HomeMy WebLinkAbout18. 22-196
MAY 10, 2022 22-196 RESOLUTION (CARRIED__7-0___LOST________LAID OVER_________WITHDRAWN________)
PURPOSE: INITIAL RESOLUTION AUTHORIZING GENERAL OBLIGATION BONDS OF THE CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN, FOR THE PUBLIC PURPOSES OF (I) STREET IMPROVEMENTS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $13,805,000, (II) BUILDINGS FOR THE HOUSING OF MACHINERY AND EQUIPMENT IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $7,355,000 AND (III) PARKS AND PUBLIC GROUNDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $465,000. INITIATED BY: FINANCE DEPARTMENT
BE IT RESOLVED by the Common Council of the City of Oshkosh, Winnebago County,
Wisconsin (the “City”), that there shall be issued general obligation bonds of said City for the
public purposes of (i) street improvements in an aggregate principal amount not to exceed
$13,805,000, (ii) buildings for the housing of machinery and equipment in an aggregate principal
amount not to exceed $7,355,000 and (iii) parks and public grounds in an aggregate principal
amount not to exceed $465,000. For the purpose of paying the various installments of principal
of and interest on said bonds as they severally mature, prior to the issuance and delivery of said
bonds there shall be levied on all taxable property in the City a direct annual irrepealable tax
sufficient for that purpose.
The City Clerk of the City is hereby directed to publish notice of adoption of this initial
resolution one time in the Oshkosh Northwestern, the same being the official newspaper of the
City, not later than the official city newspaper, not later than May 25, 2022, such notice to be in
substantially the following form:
OFFICIAL NOTICE TO ELECTORS
OF ADOPTION OF
INITIAL RESOLUTION
An initial resolution was adopted at the regular meeting of the Common Council of the
City of Oshkosh, Winnebago County, Wisconsin (the “City”), on May 10, 2022, and promptly
recorded, providing for the issuance of general obligation bonds of the City in the amount and for
the public purposes, as follows:
AMOUNT PURPOSE
$13,805,000 Street improvements
7,355,000 Buildings for the housing of machinery and equipment
465,000 Parks and public grounds
For the purpose of paying the various installments of principal of and interest on the
aforesaid bonds as they severally mature, prior to their issuance and delivery there shall be levied
on all taxable property in the City a direct annual irrepealable tax sufficient for that purpose.
The bonds authorized to be issued by the various initial resolutions set out above, shall be
issued by the City of Oshkosh unless, before 4:00 o’clock P.M. on May 27, 2022, a petition is filed
in the office of the City Clerk by electors numbering at least ten percent (10%) of the votes cast
for governor in the City at the last general election requesting that the initial resolution be
submitted to the electors.
Dated: May 10, 2022
City Clerk
Adopted May 10, 2022.
Approved May 10, 2022.
Recorded May 10, 2022.
Mayor
Attest:
City Clerk
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$21,625,000 General Obligation Corporate
Purpose Bonds, Series 2022A
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$21,625,000 General Obligation Corporate Purpose Bonds, Series 2022A (the “Bonds”)
Purposes:
The proposed Bonds will finance street projects, a portion of the new Parks Dept. Building,
and other park improvements (the “Projects”). Debt service associated with the Projects will
be paid from ad valorem property taxes.
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 2022B General Obligation
Promissory Notes (the “Notes”) to be issued concurrently, the City’s total General Obligation
debt principal outstanding will be approximately $146.9 million, which is 61% of its limit.
Remaining General Obligation Borrowing Capacity will be approximately $94.1 million. At the
end of 2022, General Obligation debt capacity usage will be approximately 54.8% 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 2023 through 2042. Interest is payable every six months beginning June 1, 2023.
The Bonds will be subject to prepayment at the discretion of the City on June 1, 2032 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 if the bond rating of the insurer is higher than that of the
City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
Basis for Recommendation:
Issuance of General Obligation Bonds is a suitable debt instrument to achieve the City’s
objectives for this financing. It will permit the City to amortize the payments over a term
consistent with the useful life of the financed projects. The City has the financial capacity to
repay the Bonds within the maximum twenty-year amortization period that is permitted and
has adequate General Obligation debt capacity to undertake the financing. The City could
choose to finance the projects with a State Trust Fund Loan as an alternative. The current
State Trust Fund Loan interest rate for a loan of the same term is 4.25%. Based on estimated
rates, the Bonds are expected to provide a lower All-Inclusive Cost (AIC). (The exhibits to this
Pre-Sale Report reflect an AIC of 3.68%). None of the Projects will generate user fees or other
revenues that could be used to secure a revenue bond.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and other post-issuance requirements.
Method of Sale/Placement:
General Obligation Bonds issued to finance capital projects must be offered for public sale.
The City’s existing general obligation debt is rated Aa3 by Moody’s Investors Service. Based
on that rating, the City’s credit characteristics, and history of receiving multiple bids in the
competitive markets a competitive public offering is also expected to produce the lowest
total cost of financing.
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 in excess of 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
May 10, 2022
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 Debt:
We have reviewed all outstanding 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 Tax Exemption Certificate and Agreement (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 limitation, 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 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
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.
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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 6, 2022
City Council Meeting to Award Sale of the Bonds: June 14, 2022
Estimated Closing Date: July 7, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Bond and Note Structure
Estimated Debt Service Schedule by Purpose
Current and Projected Debt Limit and Debt Burden Calculations
Bond Buyer Index – 10-year
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate Presale Estimate
Sale 6-14-2022 Sale 6-14-2022
Est. Dated 7-7-2022 Est. Dated 7-7-2022
G.O. Corporate
Purpose Bonds
G.O. Promissory
Notes
Series 2022A Series 2022B
Tax-Exempt Tax-Exempt
Capital Projects1 21,260,800$ 8,990,600$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 40,100$ 25,200$
Chapman & Cutler (Bond Counsel) 29,000$ 21,000$
Maximum Discount (Bid Item)2 270,313$ 91,400$
Moody's Investors Service (Rating Fee) 23,196$ 9,804$
U.S. Bank (Paying Agent) 1,000$ 1,000$
TOTAL TO BE FINANCED 21,624,409$ 9,139,004$
Estimated Interest Earnings3 (2,480)$ (1,049)$
Rounding 3,072$ 2,045$
NET BOND OR NOTE SIZE 21,625,000$ 9,140,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget and 2023 CIP.
2Maximum allowable discount of 1.25% for the Series 2022A Bonds, and 1.0% for the Series 2022B Notes.
3Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 General Obligation Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/G.O. Sizing 2022
Year Prin (6/1) Est. Rate3 Interest Total Prin (6/1) Est. Rate3 Interest Total Year
2022 4,562,703,300 19,590,575 (6,857,076)12,733,500 2.79 12,733,500 2.79 2022
2023 4,685,520,562 17,758,761 (5,713,541)12,045,220 2.57 210,000 2.550% 1,025,217 1,235,217 580,000 2.550% 388,484 968,484 14,248,921 3.04 2023
2024 4,811,643,776 15,917,517 (4,523,467)11,394,050 2.37 830,000 2.810% 717,194 1,547,194 980,000 2.810% 254,212 1,234,212 14,175,455 2.95 2024
2025 4,941,161,931 14,401,256 (3,981,941)10,419,315 2.11 855,000 2.930% 693,007 1,548,007 1,010,000 2.930% 225,646 1,235,646 13,202,968 2.67 2025
2026 5,074,166,411 12,836,648 (3,428,385)9,408,263 1.85 875,000 2.960% 667,531 1,542,531 850,000 2.960% 198,270 1,048,270 11,999,064 2.36 2026
2027 5,210,751,059 11,366,966 (2,859,656)8,507,309 1.63 905,000 3.050% 640,780 1,545,780 880,000 3.050% 172,270 1,052,270 11,105,359 2.13 2027
2028 5,351,012,245 9,868,254 (2,374,245)7,494,009 1.40 935,000 3.150% 612,252 1,547,252 905,000 3.150% 144,596 1,049,596 10,090,857 1.89 2028
2029 5,495,048,933 7,513,598 (1,197,192)6,316,406 1.15 960,000 3.220% 582,070 1,542,070 935,000 3.220% 115,289 1,050,289 8,908,765 1.62 2029
2030 5,642,962,750 7,449,145 (1,192,298)6,256,847 1.11 990,000 3.290% 550,329 1,540,329 965,000 3.290% 84,361 1,049,361 8,846,536 1.57 2030
2031 5,794,858,061 5,923,329 (934,248)4,989,081 0.86 1,030,000 3.340% 516,842 1,546,842 1,000,000 3.340% 51,787 1,051,787 7,587,710 1.31 2031
2032 5,950,842,036 4,430,423 (570,429)3,859,994 0.65 1,060,000 3.390% 481,674 1,541,674 1,035,000 3.390% 17,543 1,052,543 6,454,211 1.08 2032
2033 6,111,024,734 4,439,350 (562,925)3,876,425 0.63 1,105,000 3.430% 444,756 1,549,756 5,426,181 0.89 2033
2034 6,275,519,174 3,339,944 (464,200)2,875,744 0.46 1,140,000 3.470% 406,027 1,546,027 4,421,770 0.70 2034
2035 6,444,441,418 1,914,438 (250,350)1,664,088 0.26 1,180,000 3.500% 365,598 1,545,598 3,209,685 0.50 2035
2036 6,617,910,653 1,508,678 (146,450)1,362,228 0.21 1,220,000 3.530% 323,415 1,543,415 2,905,643 0.44 2036
2037 6,796,049,272 1,127,766 0 1,127,766 0.17 1,265,000 3.570% 279,301 1,544,301 2,672,067 0.39 2037
2038 6,978,982,964 819,813 0 819,813 0.12 1,315,000 3.590% 233,117 1,548,117 2,367,929 0.34 2038
2039 7,166,840,802 631,731 0 631,731 0.09 1,360,000 3.610% 184,965 1,544,965 2,176,696 0.30 2039
2040 7,359,755,333 623,994 0 623,994 0.08 1,415,000 3.620% 134,805 1,549,805 2,173,799 0.30 2040
2041 7,557,862,669 383,800 0 383,800 0.05 1,460,000 3.650% 82,549 1,542,549 1,926,349 0.25 2041
2042 7,761,302,5900000.00 1,515,000 3.690% 27,952 1,542,952 1,542,952 0.20 2042
TOTALS 141,845,984 (35,056,401)106,789,582 21,625,000 8,969,378 30,594,378 9,140,000 1,652,455 10,792,455 148,176,415 TOTALS
Maturities Subject to Optional RedemptionNOTES:
1Value shown for 2022 is 1-1-2021 actual TID OUT EV. Assumes an 2.69% increase each year thereafter which is 50% of the actual past five year average increase.
2Includes General Obligation debt, room-tax secured State Trust Fund Loan, and TID 31 SBA Loan.
3Estimated rates are 4-19-2022 MMD AA scale plus 0.50%.
