 3 years' interest on the municipal obligations. These municipal obligations, when purchased, shall immediately have written on the face thereof a statement, signed by an officer of the municipality, that they have been taken up and cannot again be negotiated or made obligatory; and all of these municipal obligations shall be deemed paid and shall be immediately canceled.
In any bonds or securities issued under the authority of such municipality, whether the same create a general municipal liability or a liability of the property owners of such municipality for special improvements made therein.
In the local government pooled-investment fund, as defined in, and subject to the procedures in, s. 25.50
Investments and earnings under sub. (2)
continue a part of the debt service fund account for each issue. The obligations representing these investments may be sold or hypothecated by the governing body at any time, but the money received shall remain, until used, a part of the debt service fund account for each issue. All payments by the municipality of principal or interest of obligations representing investments under sub. (2)
shall be paid into debt service fund accounts, and, for the purpose of making these payments, the municipality shall levy every tax that it would be legally obligated to levy if the municipal obligations were still outstanding in the hands of purchasers and had not been purchased as an investment.
Money shall not be withdrawn from a debt service fund account and appropriated to any purpose other than the purpose for which the account was instituted until that purpose has been accomplished.
Any balance in any debt service fund account after all of the municipal obligations for the payment of which the account was instituted have been paid and canceled, and after all investments under sub. (2) (b)
have been finally disposed of or realized upon, shall be carried into the general fund of the municipal treasury unless transferred as directed by the municipality's governing body.
Where city created sinking fund to retire school bonds, and city school district was reorganized into financially independent joint school district, under facts of case, surplus moneys in fund were non-apportionable assets of district. See note to 893.48, citing Joint School Dist. No. 1 v. City of Chilton, 78 W (2d) 52, 253 NW (2d) 879.
Temporary borrowing and borrowing on promissory notes. 67.12(1)(1)
Borrowing in anticipation of revenues. 67.12(1)(a)(a)
Except for school districts and technical college districts, any municipality that becomes entitled to receive federal or state aids, taxes levied or other deferred payments may, in the same fiscal year it is entitled to receive the payments, issue municipal obligations in anticipation of receiving the payments. The municipal obligations issued under this paragraph shall not exceed 60% of the municipality's total actual and anticipated receipts in that fiscal year and shall be repaid no later than 18 months after the first day of that fiscal year.
Any municipality may issue municipal obligations in anticipation of receiving proceeds from clean water fund loans or grants for which the municipality has received a notice of financial assistance commitment under s. 281.58 (15)
, from bonds or notes the municipality has authorized or has covenanted to issue under this chapter or from grants that are committed to the municipality. Any municipal obligation issued under this paragraph may be refunded one or more times. Such obligation and any refundings thereof shall be repaid within 5 years after the original date of the original obligation.
Any municipality that issues a municipal obligation under this subsection shall adopt a resolution indicating the amount and purpose of the obligation and the anticipated revenue to secure the obligation and may pledge or assign all or portions of the revenue due and not yet paid as security for repayment of the obligations. Municipal obligations issued under this subsection shall be executed as provided in s. 67.08 (1)
, may be registered under s. 67.09
, and do not constitute an indebtedness for the purpose of determining the municipality's constitutional debt limitation.
(8) Temporary borrowing by school board. 67.12(8)(a)(a)
The school board of any common, union high school or unified school district may:
After the tax for operation and maintenance of the schools for the current school year has been voted, borrow money as needed to meet the immediate expenses of operating and maintaining the public instruction in the school district during the current school year. No such loan may extend beyond November 1 of the following school year.
In June prior to voting an annual tax for the operation and maintenance of the schools for the subsequent school year, and in July and August prior to voting an annual tax for the operation and maintenance of the schools for the current school year, borrow money as needed to meet the immediate expenses of operating and maintaining the public instruction in the school district from July 1 to the last working day in October. The school board may borrow money under this subdivision only upon a recorded resolution adopted by a two-thirds vote of its members. The resolution shall levy an irrepealable tax sufficient in amount to pay the principal of the loan and the interest thereon as they become due and payable. If the borrowing occurs in June, the loan shall be repaid on or before November 1 of the 2nd school year commencing after the date of the loan. If the borrowing occurs in July or August, the loan shall be repaid on or before November 1 of the school year commencing after the date of the loan.
