Fiscal Note
No appropriation is required. Under current state law, debt obligations of more than 10 years are considered bonds and are subject to certain referenda requirements. City ordinance adds a further requirement of a referenda on any bond issues in excess of $300,000. Most of the City's general obligation debt is issued as promissory notes for 10 years and are, therefore, not subject to either state or city referenda requirements.
This resolution would repeal the City referenda requirement. The referenda requirements under state law would still apply. This change is proposed in response to the expected 20 year term on bonds that will be issued to finance the renovation of the Central Library. Under current state law, the proposed Library borrowing will not be subject to a referendum unless a petition signed by at least 10% of the electors casting votes for governor in the last election is filed with the City Clerk.
Title
Repealing Section 4.17 of the Madison General Ordinances to eliminate the requirement to hold a referendum on bond issues in excess of $300,000.
Body
DRAFTER'S ANALYSIS: Repeal of this ordinance eliminates the requirement that initial resolutions for bond issues in excess of $300,000 be subject to a mandatory referendum. Under state statutes, any initial resolution for a bond issue of any dollar amount may be submitted to the electors if a petition with the required number of signature is received, or if the Common Council so directs by separate recorded resolution. The repeal of this ordinance will not change those statutory provisions.
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