Net Tax
Rate for
Debt
$9,140,000
Dated 7/7/2022 Dated 7/7/2022
$21,625,000
2022 G.O. Bond and Note Structure Worksheet Presale Estimate
Existing Debt Only Proposed 2022 Issues
Projected
Equalized
Value1
Debt P&I2
Total
Abatement
Sources
Net Tax
Levy for
Debt
Net Tax
Rate for
Debt
G.O. Corporate Purpose Bonds, Series 2022A G.O. Promissory Notes, Series 2022B Net Tax
Levy for
Debt
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/G.O. Structure
YEAR Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total YEAR
2023 100,000 2.550% 655,326 755,326 100,000 2.550% 348,030 448,030 10,000 2.550% 21,861 31,861 210,000 2.550% 1,025,217 1,235,217 2023
2024 530,000 2.810% 459,005 989,005 280,000 2.810% 243,020 523,020 20,000 2.810% 15,170 35,170 830,000 2.810% 717,194 1,547,194 2024
2025 545,000 2.930% 443,574 988,574 290,000 2.930% 234,837 524,837 20,000 2.930% 14,596 34,596 855,000 2.930% 693,007 1,548,007 2025
2026 560,000 2.960% 427,302 987,302 295,000 2.960% 226,223 521,223 20,000 2.960% 14,007 34,007 875,000 2.960% 667,531 1,542,531 2026
2027 580,000 3.050% 410,169 990,169 305,000 3.050% 217,205 522,205 20,000 3.050% 13,406 33,406 905,000 3.050% 640,780 1,545,780 2027
2028 600,000 3.150% 391,874 991,874 315,000 3.150% 207,593 522,593 20,000 3.150% 12,786 32,786 935,000 3.150% 612,252 1,547,252 2028
2029 615,000 3.220% 372,522 987,522 325,000 3.220% 197,399 522,399 20,000 3.220% 12,149 32,149 960,000 3.220% 582,070 1,542,070 2029
2030 635,000 3.290% 352,175 987,175 335,000 3.290% 186,656 521,656 20,000 3.290% 11,498 31,498 990,000 3.290% 550,329 1,540,329 2030
2031 660,000 3.340% 330,707 990,707 350,000 3.340% 175,300 525,300 20,000 3.340% 10,835 30,835 1,030,000 3.340% 516,842 1,546,842 2031
2032 680,000 3.390% 308,159 988,159 360,000 3.390% 163,353 523,353 20,000 3.390% 10,162 30,162 1,060,000 3.390% 481,674 1,541,674 2032
2033 705,000 3.430% 284,542 989,542 375,000 3.430% 150,820 525,820 25,000 3.430% 9,394 34,394 1,105,000 3.430% 444,756 1,549,756 2033
2034 730,000 3.470% 259,786 989,786 385,000 3.470% 137,709 522,709 25,000 3.470% 8,532 33,532 1,140,000 3.470% 406,027 1,546,027 2034
2035 755,000 3.500% 233,908 988,908 400,000 3.500% 124,029 524,029 25,000 3.500% 7,661 32,661 1,180,000 3.500% 365,598 1,545,598 2035
2036 780,000 3.530% 206,929 986,929 415,000 3.530% 109,704 524,704 25,000 3.530% 6,782 31,782 1,220,000 3.530% 323,415 1,543,415 2036
2037 810,000 3.570% 178,703 988,703 430,000 3.570% 94,704 524,704 25,000 3.570% 5,894 30,894 1,265,000 3.570% 279,301 1,544,301 2037
2038 840,000 3.590% 149,167 989,167 445,000 3.590% 79,041 524,041 30,000 3.590% 4,910 34,910 1,315,000 3.590% 233,117 1,548,117 2038
2039 870,000 3.610% 118,385 988,385 460,000 3.610% 62,750 522,750 30,000 3.610% 3,830 33,830 1,360,000 3.610% 184,965 1,544,965 2039
2040 905,000 3.620% 86,301 991,301 480,000 3.620% 45,759 525,759 30,000 3.620% 2,745 32,745 1,415,000 3.620% 134,805 1,549,805 2040
2041 935,000 3.650% 52,857 987,857 495,000 3.650% 28,037 523,037 30,000 3.650% 1,655 31,655 1,460,000 3.650% 82,549 1,542,549 2041
2042 970,000 3.690% 17,897 987,897 515,000 3.690% 9,502 524,502 30,000 3.690% 554 30,554 1,515,000 3.690% 27,952 1,542,952 2042
TOTALS 13,805,000 5,739,284 19,544,284 7,355,000 3,041,669 10,396,669 465,000 188,424 653,424 21,625,000 8,969,378 30,594,378 TOTALS
NOTES:
1Estimated rates are 4-19-2022 MMD AA scale plus 0.50%.Presale Estimate
Street Improvements Park Improvements Total Issue Estimated Debt Service
Proposed G.O. Corporate Purpose Bonds, Series 2022A
Debt Service Breakdown by Purpose
Building for the Housing of Machinery
and Equipment
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/2022A Bond Allocation
2021 4,821,112,500 241,055,625 120,615,836 50.04%120,615,836 50.04%(9,140,000)111,475,836 2.31%Moderate 2021
2022 4,950,885,531 247,544,277 104,879,511 42.37%21,625,000 9,140,000 135,644,511 54.80%(7,095,000)128,549,511 2.60%Moderate 2022
2023 5,084,151,747 254,207,587 90,347,191 35.54%21,415,000 8,560,000 120,322,191 47.33%(5,470,000)114,852,191 2.26%Moderate 2023
2024 5,221,005,177 261,050,259 77,213,109 29.58%20,585,000 7,580,000 105,378,109 40.37%(4,120,000)101,258,109 1.94%Moderate 2024
2025 5,361,542,380 268,077,119 65,210,149 24.33%19,730,000 6,570,000 91,510,149 34.14%(3,035,000)88,475,149 1.65%Strong 2025
2026 5,505,862,514 275,293,126 54,445,000 19.78%18,855,000 5,720,000 79,020,000 28.70%(2,030,000)76,990,000 1.40%Strong 2026
2027 5,654,067,408 282,703,370 44,835,000 15.86%17,950,000 4,840,000 67,625,000 23.92%(1,360,000)66,265,000 1.17%Strong 2027
2028 5,806,261,630 290,313,081 36,200,000 12.47%17,015,000 3,935,000 57,150,000 19.69%(690,000)56,460,000 0.97%Strong 2028
2029 5,962,552,562 298,127,628 29,665,000 9.95%16,055,000 3,000,000 48,720,000 16.34%(595,000)48,125,000 0.81%Strong 2029
2030 6,123,050,480 306,152,524 23,015,000 7.52%15,065,000 2,035,000 40,115,000 13.10%(490,000)39,625,000 0.65%Very Strong 2030
2031 6,287,868,625 314,393,431 17,720,000 5.64%14,035,000 1,035,000 32,790,000 10.43%(380,000)32,410,000 0.52%Very Strong 2031
2032 6,457,123,288 322,856,164 13,780,000 4.27%12,975,000 26,755,000 8.29%(265,000)26,490,000 0.41%Very Strong 2032
2033 6,630,933,888 331,546,694 9,695,000 2.92%11,870,000 21,565,000 6.50%(135,000)21,430,000 0.32%Very Strong 2033
2034 6,809,423,062 340,471,153 6,585,000 1.93%10,730,000 17,315,000 5.09%0 17,315,000 0.25%Very Strong 2034
2035 6,992,716,746 349,635,837 4,825,000 1.38%9,550,000 14,375,000 4.11%0 14,375,000 0.21%Very Strong 2035
2036 7,180,944,265 359,047,213 3,425,000 0.95%8,330,000 11,755,000 3.27%0 11,755,000 0.16%Very Strong 2036
2037 7,374,238,427 368,711,921 2,370,000 0.64%7,065,000 9,435,000 2.56%0 9,435,000 0.13%Very Strong 2037
2038 7,572,735,614 378,636,781 1,595,000 0.42%5,750,000 7,345,000 1.94%0 7,345,000 0.10%Very Strong 2038
2039 7,776,575,880 388,828,794 990,000 0.25%4,390,000 5,380,000 1.38%0 5,380,000 0.07%Very Strong 2039
2040 7,985,903,047 399,295,152 380,000 0.10%2,975,000 3,355,000 0.84%0 3,355,000 0.04%Very Strong 2040
2041 8,200,864,810 410,043,240 0.00%1,515,000 1,515,000 0.37%1,515,000 0.02%Very Strong 2041
2042 8,421,612,839 421,080,642 0.00% 0.00%0 0.00%Very Strong 2042
2043 8,648,302,887 432,415,144 0.00% 0.00%0 0.00%Very Strong 2043
2044 8,881,094,898 444,054,745 0.00% 0.00%0 0.00%Very Strong 2044
2045 9,120,153,124 456,007,656 0.00% 0.00%0 0.00%Very Strong 2045
2046 9,365,646,237 468,282,312 0.00% 0.00%0 0.00%Very Strong 2046
2047 9,617,747,447 480,887,372 0.00% 0.00%0 0.00%Very Strong 2047
2048 9,876,634,631 493,831,732 0.00% 0.00%0 0.00%Very Strong 2048
2049 10,142,490,449 507,124,522 0.00% 0.00%0 0.00%Very Strong 2049
NOTES:
1Value shown for 2021 is 1-1-2021 actual TID IN EV. Assumes a 2.69% 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.
PROP 2022B
NOTES
EXIST DEBT
PRIN OUTS % OF LIMIT
Existing Debt Only
Current and Projected Debt Limit & Debt Burden Calculations
With Proposed 2022 Bonds & Notes
YearTOTALDIRECT DEBT
BURDEN2 ASSESSMENTYearPROJECTED EV
(TID IN)1
DEBT LIMIT
@ 5%
EXIST DEBT
PRIN OUTS % OF LIMIT PLUS RDA
DEBT
LESS UTILITY
ABATED
PROP 2022A
BONDS
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Debt Limit
10 YEAR TREND IN MUNICIPAL BOND INDICES
Source: The Bond Buyer
The Bond Buyer “20 Bond Index” (BBI) shows average yields on a group of municipal bonds that
mature in 20 years and have an average rating equivalent to Moody’s Aa2 and S&P’s AA.
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$9,140,000 General Obligation Promissory Notes,
Series 2022B
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$9,140,000 General Obligation Promissory Notes, Series 2022B (the “Notes”)
Purposes:
The proposed Notes will finance a portion of the new Parks Dept. Building, other park
improvements, acquisition of public safety and public works equipment, parking lot
improvements and improvements to City buildings and facilities (the “Projects”). Debt service
associated with the Projects will be paid from ad valorem property taxes.
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 2022A General Obligation
Corporate Purpose Bonds to be issued concurrently, the City’s total General Obligation debt
principal outstanding will be approximately $146.9 million, which is 61% of its limit. Remaining
General Obligation Borrowing Capacity will be approximately $94.1 million. At the end of
2022, General Obligation debt capacity usage will be approximately 54.8% 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 2023 through 2032. Interest is payable every six months beginning June 1, 2023.
The Notes will be subject to prepayment at the discretion of the City on June 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 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 if the bond rating of the insurer is higher than that of the
City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
Basis for Recommendation:
Issuance of General Obligation Notes is a suitable debt instrument to achieve the City’s
objectives for this financing. It will permit the City to amortize the payments over a term
consistent with the useful life of the financed projects. The City has the financial capacity to
repay the Notes within the maximum ten-year amortization period that is permitted and has
adequate General Obligation debt capacity to undertake the financing. The City could choose
to finance the projects with a State Trust Fund Loan as an alternative. The current State Trust
Fund Loan interest rate for a loan of the same term is 4.00%. Based on estimated rates, the
Bonds are expected to provide a lower All-Inclusive Cost (AIC). (The exhibits to this Pre-Sale
Report reflect an AIC of 3.53%). None of the Projects will generate user fees or other revenues
that could be used to secure a revenue bond.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and other post-issuance requirements.
Method of Sale/Placement:
A competitive public offering is recommended. The City’s existing general obligation debt is
rated Aa3 by Moody’s Investors Service. Based on that rating, the City’s credit characteristics,
and history of receiving multiple bids in the competitive markets a competitive public offering
is expected to produce the lowest total cost of financing.
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 Notes, any premium amount received that is more than 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
May 10, 2022
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 Debt:
We have reviewed all outstanding 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 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
detailed in the Tax Exemption Certificate and Agreement (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 limitation, 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 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
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.
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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 6, 2022
City Council Meeting to Award Sale of the Notes: June 14, 2022
Estimated Closing Date: July 7, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Bond and Note Structure
Estimated Debt Service Schedule by Purpose
Current and Projected Debt Limit and Debt Burden Calculations
Bond Buyer Index – 10-year
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate Presale Estimate
Sale 6-14-2022 Sale 6-14-2022
Est. Dated 7-7-2022 Est. Dated 7-7-2022
G.O. Corporate
Purpose Bonds
G.O. Promissory
Notes
Series 2022A Series 2022B
Tax-Exempt Tax-Exempt
Capital Projects1 21,260,800$ 8,990,600$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 40,100$ 25,200$
Chapman & Cutler (Bond Counsel) 29,000$ 21,000$
Maximum Discount (Bid Item)2 270,313$ 91,400$
Moody's Investors Service (Rating Fee) 23,196$ 9,804$
U.S. Bank (Paying Agent) 1,000$ 1,000$
TOTAL TO BE FINANCED 21,624,409$ 9,139,004$
Estimated Interest Earnings3 (2,480)$ (1,049)$
Rounding 3,072$ 2,045$
NET BOND OR NOTE SIZE 21,625,000$ 9,140,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget and 2023 CIP.
