HomeMy WebLinkAbout27. 21-223
APRIL 27, 2021 21-223 RESOLUTION
(CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: RESOLUTION DIRECTING THE ADVERTISEMENT AND SALE
OF NOT TO EXCEED $8,765,000 AGGREGATE PRINCIPAL
AMOUNT OF GENERAL OBLIGATION CORPORATE PURPOSE
BONDS, $5,550,000 AGGREGATE PRINCIPAL AMOUNT OF
GENERAL OBLIGATION PROMISSORY NOTES, $7,635,000
AGGREGATE PRINCIPAL AMOUNT OF STORM WATER
UTILITY REVENUE BONDS, $5,970,000 AGGREGATE PRINCIPAL
AMOUNT OF WATER SYSTEM REVENUE BONDS AND
$14,815,000 AGGREGATE PRINCIPAL AMOUNT OF SEWER
SYSTEM REVENUE BONDS, OF THE CITY OF OSHKOSH,
WINNEBAGO COUNTY, WISCONSIN.
INITIATED BY: FINANCE DEPARTMENT
WHEREAS, cities are authorized by Chapter 67 of the Wisconsin Statutes, as
supplemented and amended, to borrow money and to issue bonds to finance any project
undertaken for a public purpose; and
WHEREAS, it is necessary that funds be raised by the City of Oshkosh, Winnebago
County, Wisconsin (the “City”), in an aggregate principal amount not to exceed
$8,765,000 for the following public purposes: (i) street improvements and (ii) parks and
public grounds (collectively, the “General Obligation Bond Purposes”); and
WHEREAS, it is considered necessary and desirable by the Common Council of the
City (the “Council”) that the City borrow money and issue its General Obligation
Corporate Purpose Bonds in an aggregate principal amount not to exceed $8,765,000 (the
“General Obligation Bonds”) for the General Obligation Bond Purposes, for which an initial
resolution has been adopted; and
APRIL 27, 2021 21-223 RESOLUTION
CONT’D
WHEREAS, cities are authorized by the provisions of Section 67.12(12) of the
Wisconsin Statutes, as supplemented and amended, to borrow money and to issue
promissory notes to finance any project undertaken for a public purpose of the City; and
WHEREAS, it is necessary that funds be raised by the City in an aggregate principal
amount not to exceed $5,550,000 for various public purposes of the City, including, but
not limited to, acquiring, constructing and improving sidewalks, traffic signals and other
traffic improvements, and public buildings and property improvements and replacing
equipment of the City (collectively, the “Note Purposes”); and
WHEREAS, it is considered necessary and desirable by the Council that the City
borrow money and issue its General Obligation Promissory Notes in an aggregate
principal amount not to exceed $5,550,000 (the “Notes”) for the Note Purposes; and
WHEREAS, cities are authorized by Section 66.0621 of the Wisconsin Statutes, as
supplemented and amended, to borrow money and to issue revenue bonds to finance
any project undertaken for a public utility; and
WHEREAS, it is necessary that funds be raised by the City in an aggregate principal
amount not to exceed $7,635,000 for the purpose of acquiring, constructing and
improving the storm water sewer system of the City (collectively, the “Storm Water
Purposes”); and
WHEREAS, it is considered necessary and desirable by the Council that the City
borrow money and issue its Storm Water Utility Revenue Bonds in an aggregate principal
amount not to exceed $7,635,000 (the “Storm Water Revenue Bonds”) for the Storm Water
Purposes; and
APRIL 27, 2021 21-223 RESOLUTION
CONT’D
WHEREAS, it is necessary that funds be raised by the City in an aggregate principal
amount not to exceed $5,970,000 for the purpose of acquiring, constructing and
improving the water system of the City (collectively, the “Water Purposes”); and
WHEREAS, it is considered necessary and desirable by the Council that the City
borrow money and issue its Water System Revenue Bonds in an aggregate principal
amount not to exceed $5,970,000 (the “Water Revenue Bonds”) for the Water Purposes; and
WHEREAS, it is necessary that funds be raised by the City in an aggregate principal
amount not to exceed $14,815,000 for the purpose of acquiring, constructing and
improving the sanitary sewer system of the City (collectively, the “Sewer Purposes”); and
WHEREAS, it is considered necessary and desirable by the Council that the City
borrow money and issue its Sewer System Revenue Bonds in an aggregate principal
amount not to exceed $14,815,000 (“Sewer Revenue Bonds” and, collectively with the
General Obligation Bonds, the Notes, the Storm Water Revenue Bonds and the Water
Revenue Bonds, the “Obligations”) for the Sewer Purposes:
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh,
Winnebago County, Wisconsin, as follows:
Section 1. For the purpose of offering the Obligations for sale, the Director of
Finance/City Treasurer of the City is hereby authorized to cause appropriate notices of
the sale thereof to be published in a newspaper to be selected by the Director of
Finance/City Treasurer of the City. The Director of Finance/City Treasurer of the City
shall also cause to be prepared and distributed Official Statements, including Official
Terms of Offering, with respect to the Obligations. The Director of Finance/City
Treasurer of the City may assign different series designations to each of the General
APRIL 27, 2021 21-223 RESOLUTION
CONT’D
Obligation Bonds, the Notes, the Storm Water Revenue Bonds, the Water Revenue Bonds
and/or the Sewer Revenue Bonds than the series designations, if any, provided herein,
and each of the General Obligation Bonds, the Notes, the Storm Water Revenue Bonds,
the Water Revenue Bonds and Sewer Revenue Bonds may be issued in one or more series.
Any series of the Obligations may be issued such that the interest thereon is included in
gross income of the owners thereof for federal income tax purposes, or that the interest
thereon is excluded from gross income of the owners thereof for federal income tax
purposes.
Section 2. After bids shall have been received for the Obligations or any series of
them, this Council will adopt additional proceedings to award the same to the best bidder
or bidders, prescribe the terms thereof and the forms of Obligations and will levy taxes
in the specific amount necessary to pay the principal of and interest on the General
Obligation Bonds and the Notes.
Section 3. The City Manager, the City Clerk, the Director of Finance/City
Treasurer and all other officers of the City are hereby authorized to execute all documents
and certificates and to take all such actions as may be necessary in connection with the
authorization, issuance, sale and delivery of the Obligations, and the performance of the
obligations of the City hereunder and to carry out and comply with the terms of this
Resolution. Documents shall be in substantially the same form as indicated in this
Resolution, or in any other resolution adopted by the Council further providing for the
issuance of the Obligations or any of them, any changes in the final execution copies of
such documents to be deemed approved by the respective signatures of the City officers
named above.
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Russ Van Gompel, Finance Director
DATE: April 22, 2021
RE: Approve Initial Resolution authorizing not exceeding $8,765,000 general
obligation bonds of the City of Oshkosh, Winnebago County, Wisconsin,
for the public purposes of (i) street improvements and (ii) parks and
public grounds.
Approve Resolution directing the advertisement and sale of not to exceed
$8,765,000 aggregate principal amount of General Obligation Corporate
Purpose Bonds, $5,550,000 aggregate principal amount of General
Obligation Promissory Notes, $7,635,000 aggregate principal amount of
Storm Water Utility Revenue Bonds, $5,970,000 aggregate principal
amount of Water System Revenue Bonds and $14,815,000 aggregate
principal amount of Sewer System Revenue Bonds, of the City of
Oshkosh, Winnebago County, Wisconsin.
BACKGROUND
In order to borrow money through the bonding process, the City Council is requested to
consider two separate resolutions. The first resolution, “Initial Resolution authorizing
not exceeding $8,765,000 general obligation bonds”, is required by state statute
whenever bonds are issued for new debt or projects. The second resolution authorizes
staff to proceed with the preparation and documentation needed to sell the bonds and
receive the proceeds. The sale of the bonds and notes will occur at least 30 days after
the initial resolution is authorized.
ANALYSIS
The currently proposed general obligation borrowing of $14,315,000 includes the
following:
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
Up to $8,765,000 of bonds will be issued for the public purpose of street
improvement in the amount up to $7,205,000 and for parks and public
grounds in the amount up to $1,560,000.
Up to $5,550,000 of promissory notes will be issued for the purpose of
acquiring, constructing and improving sidewalks, traffic signals and other
traffic improvements, public buildings and property improvements, and
equipment of the City.
In addition, staff is proposing additional borrowing of $28,420,000 through issuance of
utility revenue bonds as noted below:
Up to $7,635,000 of Storm Water Revenue Bonds for storm water purposes
Up to $5,970,000 of Water Revenue Bonds for water
Up to $14,815,000 of Sewer Revenue Bonds for sewer
FISCAL IMPACT
The above amounts, if borrowed, will be added to the City’s outstanding debt
obligations and funded through the applicable budgets (Debt Service Fund, Storm
Water Utility Fund, Water Utility Fund, and Sewer Utility Fund). The Sources and Uses
of Funds, the Proposed Debt Service Schedule, the Estimated Debt Service Comparison
and other information is contained in the Pre-Sale Reports for each type of issuance as
prepared by Ehlers which is attached for your information.
RECOMMENDATION
Staff recommends adoption of both the above noted resolutions.
Respectfully Submitted, Approved:
Russ Van Gompel Mark Rohloff
Finance Director City Manager
April 27, 2021
Pre-Sale Report for
City of Oshkosh, Wisconsin
$8,765,000 General Obligation Corporate
Purpose Bonds, Series 2021A
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 1
Proposed Issue:
$8,765,000 General Obligation Corporate Purpose Bonds, Series 2021A (“Bonds”)
Purposes:
The proposed Bonds will finance street and park improvement projects. Debt service
associated with the projects will be paid from ad valorem property taxes, which the City will
partially abate with special assessment revenues.
Authority:
The Bonds are being issued pursuant to Wisconsin Statute 67.04 and will be general
obligations of the City for which its full faith, credit and taxing powers are pledged. The Bonds
count against the City’s General Obligation Debt Capacity Limit of 5% of total City Equalized
Valuation. Following issuance of the Bonds, and the Series 2021B General Obligation
Promissory Notes to be issued concurrently, the City’s total General Obligation debt principal
outstanding will be approximately $134.8 million, which is 60.5% of its limit. Remaining General
Obligation Borrowing Capacity will be approximately $88.2 million. At the end of the 2021,
General Obligation debt capacity usage will be approximately 53.2% of the City’s limit.
Term/Call Feature:
The Bonds are being issued for a term of 20 years. Principal on the Bonds will be due on June
1 in the years 2022 through 2041. Interest is payable every six months beginning June 1, 2022.
The Bonds will be subject to prepayment at the discretion of the City on June 1, 2031 or any
date thereafter.
Bank Qualification:
Because the City is issuing, or expects to issue, more than $10,000,000 in tax-exempt
obligations during the calendar year, the City will be not able to designate the Bonds as “bank
qualified” obligations.
Rating:
The City’s most recent bond issues were rated by Moody’s Investors Service. The current
ratings on those bonds are “Aa3”. The City will request a new rating for the Bonds. If the
winning bidder on the Bonds elects to purchase bond insurance, the rating for the issue may
be higher than the City's bond rating in the event that the bond rating of the insurer is higher
than that of the City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 2
Basis for Recommendation:
Based on our knowledge of your situation, your objectives communicated to us, our advisory
relationship as well as characteristics of various municipal financing options, we are
recommending the issuance of Bonds as a suitable option based on:
The expectation this form of financing will provide the overall lowest cost of funds while
also meeting the City’s objectives for term, structure, and optional redemption.
The City having adequate General Obligation debt capacity to undertake this financing.
The nature of the projects being financed, which will not generate user or other fees in
amounts sufficient to secure a revenue obligation.