The total amount borrowed under par. (a)
may not exceed one-half the estimated receipts for the operation and maintenance of the school district for the school year in which the borrowing occurs, as certified by the school district clerk.
To evidence a loan under par. (a)
, the school board shall deliver to the lender its tax and revenue anticipation promissory note or notes or its school order. Each note and each order shall be executed as provided in s. 67.08 (1)
and may be registered under s. 67.09
. Each note or order, when paid, shall be receipted and returned to the school district treasurer.
(8a) Temporary school district loan against revenues; regarded as paid debt.
Whenever a school district shall have become entitled to state aids, tuition revenues, or taxes levied, the district may pledge or assign all or portions of these revenues due but not yet paid as security for the repayment of loans required for operating purposes. Short term indebtedness secured by such assignment shall be construed as a paid or satisfied debt in reporting or computing the outstanding debt of the school district.
(8m) Temporary borrowing by technical college district.
The technical college district board may borrow money as needed to meet the immediate expenses of operating and maintaining the schools of the district during the current fiscal year. No such loan may extend beyond November 1 of the following fiscal year. The total amount borrowed may not exceed one-half the estimated receipts for the operation and maintenance of the schools for the current fiscal year in which the borrowing occurs, as certified by the district treasurer. All such loans shall be evidenced by promissory notes which shall be executed as provided in s. 67.08 (1)
and may be registered under s. 67.09
. Whenever a technical college district becomes entitled to state aids, tuition revenues or taxes levied, the district may pledge or assign all or portions of these revenues due but not yet paid as security for the repayment of promissory notes issued under this subsection. Any indebtedness secured by such assignment shall be construed as a paid or satisfied debt in reporting or computing the outstanding debt of the district.
(12) Borrowing on promissory notes. 67.12(12)(a)(a)
Any municipality may issue promissory notes as evidence of indebtedness for any public purpose, as defined in s. 67.04 (1) (b)
, including but not limited to paying any general and current municipal expense, and refunding any municipal obligations, including interest on them. Each note, plus interest if any, shall be repaid within 10 years after the original date of the note, except that notes issued under this section for purposes of ss. 281.58
, or to raise funds to pay a portion of the capital costs of a metropolitan sewerage district, shall be repaid within 20 years after the original date of the note.
A school board of any newly created school district or a technical college district board may, pursuant to this section, issue promissory notes to refund any indebtedness assumed by the district upon its creation.
At any time during the term of any promissory note, or thereafter, if the municipality has not paid the full amount due on a note:
The municipality may issue a promissory note to refund a promissory note or any part thereof or to refund a refunding promissory note. Any refunding note issued under this subdivision shall be paid within 10 years after the original date of the refunding note and within 20 years after the date of the original promissory note.
Any such note or notes may provide for prepayment on the terms and conditions prescribed therein.
Such notes shall be executed as provided in s. 67.08 (1)
, may be registered under s. 67.09
and shall include a statement specifying the provisions of the resolution authorizing the issuance or a reference to the resolution so that it can be readily located. The notes issued under this section are an indebtedness of the municipality issuing them.
Before any promissory note is issued under this subsection:
The governing body of the municipality shall adopt and record a resolution specifying the purposes and the maximum amount of the note issued.
Unless the purpose and amount of the borrowing have been approved by the electors under s. 67.05 (6a)
or deemed approved by the electors under s. 67.05 (7) (d) 3.