2Maximum allowable discount of 1.25% for the Series 2022A Bonds, and 1.0% for the Series 2022B Notes.
3Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 General Obligation Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/G.O. Sizing 2022
Year Prin (6/1) Est. Rate3 Interest Total Prin (6/1) Est. Rate3 Interest Total Year
2022 4,562,703,300 19,590,575 (6,857,076)12,733,500 2.79 12,733,500 2.79 2022
2023 4,685,520,562 17,758,761 (5,713,541)12,045,220 2.57 210,000 2.550% 1,025,217 1,235,217 580,000 2.550% 388,484 968,484 14,248,921 3.04 2023
2024 4,811,643,776 15,917,517 (4,523,467)11,394,050 2.37 830,000 2.810% 717,194 1,547,194 980,000 2.810% 254,212 1,234,212 14,175,455 2.95 2024
2025 4,941,161,931 14,401,256 (3,981,941)10,419,315 2.11 855,000 2.930% 693,007 1,548,007 1,010,000 2.930% 225,646 1,235,646 13,202,968 2.67 2025
2026 5,074,166,411 12,836,648 (3,428,385)9,408,263 1.85 875,000 2.960% 667,531 1,542,531 850,000 2.960% 198,270 1,048,270 11,999,064 2.36 2026
2027 5,210,751,059 11,366,966 (2,859,656)8,507,309 1.63 905,000 3.050% 640,780 1,545,780 880,000 3.050% 172,270 1,052,270 11,105,359 2.13 2027
2028 5,351,012,245 9,868,254 (2,374,245)7,494,009 1.40 935,000 3.150% 612,252 1,547,252 905,000 3.150% 144,596 1,049,596 10,090,857 1.89 2028
2029 5,495,048,933 7,513,598 (1,197,192)6,316,406 1.15 960,000 3.220% 582,070 1,542,070 935,000 3.220% 115,289 1,050,289 8,908,765 1.62 2029
2030 5,642,962,750 7,449,145 (1,192,298)6,256,847 1.11 990,000 3.290% 550,329 1,540,329 965,000 3.290% 84,361 1,049,361 8,846,536 1.57 2030
2031 5,794,858,061 5,923,329 (934,248)4,989,081 0.86 1,030,000 3.340% 516,842 1,546,842 1,000,000 3.340% 51,787 1,051,787 7,587,710 1.31 2031
2032 5,950,842,036 4,430,423 (570,429)3,859,994 0.65 1,060,000 3.390% 481,674 1,541,674 1,035,000 3.390% 17,543 1,052,543 6,454,211 1.08 2032
2033 6,111,024,734 4,439,350 (562,925)3,876,425 0.63 1,105,000 3.430% 444,756 1,549,756 5,426,181 0.89 2033
2034 6,275,519,174 3,339,944 (464,200)2,875,744 0.46 1,140,000 3.470% 406,027 1,546,027 4,421,770 0.70 2034
2035 6,444,441,418 1,914,438 (250,350)1,664,088 0.26 1,180,000 3.500% 365,598 1,545,598 3,209,685 0.50 2035
2036 6,617,910,653 1,508,678 (146,450)1,362,228 0.21 1,220,000 3.530% 323,415 1,543,415 2,905,643 0.44 2036
2037 6,796,049,272 1,127,766 0 1,127,766 0.17 1,265,000 3.570% 279,301 1,544,301 2,672,067 0.39 2037
2038 6,978,982,964 819,813 0 819,813 0.12 1,315,000 3.590% 233,117 1,548,117 2,367,929 0.34 2038
2039 7,166,840,802 631,731 0 631,731 0.09 1,360,000 3.610% 184,965 1,544,965 2,176,696 0.30 2039
2040 7,359,755,333 623,994 0 623,994 0.08 1,415,000 3.620% 134,805 1,549,805 2,173,799 0.30 2040
2041 7,557,862,669 383,800 0 383,800 0.05 1,460,000 3.650% 82,549 1,542,549 1,926,349 0.25 2041
2042 7,761,302,5900000.00 1,515,000 3.690% 27,952 1,542,952 1,542,952 0.20 2042
TOTALS 141,845,984 (35,056,401)106,789,582 21,625,000 8,969,378 30,594,378 9,140,000 1,652,455 10,792,455 148,176,415 TOTALS
Maturities Subject to Optional RedemptionNOTES:
1Value shown for 2022 is 1-1-2021 actual TID OUT EV. Assumes an 2.69% increase each year thereafter which is 50% of the actual past five year average increase.
2Includes General Obligation debt, room-tax secured State Trust Fund Loan, and TID 31 SBA Loan.
3Estimated rates are 4-19-2022 MMD AA scale plus 0.50%.
Net Tax
Rate for
Debt
$9,140,000
Dated 7/7/2022 Dated 7/7/2022
$21,625,000
2022 G.O. Bond and Note Structure Worksheet Presale Estimate
Existing Debt Only Proposed 2022 Issues
Projected
Equalized
Value1
Debt P&I2
Total
Abatement
Sources
Net Tax
Levy for
Debt
Net Tax
Rate for
Debt
G.O. Corporate Purpose Bonds, Series 2022A G.O. Promissory Notes, Series 2022B Net Tax
Levy for
Debt
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/G.O. Structure
YEAR Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total YEAR
2023 420,000 2.550% 370,544 790,544 160,000 2.550% 17,940 177,940 580,000 2.550% 388,484 968,484 2023
2024 805,000 2.810% 246,479 1,051,479 175,000 2.810% 7,733 182,733 980,000 2.810% 254,212 1,234,212 2024
2025 830,000 2.930% 223,009 1,053,009 180,000 2.930% 2,637 182,637 1,010,000 2.930% 225,646 1,235,646 2025
2026 850,000 2.960% 198,270 1,048,270 850,000 2.960% 198,270 1,048,270 2026
2027 880,000 3.050% 172,270 1,052,270 880,000 3.050% 172,270 1,052,270 2027
2028 905,000 3.150% 144,596 1,049,596 905,000 3.150% 144,596 1,049,596 2028
2029 935,000 3.220% 115,289 1,050,289 935,000 3.220% 115,289 1,050,289 2029
2030 965,000 3.290% 84,361 1,049,361 965,000 3.290% 84,361 1,049,361 2030
2031 1,000,000 3.340% 51,787 1,051,787 1,000,000 3.340% 51,787 1,051,787 2031
2032 1,035,000 3.390% 17,543 1,052,543 1,035,000 3.390% 17,543 1,052,543 2032
2033 2033
2034 2034
2035 2035
2036 2036
2037 2037
2038 2038
2039 2039
2040 2040
2041 2041
2042 2042
TOTALS 8,625,000 1,624,145 10,249,145 515,000 28,310 543,310 9,140,000 1,652,455 10,792,455 TOTALS
NOTES:
1Estimated rates are 4-19-2022 MMD AA scale plus 0.50%.
Proposed G.O. Promissory Notes, Series 2022B
Debt Service Breakdown by Purpose
Presale Estimate
Garbage TrucksGeneral Projects Total Issue Estimated Debt Service
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/2022B Note Allocation
2021 4,821,112,500 241,055,625 120,615,836 50.04%120,615,836 50.04%(9,140,000)111,475,836 2.31%Moderate 2021
2022 4,950,885,531 247,544,277 104,879,511 42.37%21,625,000 9,140,000 135,644,511 54.80%(7,095,000)128,549,511 2.60%Moderate 2022
2023 5,084,151,747 254,207,587 90,347,191 35.54%21,415,000 8,560,000 120,322,191 47.33%(5,470,000)114,852,191 2.26%Moderate 2023
2024 5,221,005,177 261,050,259 77,213,109 29.58%20,585,000 7,580,000 105,378,109 40.37%(4,120,000)101,258,109 1.94%Moderate 2024
2025 5,361,542,380 268,077,119 65,210,149 24.33%19,730,000 6,570,000 91,510,149 34.14%(3,035,000)88,475,149 1.65%Strong 2025
2026 5,505,862,514 275,293,126 54,445,000 19.78%18,855,000 5,720,000 79,020,000 28.70%(2,030,000)76,990,000 1.40%Strong 2026
2027 5,654,067,408 282,703,370 44,835,000 15.86%17,950,000 4,840,000 67,625,000 23.92%(1,360,000)66,265,000 1.17%Strong 2027
2028 5,806,261,630 290,313,081 36,200,000 12.47%17,015,000 3,935,000 57,150,000 19.69%(690,000)56,460,000 0.97%Strong 2028
2029 5,962,552,562 298,127,628 29,665,000 9.95%16,055,000 3,000,000 48,720,000 16.34%(595,000)48,125,000 0.81%Strong 2029
2030 6,123,050,480 306,152,524 23,015,000 7.52%15,065,000 2,035,000 40,115,000 13.10%(490,000)39,625,000 0.65%Very Strong 2030
2031 6,287,868,625 314,393,431 17,720,000 5.64%14,035,000 1,035,000 32,790,000 10.43%(380,000)32,410,000 0.52%Very Strong 2031
2032 6,457,123,288 322,856,164 13,780,000 4.27%12,975,000 26,755,000 8.29%(265,000)26,490,000 0.41%Very Strong 2032
2033 6,630,933,888 331,546,694 9,695,000 2.92%11,870,000 21,565,000 6.50%(135,000)21,430,000 0.32%Very Strong 2033
2034 6,809,423,062 340,471,153 6,585,000 1.93%10,730,000 17,315,000 5.09%0 17,315,000 0.25%Very Strong 2034
2035 6,992,716,746 349,635,837 4,825,000 1.38%9,550,000 14,375,000 4.11%0 14,375,000 0.21%Very Strong 2035
2036 7,180,944,265 359,047,213 3,425,000 0.95%8,330,000 11,755,000 3.27%0 11,755,000 0.16%Very Strong 2036
2037 7,374,238,427 368,711,921 2,370,000 0.64%7,065,000 9,435,000 2.56%0 9,435,000 0.13%Very Strong 2037
2038 7,572,735,614 378,636,781 1,595,000 0.42%5,750,000 7,345,000 1.94%0 7,345,000 0.10%Very Strong 2038
2039 7,776,575,880 388,828,794 990,000 0.25%4,390,000 5,380,000 1.38%0 5,380,000 0.07%Very Strong 2039
2040 7,985,903,047 399,295,152 380,000 0.10%2,975,000 3,355,000 0.84%0 3,355,000 0.04%Very Strong 2040
2041 8,200,864,810 410,043,240 0.00%1,515,000 1,515,000 0.37%1,515,000 0.02%Very Strong 2041
2042 8,421,612,839 421,080,642 0.00% 0.00%0 0.00%Very Strong 2042
2043 8,648,302,887 432,415,144 0.00% 0.00%0 0.00%Very Strong 2043
2044 8,881,094,898 444,054,745 0.00% 0.00%0 0.00%Very Strong 2044
2045 9,120,153,124 456,007,656 0.00% 0.00%0 0.00%Very Strong 2045
2046 9,365,646,237 468,282,312 0.00% 0.00%0 0.00%Very Strong 2046
2047 9,617,747,447 480,887,372 0.00% 0.00%0 0.00%Very Strong 2047
2048 9,876,634,631 493,831,732 0.00% 0.00%0 0.00%Very Strong 2048
2049 10,142,490,449 507,124,522 0.00% 0.00%0 0.00%Very Strong 2049
NOTES:
1Value shown for 2021 is 1-1-2021 actual TID IN EV. Assumes a 2.69% 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.