The City’s current Capital Improvements Plan which identified issuance of General
Obligation Bonds to finance these projects.
Method of Sale/Placement:
We will solicit competitive bids for the purchase of the Bonds from underwriters and banks.
We will include an allowance for discount bidding in the terms of the issue. The discount is
treated as an interest item and provides the underwriter with all or a portion of their
compensation in the transaction.
If the Bonds are purchased at a price greater than the minimum bid amount (maximum
discount), the unused allowance may be used to reduce your borrowing amount.
Premium Pricing:
In some cases, investors in municipal bonds prefer “premium” pricing structures. A premium
is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds
the yield to the investor, resulting in a price paid that is greater than the face value of the
bonds. The sum of the amounts paid more than face value is considered “reoffering
premium.” The underwriter of the bonds will retain a portion of this reoffering premium as their
compensation (or “discount”) but will pay the remainder of the premium to the City.
For this issue of Bonds, any premium amount received that is in excess of the underwriting
discount and any capitalized interest amounts must be placed in the debt service fund and
used to pay a portion of the interest payments due on the Bonds.
The amount of premium allowed can be restricted in the bid specifications. Restrictions on
premium may result in fewer bids but may also eliminate large adjustments on the day of sale
and unintended results with respect to debt service payment impacts. Ehlers will identify
appropriate premium restrictions for the Bonds intended to achieve the City’s objectives for
this financing.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 3
Other Considerations:
Term Bond Option. The Bonds will be offered with the option of the successful bidder utilizing
a term bond structure. By offering underwriters the option to “term up” some of the maturities
at the time of the sale, it gives them more flexibility in finding a market for your Bonds. This
makes your issue more marketable, which can result in lower borrowing costs. If the successful
bidder utilizes a term bond structure, we recommend the City retain a paying agent to handle
responsibility for processing mandatory redemption/call notices associated with term bonds.
Review of Existing General Obligation Debt:
The City’s Series 2012B General Obligation Corporate Purpose Bonds are callable December 1,
2021 and could potentially be refinanced for debt service savings with new bonds closing on
September 2, 2021 or later. We will continue to evaluate this savings opportunity and will make
a recommendation to the City as the call date approaches. The City’s Series 2015B General
Obligation Promissory Notes are also callable on December 1, 2021 and could be included in
the refinancing.
The City’s Series 2012A Taxable General Obligation Refunding Bonds are callable now and
could potentially be refinanced for debt service savings if the City has other taxable borrowing
needs that this refunding could be combined with.
Other than the foregoing, there are no refunding opportunities currently. We will continue to
monitor the market and the call dates for the City’s outstanding debt and will alert you to any
future refunding opportunities.
Continuing Disclosure:
Because the City has more than $10,000,000 in outstanding debt (including this issue) and
this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual
Financial Information and its Audited Financial Statement annually, as well as providing notices
of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board
(the “MSRB”), as required by rules of the Securities and Exchange Commission (SEC). The City
is already obligated to provide such reports for its existing bonds and has contracted with
Ehlers to prepare and file the reports.
Arbitrage Monitoring:
The City must ensure compliance with certain sections of the Internal Revenue Code and
Treasury Regulations (“Arbitrage Rules”) throughout the life of the issue to maintain the tax-
exempt status of the Bonds. These Arbitrage Rules apply to amounts held in construction,
escrow, reserve, debt service account(s), etc., along with related investment income on each
fund/account.
IRS audits will verify compliance with rebate, yield restriction and records retention
requirements within the Arbitrage Rules. The City’s specific arbitrage responsibilities will be
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 4
detailed in the Arbitrage Certificate (the “Tax Compliance Document”) prepared by your Bond
Attorney and provided at closing.
The Bonds may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1) small
issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4)
reasonable reserve requirements, 5) expenditure within an available period limitations, 6)
investments yield restrictions, 7) de minimis rules, or; 8) borrower limited requirements.
We recommend that the City review its specific responsibilities related to the Bonds with an
arbitrage expert to utilize one or more of the exceptions listed above. We also recommend
that you establish written procedures regarding compliance with IRS rules and/or contract
with Ehlers to assist you.
Investment of Bond Proceeds:
Ehlers can assist the City in developing a strategy to invest your Bond proceeds until the funds
are needed to pay project costs.
Risk Factors:
Debt Service Abatement. The City expects to abate a portion of the Bond debt service with
special assessments. In the event these revenues are not available, the City is obligated to levy
property taxes in an amount sufficient to make all debt payments.
Other Service Providers:
This debt issuance will require the engagement of other public finance service providers. This
section identifies those other service providers, so Ehlers can coordinate their engagement on
your behalf. Where you have previously used a particular firm to provide a service, we have
assumed that you will continue that relationship. For services you have not previously required,
we have identified a service provider. Fees charged by these service providers will be paid
from proceeds of the obligation, unless you notify us that you wish to pay them from other
sources. Our pre-sale bond sizing includes a good faith estimate of these fees, but the final
fees may vary. If you have any questions pertaining to the identified service providers or their
role, or if you would like to use a different service provider for any of the listed services please
contact us.
Bond Counsel: Chapman and Cutler LLP
Paying Agent: Issuer, unless term bonds offered, then US Bank
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 5
Pre-Sale Review by City Council: April 27, 2021
Due Diligence Call to review Official Statement: Week of May 12, 2021
Conference with Rating Agency: May 18, 2021
Distribute Official Statement: June 1, 2021
City Council Meeting to Award Sale of the Bonds: June 8, 2021
Estimated Closing Date: June 30, 2021
Attachments
Estimated Sources and Uses of Funds
Estimated Proposed Debt Service Schedule
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Sue Porter, Senior Public Finance Analyst (262) 796-6167
Kathy Myers, Financial Analyst (262) 796-6177
The Preliminary Official Statement for this financing will be sent to the City Council at their
home or email address for review prior to the sale date.
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate Presale Estimate
Sale 6-8-2021 Sale 6-8-2021
Est. Dated 6-30-2021 Est. Dated 6-30-2021
G.O. Corporate
Purpose Bonds
G.O. Promissory
Notes
Series 2021A Series 2021B
Tax-Exempt Tax-Exempt
Capital Projects1 8,588,900$ 5,449,661$
Estimated Issuance Expenses
Ehlers (Municipal Advisor)29,500$20,200$
Chapman & Cutler (Bond Counsel)20,000$ 15,000$
Maximum Discount (Bid Item)2 109,563$55,500$
Moody's Investors Service (Rating Fee)15,307$ 9,693$
U.S. Bank (Paying Agent)850$ 850$
TOTAL TO BE FINANCED 8,764,120$ 5,550,904$
Estimated Interest Earnings3 (1,288)$ (817)$
Rounding 2,168$ (86)$
NET BOND OR NOTE SIZE 8,765,000$ 5,550,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2021 Budget.
2Maximum allowable discount of 1.25% for the Series 2021A Bonds, and 1.0% for the Series 2021B Notes.
3Assumes temporary investment of available new money proceeds at 0.09% for 60 days. (January 2021 LGIP Rate).
2021 General Obligation Sizing Worksheet
3/3/2021
File: Oshkosh Debt Base Case_2021‐3‐3/G.O. Sizing 2021
Page 6
YearPrin (6/1) Est. Rate3Interest Total Prin (6/1) Est. Rate3Interest TotalYear20214,233,828,800 20,869,956(9,709,757)11,160,2002.6411,160,2002.64 202120224,326,658,220 17,892,043(6,658,247)11,233,7962.60400,000 0.600% 182,663 582,663 655,000 0.600% 80,277 735,277(267,296)12,284,4402.84 202220234,421,522,984 16,345,411(5,324,824)11,020,5882.49440,000 0.660% 125,680 565,680 680,000 0.660% 51,766 731,766(255,281)12,062,7522.73 202320244,518,467,720 14,671,217(4,304,578)10,366,6392.29445,000 0.770% 122,514 567,514 690,000 0.770% 46,865 736,865(253,708)11,417,3102.53 202420254,617,538,031 13,362,531(3,777,564)9,584,9672.08445,000 0.870% 118,865 563,865 490,000 0.870% 42,077 532,077(251,904)10,429,0052.26 202520264,718,780,522 11,809,448(3,235,708)8,573,7401.82445,000 0.980% 114,749 559,749 495,000 0.980% 37,520 532,520(249,869)9,416,1402.00 202620274,822,242,821 10,346,966(2,673,580)7,673,3861.59455,000 1.130% 109,998 564,998 500,000 1.130% 32,270 532,270(247,548)8,523,1051.77 202720284,927,973,596 8,856,204(2,194,868)6,661,3361.35455,000 1.250% 104,583 559,583 505,000 1.250% 26,288 531,288(244,930)7,507,2781.52 202820295,036,022,587 6,495,273(1,004,615)5,490,6581.09460,000 1.400% 98,520 558,520 510,000 1.400% 19,562 529,562(242,015)6,336,7241.26 202920305,146,440,622 6,435,245(1,006,571)5,428,6741.05465,000 1.520% 91,766 556,766 510,000 1.520% 12,116 522,116(238,803)6,268,7521.22 203020315,259,279,643 4,916,629(754,521)4,162,1080.79470,000 1.600%84,472554,472 515,000 1.600% 4,120 519,120(235,371)5,000,3290.95 203120325,374,592,732 3,890,823(440,846)3,449,9770.64475,000 1.650% 76,793 551,793(162,374)3,839,3960.71 203220335,492,434,135 3,899,050(461,288)3,437,7630.63480,000 1.720% 68,746 548,746(159,846)3,826,6630.70 203320345,612,859,286 2,804,094(369,000)2,435,0940.43490,000 1.780% 60,257 550,257(162,177)2,823,1740.50 203420355,735,924,836 1,383,138(156,363)1,226,7750.21495,000 1.850% 51,317 546,317(159,363)1,613,7290.28 203520365,861,688,678 977,078(53,675)923,4030.16505,000 1.890% 41,966 546,966(156,465)1,313,9050.22 203620375,990,209,972 744,566(56,925)687,6410.11355,000 1.940% 33,751 388,7510 1,076,3910.18 203720386,121,549,179 433,7130 433,7130.07360,000 1.980% 26,743 386,7430 820,4560.13 203820396,255,768,082 242,9310 242,9310.04370,000 2.020% 19,442 389,4420 632,3730.10 203920406,392,929,821 237,6440 237,6440.04375,000 2.060% 11,843 386,8430 624,4860.10 204020416,533,098,9200000.00380,000 2.100% 3,990 383,9900 383,9900.06 2041TOTALS146,613,958(42,182,928)104,431,0308,765,0001,548,656 10,313,656 5,550,000352,860 5,902,860(3,286,949)117,360,597TOTALSNOTES: Maturities Subject to Optional Redemption1Value shown for 2021 is 1-1-2020 actual TID OUT EV. Assumes an 2.19% increase each year thereafter which is 50% of the actual past five year average increase.1Includes General Obligation debt, room-tax secured State Trust Fund Loan, and TID 31 SBA Loan.3Estimated rates are 2-22-2021 MMD AA scale plus 0.50%.Net Tax Rate for Debt$5,550,000Dated 6-30-2021 Dated 6-30-2021$8,765,000Less Special Assessmts2021 G.O. Bond and Note Structure WorksheetPresale EstimateExisting Debt Only Proposed 2021 IssuesProjected Equalized Value1Debt P&I2Total Abatement SourcesNet Tax Levy for DebtNet Tax Rate for DebtG.O. Corporate Purpose Bonds, Series 2021AG.O. Promissory Notes, Series 2021BNet Tax Levy for Debt3/3/2021File: Oshkosh Debt Base Case_2021‐3‐3/G.O. StructurePage 7