, the purpose is to refund any outstanding municipal obligation, the purpose is to pay unfunded prior service liability contributions under the Wisconsin retirement system if all of the proceeds of the note will be used for that purpose, the borrowing would not be subject to a referendum as a bond issue under s. 67.05 (7) (cc)
, or subd. 2g.
applies, the school district clerk shall, within 10 days after a school board adopts a resolution under subd. 1.
to issue a promissory note in excess of $5,000, publish notice of such adoption as a class 1 notice, under ch. 985
. Alternatively, the notice may be posted as provided under s. 10.05
. The notice need not set forth the full contents of the resolution, but shall state the maximum amount proposed to be borrowed, the purpose thereof, that the resolution was adopted under this subsection, and the place where, and the hours during which, the resolution may be inspected. If, within 30 days after publication or posting, a petition conforming to the requirements of s. 8.40
is filed with the school district clerk for a referendum on the resolution signed by at least 7,500 electors of the district or at least 20% of the number of district electors voting for governor at the last general election, as determined under s. 115.01 (13)
, whichever is the lesser, then the resolution shall not be effective unless adopted by a majority of the district electors voting at the referendum. The referendum shall be called in the manner provided under s. 67.05 (6a)
, except that the question which appears on the ballot shall be "Shall .... (name of district) borrow the sum of $.... for (state purpose) by issuing its general obligation promissory note (or notes) under section 67.12 (12) of the Wisconsin Statutes?".
NOTE: Subd. 2. is shown as affected by two acts of the 1995 legislature and as merged by the revisor under s. 13.93 (2) (c).
2g. Subdivision 2.
applies only if the amount of money to be raised by the promissory note will cause the aggregate amount of outstanding indebtedness of the school district incurred without a referendum since August 9, 1989, excluding amounts specified in s. 67.05 (6a) (bm)
, to exceed $1,000,000 or an amount determined as follows, whichever is less:
Divide the full value of all taxable property in all school districts operating a high school, as determined under s. 121.06 (1)
, by the total membership, as defined in s. 121.004 (5)
, of all school districts.
When a school district board adopts a resolution to borrow a sum in excess of $5,000 under this section for a stated purpose and a sufficient petition for referendum is not filed within the time permitted under subd. 2.
, or if such petition is filed and the question is approved at referendum, then the power of the board to borrow the sum and expend the sum for the purpose stated shall be deemed approved by the school district electors upon the expiration of the time for filing the petition or accomplishment of the referendum, whichever is applicable.
If a school board adopts a resolution to borrow a sum not exceeding $5,000 under this section, or if a school board adopts a resolution to borrow a sum in excess of $5,000 but subd. 2.
does not apply, the school board has the power to borrow and spend the sum for the purpose stated without the approval of the electors of the school district.
Within 10 days of the adoption by a technical college district board of a resolution under subd. 1.
to issue a promissory note for a purpose under s. 38.16 (2)
, the secretary of the district board shall publish a notice of such adoption as a class 1 notice, under ch. 985
. The notice need not set forth the full contents of the resolution, but shall state the amount proposed to be borrowed, the method of borrowing, the purpose thereof, that the resolution was adopted under this subsection and the place where and the hours during which the resolution is available for public inspection. If the amount proposed to be borrowed is for building remodeling or improvement and does not exceed $500,000 or is for movable equipment, the district board need not submit the resolution to the electors for approval unless, within 30 days after the publication or posting, a petition conforming to the requirements of s. 8.40
is filed with the secretary of the district board requesting a referendum at a special election to be called for that purpose. Such petition shall be signed by electors from each county lying wholly or partially within the district. The number of electors from each county shall equal at least 1.5% of the population of the county as determined under s. 16.96 (2) (c)
. If a county lies in more than one district, the technical college system board shall apportion the county's population as determined under s. 16.96 (2) (c)
to the districts involved and the petition shall be signed by electors equal to the appropriate percentage of the apportioned population. In lieu of a special election, the district board may specify that the referendum shall be held at the next succeeding spring primary or election or September primary or general election. Any resolution to borrow amounts of money in excess of $500,000 for building remodeling or improvement shall be submitted to the electors of the district for approval. If a referendum is held or required under this subdivision, no promissory note may be issued until the issuance is approved by a majority of the district electors voting at such referendum. The referendum shall be noticed, called and conducted under s. 67.05 (6a)
insofar as applicable, except that the notice of special election and ballot need not embody a copy of the resolution and the question which shall appear on the ballot shall be "Shall .... (name of district) be authorized to borrow the sum of $.... for (state purpose) by issuing its general obligation promissory note (or notes) under section 67.12 (12) of the Wisconsin Statutes?".