PROP 2022B
NOTES
EXIST DEBT
PRIN OUTS % OF LIMIT
Existing Debt Only
Current and Projected Debt Limit & Debt Burden Calculations
With Proposed 2022 Bonds & Notes
YearTOTALDIRECT DEBT
BURDEN2 ASSESSMENTYearPROJECTED EV
(TID IN)1
DEBT LIMIT
@ 5%
EXIST DEBT
PRIN OUTS % OF LIMIT PLUS RDA
DEBT
LESS UTILITY
ABATED
PROP 2022A
BONDS
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Debt Limit
10 YEAR TREND IN MUNICIPAL BOND INDICES
Source: The Bond Buyer
The Bond Buyer “20 Bond Index” (BBI) shows average yields on a group of municipal bonds that
mature in 20 years and have an average rating equivalent to Moody’s Aa2 and S&P’s AA.
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$8,780,000 Storm Water Utility Revenue Bonds,
Series 2022C
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$8,780,000 Storm Water Utility Revenue Bonds, Series 2022C (the “Bonds”)
Purposes:
The proposed issue includes financing for construction of storm water utility system
improvements (the “Projects”).
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 2023 through 2042. Interest is payable every six months beginning May 1, 2023.
The Bonds will be subject to prepayment at the discretion of the City on May 1, 2032 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 outstanding Storm Water Utility bond issues are rated “A1” by Moody’s Investor’s
Service. 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 if the bond rating of the insurer is higher than that of the City.
Basis for Recommendation:
Issuance of Storm Water Utility Revenue Bonds is a suitable debt instrument to achieve the
City’s objectives for this financing. The City expects to have 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 past practice has been to issue revenue bonds to finance enterprise system
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
improvements to reduce its use of General Obligation debt capacity. The City’s current Capital
Improvements Plan has also identified issuance of revenue bonds to finance the Projects.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and any other post-issuance requirements.
Method of Sale/Placement:
A competitive public offering is recommended. The City’s existing Storm Water Utility
Revenue Bonds are rated A1 by Moody’s Investors Service. Based on that rating, the City’s
credit characteristics, the past availability of credit enhancement, and history of receiving
multiple bids in the competitive markets a competitive public offering is expected to produce
the lowest total cost of financing.
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.
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 2021
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
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 3
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 Debt:
The City’s Series 2012D Storm Water Utility Revenue Bonds are callable May 1, 2022 and could
potentially be refinanced for debt service savings as a part of the Bonds. Based on current
market conditions, the refunding would not generate significant savings. However, we will
continue to evaluate this savings opportunity as we get closer to the sale date and will make
a recommendation to the City based on market conditions at the time.
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
detailed in the Tax Exemption Certificate and Agreement (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 limitation, 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
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:
Utility Revenue: 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 potentially 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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 6, 2022
City Council Meeting to Award Sale of the Bonds: June 14, 2022
Estimated Closing Date: July 7, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Debt Service Schedule
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate
Sale 6-14-2022
Est. Dated 7-7-2022
Storm Water
Utility Revenue
Bonds
Series 2022C
Tax-Exempt
Capital Projects1 8,385,000$
Reserve Fund Adjustments
New Reserve Fund Requirement 7,730,697$
Less Current Reserve Requirement (7,535,319)$
Net Deposit to Reserve Fund Required 195,378$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 43,100$
Chapman & Cutler (Bond Counsel) 23,000$
Maximum Discount (Bid Item) @ 1.25% 109,750$
Moody's Investors Service (Rating Fee) 19,000$
U.S. Bank (Paying Agent) 1,000$
TOTAL TO BE FINANCED 8,776,228$
Estimated Interest Earnings2 (978)$
Rounding 4,750$
NET BOND SIZE 8,780,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget.
2Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 Revenue Bond Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Rev Sizing 2022
Schedule of Storm Water Utility Revenue Debt Outstanding Plus Proposed 2022 Issues
As of January 1, 2022
Amount
Dated
Paying Agent
Callable
Callable Amt
Rate/Term Est. TIC 2.992%2023‐2042
Year Principal Interest Total Prin (5/1)Est. Rate1 Interest Total Total P&I Net Revs2 1.2X Req'd Rev P&I G.O. P&I Total Net Revs@ Year
2022 4,775,000 2,752,789 7,527,789 7,527,789 9,537,247 1.27 7,527,789 820,269 8,348,057 9,537,247 1.14 2022
2023 5,040,000 2,493,519 7,533,519 200,000 3.050%446,695 646,695 8,180,214 9,537,247 1.17 8,180,214 547,369 8,727,583 9,537,247 1.09 2023
2024 5,235,000 2,294,359 7,529,359 315,000 3.310%330,265 645,265 8,174,625 9,537,247 1.17 8,174,625 438,194 8,612,818 9,537,247 1.11 2024
2025 5,435,000 2,100,319 7,535,319 325,000 3.430%319,478 644,478 8,179,797 9,537,247 1.17 8,179,797 421,869 8,601,666 9,537,247 1.11 2025
2026 5,400,000 1,914,213 7,314,213 340,000 3.460%308,023 648,023 7,962,235 9,537,247 1.20 7,962,235 410,694 8,372,929 9,537,247 1.14 2026
2027 5,630,000 1,722,447 7,352,447 350,000 3.550%295,928 645,928 7,998,375 9,537,247 1.19 7,998,375 394,513 8,392,887 9,537,247 1.14 2027
2028 5,820,000 1,523,869 7,343,869 365,000 3.650%283,054 648,054 7,991,923 9,537,247 1.19 7,991,923 378,475 8,370,398 9,537,247 1.14 2028
2029 6,065,000 1,318,353 7,383,353 375,000 3.720%269,418 644,418 8,027,771 9,537,247 1.19 8,027,771 12,581 8,040,352 9,537,247 1.19 2029
2030 6,315,000 1,110,747 7,425,747 390,000 3.790%255,053 645,053 8,070,799 9,537,247 1.18 8,070,799 17,259 8,088,059 9,537,247 1.18 2030
2031 5,025,000 924,050 5,949,050 405,000 3.840%239,886 644,886 6,593,936 9,537,247 1.45 6,593,936 16,856 6,610,792 9,537,247 1.44 2031
2032 5,195,000 753,484 5,948,484 420,000 3.890%223,941 643,941 6,592,425 9,537,247 1.45 6,592,425 16,425 6,608,850 9,537,247 1.44 2032
2033 4,910,000 586,978 5,496,978 440,000 3.930%207,126 647,126 6,144,104 9,537,247 1.55 6,144,104 20,900 6,165,004 9,537,247 1.55 2033
2034 3,965,000 443,800 4,408,800 455,000 3.970%189,448 644,448 5,053,248 9,537,247 1.89 5,053,248 20,300 5,073,548 9,537,247 1.88 2034
2035 3,505,000 328,641 3,833,641 475,000 4.000%170,917 645,917 4,479,557 9,537,247 2.13 4,479,557 0 4,479,557 9,537,247 2.13 2035
2036 2,860,000 233,694 3,093,694 495,000 4.030%151,442 646,442 3,740,136 9,537,247 2.55 3,740,136 0 3,740,136 9,537,247 2.55 2036
2037 2,600,000 153,113 2,753,113 515,000 4.070%130,988 645,988 3,399,100 9,537,247 2.81 3,399,100 0 3,399,100 9,537,247 2.81 2037
2038 1,970,000 86,569 2,056,569 535,000 4.090%109,567 644,567 2,701,136 9,537,247 3.53 2,701,136 0 2,701,136 9,537,247 3.53 2038
2039 1,295,000 42,306 1,337,306 560,000 4.110%87,118 647,118 1,984,424 9,537,247 4.81 1,984,424 0 1,984,424 9,537,247 4.81 2039
2040 745,000 17,859 762,859 580,000 4.120%63,662 643,662 1,406,521 9,537,247 6.78 1,406,521 0 1,406,521 9,537,247 6.78 2040
2041 450,000 4,781 454,781 605,000 4.150%39,160 644,160 1,098,942 9,537,247 8.68 1,098,942 0 1,098,942 9,537,247 8.68 2041
2042 0 0 0 635,000 4.190%13,303 648,303 648,303 9,537,247 14.71 648,303 0 648,303 9,537,247 14.71 2042
TOTALS 82,235,000 20,805,889 103,040,889 8,780,000 4,134,472 12,914,472 115,955,360 115,955,360 3,515,703 119,471,064
NOTES: = Maturities Subject to Optional Redemption
1Estimated rates are 4-19-2022 MMD AA scale plus 1.00%.
2Net revenue calculation based the City's 2020 audited financial statements.
Debt Service CoverageDebt Service Coverage
07‐Jul‐22
TBD
Existing +
Future Issues
$8,780,000
Presale Estimate
$5,295,000
01‐May‐32
Total Utility DebtStorm Water Utility Revenue Bonds,
Series 2022CExisting Stormwater Revenue Debt Issue
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Storm Rev Debt
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$8,615,000 Water System Revenue Bonds, Series
2022D
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$8,615,000 Water System Revenue Bonds, Series 2022D (the “Bonds”)
Purposes:
The proposed issue includes financing for construction of water system improvements (the
“Projects”).
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 2023 through 2042. Interest is payable every six months beginning
January 1, 2023. The Bonds will be subject to prepayment at the discretion of the City on
January 1, 2032 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 outstanding Water System Revenue Bonds are rated “Aa3” by Moody’s Investors
Service. 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 if the bond rating of the insurer is higher than that of the City.
Basis for Recommendation:
Issuance of Water System Revenue Bonds is a suitable debt instrument to achieve the City’s
objectives for this financing. The City expects to have 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 has been to issue
revenue bonds to finance enterprise system improvements to reduce its use of General
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
Obligation debt capacity. The City’s current Capital Improvements Plan has also identified
issuance of revenue bonds to finance the Projects.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and any other post-issuance requirements.
Method of Sale/Placement:
A competitive public offering is recommended. The City’s existing Water System Revenue
Bonds are rated Aa3 by Moody’s Investors Service. Based on that rating, the City’s credit
characteristics, and history of receiving multiple bids in the competitive markets a competitive
public offering is expected to produce the lowest total cost of financing.
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.
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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 3
Review of Existing Debt:
The City’s Series 2012F Water Revenue Bonds became callable on January 1, 2022 and could
potentially be refinanced for debt service savings as a part of the Bonds. Based on current
market conditions, the refunding would not generate significant savings. However, we will
continue to evaluate this savings opportunity as we get closer to the sale date and will make
a recommendation to the City based on market conditions at the time.
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
detailed in the Tax Exemption Certificate and Agreement (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 limitation, 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
Risk Factors:
Utility Revenue: 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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 20, 2022
City Council Meeting to Award Sale of the Bonds: June 28, 2022
Estimated Closing Date: July 21, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Debt Service Schedule
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate
Sale 6-28-2022
Est. Dated 7-21-2022
Water System
Revenue Bonds
Series 2022D
Tax-Exempt
Capital Projects1 7,850,000$
Reserve Fund Adjustments
New Reserve Fund Requirement 4,355,610$
Less Current Reserve Requirement (3,785,657)$
Net Deposit to Reserve Fund Required 569,953$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 43,000$
Chapman & Cutler (Bond Counsel) 22,000$
Maximum Discount (Bid Item) @ 1.25% 107,688$
Moody's Investors Service (Rating Fee) 19,000$
U.S. Bank (Paying Agent) 1,000$
TOTAL TO BE FINANCED 8,612,640$
Estimated Interest Earnings2 (916)$
Rounding 3,276$
NET BOND SIZE 8,615,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget.
2Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 Revenue Bond Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Rev Sizing 2022
Schedule of Water Utility Revenue Debt Outstanding Plus Proposed 2022 Issue
As of January 1, 2022
Amount
Dated
Paying Agent
Callable
Callable Amt
Rate/Term Est. TIC 2.700%2023‐2042
Year Principal Interest Total Prin (1/1) Rate Interest Total Net Revs2 1.2X Req'd Rev P&I G.O. P&I Total Net Revs2 Year
2022 4,269,223 1,593,992 5,863,215 0 5,863,215 9,412,071 1.61 5,863,215 650,794 6,514,009 9,412,071 1.44 2022
2023 4,348,901 1,490,986 5,839,887 325,000 2.750%286,308 611,308 6,451,195 9,412,071 1.46 6,451,195 497,825 6,949,020 9,412,071 1.35 2023
2024 4,333,809 1,352,767 5,686,575 315,000 3.010%294,203 609,203 6,295,778 9,412,071 1.49 6,295,778 389,700 6,685,478 9,412,071 1.41 2024
2025 4,288,950 1,219,640 5,508,590 325,000 3.130%284,376 609,376 6,117,965 9,412,071 1.54 6,117,965 249,425 6,367,390 9,412,071 1.48 2025
2026 4,409,331 1,091,145 5,500,476 335,000 3.160%273,997 608,997 6,109,473 9,412,071 1.54 6,109,473 252,994 6,362,467 9,412,071 1.48 2026
2027 3,829,958 963,502 4,793,460 345,000 3.250%263,097 608,097 5,401,557 9,412,071 1.74 5,401,557 150,434 5,551,992 9,412,071 1.70 2027
2028 3,800,836 841,536 4,642,372 355,000 3.350%251,545 606,545 5,248,917 9,412,071 1.79 5,248,917 151,544 5,400,461 9,412,071 1.74 2028
2029 3,455,000 723,659 4,178,659 370,000 3.420%239,272 609,272 4,787,931 9,412,071 1.97 4,787,931 47,569 4,835,500 9,412,071 1.95 2029
2030 3,550,000 608,866 4,158,866 380,000 3.490%226,314 606,314 4,765,179 9,412,071 1.98 4,765,179 51,478 4,816,657 9,412,071 1.95 2030
2031 3,240,000 501,372 3,741,372 395,000 3.540%212,691 607,691 4,349,063 9,412,071 2.16 4,349,063 50,269 4,399,332 9,412,071 2.14 2031
2032 3,030,000 406,538 3,436,538 410,000 3.590%198,340 608,340 4,044,878 9,412,071 2.33 4,044,878 53,900 4,098,778 9,412,071 2.30 2032
2033 2,450,000 325,300 2,775,300 425,000 3.630%183,267 608,267 3,383,567 9,412,071 2.78 3,383,567 52,400 3,435,967 9,412,071 2.74 2033
2034 2,330,000 253,900 2,583,900 440,000 3.670%167,479 607,479 3,191,379 9,412,071 2.95 3,191,379 55,825 3,247,204 9,412,071 2.90 2034
2035 2,245,000 187,031 2,432,031 460,000 3.700%150,895 610,895 3,042,926 9,412,071 3.09 3,042,926 0 3,042,926 9,412,071 3.09 2035
2036 1,845,000 129,881 1,974,881 475,000 3.730%133,526 608,526 2,583,408 9,412,071 3.64 2,583,408 0 2,583,408 9,412,071 3.64 2036
2037 1,455,000 85,506 1,540,506 495,000 3.770%115,337 610,337 2,150,843 9,412,071 4.38 2,150,843 0 2,150,843 9,412,071 4.38 2037
2038 955,000 55,231 1,010,231 510,000 3.790%96,342 606,342 1,616,573 9,412,071 5.82 1,616,573 0 1,616,573 9,412,071 5.82 2038
2039 980,000 32,669 1,012,669 530,000 3.810%76,581 606,581 1,619,249 9,412,071 5.81 1,619,249 0 1,619,249 9,412,071 5.81 2039
2040 685,000 14,066 699,066 555,000 3.820%55,884 610,884 1,309,949 9,412,071 7.19 1,309,949 0 1,309,949 9,412,071 7.19 2040
2041 350,000 3,500 353,500 575,000 3.850%34,214 609,214 962,714 9,412,071 9.78 962,714 0 962,714 9,412,071 9.78 2041
2042 0 0 0 595,000 3.890%11,573 606,573 606,573 9,412,071 15.52 606,573 0 606,573 9,412,071 15.52 2042
55,851,008 11,881,087 67,732,095 8,615,000 3,555,237 12,170,237 79,902,332 79,902,332 2,654,156 82,556,488
NOTES:
1Estimated rates are 4-19-2022 MMD AA scale plus 0.70%.
2Net revenue calculation based the City's 2020 audited financial statements. = Maturities Subject to Optional Redemption
Presale Estimate
$5,060,000
01‐Jan‐32
TBD
$8,615,000
Debt Service CoverageIssue Existing Water Revenue Debt
Water System Revenue Bonds,
Series 2022D
Existing +
Future Issues Debt Service Coverage Total Utility Debt
21‐Jul‐22
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Water Rev Debt
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$14,820,000 Sewer System Revenue Bonds,
Series 2022E
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$14,820,000 Sewer System Revenue Bonds, Series 2022E (the “Bonds”)
Purposes:
The proposed issue includes financing for construction of sanitary sewer system
improvements (the “Projects”).
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 2023 through 2042. Interest is payable every six months beginning May 1, 2023.
The Bonds will be subject to prepayment at the discretion of the City on May 1, 2032 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 outstanding Sewer System Revenue Bonds are rated “Aa3” by Moody’s Investors
Service. 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 if the bond rating of the insurer is higher
than that of the City.
Basis for Recommendation:
Issuance of Sewer System Revenue Bonds is a suitable debt instrument to achieve the City’s
objectives for this financing. The City expects to have 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 has been to issue
revenue bonds to finance enterprise system improvements to reduce its use of General
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
Obligation debt capacity. The City’s current Capital Improvements Plan has also identified
issuance of revenue bonds to finance the Projects.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and any other post-issuance requirements.
Method of Sale/Placement:
A competitive public offering is recommended. The City’s existing Sewer System Revenue
Bonds are rated Aa3 by Moody’s Investors Service. Based on that rating, the City’s credit
characteristics, and history of receiving multiple bids in the competitive markets a competitive
public offering is expected to produce the lowest total cost of financing.
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.
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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 3
Review of Existing Debt:
The City’s Series 2012E Sewer Revenue Bonds are callable May 1, 2022 and could potentially
be refinanced for debt service savings as a part of the Bonds. Based on current market
conditions, the refunding would not generate significant savings. However, we will continue
to evaluate this savings opportunity as we get closer to the sale date and will make a
recommendation to the City based on market conditions at the time.
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
detailed in the Tax Exemption Certificate and Agreement (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 limitation, 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
Risk Factors:
Utility Revenue: 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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 20, 2022
City Council Meeting to Award Sale of the Bonds: June 28, 2022
Estimated Closing Date: July 21, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Debt Service Schedule
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate
Sale 6-28-2022
Est. Dated 7-21-2022
Sewer System
Revenue Bonds
Series 2022E
Tax-Exempt
Capital Projects1 13,575,000$
Reserve Fund Adjustments
New Reserve Fund Requirement 6,881,490$
Less Current Reserve Requirement (5,937,815)$
Net Deposit to Reserve Fund Required 943,675$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 52,500$
Chapman & Cutler (Bond Counsel) 31,000$
Maximum Discount (Bid Item) @ 1.25% 185,250$
Moody's Investors Service (Rating Fee) 29,000$
U.S. Bank (Paying Agent) 1,000$
TOTAL TO BE FINANCED 14,817,425$
Estimated Interest Earnings2 (1,584)$
Rounding 4,159$
NET BOND SIZE 14,820,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget.
2Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 Revenue Bond Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Rev Sizing 2022
Schedule of Sewer Utility Revenue Debt Outstanding Plus Proposed 2022 Issue
As of January 1, 2022
Amount
Dated
Paying Agent
Callable
Callable Amt
Rate/Term Est. TIC 2.690%2023‐2042
Year Principal Interest Total Prin (5/1)Est. Rate1 Interest Total Total P&I Net Revs2 1.1X Req'd Rev P&I G.O. P&I Total Net Revs2 Year
2022 4,639,508 2,429,354 7,068,862 7,068,862 9,252,811 1.31 7,068,862 847,338 7,916,199 9,252,811 1.17 2022
2023 4,796,502 2,184,833 6,981,335 385,000 2.750%673,368 1,058,368 8,039,703 9,252,811 1.15 8,039,703 789,969 8,829,672 9,252,811 1.05 2023
2024 4,893,799 2,039,610 6,933,409 545,000 3.010%512,337 1,057,337 7,990,746 9,252,811 1.16 7,990,746 684,044 8,674,790 9,252,811 1.07 2024
2025 4,749,764 1,877,422 6,627,185 565,000 3.130%495,292 1,060,292 7,687,478 9,252,811 1.20 7,687,478 535,613 8,223,090 9,252,811 1.13 2025
2026 4,822,501 1,716,025 6,538,526 585,000 3.160%477,207 1,062,207 7,600,733 9,252,811 1.22 7,600,733 431,925 8,032,658 9,252,811 1.15 2026
2027 4,865,442 1,546,220 6,411,662 600,000 3.250%458,214 1,058,214 7,469,876 9,252,811 1.24 7,469,876 182,706 7,652,582 9,252,811 1.21 2027
2028 4,943,591 1,369,039 6,312,630 620,000 3.350%438,079 1,058,079 7,370,709 9,252,811 1.26 7,370,709 178,006 7,548,715 9,252,811 1.23 2028
2029 5,136,954 1,190,789 6,327,743 645,000 3.420%416,665 1,061,665 7,389,407 9,252,811 1.25 7,389,407 53,219 7,442,626 9,252,811 1.24 2029
2030 5,165,536 1,013,050 6,178,586 665,000 3.490%394,031 1,059,031 7,237,617 9,252,811 1.28 7,237,617 52,066 7,289,683 9,252,811 1.27 2030
2031 4,974,344 853,673 5,828,017 690,000 3.540%370,214 1,060,214 6,888,231 9,252,811 1.34 6,888,231 55,788 6,944,018 9,252,811 1.33 2031
2032 4,763,383 717,078 5,480,461 715,000 3.590%345,166 1,060,166 6,540,627 9,252,811 1.41 6,540,627 54,350 6,594,977 9,252,811 1.40 2032
2033 4,532,660 588,411 5,121,070 740,000 3.630%318,901 1,058,901 6,179,971 9,252,811 1.50 6,179,971 62,700 6,242,671 9,252,811 1.48 2033
2034 4,392,179 466,654 4,858,833 770,000 3.670%291,341 1,061,341 5,920,174 9,252,811 1.56 5,920,174 60,900 5,981,074 9,252,811 1.55 2034
2035 3,785,000 357,738 4,142,738 795,000 3.700%262,504 1,057,504 5,200,241 9,252,811 1.78 5,200,241 0 5,200,241 9,252,811 1.78 2035
2036 3,465,000 262,888 3,727,888 825,000 3.730%232,410 1,057,410 4,785,297 9,252,811 1.93 4,785,297 0 4,785,297 9,252,811 1.93 2036
2037 2,980,000 181,144 3,161,144 860,000 3.770%200,813 1,060,813 4,221,956 9,252,811 2.19 4,221,956 0 4,221,956 9,252,811 2.19 2037
2038 2,030,000 121,825 2,151,825 890,000 3.790%167,736 1,057,736 3,209,561 9,252,811 2.88 3,209,561 0 3,209,561 9,252,811 2.88 2038
2039 2,080,000 76,438 2,156,438 925,000 3.810%133,249 1,058,249 3,214,687 9,252,811 2.88 3,214,687 0 3,214,687 9,252,811 2.88 2039
2040 1,735,000 35,300 1,770,300 960,000 3.820%97,292 1,057,292 2,827,592 9,252,811 3.27 2,827,592 0 2,827,592 9,252,811 3.27 2040
2041 870,000 8,700 878,700 1,000,000 3.850%59,706 1,059,706 1,938,406 9,252,811 4.77 1,938,406 0 1,938,406 9,252,811 4.77 2041
2042 0 0 0 1,040,000 3.890%20,228 1,060,228 1,060,228 9,252,811 8.73 1,060,228 0 1,060,228 9,252,811 8.73 2042
79,621,163 19,036,189 98,657,352 14,820,000 6,364,750 21,184,750 119,842,102 119,842,102 3,988,622 123,830,724
NOTES:
1Estimated rates are 4-19-2022 MMD AA scale plus 0.70%.