YEAR Prin (6/1) Est. Rate1Interest Total Prin (6/1) Est. Rate1Interest Total Prin (6/1) Est. Rate1Est. Rate1 Total Prin (6/1) Est. Rate1Interest Total YEAR2022190,000 0.600% 107,051 297,051 150,000 0.600% 41,822 191,822 60,000 0.600% 33,789 93,789 400,000 0.600% 182,663 582,66320222023220,000 0.660% 73,953 293,953 150,000 0.660% 28,386 178,386 70,000 0.660% 23,341 93,341 440,000 0.660% 125,680 565,68020232024225,000 0.770% 72,361 297,361 150,000 0.770% 27,314 177,314 70,000 0.770% 22,840 92,840 445,000 0.770% 122,514 567,51420242025225,000 0.870% 70,516 295,516 150,000 0.870% 26,084 176,084 70,000 0.870% 22,266 92,266 445,000 0.870% 118,865 563,86520252026225,000 0.980% 68,435 293,435 150,000 0.980% 24,696 174,696 70,000 0.980% 21,619 91,619 445,000 0.980% 114,749 559,74920262027230,000 1.130% 66,033 296,033 150,000 1.130% 23,114 173,114 75,000 1.130% 20,852 95,852 455,000 1.130% 109,998 564,99820272028230,000 1.250% 63,296 293,296 150,000 1.250% 21,329 171,329 75,000 1.250% 19,959 94,959 455,000 1.250% 104,583 559,58320282029235,000 1.400% 60,213 295,213 150,000 1.400% 19,341 169,341 75,000 1.400% 18,966 93,966 460,000 1.400% 98,520 558,52020292030240,000 1.520% 56,744 296,744 150,000 1.520% 17,151 167,151 75,000 1.520% 17,871 92,871 465,000 1.520% 91,766 556,76620302031245,000 1.600% 52,960 297,960 150,000 1.600% 14,811 164,811 75,000 1.600% 16,701 91,701 470,000 1.600% 84,472 554,47220312032245,000 1.650% 48,979 293,979 150,000 1.650% 12,374 162,374 80,000 1.650% 15,441 95,441 475,000 1.650% 76,793 551,79320322033250,000 1.720% 44,808 294,808 150,000 1.720% 9,846 159,846 80,000 1.720% 14,093 94,093 480,000 1.720% 68,746 548,74620332034255,000 1.780% 40,388 295,388 155,000 1.780% 7,177 162,177 80,000 1.780% 12,693 92,693 490,000 1.780% 60,257 550,25720342035260,000 1.850% 35,714 295,714 155,000 1.850% 4,363 159,363 80,000 1.850% 11,241 91,241 495,000 1.850% 51,317 546,31720352036265,000 1.890% 30,804 295,804 155,000 1.890% 1,465 156,465 85,000 1.890% 9,697 94,697 505,000 1.890% 41,966 546,96620362037270,000 1.940% 25,681 295,681 85,000 1.940% 8,070 93,070 355,000 1.940% 33,751 388,75120372038275,000 1.980% 20,340 295,340 85,000 1.980% 6,404 91,404 360,000 1.980% 26,743 386,74320382039280,000 2.020% 14,789 294,789 90,000 2.020% 4,653 94,653 370,000 2.020% 19,442 389,44220392040285,000 2.060% 9,026 294,026 90,000 2.060% 2,817 92,817 375,000 2.060% 11,843 386,84320402041290,000 2.100% 3,045 293,045 90,000 2.100% 945 90,945 380,000 2.100% 3,990 383,9902041TOTALS 4,940,000 965,132 5,905,132 2,265,000 279,270 2,544,270 1,560,000 304,253 1,864,253 8,765,000 1,548,656 10,313,656 TOTALSNOTES:1Estimated rates are 2-22-2021 MMD AA scale plus 0.50%.Proposed G.O. Corporate Purpose Bonds, Series 2021ADebt Service Breakdown by PurposePresale EstimateStreet Improvements(Non-Assessable)Street Improvements (Assessable) Park ImprovementsTotal Issue Estimated Debt Service3/3/2021File: Oshkosh Debt Base Case_2021‐3‐3/2021A Bond AllocationPage 8
20204,460,244,100 223,012,205 123,827,35255.52%123,827,35255.52%2.52%Moderate202020214,558,037,821 227,901,891 106,990,83646.95%8,765,000 5,550,000 121,305,83653.23%2.15%Moderate202120224,657,975,732 232,898,787 92,454,51139.70%8,365,000 4,895,000 105,714,51145.39%1.83%Moderate202220234,760,104,846 238,005,242 79,037,19133.21%7,925,000 4,215,000 91,177,19138.31%1.55%Strong202320244,864,473,207 243,223,660 66,898,10927.50%7,480,000 3,525,000 77,903,10932.03%1.29%Strong202420254,971,129,911 248,556,496 55,710,14922.41%7,035,000 3,035,000 65,780,14926.46%1.06%Strong202520265,080,125,132 254,006,257 45,775,00018.02%6,590,000 2,540,000 54,905,00021.62%0.86%Strong202620275,191,510,143 259,575,507 37,015,00014.26%6,135,000 2,040,000 45,190,00017.41%0.69%Very Strong202720285,305,337,342 265,266,867 29,250,00011.03%5,680,000 1,535,000 36,465,00013.75%0.54%Very Strong202820295,421,660,276 271,083,014 23,620,0008.71%5,220,000 1,025,000 29,865,00011.02%0.42%Very Strong202920305,540,533,665 277,026,683 17,885,0006.46%4,755,000 515,000 23,155,0008.36%0.31%Very Strong203020315,662,013,429 283,100,671 13,510,0004.77%4,285,000 0 17,795,0006.29%0.23%Very Strong203120325,786,156,715 289,307,836 10,030,0003.47%3,810,000 13,840,0004.78%0.17%Very Strong203220335,913,021,923 295,651,096 6,415,0002.17%3,330,0009,745,0003.30%0.11%Very Strong203320346,042,668,732 302,133,437 3,780,0001.25%2,840,0006,620,0002.19%0.06%Very Strong203420356,175,158,131 308,757,907 2,500,0000.81%2,345,0004,845,0001.57%0.04%Very Strong203520366,310,552,445 315,527,622 1,590,0000.50%1,840,0003,430,0001.09%0.03%Very Strong203620376,448,915,367 322,445,768 885,0000.27%1,485,0002,370,0000.74%0.01%Very Strong203720386,590,311,984 329,515,599 470,0000.14%1,125,0001,595,0000.48%0.01%Very Strong203820396,734,808,814 336,740,441 235,0000.07%755,000990,0000.29%0.00%Very Strong203920406,882,473,829 344,123,6910.00%380,000380,0000.11%0.00%Very Strong204020417,033,376,495 351,668,8250.00%000.00%0.00%Very Strong204120427,187,587,798 359,379,3900.00%0.00%0.00%Very Strong204220437,345,180,284 367,259,0140.00%0.00%0.00%Very Strong204320447,506,228,087 375,311,4040.00%0.00%0.00%Very Strong204420457,670,806,966 383,540,3480.00%0.00%0.00%Very Strong204520467,838,994,342 391,949,7170.00%0.00%0.00%Very Strong204620478,010,869,336 400,543,4670.00%0.00%0.00%Very Strong204720488,186,512,799 409,325,6400.00%0.00%0.00%Very Strong2048NOTES:1Value shown for 2020 is 1-1-2020 actual TID IN EV. Assumes an 2.19% increase each year thereafter which is 50% of the actual past five year average increase.2Direct debt burden metric excludes G.O. debt principal allocated to essential purpose utilities (sewer, sanitary sewer, and storm water) 1provided utility net revenues are sum sufficient to make all debt payments.EXIST DEBT PRIN OUTS% OF LIMITExisting Debt OnlyCurrent and Projected Debt Limit & Debt Burden CalculationsWith Proposed 2021 Bonds & NotesYearDIRECT DEBT BURDEN2ASSESSMENTYearPROJECTED EV (TID IN)1DEBT LIMIT @ 5%EXIST DEBT PRIN OUTS% OF LIMITPROP 2021A BONDSPROP 2021B NOTES3/3/2021File: Oshkosh Debt Base Case_2021‐3‐3/Debt Limit Page 9
April 27, 2021
Pre-Sale Report for
City of Oshkosh, Wisconsin
$5,550,000 General Obligation Promissory
Notes, Series 2021B
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 1
Proposed Issue:
$5,550,000 General Obligation Promissory Notes, Series 2021B (“Notes”)
Purposes:
The proposed Notes will finance sidewalk, traffic, property improvements, and major
equipment replacement. Debt service will be paid from ad valorem property taxes, which the
City will partially abate with special assessment revenues.
Authority:
The Notes are being issued pursuant to Wisconsin Statute 67.12(12) and will be general
obligations of the City for which its full faith, credit and taxing powers are pledged. The Notes
count against the City’s General Obligation Debt Capacity Limit of 5% of total City Equalized
Valuation. Following issuance of the Notes, and the Series 2021A General Obligation Corporate
Purpose Bonds to be issued concurrently, the City’s total General Obligation debt principal
outstanding will be approximately $134.8 million, which is 60.5% of its limit. Remaining General
Obligation Borrowing Capacity will be approximately $88.2 million. At the end of the 2021,
General Obligation debt capacity usage will be approximately 53.2% of the City’s limit.
Term/Call Feature:
The Notes are being issued for a term of 10 years. Principal on the Notes will be due on June
1 in the years 2022 through 2031. Interest is payable every six months beginning June 1, 2022.
The Notes will be subject to prepayment at the discretion of the City on June 1, 2028 or any
date thereafter.
Bank Qualification:
Because the City is issuing, or expects to issue, more than $10,000,000 in tax-exempt
obligations during the calendar year, the City will be not able to designate the Notes as “bank
qualified” obligations.
Rating:
The City’s most recent bond issues were rated by Moody’s Investors Service. The current
ratings on those bonds are “Aa3”. The City will request a new rating for the Notes. If the winning
bidder on the Notes elects to purchase bond insurance, the rating for the issue may be higher
than the City's bond rating in the event that the bond rating of the insurer is higher than that
of the City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 2
Basis for Recommendation:
Based on our knowledge of your situation, your objectives communicated to us, our advisory
relationship as well as characteristics of various municipal financing options, we are
recommending the issuance of Notes as a suitable option based on:
The expectation this form of financing will provide the overall lowest cost of funds
while also meeting the City’s objectives for term, structure, and optional redemption.
The City having adequate General Obligation debt capacity to undertake this
financing.
The nature of the projects being financed, which will not generate user or other fees in
amounts sufficient to secure a revenue obligation.
The City’s current Capital Improvements Plan which identified issuance of General
Obligation Bonds to finance these projects.
Method of Sale/Placement:
We will solicit competitive bids for the purchase of the Notes from underwriters and banks.
We will include an allowance for discount bidding in the terms of the issue. The discount is
treated as an interest item and provides the underwriter with all or a portion of their
compensation in the transaction.
If the Notes are purchased at a price greater than the minimum bid amount (maximum
discount), the unused allowance may be used to reduce your borrowing amount.
Premium Pricing:
In some cases, investors in municipal bonds prefer “premium” pricing structures. A premium
is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds
the yield to the investor, resulting in a price paid that is greater than the face value of the
bonds. The sum of the amounts paid more than face value is considered “reoffering
premium.” The underwriter of the bonds will retain a portion of this reoffering premium as their
compensation (or “discount”) but will pay the remainder of the premium to the City.