A copy of any resolution of the district board under subd. 5.
which requires a referendum shall be promptly transmitted by the secretary of the district board to the county clerk or board of election commissioners of each county any part of which is contained within the district. Costs of the referendum shall be borne as provided in ss. 5.68
Notes issued by technical college districts under the authority of this subsection prior to July 1, 1977 and without approval thereof by the electors of such districts are not invalid because of the absence of such approval. Such notes are valid and binding obligations of such district if in all other respects issued in accordance with the law pertaining thereto.
The governing body of any municipality proceeding to issue a promissory note under this subsection shall, before issuing the note, levy a direct, annual tax sufficient in amount to pay and for the express purpose of paying the interest on the note as it falls due and to pay and discharge the principal thereof at maturity. The municipality may not repeal such levy or in any way obstruct the collection of the tax until all such payments have been made or provided for. Any such tax shall be carried into the tax roll each year and collected as other taxes are collected until all payments on the note have been provided for, except that the amount of tax carried into the tax roll may be reduced in any year by the amount of any surplus in the debt service fund account under s. 67.11
. The municipality may make an appropriation to provide funds for payments coming due on any note, whether or not the note has been authorized, prior to the first collection of the taxes levied for those payments. The amount of the appropriation shall be based on estimates of the amount of notes to be sold and the rate of interest the notes will bear. The municipality may not use the appropriation for any purpose other than that for which appropriated and shall transfer any surplus in the appropriation to the general fund of the municipality. Notwithstanding par. (e) 1.
, the municipality is not required to levy a tax equal to the amount of that appropriation.
(f) Paragraph (e) 2.
does not apply to borrowing by a school district from the state trust funds under subch. II of ch. 24
if the trust fund loan is for a distance education project and the loan has been approved by the board of control of the cooperative educational service agency in which the school district participates.
A common school district, union high school district or unified school district may, upon compliance with the requirements of this section, issue its note or notes in order to provide funds allocated under the contract to the school district as a participant in a contract under s. 66.30 (6)
History: 1971 c. 49
; 1971 c. 152
; 1971 c. 164
; 1973 c. 172
; 1975 c. 311
; 1977 c. 29
; 1977 c. 272
; 1977 c. 418
; 1979 c. 34
; 1979 c. 110
s. 60 (13)
; 1979 c. 221
; 1981 c. 20
; 1981 c. 282
; 1981 c. 314
; 1983 a. 24
; 1985 a. 101
; 1987 a. 197
; 1989 a. 31
; 1991 a. 32
; 1993 a. 399
; 1995 a. 27
; s. 13.93 (2) (c).
Sub. (12) (e) 5, 6 is construed to permit a vocational, technical and adult education (technical college) district board to initiate a referendum on question of borrowing by issuing promissory notes, the result of which will be binding on the board. 63 Atty. Gen. 551.
Variable rate obligations. 67.15(1)(a)
"Credit facility" means a standby or direct payment letter of credit, an insurance policy or other commitment to pay the principal of, or interest on, a municipal obligation.
"Liquidity facility" means a standby or direct payment letter of credit or other commitment to purchase, or provide funds for the purchase of, a municipal obligation presented for purchase under a put option.
"Put option" means the right of the holder or owner of a municipal obligation to present that municipal obligation to the municipality which issued it, its designee or a 3rd party for purchase by that municipality, designee or 3rd party.
"Tendered obligation" means a municipal obligation which is presented for purchase when a put option is exercised.