2Net revenue calculation based the City's 2020 audited financial statements. = Maturities Subject to Optional Redemption
01‐Jan‐32
Debt Service
Coverage
TBD
21‐Jul‐22
$14,820,000
Presale Estimate
$8,805,000
Total Utility DebtIssueExisting Sewer Revenue Debt Sewer System Revenue Bonds,
Series 2022E
Existing +
Future Issues
Debt Service
Coverage
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Sewer Rev Debt
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$21,625,000 General Obligation Corporate
Purpose Bonds, Series 2022A
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$21,625,000 General Obligation Corporate Purpose Bonds, Series 2022A (the “Bonds”)
Purposes:
The proposed Bonds will finance street projects, a portion of the new Parks Dept. Building,
and other park improvements (the “Projects”). Debt service associated with the Projects will
be paid from ad valorem property taxes.
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 2022B General Obligation
Promissory Notes (the “Notes”) to be issued concurrently, the City’s total General Obligation
debt principal outstanding will be approximately $146.9 million, which is 61% of its limit.
Remaining General Obligation Borrowing Capacity will be approximately $94.1 million. At the
end of 2022, General Obligation debt capacity usage will be approximately 54.8% 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 2023 through 2042. Interest is payable every six months beginning June 1, 2023.
The Bonds will be subject to prepayment at the discretion of the City on June 1, 2032 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 if the bond rating of the insurer is higher than that of the
City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
Basis for Recommendation:
Issuance of General Obligation Bonds is a suitable debt instrument to achieve the City’s
objectives for this financing. It will permit the City to amortize the payments over a term
consistent with the useful life of the financed projects. The City has the financial capacity to
repay the Bonds within the maximum twenty-year amortization period that is permitted and
has adequate General Obligation debt capacity to undertake the financing. The City could
choose to finance the projects with a State Trust Fund Loan as an alternative. The current
State Trust Fund Loan interest rate for a loan of the same term is 4.25%. Based on estimated
rates, the Bonds are expected to provide a lower All-Inclusive Cost (AIC). (The exhibits to this
Pre-Sale Report reflect an AIC of 3.68%). None of the Projects will generate user fees or other
revenues that could be used to secure a revenue bond.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and other post-issuance requirements.
Method of Sale/Placement:
General Obligation Bonds issued to finance capital projects must be offered for public sale.
The City’s existing general obligation debt is rated Aa3 by Moody’s Investors Service. Based
on that rating, the City’s credit characteristics, and history of receiving multiple bids in the
competitive markets a competitive public offering is also expected to produce the lowest
total cost of financing.
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 in excess of 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
May 10, 2022
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 Debt:
We have reviewed all outstanding 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 Tax Exemption Certificate and Agreement (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 limitation, 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 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
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.
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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 6, 2022
City Council Meeting to Award Sale of the Bonds: June 14, 2022
Estimated Closing Date: July 7, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Bond and Note Structure
Estimated Debt Service Schedule by Purpose
Current and Projected Debt Limit and Debt Burden Calculations
Bond Buyer Index – 10-year
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate Presale Estimate
Sale 6-14-2022 Sale 6-14-2022
Est. Dated 7-7-2022 Est. Dated 7-7-2022
G.O. Corporate
Purpose Bonds
G.O. Promissory
Notes
Series 2022A Series 2022B
Tax-Exempt Tax-Exempt
Capital Projects1 21,260,800$ 8,990,600$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 40,100$ 25,200$
Chapman & Cutler (Bond Counsel) 29,000$ 21,000$
Maximum Discount (Bid Item)2 270,313$ 91,400$
Moody's Investors Service (Rating Fee) 23,196$ 9,804$
U.S. Bank (Paying Agent) 1,000$ 1,000$
TOTAL TO BE FINANCED 21,624,409$ 9,139,004$
Estimated Interest Earnings3 (2,480)$ (1,049)$
Rounding 3,072$ 2,045$
NET BOND OR NOTE SIZE 21,625,000$ 9,140,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget and 2023 CIP.
2Maximum allowable discount of 1.25% for the Series 2022A Bonds, and 1.0% for the Series 2022B Notes.
3Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 General Obligation Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/G.O. Sizing 2022
Year Prin (6/1) Est. Rate3 Interest Total Prin (6/1) Est. Rate3 Interest Total Year
2022 4,562,703,300 19,590,575 (6,857,076)12,733,500 2.79 12,733,500 2.79 2022
2023 4,685,520,562 17,758,761 (5,713,541)12,045,220 2.57 210,000 2.550% 1,025,217 1,235,217 580,000 2.550% 388,484 968,484 14,248,921 3.04 2023
2024 4,811,643,776 15,917,517 (4,523,467)11,394,050 2.37 830,000 2.810% 717,194 1,547,194 980,000 2.810% 254,212 1,234,212 14,175,455 2.95 2024
2025 4,941,161,931 14,401,256 (3,981,941)10,419,315 2.11 855,000 2.930% 693,007 1,548,007 1,010,000 2.930% 225,646 1,235,646 13,202,968 2.67 2025
2026 5,074,166,411 12,836,648 (3,428,385)9,408,263 1.85 875,000 2.960% 667,531 1,542,531 850,000 2.960% 198,270 1,048,270 11,999,064 2.36 2026
2027 5,210,751,059 11,366,966 (2,859,656)8,507,309 1.63 905,000 3.050% 640,780 1,545,780 880,000 3.050% 172,270 1,052,270 11,105,359 2.13 2027
2028 5,351,012,245 9,868,254 (2,374,245)7,494,009 1.40 935,000 3.150% 612,252 1,547,252 905,000 3.150% 144,596 1,049,596 10,090,857 1.89 2028
2029 5,495,048,933 7,513,598 (1,197,192)6,316,406 1.15 960,000 3.220% 582,070 1,542,070 935,000 3.220% 115,289 1,050,289 8,908,765 1.62 2029
2030 5,642,962,750 7,449,145 (1,192,298)6,256,847 1.11 990,000 3.290% 550,329 1,540,329 965,000 3.290% 84,361 1,049,361 8,846,536 1.57 2030
2031 5,794,858,061 5,923,329 (934,248)4,989,081 0.86 1,030,000 3.340% 516,842 1,546,842 1,000,000 3.340% 51,787 1,051,787 7,587,710 1.31 2031
2032 5,950,842,036 4,430,423 (570,429)3,859,994 0.65 1,060,000 3.390% 481,674 1,541,674 1,035,000 3.390% 17,543 1,052,543 6,454,211 1.08 2032
2033 6,111,024,734 4,439,350 (562,925)3,876,425 0.63 1,105,000 3.430% 444,756 1,549,756 5,426,181 0.89 2033
2034 6,275,519,174 3,339,944 (464,200)2,875,744 0.46 1,140,000 3.470% 406,027 1,546,027 4,421,770 0.70 2034
2035 6,444,441,418 1,914,438 (250,350)1,664,088 0.26 1,180,000 3.500% 365,598 1,545,598 3,209,685 0.50 2035
2036 6,617,910,653 1,508,678 (146,450)1,362,228 0.21 1,220,000 3.530% 323,415 1,543,415 2,905,643 0.44 2036
2037 6,796,049,272 1,127,766 0 1,127,766 0.17 1,265,000 3.570% 279,301 1,544,301 2,672,067 0.39 2037
2038 6,978,982,964 819,813 0 819,813 0.12 1,315,000 3.590% 233,117 1,548,117 2,367,929 0.34 2038
2039 7,166,840,802 631,731 0 631,731 0.09 1,360,000 3.610% 184,965 1,544,965 2,176,696 0.30 2039
2040 7,359,755,333 623,994 0 623,994 0.08 1,415,000 3.620% 134,805 1,549,805 2,173,799 0.30 2040
2041 7,557,862,669 383,800 0 383,800 0.05 1,460,000 3.650% 82,549 1,542,549 1,926,349 0.25 2041
2042 7,761,302,5900000.00 1,515,000 3.690% 27,952 1,542,952 1,542,952 0.20 2042
TOTALS 141,845,984 (35,056,401)106,789,582 21,625,000 8,969,378 30,594,378 9,140,000 1,652,455 10,792,455 148,176,415 TOTALS
Maturities Subject to Optional RedemptionNOTES:
1Value shown for 2022 is 1-1-2021 actual TID OUT EV. Assumes an 2.69% increase each year thereafter which is 50% of the actual past five year average increase.
2Includes General Obligation debt, room-tax secured State Trust Fund Loan, and TID 31 SBA Loan.
3Estimated rates are 4-19-2022 MMD AA scale plus 0.50%.
Net Tax
Rate for
Debt
$9,140,000
Dated 7/7/2022 Dated 7/7/2022
$21,625,000
2022 G.O. Bond and Note Structure Worksheet Presale Estimate
Existing Debt Only Proposed 2022 Issues
Projected
Equalized
Value1
Debt P&I2
Total
Abatement
Sources
Net Tax
Levy for
Debt
Net Tax
Rate for
Debt
G.O. Corporate Purpose Bonds, Series 2022A G.O. Promissory Notes, Series 2022B Net Tax
Levy for
Debt
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/G.O. Structure
YEAR Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total YEAR
2023 100,000 2.550% 655,326 755,326 100,000 2.550% 348,030 448,030 10,000 2.550% 21,861 31,861 210,000 2.550% 1,025,217 1,235,217 2023
2024 530,000 2.810% 459,005 989,005 280,000 2.810% 243,020 523,020 20,000 2.810% 15,170 35,170 830,000 2.810% 717,194 1,547,194 2024
2025 545,000 2.930% 443,574 988,574 290,000 2.930% 234,837 524,837 20,000 2.930% 14,596 34,596 855,000 2.930% 693,007 1,548,007 2025
2026 560,000 2.960% 427,302 987,302 295,000 2.960% 226,223 521,223 20,000 2.960% 14,007 34,007 875,000 2.960% 667,531 1,542,531 2026
2027 580,000 3.050% 410,169 990,169 305,000 3.050% 217,205 522,205 20,000 3.050% 13,406 33,406 905,000 3.050% 640,780 1,545,780 2027
2028 600,000 3.150% 391,874 991,874 315,000 3.150% 207,593 522,593 20,000 3.150% 12,786 32,786 935,000 3.150% 612,252 1,547,252 2028
2029 615,000 3.220% 372,522 987,522 325,000 3.220% 197,399 522,399 20,000 3.220% 12,149 32,149 960,000 3.220% 582,070 1,542,070 2029
2030 635,000 3.290% 352,175 987,175 335,000 3.290% 186,656 521,656 20,000 3.290% 11,498 31,498 990,000 3.290% 550,329 1,540,329 2030
2031 660,000 3.340% 330,707 990,707 350,000 3.340% 175,300 525,300 20,000 3.340% 10,835 30,835 1,030,000 3.340% 516,842 1,546,842 2031
2032 680,000 3.390% 308,159 988,159 360,000 3.390% 163,353 523,353 20,000 3.390% 10,162 30,162 1,060,000 3.390% 481,674 1,541,674 2032
2033 705,000 3.430% 284,542 989,542 375,000 3.430% 150,820 525,820 25,000 3.430% 9,394 34,394 1,105,000 3.430% 444,756 1,549,756 2033