For this issue of Notes, any premium amount received that is in excess of the underwriting
discount and any capitalized interest amounts must be placed in the debt service fund and
used to pay a portion of the interest payments due on the Notes.
The amount of premium allowed can be restricted in the bid specifications. Restrictions on
premium may result in fewer bids but may also eliminate large adjustments on the day of sale
and unintended results with respect to debt service payment impacts. Ehlers will identify
appropriate premium restrictions for the Notes intended to achieve the City’s objectives for
this financing.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 3
Other Considerations:
Term Bond Option. The Notes will be offered with the option of the successful bidder utilizing
a term bond structure. By offering underwriters the option to “term up” some of the maturities
at the time of the sale, it gives them more flexibility in finding a market for your Notes. This
makes your issue more marketable, which can result in lower borrowing costs. If the successful
bidder utilizes a term bond structure, we recommend the City retain a paying agent to handle
responsibility for processing mandatory redemption/call notices associated with term bonds.
Review of Existing General Obligation Debt:
The City’s Series 2012B General Obligation Corporate Purpose Bonds are callable December 1,
2021 and could potentially be refinanced for debt service savings with new bonds closing on
September 2, 2021 or later. We will continue to evaluate this savings opportunity and will make
a recommendation to the City as the call date approaches. The City’s Series 2015B General
Obligation Promissory Notes are also callable on December 1, 2021 and could be included in
the refinancing.
The City’s Series 2012A Taxable General Obligation Refunding Bonds are callable now and
could potentially be refinanced for debt service savings if the City has other taxable borrowing
needs that this refunding could be combined with.
Other than the foregoing, there are no refunding opportunities currently. We will continue to
monitor the market and the call dates for the City’s outstanding debt and will alert you to any
future refunding opportunities.
Continuing Disclosure:
Because the City has more than $10,000,000 in outstanding debt (including this issue) and
this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual
Financial Information and its Audited Financial Statement annually, as well as providing notices
of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board
(the “MSRB”), as required by rules of the Securities and Exchange Commission (SEC). The City
is already obligated to provide such reports for its existing bonds and has contracted with
Ehlers to prepare and file the reports.
Arbitrage Monitoring:
The City must ensure compliance with certain sections of the Internal Revenue Code and
Treasury Regulations (“Arbitrage Rules”) throughout the life of the issue to maintain the tax-
exempt status of the Notes. These Arbitrage Rules apply to amounts held in construction,
escrow, reserve, debt service account(s), etc., along with related investment income on each
fund/account.
IRS audits will verify compliance with rebate, yield restriction and records retention
requirements within the Arbitrage Rules. The City’s specific arbitrage responsibilities will be
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 4
detailed in the Arbitrage Certificate (the “Tax Compliance Document”) prepared by your Bond
Attorney and provided at closing.
The Notes may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1) small
issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4)
reasonable reserve requirements, 5) expenditure within an available period limitations, 6)
investments yield restrictions, 7) de minimis rules, or; 8) borrower limited requirements.
We recommend that the City review its specific responsibilities related to the Notes with an
arbitrage expert in order to utilize one or more of the exceptions listed above. We also
recommend that you establish written procedures regarding compliance with IRS rules and/or
contract with Ehlers to assist you.
Investment of Note Proceeds:
Ehlers can assist the City in developing a strategy to invest your Note proceeds until the funds
are needed to pay project costs.
Risk Factors:
Debt Service Abatement. The City expects to abate a portion of the Bond debt service with
special assessments. In the event these revenues are not available, the City is obligated to levy
property taxes in an amount sufficient to make all debt payments.
Other Service Providers:
This debt issuance will require the engagement of other public finance service providers. This
section identifies those other service providers, so Ehlers can coordinate their engagement on
your behalf. Where you have previously used a particular firm to provide a service, we have
assumed that you will continue that relationship. For services you have not previously required,
we have identified a service provider. Fees charged by these service providers will be paid
from proceeds of the obligation, unless you notify us that you wish to pay them from other
sources. Our pre-sale bond sizing includes a good faith estimate of these fees, but the final
fees may vary. If you have any questions pertaining to the identified service providers or their
role, or if you would like to use a different service provider for any of the listed services please
contact us.
Bond Counsel: Chapman and Cutler LLP
Paying Agent: Issuer, unless term bonds offered, then US Bank
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 5
Pre-Sale Review by City Council: April 27, 2021
Due Diligence Call to review Official Statement: Week of May 12, 2021
Conference with Rating Agency: May 18, 2021
Distribute Official Statement: June 1, 2021
City Council Meeting to Award Sale of the Notes: June 8, 2021
Estimated Closing Date: June 30, 2021
Attachments
Estimated Sources and Uses of Funds
Estimated Proposed Debt Service Schedule
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Sue Porter, Senior Public Finance Analyst (262) 796-6167
Kathy Myers, Financial Analyst (262) 796-6177
The Preliminary Official Statement for this financing will be sent to the City Council at their
home or email address for review prior to the sale date.
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate Presale Estimate
Sale 6-8-2021 Sale 6-8-2021
Est. Dated 6-30-2021 Est. Dated 6-30-2021
G.O. Corporate
Purpose Bonds
G.O. Promissory
Notes
Series 2021A Series 2021B
Tax-Exempt Tax-Exempt
Capital Projects1 8,588,900$ 5,449,661$
Estimated Issuance Expenses
Ehlers (Municipal Advisor)29,500$20,200$
Chapman & Cutler (Bond Counsel)20,000$ 15,000$
Maximum Discount (Bid Item)2 109,563$55,500$
Moody's Investors Service (Rating Fee)15,307$ 9,693$
U.S. Bank (Paying Agent)850$ 850$
TOTAL TO BE FINANCED 8,764,120$ 5,550,904$
Estimated Interest Earnings3 (1,288)$ (817)$
Rounding 2,168$ (86)$
NET BOND OR NOTE SIZE 8,765,000$ 5,550,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2021 Budget.
2Maximum allowable discount of 1.25% for the Series 2021A Bonds, and 1.0% for the Series 2021B Notes.
3Assumes temporary investment of available new money proceeds at 0.09% for 60 days. (January 2021 LGIP Rate).
2021 General Obligation Sizing Worksheet
3/3/2021
File: Oshkosh Debt Base Case_2021‐3‐3/G.O. Sizing 2021
Page 6
YearPrin (6/1) Est. Rate3Interest Total Prin (6/1) Est. Rate3Interest TotalYear20214,233,828,800 20,869,956(9,709,757)11,160,2002.6411,160,2002.64 202120224,326,658,220 17,892,043(6,658,247)11,233,7962.60400,000 0.600% 182,663 582,663 655,000 0.600% 80,277 735,277(267,296)12,284,4402.84 202220234,421,522,984 16,345,411(5,324,824)11,020,5882.49440,000 0.660% 125,680 565,680 680,000 0.660% 51,766 731,766(255,281)12,062,7522.73 202320244,518,467,720 14,671,217(4,304,578)10,366,6392.29445,000 0.770% 122,514 567,514 690,000 0.770% 46,865 736,865(253,708)11,417,3102.53 202420254,617,538,031 13,362,531(3,777,564)9,584,9672.08445,000 0.870% 118,865 563,865 490,000 0.870% 42,077 532,077(251,904)10,429,0052.26 202520264,718,780,522 11,809,448(3,235,708)8,573,7401.82445,000 0.980% 114,749 559,749 495,000 0.980% 37,520 532,520(249,869)9,416,1402.00 202620274,822,242,821 10,346,966(2,673,580)7,673,3861.59455,000 1.130% 109,998 564,998 500,000 1.130% 32,270 532,270(247,548)8,523,1051.77 202720284,927,973,596 8,856,204(2,194,868)6,661,3361.35455,000 1.250% 104,583 559,583 505,000 1.250% 26,288 531,288(244,930)7,507,2781.52 202820295,036,022,587 6,495,273(1,004,615)5,490,6581.09460,000 1.400% 98,520 558,520 510,000 1.400% 19,562 529,562(242,015)6,336,7241.26 202920305,146,440,622 6,435,245(1,006,571)5,428,6741.05465,000 1.520% 91,766 556,766 510,000 1.520% 12,116 522,116(238,803)6,268,7521.22 203020315,259,279,643 4,916,629(754,521)4,162,1080.79470,000 1.600%84,472554,472 515,000 1.600% 4,120 519,120(235,371)5,000,3290.95 203120325,374,592,732 3,890,823(440,846)3,449,9770.64475,000 1.650% 76,793 551,793(162,374)3,839,3960.71 203220335,492,434,135 3,899,050(461,288)3,437,7630.63480,000 1.720% 68,746 548,746(159,846)3,826,6630.70 203320345,612,859,286 2,804,094(369,000)2,435,0940.43490,000 1.780% 60,257 550,257(162,177)2,823,1740.50 203420355,735,924,836 1,383,138(156,363)1,226,7750.21495,000 1.850% 51,317 546,317(159,363)1,613,7290.28 203520365,861,688,678 977,078(53,675)923,4030.16505,000 1.890% 41,966 546,966(156,465)1,313,9050.22 203620375,990,209,972 744,566(56,925)687,6410.11355,000 1.940% 33,751 388,7510 1,076,3910.18 203720386,121,549,179 433,7130 433,7130.07360,000 1.980% 26,743 386,7430 820,4560.13 203820396,255,768,082 242,9310 242,9310.04370,000 2.020% 19,442 389,4420 632,3730.10 203920406,392,929,821 237,6440 237,6440.04375,000 2.060% 11,843 386,8430 624,4860.10 204020416,533,098,9200000.00380,000 2.100% 3,990 383,9900 383,9900.06 2041TOTALS146,613,958(42,182,928)104,431,0308,765,0001,548,656 10,313,656 5,550,000352,860 5,902,860(3,286,949)117,360,597TOTALSNOTES: Maturities Subject to Optional Redemption1Value shown for 2021 is 1-1-2020 actual TID OUT EV. Assumes an 2.19% increase each year thereafter which is 50% of the actual past five year average increase.1Includes General Obligation debt, room-tax secured State Trust Fund Loan, and TID 31 SBA Loan.3Estimated rates are 2-22-2021 MMD AA scale plus 0.50%.Net Tax Rate for Debt$5,550,000Dated 6-30-2021 Dated 6-30-2021$8,765,000Less Special Assessmts2021 G.O. Bond and Note Structure WorksheetPresale EstimateExisting Debt Only Proposed 2021 IssuesProjected Equalized Value1Debt P&I2Total Abatement SourcesNet Tax Levy for DebtNet Tax Rate for DebtG.O. Corporate Purpose Bonds, Series 2021AG.O. Promissory Notes, Series 2021BNet Tax Levy for Debt3/3/2021File: Oshkosh Debt Base Case_2021‐3‐3/G.O. StructurePage 7
