LRBs0079/1
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2017 - 2018 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 274
May 31, 2017 - Offered by Representative Macco.
AB274-ASA1,1,3 1An Act to amend 67.05 (1), 67.05 (3) (a) 1. and 67.05 (3) (d) of the statutes;
2relating to: providing financial information in bonding resolutions when
3referendum is required.
Analysis by the Legislative Reference Bureau
This substitute amendment requires a municipality that is seeking to issue a
bond to include specific financial information in an initial resolution adopted by the
governing body of the municipality, in the notice of election published prior to the
referendum election, and on the ballot on which the referendum question is
proposed.
Under current law, the governing body of a municipality must adopt an initial
resolution prior to issuing a bond. Municipality is defined under current law to mean
certain entities authorized to levy a tax, including a county, city, village, town, school
district, board of park commissioners, technical college district, and metropolitan
sewerage district. In some cases, the municipality must hold a referendum election
to obtain approval of the electors of the municipality. Currently, the initial resolution
and referendum ballot must specify the purpose for and maximum amount of the
borrowing. This substitute amendment requires that, when a referendum is
required, the governing body of the municipality must also include a good faith
estimate of the interest and related debt service costs that will be incurred by the

municipality on the debt and the sum of the principal, interest, and debt service costs
that will be incurred by the municipality.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB274-ASA1,1 1Section 1. 67.05 (1) of the statutes is amended to read:
AB274-ASA1,2,202 67.05 (1) Initial resolution by governing body. If any municipality seeks to
3issue a bond under s. 67.04, the governing body of the municipality shall, prior to the
4issuance of the bond, adopt a resolution that states the purpose for and maximum
5amount of the borrowing. The resolution adopted under this section shall be known
6as the initial resolution. If a governing body is required under this section to hold
7a referendum after the adoption of the initial resolution, the governing body shall
8include in the initial resolution a statement identifying the total amount of debt to
9be issued by the municipality, a good faith estimate of the total amount of interest
10and related debt service costs that will be incurred by the municipality on the debt
11obligation, and the sum of the principal, interest, and related debt service to be
12incurred by the municipality. The governing body shall base its estimate of the
13amount of interest to be incurred on the interest rate in effect immediately prior to
14the adoption of the resolution.
If a permissive referendum on the bond issue is
15allowed under this section, the governing body need not include on the initial
16resolution the information required under this subsection, but
shall, within 15 days
17after the initial resolution is adopted, publish a class 1 notice under ch. 985 stating
18the purpose and maximum principal amount of the bond issue and describing the
19opportunity and procedure for submitting a petition requesting a referendum on the
20bond issue.
AB274-ASA1,2 21Section 2. 67.05 (3) (a) 1. of the statutes is amended to read:
AB274-ASA1,3,5
167.05 (3) (a) 1. The clerk of the jurisdiction in which the referendum is held
2shall publish a type A notice under s. 10.01 (2) (a) on the 4th Tuesday before the
3referendum is held. Notwithstanding s. 10.01 (2) (a), the notice shall include a
4statement indicating the amount of debt to be issued and the interest and related
5debt service costs to be incurred by the municipality as specified in sub. (1).
AB274-ASA1,3 6Section 3. 67.05 (3) (d) of the statutes is amended to read:
AB274-ASA1,3,107 67.05 (3) (d) The question shall contain a statement of the purpose for which
8bonds are to be issued and, the maximum amount of the bonds to be issued, and the
9interest and related debt service costs to be incurred by the municipality as specified
10in sub. (1)
.
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