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Meeting Date:
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11/14/2017 - 6:30 PM
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Category:
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ITEMS OF BUSINESS
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Type:
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Action
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Subject:
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10. Action on Adoption of a Resolution to Carry Over MPS's 2010 Qualified School Construction Bond (QSCB) Allocation
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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File Attachment:
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Background:
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In March 2010, the Department of the Treasury, pursuant to the American Recovery and Reinvestment Act, allocated to MPS, as a Large Local Educational Agency, $72,933,000 of Qualified School Construction Bond (QSCB) borrowing authority. The allocation is effective for QSCBs issued after March 17, 2010. Beginning in December 2010 and annually thereafter, the Board documented its desire to carry forward this authority to the subsequent year by approving a resolution to do so.
$38,000,000 was used in June 2015 for bonds pursuant to this allocation; therefore, the remaining $34,933,000 of the 2010 allocation that is not issued by December 31, 2017, should be carried forward to calendar year 2018.
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Fiscal Impact Statement:
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This item does not authorize expenditures.
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Implementation and Assessment Plan
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It is the understanding of MPS and its bond counsel that the legislation authorizing the 2010 Qualified School Construction Bond allocation to MPS does not identify an expiration of the authority to use the 2010 allocation. Nevertheless, it is considered favorable for future purposes to document by adoption of a resolution the Board’s intent and desire to carry forward any unused QSCB borrowing authority.
The Board’s approval of this item and the resolution within it will document the Board’s intent to preserve and carry forward any unissued portion, as of December 31, 2017, of the $34,933,000 of Qualified School Construction Bond (QSCB) borrowing authority that was awarded to Milwaukee Public Schools in 2010 by the U.S. Department of the Treasury pursuant to the American Recovery and Reinvestment Act.
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Recommendation:
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The administration recommends that the Board adopt the following Resolution and approve the carryover of any unissued portion, as of December 31, 2017, of the $34,933,000 of 2010 Large Local Education Agency Qualified School Construction Bonds borrowing authority awarded Milwaukee Public Schools pursuant to Internal Revenue Service Notice 2010-17.
Whereas, the Internal Revenue Service Notice 2010-17 allocated $72,933,000 of Qualified School Construction Bond (QSCB) volume cap (2010 allocation) to Milwaukee Public Schools (MPS) as a Large Local Education Agency. Such amount is allocated to MPS pursuant to Section 54F(d)(2) of the Internal Revenue Code (Code) relating to QSCBs; and
Whereas, 54F(e)(2) of the Code relating to QSCBs permits the carryover of amounts allocated pursuant to section (d)(2); and
Whereas, MPS has used $38,000,000 of the 2010 allocation; and
Whereas, MPS may issue up to $34,933,000 before December 31, 2017; and desires to carry over the remaining allocation to 2018; now, therefore, be it
Resolved by the Milwaukee Board of School Directors that it hereby carries over to 2018 any unissued portion, as of December 31, 2017, of the $34,933,000 of 2010 Large Local Education Agency Qualified School Construction Bonds borrowing authority awarded Milwaukee Public Schools pursuant to Internal Revenue Service Notice 2010-17 and authorizes the Administration to make such additional findings and take such additional actions, including but not limited to the filing of forms with the IRS, as may be considered necessary or advisable to effectuate the purposes of this resolution.
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Approvals:
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Recommended By:
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Signed By:
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LaWanda Baldwin - Comptroller
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Signed By:
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Shannon Gordon - Senior Director
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Signed By:
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Dr. Darienne Driver - Superintendent
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