YEAR Prin (6/1) Est. Rate1Interest Total Prin (6/1) Est. Rate1Interest Total Prin (6/1) Est. Rate1Interest Total Prin (6/1) Est. Rate1Interest Total Prin (6/1) Est. Rate1Est. Rate1 Total Prin (6/1) Est. Rate1Interest Total YEAR2022375,000 0.600% 61,936 436,936 195,000 0.600% 5,089 200,089 15,000 0.600% 2,250 17,250 5,000 0.600% 529 5,529 65,000 0.600% 10,474 75,474 655,000 0.600% 80,277 735,27720222023395,000 0.660% 40,873 435,873 195,000 0.660% 2,184 197,184 15,000 0.660% 1,478 16,478 5,000 0.660% 337 5,337 70,000 0.660% 6,895 76,895 680,000 0.660% 51,766 731,76620232024400,000 0.770% 38,030 438,030 200,000 0.770% 770 200,770 15,000 0.770% 1,370 16,370 5,000 0.770% 301 5,301 70,000 0.770% 6,395 76,395 690,000 0.770% 46,865 736,86520242025400,000 0.870% 34,750 434,75015,000 0.870% 1,247 16,247 5,000 0.870% 260 5,260 70,000 0.870% 5,821 75,821 490,000 0.870% 42,077 532,07720252026405,000 0.980% 31,025 436,02515,000 0.980% 1,109 16,109 5,000 0.980% 214 5,214 70,000 0.980% 5,173 75,173 495,000 0.980% 37,520 532,52020262027410,000 1.130% 26,724 436,72415,000 1.130% 950 15,950 5,000 1.130% 161 5,161 70,000 1.130% 4,435 74,435 500,000 1.130% 32,270 532,27020272028415,000 1.250% 21,814 436,81415,000 1.250% 772 15,772 5,000 1.250% 101 5,101 70,000 1.250% 3,602 73,602 505,000 1.250% 26,288 531,28820282029420,000 1.400% 16,280 436,28015,000 1.400% 573 15,573 5,000 1.400% 35 5,035 70,000 1.400% 2,674 72,674 510,000 1.400% 19,562 529,56220292030425,000 1.520% 10,110 435,11015,000 1.520% 354 15,35470,000 1.520% 1,652 71,652 510,000 1.520% 12,116 522,11620302031430,000 1.600% 3,440 433,44015,000 1.600% 120 15,12070,000 1.600% 560 70,560 515,000 1.600% 4,120 519,120203120322032203320332034203420352035203620362037203720382038203920392040204020412041TOTALS 4,075,000284,981 4,359,981 590,0008,042 598,042 150,00010,223 160,223 40,0001,936 41,936 695,00047,679 742,679 5,550,000352,860 5,902,860 TOTALSNOTES:1Estimated rates are 2-22-2021 MMD AA scale plus 0.50%.Presale EstimateTransit (Tax Levy)Garbage Trucks (Tax Levy)Proposed G.O. Promissory Notes, Series 2021BDebt Service Breakdown by PurposeGeneral Projects (Tax Levy)Library (Tax Levy) Sidewalk Improvements (Assessable)Total Issue Estimated Debt Service3/3/2021File: Oshkosh Debt Base Case_2021‐3‐3/2021B Note AllocationPage 8
20204,460,244,100 223,012,205 123,827,35255.52%123,827,35255.52%2.52%Moderate202020214,558,037,821 227,901,891 106,990,83646.95%8,765,000 5,550,000 121,305,83653.23%2.15%Moderate202120224,657,975,732 232,898,787 92,454,51139.70%8,365,000 4,895,000 105,714,51145.39%1.83%Moderate202220234,760,104,846 238,005,242 79,037,19133.21%7,925,000 4,215,000 91,177,19138.31%1.55%Strong202320244,864,473,207 243,223,660 66,898,10927.50%7,480,000 3,525,000 77,903,10932.03%1.29%Strong202420254,971,129,911 248,556,496 55,710,14922.41%7,035,000 3,035,000 65,780,14926.46%1.06%Strong202520265,080,125,132 254,006,257 45,775,00018.02%6,590,000 2,540,000 54,905,00021.62%0.86%Strong202620275,191,510,143 259,575,507 37,015,00014.26%6,135,000 2,040,000 45,190,00017.41%0.69%Very Strong202720285,305,337,342 265,266,867 29,250,00011.03%5,680,000 1,535,000 36,465,00013.75%0.54%Very Strong202820295,421,660,276 271,083,014 23,620,0008.71%5,220,000 1,025,000 29,865,00011.02%0.42%Very Strong202920305,540,533,665 277,026,683 17,885,0006.46%4,755,000 515,000 23,155,0008.36%0.31%Very Strong203020315,662,013,429 283,100,671 13,510,0004.77%4,285,000 0 17,795,0006.29%0.23%Very Strong203120325,786,156,715 289,307,836 10,030,0003.47%3,810,000 13,840,0004.78%0.17%Very Strong203220335,913,021,923 295,651,096 6,415,0002.17%3,330,0009,745,0003.30%0.11%Very Strong203320346,042,668,732 302,133,437 3,780,0001.25%2,840,0006,620,0002.19%0.06%Very Strong203420356,175,158,131 308,757,907 2,500,0000.81%2,345,0004,845,0001.57%0.04%Very Strong203520366,310,552,445 315,527,622 1,590,0000.50%1,840,0003,430,0001.09%0.03%Very Strong203620376,448,915,367 322,445,768 885,0000.27%1,485,0002,370,0000.74%0.01%Very Strong203720386,590,311,984 329,515,599 470,0000.14%1,125,0001,595,0000.48%0.01%Very Strong203820396,734,808,814 336,740,441 235,0000.07%755,000990,0000.29%0.00%Very Strong203920406,882,473,829 344,123,6910.00%380,000380,0000.11%0.00%Very Strong204020417,033,376,495 351,668,8250.00%000.00%0.00%Very Strong204120427,187,587,798 359,379,3900.00%0.00%0.00%Very Strong204220437,345,180,284 367,259,0140.00%0.00%0.00%Very Strong204320447,506,228,087 375,311,4040.00%0.00%0.00%Very Strong204420457,670,806,966 383,540,3480.00%0.00%0.00%Very Strong204520467,838,994,342 391,949,7170.00%0.00%0.00%Very Strong204620478,010,869,336 400,543,4670.00%0.00%0.00%Very Strong204720488,186,512,799 409,325,6400.00%0.00%0.00%Very Strong2048NOTES:1Value shown for 2020 is 1-1-2020 actual TID IN EV. Assumes an 2.19% increase each year thereafter which is 50% of the actual past five year average increase.2Direct debt burden metric excludes G.O. debt principal allocated to essential purpose utilities (sewer, sanitary sewer, and storm water) 1provided utility net revenues are sum sufficient to make all debt payments.EXIST DEBT PRIN OUTS% OF LIMITExisting Debt OnlyCurrent and Projected Debt Limit & Debt Burden CalculationsWith Proposed 2021 Bonds & NotesYearDIRECT DEBT BURDEN2ASSESSMENTYearPROJECTED EV (TID IN)1DEBT LIMIT @ 5%EXIST DEBT PRIN OUTS% OF LIMITPROP 2021A BONDSPROP 2021B NOTES3/3/2021File: Oshkosh Debt Base Case_2021‐3‐3/Debt Limit Page 9
April 27, 2021
Pre-Sale Report for
City of Oshkosh, Wisconsin
$7,635,000 Storm Water Utility Revenue Bonds,
Series 2021C
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 1
Proposed Issue:
$7,635,000 Storm Water Utility Revenue Bonds, Series 2021C (“Bonds”)
Purposes:
The proposed issue includes financing for construction of storm water utility system
improvements.
Authority:
The Bonds are being issued pursuant to Wisconsin Statute 66.0621. The Bonds are not general
obligations of the City but are payable only from and secured by a pledge of income and
revenue to be derived from the operation of the Storm Water Utility System.
Term/Call Feature:
The Bonds are being issued for a term of 20 years. Principal on the Bonds will be due on May
1 in the years 2022 through 2041. Interest is payable every six months beginning May 1, 2022.
The Bonds will be subject to prepayment at the discretion of the City on May 1, 2029 or any
date thereafter.
Bank Qualification:
Because the City is issuing, or expects to issue, more than $10,000,000 in tax-exempt
obligations during the calendar year, the City will be not able to designate the Bonds as “bank
qualified” obligations.
Rating:
The City’s most recent bond issues were rated by Moody’s Investors Service. The current
ratings on those bonds are “A1”. The City will request a new rating for the Bonds. If the winning
bidder on the Bonds elects to purchase bond insurance, the rating for the issue may be higher
than the City's bond rating in the event that the bond rating of the insurer is higher than that
of the City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 2
Basis for Recommendation:
Based on our knowledge of your situation, your objectives communicated to us, our advisory
relationship as well as characteristics of various municipal financing options, we are
recommending the issuance of Bonds as a suitable option based on:
Net system revenues available for debt service that provide sufficient coverage for the
estimated principal and interest payments of the proposed Bonds and existing parity
debt. (See also the Other Considerations section).
The City’s or past practice of using revenue bonds to finance enterprise system
improvements to reduce its utilization of its General Obligation debt capacity.
Limited debt capacity to finance the project(s) on a General Obligation basis.
The City’s current Capital Improvements Plan which identified issuance of revenue
bonds to finance these projects.
Method of Sale/Placement:
We will solicit competitive bids for the purchase of the Bonds from underwriters and banks.
We will include an allowance for discount bidding in the terms of the issue. The discount is
treated as an interest item and provides the underwriter with all or a portion of their
compensation in the transaction.
If the Bonds are purchased at a price greater than the minimum bid amount (maximum
discount), the unused allowance may be used to reduce your borrowing amount.
Premium Pricing:
In some cases, investors in municipal bonds prefer “premium” pricing structures. A premium
is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds
the yield to the investor, resulting in a price paid that is greater than the face value of the
bonds. The sum of the amounts paid more than face value is considered “reoffering
premium.” The underwriter of the bonds will retain a portion of this reoffering premium as their
compensation (or “discount”) but will pay the remainder of the premium to the City.
For this issue of Bonds, any premium amount received may: be retained; used to reduce the
issue size; or combination thereof. These adjustments may slightly change the true interest
cost of the original bid, either up or down. We anticipate using any premium amounts received
to reduce the issue size.
The amount of premium allowed can be restricted in the bid specifications. Restrictions on
premium may result in fewer bids but may also eliminate large adjustments on the day of sale
and unintended results with respect to debt service payment impacts. Ehlers will identify
appropriate premium restrictions for the Bonds intended to achieve the City’s objectives for
this financing.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 3
Other Considerations:
Additional Bonds Test. The City’s ability to proceed with issuance of the Bonds is contingent
on verification that revenues generated from operation of the Storm Water System in 2020
were sufficient to meet the additional bonds test. The additional bonds test requires that net
system revenues be at least 1.2 times the annual debt service payment for the Bonds and all
existing parity debt.
Term Bond Option. The Bonds will be offered with the option of the successful bidder utilizing
a term bond structure. By offering underwriters the option to “term up” some of the maturities
at the time of the sale, it gives them more flexibility in finding a market for your Bonds. This
makes your issue more marketable, which can result in lower borrowing costs. If the successful
bidder utilizes a term bond structure, we recommend the City retain a paying agent to handle
responsibility for processing mandatory redemption/call notices associated with term bonds.
Review of Existing Storm Water Revenue Debt:
We have reviewed all outstanding Storm Water revenue secured indebtedness for the City and
find that there are no refunding opportunities at this time. We will continue to monitor the
market and the call dates for the City’s outstanding debt and will alert you to any future
refunding opportunities.
Continuing Disclosure:
Because the City has more than $10,000,000 in outstanding debt (including this issue) and
this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual
Financial Information and its Audited Financial Statement annually, as well as providing notices
of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board
(the “MSRB”), as required by rules of the Securities and Exchange Commission (SEC). The City
is already obligated to provide such reports for its existing bonds and has contracted with
Ehlers to prepare and file the reports.
Arbitrage Monitoring:
The City must ensure compliance with certain sections of the Internal Revenue Code and
Treasury Regulations (“Arbitrage Rules”) throughout the life of the issue to maintain the tax-
exempt status of the Bonds. These Arbitrage Rules apply to amounts held in construction,
escrow, reserve, debt service account(s), etc., along with related investment income on each
fund/account.
IRS audits will verify compliance with rebate, yield restriction and records retention
requirements within the Arbitrage Rules. The City’s specific arbitrage responsibilities will be
detailed in the Arbitrage Certificate (the “Tax Compliance Document”) prepared by your Bond
Attorney and provided at closing.
The Bonds may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1) small
issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4)
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 4
reasonable reserve requirements, 5) expenditure within an available period limitations, 6)
investments yield restrictions, 7) de minimis rules, or; 8) borrower limited requirements.
We recommend that the City review its specific responsibilities related to the Bonds with an
arbitrage expert to utilize one or more of the exceptions listed above. We also recommend
that you establish written procedures regarding compliance with IRS rules and/or contract
with Ehlers to assist you.
Investment of Bond Proceeds:
Ehlers can assist the City in developing a strategy to invest your Bond proceeds until the funds
are needed to pay project costs.
Risk Factors:
Service to the City. In the event utility revenues are insufficient to pay debt service, the City
Council is committing to consider appropriating funds from any other available sources in an
amount sufficient to cover the shortfall. If it chooses to do so, the City may levy a tax to make
up a shortfall. Any amount levied for this purpose is exempted from levy limits. While the City
is not required to appropriate the funds necessary to remedy any shortfall in revenues needed
to pay debt service, failure to do so would result in either a lack of access to capital markets
in the future, or access at a substantially higher cost.
Other Service Providers:
This debt issuance will require the engagement of other public finance service providers. This
section identifies those other service providers, so Ehlers can coordinate their engagement on
your behalf. Where you have previously used a particular firm to provide a service, we have
assumed that you will continue that relationship. For services you have not previously required,
we have identified a service provider. Fees charged by these service providers will be paid
from proceeds of the obligation, unless you notify us that you wish to pay them from other
sources. Our pre-sale bond sizing includes a good faith estimate of these fees, but the final
fees may vary. If you have any questions pertaining to the identified service providers or their
role, or if you would like to use a different service provider for any of the listed services please
contact us.
Bond Counsel: Chapman and Cutler LLP
Paying Agent: Issuer, unless term bonds offered, then US Bank
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 5
Pre-Sale Review by City Council: April 27, 2021
Due Diligence Call to review Official Statement: Week of May 12, 2021
Conference with Rating Agency: May 18, 2021
Distribute Official Statement: June 1, 2021
City Council Meeting to Award Sale of the Bonds: June 8, 2021
Estimated Closing Date: June 30, 2021
Attachments
Estimated Sources and Uses of Funds
Estimated Proposed Debt Service Schedule
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Financial Analyst (262) 796-6177
The Preliminary Official Statement for this financing will be sent to the City Council at their
home or email address for review prior to the sale date.
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale EstimateSale 6-8-2021Est. Dated 6-30-2021Storm Water
Utility Revenue
Bonds
Series 2021C
Tax-Exempt
Capital Projects1 6,990,000$
Reserve Fund Adjustments
New Reserve Fund Requirement 7,545,259$
Less Current Reserve Requirement (7,078,306)$
Net Deposit to Reserve Fund Required 466,952$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 40,000$
Chapman & Cutler (Bond Counsel) 20,000$
Maximum Discount (Bid Item) @ 1.25% 95,438$
Moody's Investors Service (Rating Fee) 18,500$
U.S. Bank (Paying Agent)850$
TOTAL TO BE FINANCED 7,631,740$
Estimated Interest Earnings2 (1,049)$
Rounding 4,309$
NET BOND SIZE 7,635,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2021 Budget.
2Assumes temporary investment of available new money proceeds at 0.09% for 60 days. (January 2021 LGIP Rate).
2021 Revenue Bond Sizing Worksheet
3/9/2021
File: Oshkosh Debt Base Case_2021‐3‐3/Rev Sizing 2021
Page 6
Schedule of Storm Water Utility Revenue Debt Outstanding Plus Proposed 2021 IssueAs of January 1, 2021AmountDatedPaying AgentCallableCallable AmtRate/TermEst. TIC 1.976%2022‐2041YearPrincipal Interest Total Prin (5/1)Est. Rate1Interest Total Total P&INet Revs21.2X Req'd Rev P&I G.O. P&I TotalNet Revs@Year20214,370,000 2,705,146 7,075,146 7,075,1468,838,762 1.257,075,146 819,775 7,894,9218,838,762 1.12202120224,580,000 2,491,588 7,071,588 290,0000.880%173,801 463,801 7,535,3888,838,7621.177,535,388 820,269 8,355,6578,838,762 1.06202220234,770,000 2,308,306 7,078,306 340,0000.900%126,953 466,953 7,545,2598,838,7621.177,545,259 547,369 8,092,6288,838,762 1.09202320244,955,000 2,120,147 7,075,147 340,0000.920%123,859 463,859 7,539,0058,838,7621.177,539,005 438,194 7,977,1998,838,762 1.11202420255,140,000 1,937,606 7,077,606 345,0000.960%120,639 465,639 7,543,2458,838,7621.177,543,245 421,869 7,965,1148,838,762 1.11202520265,095,000 1,763,500 6,858,500 350,0001.030%117,180 467,180 7,325,6808,838,762 1.217,325,680 410,694 7,736,3748,838,762 1.14202620275,315,000 1,584,134 6,899,134 350,0001.100%113,453 463,453 7,362,5878,838,762 1.207,362,587 394,513 7,757,0998,838,762 1.14202720285,490,000 1,398,456 6,888,456 355,0001.250%109,309 464,309 7,352,7658,838,762 1.207,352,765 378,475 7,731,2408,838,762 1.14202820295,725,000 1,204,641 6,929,641 360,0001.400%104,570 464,570 7,394,2118,838,7621.207,394,211 12,581 7,406,7928,838,762 1.19202920305,965,000 1,007,384 6,972,384 365,0001.600%99,130 464,130 7,436,5148,838,7621.197,436,514 17,259 7,453,7748,838,762 1.19203020314,660,000 831,413 5,491,413 370,0001.700%93,065 463,065 5,954,4788,838,762 1.485,954,478 16,856 5,971,3348,838,762 1.48203120324,820,000 671,947 5,491,947 380,0001.800%86,500 466,500 5,958,4478,838,762 1.485,958,447 16,425 5,974,8728,838,762 1.48203220334,525,000 514,916 5,039,916 385,0001.900%79,423464,423 5,504,3388,838,762 1.615,504,338 20,900 5,525,2388,838,762 1.60203320343,575,000 379,488 3,954,488 395,0002.000%71,815 466,815 4,421,3038,838,762 2.004,421,303 20,300 4,441,6038,838,762 1.99203420353,105,000 272,228 3,377,228 400,0002.100%63,665 463,665 3,840,8938,838,762 2.303,840,8930 3,840,8938,838,762 2.30203520362,455,000 185,331 2,640,331 410,0002.150%55,058 465,058 3,105,3898,838,762 2.853,105,3890 3,105,3898,838,762 2.85203620372,185,000 112,950 2,297,950 420,0002.200%46,030 466,030 2,763,9808,838,762 3.202,763,9800 2,763,9808,838,762 3.20203720381,545,000 54,806 1,599,806 430,0002.250%36,573 466,573 2,066,3798,838,762 4.282,066,3790 2,066,3798,838,762 4.2820382039865,000 19,094 884,094 440,0002.300%26,675 466,675 1,350,7698,838,762 6.541,350,7690 1,350,7698,838,762 6.5420392040305,000 3,622 308,622 450,0002.350%16,328 466,328 774,9498,838,762 11.41774,9490 774,9498,838,762 11.4120402041460,0002.400%5,520 465,520 465,5208,838,762 18.99465,5200 465,5208,838,762 18.992041TOTALS 79,445,000 21,566,702 101,011,702 7,635,0001,669,541 9,304,541 110,316,243110,316,243 4,335,478 114,651,722NOTES:1Estimated rates are City of Sun Prairie W&L Revenue Bonds (A1) NBQ sale results (reoffering yields) from 1-19-2021 plus 0.50%.2Net revenue calculation based the City's 2019 audited financial statements. = Maturities Subject to Optional RedemptionDebt Service Coverage01‐May‐2930‐Jun‐21TBDExisting + Future Issues$7,635,000IssueTotal Utility DebtStorm Water Utility Revenue Bonds, Series 2021CExisting Stormwater Revenue Debt Presale Estimate$4,905,000Debt Service Coverage3/9/2021File: Oshkosh Debt Base Case_2021‐3‐3/Storm Rev Debt Page 7
April 27, 2021
Pre-Sale Report for
City of Oshkosh, Wisconsin
$5,970,000 Water System Revenue Bonds,
Series 2021D
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 1
Proposed Issue:
$5,970,000 Water System Revenue Bonds, Series 2021D (“Bonds”)
Purposes:
The proposed issue includes financing for construction of water system improvements.
Authority:
The Bonds are being issued pursuant to Wisconsin Statute 66.0621. The Bonds are not general
obligations of the City but are payable only from and secured by a pledge of income and
revenue to be derived from the operation of the Water System.
Term/Call Feature:
The Bonds are being issued for a term of 20 years. Principal on the Bonds will be due on
January 1 in the years 2022 through 2041. Interest is payable every six months beginning
January 1, 2022. The Bonds will be subject to prepayment at the discretion of the City on
January 1, 2031 or any date thereafter.
Bank Qualification:
Because the City is issuing, or expects to issue, more than $10,000,000 in tax-exempt
obligations during the calendar year, the City will be not able to designate the Bonds as “bank
qualified” obligations.
Rating:
The City’s most recent bond issues were rated by Moody’s Investors Service. The current
ratings on those bonds are “Aa3”. The City will request a new rating for the Bonds. If the
winning bidder on the Bonds elects to purchase bond insurance, the rating for the issue may
be higher than the City's bond rating in the event that the bond rating of the insurer is higher
than that of the City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 2
Basis for Recommendation:
Based on our knowledge of your situation, your objectives communicated to us, our advisory
relationship as well as characteristics of various municipal financing options, we are
recommending the issuance of Bonds as a suitable option based on:
Net system revenues available for debt service that provide sufficient coverage for the
estimated principal and interest payments of the proposed Bonds and existing parity
debt.
The City’s past practice of using revenue bonds to finance enterprise system
improvements.
Limited debt capacity to finance the project(s) on a General Obligation basis.
The City’s current Capital Improvements Plan which identified issuance of revenue
bonds to finance these projects.
Method of Sale/Placement:
We will solicit competitive bids for the purchase of the Bonds from underwriters and banks.
We will include an allowance for discount bidding in the terms of the issue. The discount is
treated as an interest item and provides the underwriter with all or a portion of their
compensation in the transaction.
If the Bonds are purchased at a price greater than the minimum bid amount (maximum
discount), the unused allowance may be used to reduce your borrowing amount.
Premium Pricing:
In some cases, investors in municipal bonds prefer “premium” pricing structures. A premium
is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds
the yield to the investor, resulting in a price paid that is greater than the face value of the
bonds. The sum of the amounts paid more than face value is considered “reoffering
premium.” The underwriter of the bonds will retain a portion of this reoffering premium as their
compensation (or “discount”) but will pay the remainder of the premium to the City.
For this issue of Bonds, any premium amount received may: be retained; used to reduce the
issue size; or combination thereof. These adjustments may slightly change the true interest
cost of the original bid, either up or down. We anticipate using any premium amounts received
to reduce the issue size.
The amount of premium allowed can be restricted in the bid specifications. Restrictions on
premium may result in fewer bids but may also eliminate large adjustments on the day of sale
and unintended results with respect to debt service payment impacts. Ehlers will identify
appropriate premium restrictions for the Bonds intended to achieve the City’s objectives for
this financing.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 3
Other Considerations:
Term Bond Option. The Bonds will be offered with the option of the successful bidder utilizing
a term bond structure. By offering underwriters the option to “term up” some of the maturities
at the time of the sale, it gives them more flexibility in finding a market for your Bonds. This
makes your issue more marketable, which can result in lower borrowing costs. If the successful
bidder utilizes a term bond structure, we recommend the City retain a paying agent to handle
responsibility for processing mandatory redemption/call notices associated with term bonds.
Review of Existing Water Revenue Debt:
We have reviewed all outstanding Water revenue secured indebtedness for the City and find
that there are no refunding opportunities at this time. The Series 2012F Water Revenue Bonds
are callable January 1, 2022 and will be evaluated for refinancing opportunity as the call date
approaches. We will continue to monitor the market and the call dates for the City’s
outstanding debt and will alert you to any future refunding opportunities.
Continuing Disclosure:
Because the City has more than $10,000,000 in outstanding debt (including this issue) and
this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual
Financial Information and its Audited Financial Statement annually, as well as providing notices
of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board
(the “MSRB”), as required by rules of the Securities and Exchange Commission (SEC). The City
is already obligated to provide such reports for its existing bonds and has contracted with
Ehlers to prepare and file the reports.
Arbitrage Monitoring:
The City must ensure compliance with certain sections of the Internal Revenue Code and
Treasury Regulations (“Arbitrage Rules”) throughout the life of the issue to maintain the tax-
exempt status of the Bonds. These Arbitrage Rules apply to amounts held in construction,
escrow, reserve, debt service account(s), etc., along with related investment income on each
fund/account.
IRS audits will verify compliance with rebate, yield restriction and records retention
requirements within the Arbitrage Rules. The City’s specific arbitrage responsibilities will be
detailed in the Arbitrage Certificate (the “Tax Compliance Document”) prepared by your Bond
Attorney and provided at closing.
The Bonds may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1) small
issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4)
reasonable reserve requirements, 5) expenditure within an available period limitations, 6)
investments yield restrictions, 7) de minimis rules, or; 8) borrower limited requirements.
We recommend that the City review its specific responsibilities related to the Bonds with an
arbitrage expert to utilize one or more of the exceptions listed above. We also recommend
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 4
that you establish written procedures regarding compliance with IRS rules and/or contract
with Ehlers to assist you.
Investment of Bond Proceeds:
Ehlers can assist the City in developing a strategy to invest your Bond proceeds until the funds
are needed to pay project costs.
Risk Factors:
Service to the City. In the event utility revenues are insufficient to pay debt service, the City
Council is committing to consider appropriating funds from any other available sources in an
amount sufficient to cover the shortfall. If it chooses to do so, the City may levy a tax to make
up a shortfall. Any amount levied for this purpose is exempted from levy limits. While the City
is not required to appropriate the funds necessary to remedy any shortfall in revenues needed
to pay debt service, failure to do so would result in either a lack of access to capital markets in
the future, or access at a substantially higher cost.
Other Service Providers:
This debt issuance will require the engagement of other public finance service providers. This
section identifies those other service providers, so Ehlers can coordinate their engagement on
your behalf. Where you have previously used a particular firm to provide a service, we have
assumed that you will continue that relationship. For services you have not previously required,
we have identified a service provider. Fees charged by these service providers will be paid
from proceeds of the obligation, unless you notify us that you wish to pay them from other
sources. Our pre-sale bond sizing includes a good faith estimate of these fees, but the final
fees may vary. If you have any questions pertaining to the identified service providers or their
role, or if you would like to use a different service provider for any of the listed services please
contact us.
Bond Counsel: Chapman and Cutler LLP
Paying Agent: Issuer, unless term bonds offered, then US Bank
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 5
Pre-Sale Review by City Council: April 27, 2021
Due Diligence Call to review Official Statement: Week of May 12, 2021
Conference with Rating Agency: May 18, 2021
Distribute Official Statement: June 15, 2021
City Council Meeting to Award Sale of the Bonds: June 22, 2021
Estimated Closing Date: July 14, 2021
Attachments
Estimated Sources and Uses of Funds
Estimated Proposed Debt Service Schedule
EHLRS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Financial Analyst (262) 796-6177
The Preliminary Official Statement for this financing will be sent to the City Council at their
home or email address for review prior to the sale date.
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate
Sale 6-22-2021
Est. Dated 7-14-2021
Water System
Revenue Bonds
Series 2021D
Tax-Exempt
Capital Projects1 5,809,900$
Reserve Fund Adjustments
New Reserve Fund Requirement 3,818,720$
Less Current Reserve Requirement (3,808,440)$
Net Deposit to Reserve Fund Required 10,281$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 35,300$
Chapman & Cutler (Bond Counsel) 20,000$
Maximum Discount (Bid Item) @ 1.25% 74,625$
Moody's Investors Service (Rating Fee)18,500$
U.S. Bank (Paying Agent)850$
TOTAL TO BE FINANCED 5,969,456$
Estimated Interest Earnings2 (871)$
Rounding 1,416$
NET BOND SIZE 5,970,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2021 Budget.
2Assumes temporary investment of available new money proceeds at 0.09% for 60 days. (January 2021 LGIP Rate).
2021 Revenue Bond Sizing Worksheet
3/10/2021
File: Oshkosh Debt Base Case_2021‐3‐3/Rev Sizing 2021
Page 6
Schedule of Water Utility Revenue Debt Outstanding Plus Proposed 2021 IssueAs of January 1, 2021AmountDatedPaying AgentCallableCallable AmtRate/TermEst. TIC 1.633%2022‐2041YearPrincipal Interest Total Prin (1/1) Est. Rate1Interest TotalNet Revs21.2X Req'd Rev P&I G.O. P&I Total Net Revs2Year20214,342,440 1,538,528 5,880,9685,880,96810,501,515 1.795,880,968 807,894 6,688,86210,501,515 1.57202120224,054,223 1,406,111 5,460,334 270,0000.530%76,953 346,953 5,807,28810,501,515 1.815,807,288 650,794 6,458,08110,501,515 1.63202220233,893,901 1,276,461 5,170,362 270,0000.550%78,405 348,405 5,518,76710,501,515 1.905,518,767 497,825 6,016,59210,501,515 1.75202320243,863,809 1,152,117 5,015,925 275,0000.570%76,879 351,879 5,367,80410,501,515 1.965,367,804 389,700 5,757,50410,501,515 1.82202420253,803,950 1,033,315 4,837,265 275,0000.610%75,256 350,256 5,187,52110,501,515 2.025,187,521 249,425 5,436,94610,501,515 1.93202520263,909,331 919,595 4,828,926 275,0000.680%73,483 348,483 5,177,40910,501,515 2.035,177,409 252,994 5,430,40310,501,515 1.93202620273,314,958 807,177 4,122,135 280,0000.750%71,498 351,498 4,473,63310,501,515 2.354,473,633 150,434 4,624,06710,501,515 2.27202720283,270,836 700,886 3,971,722 280,0000.900%69,188 349,188 4,320,91010,501,515 2.434,320,910 151,544 4,472,45310,501,515 2.35202820292,905,000 599,209 3,504,209 285,0001.050%66,431 351,431 3,855,64110,501,515 2.723,855,641 47,569 3,903,20910,501,515 2.69202920302,980,000 501,216 3,481,216 285,0001.250%63,154 348,154 3,829,36910,501,515 2.743,829,369 51,478 3,880,84810,501,515 2.71203020312,665,000 410,897 3,075,897 290,0001.350%59,415 349,415 3,425,31210,501,515 3.073,425,312 50,269 3,475,58110,501,515 3.02203120322,430,000 333,688 2,763,688 295,0001.450%55,319 350,319 3,114,00610,501,515 3.373,114,006 53,900 3,167,90610,501,515 3.31203220332,155,000 265,875 2,420,875 300,0001.550%50,855 350,855 2,771,73010,501,515 3.792,771,730 52,400 2,824,13010,501,515 3.72203320342,030,000203,4002,233,400 305,0001.650%46,014 351,014 2,584,41410,501,515 4.062,584,414 55,825 2,640,23910,501,515 3.98203420351,935,000 144,131 2,079,131 310,0001.750%40,785 350,785 2,429,91610,501,515 4.322,429,916 0 2,429,91610,501,515 4.32203520361,530,000 93,231 1,623,231 315,0001.800%35,238 350,238 1,973,46910,501,515 5.321,973,469 0 1,973,46910,501,515 5.32203620371,135,000 55,206 1,190,206 320,0001.850%29,443 349,443 1,539,64910,501,515 6.821,539,649 0 1,539,64910,501,515 6.8220372038625,000 31,431 656,431 325,0001.900%23,395 348,395 1,004,82610,501,515 10.451,004,826 0 1,004,82610,501,515 10.4520382039645,000 15,519 660,519 330,0001.950%17,090 347,090 1,007,60910,501,515 10.421,007,609 0 1,007,60910,501,515 10.4220392040345,000 3,666 348,666 340,0002.000%10,473 350,473 699,13810,501,515 15.02699,138 0 699,13810,501,515 15.0220402041345,0002.050%3,536 348,536 348,53610,501,515 30.13348,536 0 348,53610,501,515 30.13204151,833,447 11,491,660 63,325,107 5,970,0001,022,807 6,992,807 70,317,91470,317,914 3,462,050 73,779,964NOTES:1Estimated rates are City of Sun Prairie W&L Revenue Bonds (A1) NBQ sale results (reoffering yields) from 1-19-2021 plus 0.15%.2Net revenue calculation based the City's 2019 audited financial statements. = Maturities Subject to Optional RedemptionPresale Estimate01‐Jan‐31$5,970,000TBD14‐Jul‐21$3,185,000Water System Revenue Bonds, Series 2021DIssue Existing Water Revenue Debt Total Utility DebtDebt Service CoverageExisting + Future IssuesDebt Service Coverage3/10/2021File: Oshkosh Debt Base Case_2021‐3‐3/Water Rev DebtPage 7
April 27, 2021
Pre-Sale Report for
City of Oshkosh, Wisconsin
$14,815,000 Sewer System Revenue Bonds,
Series 2021E
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 1
Proposed Issue:
$14,815,000 Sewer System Revenue Bonds, Series 2021E (“Bonds”)
Purposes:
The proposed issue includes financing for construction of sanitary sewer system
improvements.
Authority:
The Bonds are being issued pursuant to Wisconsin Statute 66.0621. The Bonds are not general
obligations of the City but are payable only from and secured by a pledge of income and
revenue to be derived from the operation of the Sewer System.
Term/Call Feature:
The Bonds are being issued for a term of 20 years. Principal on the Bonds will be due on May
1 in the years 2022 through 2041. Interest is payable every six months beginning May 1, 2022.
The Bonds will be subject to prepayment at the discretion of the City on May 1, 2029 or any
date thereafter.
Bank Qualification:
Because the City is issuing, or expects to issue, more than $10,000,000 in tax-exempt
obligations during the calendar year, the City will be not able to designate the Bonds as “bank
qualified” obligations.
Rating:
The City’s most recent bond issues were rated by Moody’s Investors Service. The current
ratings on those bonds are “Aa3”. The City will request a new rating for the Bonds. If the
winning bidder on the Bonds elects to purchase bond insurance, the rating for the issue may
be higher than the City's bond rating in the event that the bond rating of the insurer is higher
than that of the City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 2
Basis for Recommendation:
Based on our knowledge of your situation, your objectives communicated to us, our advisory
relationship as well as characteristics of various municipal financing options, we are
recommending the issuance of Bonds as a suitable option based on:
Net system revenues available for debt service that provide sufficient coverage for the
estimated principal and interest payments of the proposed Bonds and existing parity
debt.
The City’s past practice of using revenue bonds to finance enterprise system
improvements.
Limited debt capacity to finance the project(s) on a General Obligation basis.
The City’s current Capital Improvements Plan which identified issuance of revenue
bonds to finance these projects.
Method of Sale/Placement:
We will solicit competitive bids for the purchase of the Bonds from underwriters and banks.
We will include an allowance for discount bidding in the terms of the issue. The discount is
treated as an interest item and provides the underwriter with all or a portion of their
compensation in the transaction.
If the Bonds are purchased at a price greater than the minimum bid amount (maximum
discount), the unused allowance may be used to reduce your borrowing amount.
Premium Pricing:
In some cases, investors in municipal bonds prefer “premium” pricing structures. A premium
is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds
the yield to the investor, resulting in a price paid that is greater than the face value of the
bonds. The sum of the amounts paid more than face value is considered “reoffering
premium.” The underwriter of the bonds will retain a portion of this reoffering premium as their
compensation (or “discount”) but will pay the remainder of the premium to the City.
For this issue of Bonds, any premium amount received may: be retained; used to reduce the
issue size; or combination thereof. These adjustments may slightly change the true interest
cost of the original bid, either up or down. We anticipate using any premium amounts received
to reduce the issue size.
The amount of premium allowed can be restricted in the bid specifications. Restrictions on
premium may result in fewer bids but may also eliminate large adjustments on the day of sale
and unintended results with respect to debt service payment impacts. Ehlers will identify
appropriate premium restrictions for the Bonds intended to achieve the City’s objectives for
this financing.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 3
Other Considerations:
Term Bond Option. The Bonds will be offered with the option of the successful bidder utilizing
a term bond structure. By offering underwriters the option to “term up” some of the maturities
at the time of the sale, it gives them more flexibility in finding a market for your Bonds. This
makes your issue more marketable, which can result in lower borrowing costs. If the successful
bidder utilizes a term bond structure, we recommend the City retain a paying agent to handle
responsibility for processing mandatory redemption/call notices associated with term bonds.
Review of Existing Sewer Revenue Debt:
We have reviewed all outstanding indebtedness for the City and find that there are no
refunding opportunities at this time. The Series 2012E Sewer System Revenue Bonds are
callable May 1, 2022 and will be evaluated for refinancing opportunity in conjunction with the
anticipated issuance of additional Sewer System Revenue Bonds in 2022. We will continue to
monitor the market and the call dates for the City’s outstanding debt and will alert you to any
future refunding opportunities.
Continuing Disclosure:
Because the City has more than $10,000,000 in outstanding debt (including this issue) and
this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual
Financial Information and its Audited Financial Statement annually, as well as providing notices
of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board
(the “MSRB”), as required by rules of the Securities and Exchange Commission (SEC). The City
is already obligated to provide such reports for its existing bonds and has contracted with
Ehlers to prepare and file the reports.
Arbitrage Monitoring:
The City must ensure compliance with certain sections of the Internal Revenue Code and
Treasury Regulations (“Arbitrage Rules”) throughout the life of the issue to maintain the tax-
exempt status of the Bonds. These Arbitrage Rules apply to amounts held in construction,
escrow, reserve, debt service account(s), etc., along with related investment income on each
fund/account.
IRS audits will verify compliance with rebate, yield restriction and records retention
requirements within the Arbitrage Rules. The City’s specific arbitrage responsibilities will be
detailed in the Arbitrage Certificate (the “Tax Compliance Document”) prepared by your Bond
Attorney and provided at closing.
The Bonds may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1) small
issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4)
reasonable reserve requirements, 5) expenditure within an available period limitations, 6)
investments yield restrictions, 7) de minimis rules, or; 8) borrower limited requirements.
We recommend that the City review its specific responsibilities related to the Bonds with an
arbitrage expert to utilize one or more of the exceptions listed above. We also recommend
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 4
that you establish written procedures regarding compliance with IRS rules and/or contract
with Ehlers to assist you.
Investment of Bond Proceeds:
Ehlers can assist the City in developing a strategy to invest your Bond proceeds until the funds
are needed to pay project costs.
Risk Factors:
Service to the City: In the event utility revenues are insufficient to pay debt service, the City
Council is committing to consider appropriating funds from any other available sources in an
amount sufficient to cover the shortfall. If it chooses to do so, the City may levy a tax to make
up a shortfall. Any amount levied for this purpose is exempted from levy limits. While the City
is not required to appropriate the funds necessary to remedy any shortfall in revenues needed
to pay debt service, failure to do so would result in either a lack of access to capital markets in
the future, or access at a substantially higher cost.
Other Service Providers:
This debt issuance will require the engagement of other public finance service providers. This
section identifies those other service providers, so Ehlers can coordinate their engagement on
your behalf. Where you have previously used a particular firm to provide a service, we have
assumed that you will continue that relationship. For services you have not previously required,
we have identified a service provider. Fees charged by these service providers will be paid
from proceeds of the obligation, unless you notify us that you wish to pay them from other
sources. Our pre-sale bond sizing includes a good faith estimate of these fees, but the final
fees may vary. If you have any questions pertaining to the identified service providers or their
role, or if you would like to use a different service provider for any of the listed services please
contact us.
Bond Counsel: Chapman and Cutler LLP
Paying Agent: Issuer, unless term bonds offered, then US Bank
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
April 27, 2021
Page 5
Pre-Sale Review by City Council: April 27, 2021
Due Diligence Call to review Official Statement: Week of May 12, 2021
Conference with Rating Agency: May 18, 2021
Distribute Official Statement: June 15, 2021
City Council Meeting to Award Sale of the Bonds: June 22, 2021
Estimated Closing Date: July 14, 2021
Attachments
Estimated Sources and Uses of Funds
Estimated Proposed Debt Service Schedule
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Financial Analyst (262) 796-6177
The Preliminary Official Statement for this financing will be sent to the City Council at their
home or email address for review prior to the sale date.
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate
Sale 6-22-2021
Est. Dated 7-14-2021
Sewer System
Revenue Bonds
Series 2021E
Tax-Exempt
Capital Projects1 13,758,200$
Reserve Fund Adjustments
New Reserve Fund Requirement 5,925,296$
Less Current Reserve Requirement (5,164,938)$
Net Deposit to Reserve Fund Required 760,358$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 53,500$
Chapman & Cutler (Bond Counsel) 30,000$
Maximum Discount (Bid Item) @ 1.25% 185,188$
Moody's Investors Service (Rating Fee) 28,000$
U.S. Bank (Paying Agent)850$
TOTAL TO BE FINANCED 14,816,095$
Estimated Interest Earnings2 (2,064)$
Rounding 969$
NET BOND SIZE 14,815,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2021 Budget.
2Assumes temporary investment of available new money proceeds at 0.09% for 60 days. (January 2021 LGIP Rate).
2021 Revenue Bond Sizing Worksheet
3/10/2021
File: Oshkosh Debt Base Case_2021‐3‐3/Rev Sizing 2021
Page 6
Schedule of Sewer Utility Revenue Debt Outstanding Plus Proposed 2021 IssueAs of January 1, 2021AmountDatedPaying AgentCallableCallable AmtRate/TermEst. TIC 1.633%2022‐2041YearPrincipal Interest Total Prin (5/1)Est. Rate1Interest Total Total P&INet Revs21.1X Req'd Rev P&I G.O. P&I TotalNet Revs2Year20214,332,811 2,169,445 6,502,2556,502,2559,147,975 1.416,502,255 982,500 7,484,7559,147,975 1.22202120224,249,508 1,939,669 6,189,177 610,0000.530%258,486 868,486 7,057,6639,147,975 1.307,057,663 847,338 7,905,0009,147,975 1.16202220234,271,502 1,827,433 6,098,935 675,0000.550%195,418 870,418 6,969,3539,147,975 1.316,969,353 789,969 7,759,3229,147,975 1.18202320244,348,799 1,703,610 6,052,409 680,0000.570%191,624 871,624 6,924,0339,147,975 1.326,924,033 684,044 7,608,0779,147,975 1.20202420254,179,764 1,563,722 5,743,485 685,0000.610%187,596 872,596 6,616,0829,147,975 1.386,616,082 535,613 7,151,6949,147,975 1.28202520264,232,501 1,425,525 5,658,026 690,0000.680%183,161 873,161 6,531,1879,147,975 1.406,531,187 431,925 6,963,1129,147,975 1.31202620274,250,442 1,279,820 5,530,262 695,0000.750%178,209 873,209 6,403,4719,147,975 1.436,403,471 182,706 6,586,1779,147,975 1.39202720284,303,591 1,127,739 5,431,330 700,0000.900%172,453 872,453 6,303,7839,147,975 1.456,303,783 178,006 6,481,7899,147,975 1.41202820294,471,954 975,589 5,447,543 705,0001.050%165,601 870,601 6,318,1449,147,975 1.456,318,144 53,219 6,371,3639,147,975 1.44202920304,470,536 825,050 5,295,586 715,0001.250%157,431 872,431 6,168,0189,147,975 1.486,168,018 52,066 6,220,0839,147,975 1.47203020314,259,344 686,723 4,946,067 725,0001.350%148,069 873,069 5,819,1369,147,975 1.575,819,136 55,788 5,874,9239,147,975 1.56203120324,033,383 564,578 4,597,961 735,0001.450%137,846 872,846 5,470,8079,147,975 1.675,470,807 54,350 5,525,1579,147,975 1.66203220333,787,660 450,661 4,238,320 745,0001.550%126,744 871,744 5,110,0649,147,975 1.795,110,064 62,700 5,172,7649,147,975 1.77203320343,632,179343,9543,976,133 755,0001.650%114,741 869,741 4,845,8749,147,975 1.894,845,874 60,900 4,906,7749,147,975 1.86203420353,010,000 250,388 3,260,388 770,0001.750%101,775 871,775 4,132,1639,147,975 2.214,132,1630 4,132,1639,147,975 2.21203520362,675,000 171,188 2,846,188 785,0001.800%87,973 872,973 3,719,1609,147,975 2.463,719,1600 3,719,1609,147,975 2.46203620372,175,000 105,394 2,280,394 795,0001.850%73,554 868,554 3,148,9489,147,975 2.913,148,9480 3,148,9489,147,975 2.91203720381,210,000 62,325 1,272,325 815,0001.900%58,458 873,458 2,145,7839,147,975 4.262,145,7830 2,145,7839,147,975 4.26203820391,240,000 33,538 1,273,538 830,0001.950%42,623 872,623 2,146,1609,147,975 4.262,146,1600 2,146,1609,147,975 4.2620392040880,000 9,350 889,350 845,0002.000%26,080 871,080 1,760,4309,147,975 5.201,760,4300 1,760,4309,147,975 5.2020402041860,0002.050%8,815 868,815 868,8159,147,975 10.53868,8150 868,8159,147,975 10.53204170,013,974 17,515,699 87,529,673 14,815,0002,616,654 17,431,654 104,961,327104,961,327 4,971,122 109,932,449NOTES:1Estimated rates are City of Sun Prairie W&L Revenue Bonds (A1) NBQ sale results (reoffering yields) from 1-19-2021 plus 0.15%.2Net revenue calculation based the City's 2019 audited financial statements. = Maturities Subject to Optional Redemption01‐May‐29TBD14‐Jul‐21$14,815,000Presale Estimate$9,375,000Total Utility DebtDebt Service CoverageIssue Existing Sewer Revenue DebtSewer System Revenue Bonds, Series 2021EExisting + Future IssuesDebt Service Coverage3/10/2021File: Oshkosh Debt Base Case_2021‐3‐3/Sewer Rev DebtPage 7