2034 730,000 3.470% 259,786 989,786 385,000 3.470% 137,709 522,709 25,000 3.470% 8,532 33,532 1,140,000 3.470% 406,027 1,546,027 2034
2035 755,000 3.500% 233,908 988,908 400,000 3.500% 124,029 524,029 25,000 3.500% 7,661 32,661 1,180,000 3.500% 365,598 1,545,598 2035
2036 780,000 3.530% 206,929 986,929 415,000 3.530% 109,704 524,704 25,000 3.530% 6,782 31,782 1,220,000 3.530% 323,415 1,543,415 2036
2037 810,000 3.570% 178,703 988,703 430,000 3.570% 94,704 524,704 25,000 3.570% 5,894 30,894 1,265,000 3.570% 279,301 1,544,301 2037
2038 840,000 3.590% 149,167 989,167 445,000 3.590% 79,041 524,041 30,000 3.590% 4,910 34,910 1,315,000 3.590% 233,117 1,548,117 2038
2039 870,000 3.610% 118,385 988,385 460,000 3.610% 62,750 522,750 30,000 3.610% 3,830 33,830 1,360,000 3.610% 184,965 1,544,965 2039
2040 905,000 3.620% 86,301 991,301 480,000 3.620% 45,759 525,759 30,000 3.620% 2,745 32,745 1,415,000 3.620% 134,805 1,549,805 2040
2041 935,000 3.650% 52,857 987,857 495,000 3.650% 28,037 523,037 30,000 3.650% 1,655 31,655 1,460,000 3.650% 82,549 1,542,549 2041
2042 970,000 3.690% 17,897 987,897 515,000 3.690% 9,502 524,502 30,000 3.690% 554 30,554 1,515,000 3.690% 27,952 1,542,952 2042
TOTALS 13,805,000 5,739,284 19,544,284 7,355,000 3,041,669 10,396,669 465,000 188,424 653,424 21,625,000 8,969,378 30,594,378 TOTALS
NOTES:
1Estimated rates are 4-19-2022 MMD AA scale plus 0.50%.Presale Estimate
Street Improvements Park Improvements Total Issue Estimated Debt Service
Proposed G.O. Corporate Purpose Bonds, Series 2022A
Debt Service Breakdown by Purpose
Building for the Housing of Machinery
and Equipment
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/2022A Bond Allocation
2021 4,821,112,500 241,055,625 120,615,836 50.04%120,615,836 50.04%(9,140,000)111,475,836 2.31%Moderate 2021
2022 4,950,885,531 247,544,277 104,879,511 42.37%21,625,000 9,140,000 135,644,511 54.80%(7,095,000)128,549,511 2.60%Moderate 2022
2023 5,084,151,747 254,207,587 90,347,191 35.54%21,415,000 8,560,000 120,322,191 47.33%(5,470,000)114,852,191 2.26%Moderate 2023
2024 5,221,005,177 261,050,259 77,213,109 29.58%20,585,000 7,580,000 105,378,109 40.37%(4,120,000)101,258,109 1.94%Moderate 2024
2025 5,361,542,380 268,077,119 65,210,149 24.33%19,730,000 6,570,000 91,510,149 34.14%(3,035,000)88,475,149 1.65%Strong 2025
2026 5,505,862,514 275,293,126 54,445,000 19.78%18,855,000 5,720,000 79,020,000 28.70%(2,030,000)76,990,000 1.40%Strong 2026
2027 5,654,067,408 282,703,370 44,835,000 15.86%17,950,000 4,840,000 67,625,000 23.92%(1,360,000)66,265,000 1.17%Strong 2027
2028 5,806,261,630 290,313,081 36,200,000 12.47%17,015,000 3,935,000 57,150,000 19.69%(690,000)56,460,000 0.97%Strong 2028
2029 5,962,552,562 298,127,628 29,665,000 9.95%16,055,000 3,000,000 48,720,000 16.34%(595,000)48,125,000 0.81%Strong 2029
2030 6,123,050,480 306,152,524 23,015,000 7.52%15,065,000 2,035,000 40,115,000 13.10%(490,000)39,625,000 0.65%Very Strong 2030
2031 6,287,868,625 314,393,431 17,720,000 5.64%14,035,000 1,035,000 32,790,000 10.43%(380,000)32,410,000 0.52%Very Strong 2031
2032 6,457,123,288 322,856,164 13,780,000 4.27%12,975,000 26,755,000 8.29%(265,000)26,490,000 0.41%Very Strong 2032
2033 6,630,933,888 331,546,694 9,695,000 2.92%11,870,000 21,565,000 6.50%(135,000)21,430,000 0.32%Very Strong 2033
2034 6,809,423,062 340,471,153 6,585,000 1.93%10,730,000 17,315,000 5.09%0 17,315,000 0.25%Very Strong 2034
2035 6,992,716,746 349,635,837 4,825,000 1.38%9,550,000 14,375,000 4.11%0 14,375,000 0.21%Very Strong 2035
2036 7,180,944,265 359,047,213 3,425,000 0.95%8,330,000 11,755,000 3.27%0 11,755,000 0.16%Very Strong 2036
2037 7,374,238,427 368,711,921 2,370,000 0.64%7,065,000 9,435,000 2.56%0 9,435,000 0.13%Very Strong 2037
2038 7,572,735,614 378,636,781 1,595,000 0.42%5,750,000 7,345,000 1.94%0 7,345,000 0.10%Very Strong 2038
2039 7,776,575,880 388,828,794 990,000 0.25%4,390,000 5,380,000 1.38%0 5,380,000 0.07%Very Strong 2039
2040 7,985,903,047 399,295,152 380,000 0.10%2,975,000 3,355,000 0.84%0 3,355,000 0.04%Very Strong 2040
2041 8,200,864,810 410,043,240 0.00%1,515,000 1,515,000 0.37%1,515,000 0.02%Very Strong 2041
2042 8,421,612,839 421,080,642 0.00% 0.00%0 0.00%Very Strong 2042
2043 8,648,302,887 432,415,144 0.00% 0.00%0 0.00%Very Strong 2043
2044 8,881,094,898 444,054,745 0.00% 0.00%0 0.00%Very Strong 2044
2045 9,120,153,124 456,007,656 0.00% 0.00%0 0.00%Very Strong 2045
2046 9,365,646,237 468,282,312 0.00% 0.00%0 0.00%Very Strong 2046
2047 9,617,747,447 480,887,372 0.00% 0.00%0 0.00%Very Strong 2047
2048 9,876,634,631 493,831,732 0.00% 0.00%0 0.00%Very Strong 2048
2049 10,142,490,449 507,124,522 0.00% 0.00%0 0.00%Very Strong 2049
NOTES:
1Value shown for 2021 is 1-1-2021 actual TID IN EV. Assumes a 2.69% 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.
PROP 2022B
NOTES
EXIST DEBT
PRIN OUTS % OF LIMIT
Existing Debt Only
Current and Projected Debt Limit & Debt Burden Calculations
With Proposed 2022 Bonds & Notes
YearTOTALDIRECT DEBT
BURDEN2 ASSESSMENTYearPROJECTED EV
(TID IN)1
DEBT LIMIT
@ 5%
EXIST DEBT
PRIN OUTS % OF LIMIT PLUS RDA
DEBT
LESS UTILITY
ABATED
PROP 2022A
BONDS
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Debt Limit
10 YEAR TREND IN MUNICIPAL BOND INDICES
Source: The Bond Buyer
The Bond Buyer “20 Bond Index” (BBI) shows average yields on a group of municipal bonds that
mature in 20 years and have an average rating equivalent to Moody’s Aa2 and S&P’s AA.
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$9,140,000 General Obligation Promissory Notes,
Series 2022B
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$9,140,000 General Obligation Promissory Notes, Series 2022B (the “Notes”)
Purposes:
The proposed Notes will finance a portion of the new Parks Dept. Building, other park
improvements, acquisition of public safety and public works equipment, parking lot
improvements and improvements to City buildings and facilities (the “Projects”). Debt service
associated with the Projects will be paid from ad valorem property taxes.
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 2022A General Obligation
Corporate Purpose Bonds to be issued concurrently, the City’s total General Obligation debt
principal outstanding will be approximately $146.9 million, which is 61% of its limit. Remaining
General Obligation Borrowing Capacity will be approximately $94.1 million. At the end of
2022, General Obligation debt capacity usage will be approximately 54.8% 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 2023 through 2032. Interest is payable every six months beginning June 1, 2023.
The Notes will be subject to prepayment at the discretion of the City on June 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 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 if the bond rating of the insurer is higher than that of the
City.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
Basis for Recommendation:
Issuance of General Obligation Notes is a suitable debt instrument to achieve the City’s
objectives for this financing. It will permit the City to amortize the payments over a term
consistent with the useful life of the financed projects. The City has the financial capacity to
repay the Notes within the maximum ten-year amortization period that is permitted and has
adequate General Obligation debt capacity to undertake the financing. The City could choose
to finance the projects with a State Trust Fund Loan as an alternative. The current State Trust
Fund Loan interest rate for a loan of the same term is 4.00%. Based on estimated rates, the
Bonds are expected to provide a lower All-Inclusive Cost (AIC). (The exhibits to this Pre-Sale
Report reflect an AIC of 3.53%). None of the Projects will generate user fees or other revenues
that could be used to secure a revenue bond.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and other post-issuance requirements.
Method of Sale/Placement:
A competitive public offering is recommended. The City’s existing general obligation debt is
rated Aa3 by Moody’s Investors Service. Based on that rating, the City’s credit characteristics,
and history of receiving multiple bids in the competitive markets a competitive public offering
is expected to produce the lowest total cost of financing.
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 Notes, any premium amount received that is more than 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
May 10, 2022
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 Debt:
We have reviewed all outstanding 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 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
detailed in the Tax Exemption Certificate and Agreement (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 limitation, 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 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
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.
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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 6, 2022
City Council Meeting to Award Sale of the Notes: June 14, 2022
Estimated Closing Date: July 7, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Bond and Note Structure
Estimated Debt Service Schedule by Purpose
Current and Projected Debt Limit and Debt Burden Calculations
Bond Buyer Index – 10-year
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate Presale Estimate
Sale 6-14-2022 Sale 6-14-2022
Est. Dated 7-7-2022 Est. Dated 7-7-2022
G.O. Corporate
Purpose Bonds
G.O. Promissory
Notes
Series 2022A Series 2022B
Tax-Exempt Tax-Exempt
Capital Projects1 21,260,800$ 8,990,600$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 40,100$ 25,200$
Chapman & Cutler (Bond Counsel) 29,000$ 21,000$
Maximum Discount (Bid Item)2 270,313$ 91,400$
Moody's Investors Service (Rating Fee) 23,196$ 9,804$
U.S. Bank (Paying Agent) 1,000$ 1,000$
TOTAL TO BE FINANCED 21,624,409$ 9,139,004$
Estimated Interest Earnings3 (2,480)$ (1,049)$
Rounding 3,072$ 2,045$
NET BOND OR NOTE SIZE 21,625,000$ 9,140,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget and 2023 CIP.
2Maximum allowable discount of 1.25% for the Series 2022A Bonds, and 1.0% for the Series 2022B Notes.
3Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 General Obligation Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/G.O. Sizing 2022
Year Prin (6/1) Est. Rate3 Interest Total Prin (6/1) Est. Rate3 Interest Total Year
2022 4,562,703,300 19,590,575 (6,857,076)12,733,500 2.79 12,733,500 2.79 2022
2023 4,685,520,562 17,758,761 (5,713,541)12,045,220 2.57 210,000 2.550% 1,025,217 1,235,217 580,000 2.550% 388,484 968,484 14,248,921 3.04 2023
2024 4,811,643,776 15,917,517 (4,523,467)11,394,050 2.37 830,000 2.810% 717,194 1,547,194 980,000 2.810% 254,212 1,234,212 14,175,455 2.95 2024
2025 4,941,161,931 14,401,256 (3,981,941)10,419,315 2.11 855,000 2.930% 693,007 1,548,007 1,010,000 2.930% 225,646 1,235,646 13,202,968 2.67 2025
2026 5,074,166,411 12,836,648 (3,428,385)9,408,263 1.85 875,000 2.960% 667,531 1,542,531 850,000 2.960% 198,270 1,048,270 11,999,064 2.36 2026
2027 5,210,751,059 11,366,966 (2,859,656)8,507,309 1.63 905,000 3.050% 640,780 1,545,780 880,000 3.050% 172,270 1,052,270 11,105,359 2.13 2027
2028 5,351,012,245 9,868,254 (2,374,245)7,494,009 1.40 935,000 3.150% 612,252 1,547,252 905,000 3.150% 144,596 1,049,596 10,090,857 1.89 2028
2029 5,495,048,933 7,513,598 (1,197,192)6,316,406 1.15 960,000 3.220% 582,070 1,542,070 935,000 3.220% 115,289 1,050,289 8,908,765 1.62 2029
2030 5,642,962,750 7,449,145 (1,192,298)6,256,847 1.11 990,000 3.290% 550,329 1,540,329 965,000 3.290% 84,361 1,049,361 8,846,536 1.57 2030
2031 5,794,858,061 5,923,329 (934,248)4,989,081 0.86 1,030,000 3.340% 516,842 1,546,842 1,000,000 3.340% 51,787 1,051,787 7,587,710 1.31 2031
2032 5,950,842,036 4,430,423 (570,429)3,859,994 0.65 1,060,000 3.390% 481,674 1,541,674 1,035,000 3.390% 17,543 1,052,543 6,454,211 1.08 2032
2033 6,111,024,734 4,439,350 (562,925)3,876,425 0.63 1,105,000 3.430% 444,756 1,549,756 5,426,181 0.89 2033
2034 6,275,519,174 3,339,944 (464,200)2,875,744 0.46 1,140,000 3.470% 406,027 1,546,027 4,421,770 0.70 2034
2035 6,444,441,418 1,914,438 (250,350)1,664,088 0.26 1,180,000 3.500% 365,598 1,545,598 3,209,685 0.50 2035
2036 6,617,910,653 1,508,678 (146,450)1,362,228 0.21 1,220,000 3.530% 323,415 1,543,415 2,905,643 0.44 2036
2037 6,796,049,272 1,127,766 0 1,127,766 0.17 1,265,000 3.570% 279,301 1,544,301 2,672,067 0.39 2037
2038 6,978,982,964 819,813 0 819,813 0.12 1,315,000 3.590% 233,117 1,548,117 2,367,929 0.34 2038
2039 7,166,840,802 631,731 0 631,731 0.09 1,360,000 3.610% 184,965 1,544,965 2,176,696 0.30 2039
2040 7,359,755,333 623,994 0 623,994 0.08 1,415,000 3.620% 134,805 1,549,805 2,173,799 0.30 2040
2041 7,557,862,669 383,800 0 383,800 0.05 1,460,000 3.650% 82,549 1,542,549 1,926,349 0.25 2041
2042 7,761,302,5900000.00 1,515,000 3.690% 27,952 1,542,952 1,542,952 0.20 2042
TOTALS 141,845,984 (35,056,401)106,789,582 21,625,000 8,969,378 30,594,378 9,140,000 1,652,455 10,792,455 148,176,415 TOTALS
Maturities Subject to Optional RedemptionNOTES:
1Value shown for 2022 is 1-1-2021 actual TID OUT EV. Assumes an 2.69% increase each year thereafter which is 50% of the actual past five year average increase.
2Includes General Obligation debt, room-tax secured State Trust Fund Loan, and TID 31 SBA Loan.
3Estimated rates are 4-19-2022 MMD AA scale plus 0.50%.
Net Tax
Rate for
Debt
$9,140,000
Dated 7/7/2022 Dated 7/7/2022
$21,625,000
2022 G.O. Bond and Note Structure Worksheet Presale Estimate
Existing Debt Only Proposed 2022 Issues
Projected
Equalized
Value1
Debt P&I2
Total
Abatement
Sources
Net Tax
Levy for
Debt
Net Tax
Rate for
Debt
G.O. Corporate Purpose Bonds, Series 2022A G.O. Promissory Notes, Series 2022B Net Tax
Levy for
Debt
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/G.O. Structure
YEAR Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total Prin (6/1) Est. Rate1 Interest Total YEAR
2023 420,000 2.550% 370,544 790,544 160,000 2.550% 17,940 177,940 580,000 2.550% 388,484 968,484 2023
2024 805,000 2.810% 246,479 1,051,479 175,000 2.810% 7,733 182,733 980,000 2.810% 254,212 1,234,212 2024
2025 830,000 2.930% 223,009 1,053,009 180,000 2.930% 2,637 182,637 1,010,000 2.930% 225,646 1,235,646 2025
2026 850,000 2.960% 198,270 1,048,270 850,000 2.960% 198,270 1,048,270 2026
2027 880,000 3.050% 172,270 1,052,270 880,000 3.050% 172,270 1,052,270 2027
2028 905,000 3.150% 144,596 1,049,596 905,000 3.150% 144,596 1,049,596 2028
2029 935,000 3.220% 115,289 1,050,289 935,000 3.220% 115,289 1,050,289 2029
2030 965,000 3.290% 84,361 1,049,361 965,000 3.290% 84,361 1,049,361 2030
2031 1,000,000 3.340% 51,787 1,051,787 1,000,000 3.340% 51,787 1,051,787 2031
2032 1,035,000 3.390% 17,543 1,052,543 1,035,000 3.390% 17,543 1,052,543 2032
2033 2033
2034 2034
2035 2035
2036 2036
2037 2037
2038 2038
2039 2039
2040 2040
2041 2041
2042 2042
TOTALS 8,625,000 1,624,145 10,249,145 515,000 28,310 543,310 9,140,000 1,652,455 10,792,455 TOTALS
NOTES:
1Estimated rates are 4-19-2022 MMD AA scale plus 0.50%.
Proposed G.O. Promissory Notes, Series 2022B
Debt Service Breakdown by Purpose
Presale Estimate
Garbage TrucksGeneral Projects Total Issue Estimated Debt Service
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/2022B Note Allocation
2021 4,821,112,500 241,055,625 120,615,836 50.04%120,615,836 50.04%(9,140,000)111,475,836 2.31%Moderate 2021
2022 4,950,885,531 247,544,277 104,879,511 42.37%21,625,000 9,140,000 135,644,511 54.80%(7,095,000)128,549,511 2.60%Moderate 2022
2023 5,084,151,747 254,207,587 90,347,191 35.54%21,415,000 8,560,000 120,322,191 47.33%(5,470,000)114,852,191 2.26%Moderate 2023
2024 5,221,005,177 261,050,259 77,213,109 29.58%20,585,000 7,580,000 105,378,109 40.37%(4,120,000)101,258,109 1.94%Moderate 2024
2025 5,361,542,380 268,077,119 65,210,149 24.33%19,730,000 6,570,000 91,510,149 34.14%(3,035,000)88,475,149 1.65%Strong 2025
2026 5,505,862,514 275,293,126 54,445,000 19.78%18,855,000 5,720,000 79,020,000 28.70%(2,030,000)76,990,000 1.40%Strong 2026
2027 5,654,067,408 282,703,370 44,835,000 15.86%17,950,000 4,840,000 67,625,000 23.92%(1,360,000)66,265,000 1.17%Strong 2027
2028 5,806,261,630 290,313,081 36,200,000 12.47%17,015,000 3,935,000 57,150,000 19.69%(690,000)56,460,000 0.97%Strong 2028
2029 5,962,552,562 298,127,628 29,665,000 9.95%16,055,000 3,000,000 48,720,000 16.34%(595,000)48,125,000 0.81%Strong 2029
2030 6,123,050,480 306,152,524 23,015,000 7.52%15,065,000 2,035,000 40,115,000 13.10%(490,000)39,625,000 0.65%Very Strong 2030
2031 6,287,868,625 314,393,431 17,720,000 5.64%14,035,000 1,035,000 32,790,000 10.43%(380,000)32,410,000 0.52%Very Strong 2031
2032 6,457,123,288 322,856,164 13,780,000 4.27%12,975,000 26,755,000 8.29%(265,000)26,490,000 0.41%Very Strong 2032
2033 6,630,933,888 331,546,694 9,695,000 2.92%11,870,000 21,565,000 6.50%(135,000)21,430,000 0.32%Very Strong 2033
2034 6,809,423,062 340,471,153 6,585,000 1.93%10,730,000 17,315,000 5.09%0 17,315,000 0.25%Very Strong 2034
2035 6,992,716,746 349,635,837 4,825,000 1.38%9,550,000 14,375,000 4.11%0 14,375,000 0.21%Very Strong 2035
2036 7,180,944,265 359,047,213 3,425,000 0.95%8,330,000 11,755,000 3.27%0 11,755,000 0.16%Very Strong 2036
2037 7,374,238,427 368,711,921 2,370,000 0.64%7,065,000 9,435,000 2.56%0 9,435,000 0.13%Very Strong 2037
2038 7,572,735,614 378,636,781 1,595,000 0.42%5,750,000 7,345,000 1.94%0 7,345,000 0.10%Very Strong 2038
2039 7,776,575,880 388,828,794 990,000 0.25%4,390,000 5,380,000 1.38%0 5,380,000 0.07%Very Strong 2039
2040 7,985,903,047 399,295,152 380,000 0.10%2,975,000 3,355,000 0.84%0 3,355,000 0.04%Very Strong 2040
2041 8,200,864,810 410,043,240 0.00%1,515,000 1,515,000 0.37%1,515,000 0.02%Very Strong 2041
2042 8,421,612,839 421,080,642 0.00% 0.00%0 0.00%Very Strong 2042
2043 8,648,302,887 432,415,144 0.00% 0.00%0 0.00%Very Strong 2043
2044 8,881,094,898 444,054,745 0.00% 0.00%0 0.00%Very Strong 2044
2045 9,120,153,124 456,007,656 0.00% 0.00%0 0.00%Very Strong 2045
2046 9,365,646,237 468,282,312 0.00% 0.00%0 0.00%Very Strong 2046
2047 9,617,747,447 480,887,372 0.00% 0.00%0 0.00%Very Strong 2047
2048 9,876,634,631 493,831,732 0.00% 0.00%0 0.00%Very Strong 2048
2049 10,142,490,449 507,124,522 0.00% 0.00%0 0.00%Very Strong 2049
NOTES:
1Value shown for 2021 is 1-1-2021 actual TID IN EV. Assumes a 2.69% 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.
PROP 2022B
NOTES
EXIST DEBT
PRIN OUTS % OF LIMIT
Existing Debt Only
Current and Projected Debt Limit & Debt Burden Calculations
With Proposed 2022 Bonds & Notes
YearTOTALDIRECT DEBT
BURDEN2 ASSESSMENTYearPROJECTED EV
(TID IN)1
DEBT LIMIT
@ 5%
EXIST DEBT
PRIN OUTS % OF LIMIT PLUS RDA
DEBT
LESS UTILITY
ABATED
PROP 2022A
BONDS
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Debt Limit
10 YEAR TREND IN MUNICIPAL BOND INDICES
Source: The Bond Buyer
The Bond Buyer “20 Bond Index” (BBI) shows average yields on a group of municipal bonds that
mature in 20 years and have an average rating equivalent to Moody’s Aa2 and S&P’s AA.
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$8,780,000 Storm Water Utility Revenue Bonds,
Series 2022C
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$8,780,000 Storm Water Utility Revenue Bonds, Series 2022C (the “Bonds”)
Purposes:
The proposed issue includes financing for construction of storm water utility system
improvements (the “Projects”).
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 2023 through 2042. Interest is payable every six months beginning May 1, 2023.
The Bonds will be subject to prepayment at the discretion of the City on May 1, 2032 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 outstanding Storm Water Utility bond issues are rated “A1” by Moody’s Investor’s
Service. 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 if the bond rating of the insurer is higher than that of the City.
Basis for Recommendation:
Issuance of Storm Water Utility Revenue Bonds is a suitable debt instrument to achieve the
City’s objectives for this financing. The City expects to have 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 past practice has been to issue revenue bonds to finance enterprise system
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
improvements to reduce its use of General Obligation debt capacity. The City’s current Capital
Improvements Plan has also identified issuance of revenue bonds to finance the Projects.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and any other post-issuance requirements.
Method of Sale/Placement:
A competitive public offering is recommended. The City’s existing Storm Water Utility
Revenue Bonds are rated A1 by Moody’s Investors Service. Based on that rating, the City’s
credit characteristics, the past availability of credit enhancement, and history of receiving
multiple bids in the competitive markets a competitive public offering is expected to produce
the lowest total cost of financing.
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.
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 2021
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
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 3
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 Debt:
The City’s Series 2012D Storm Water Utility Revenue Bonds are callable May 1, 2022 and could
potentially be refinanced for debt service savings as a part of the Bonds. Based on current
market conditions, the refunding would not generate significant savings. However, we will
continue to evaluate this savings opportunity as we get closer to the sale date and will make
a recommendation to the City based on market conditions at the time.
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
detailed in the Tax Exemption Certificate and Agreement (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 limitation, 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
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:
Utility Revenue: 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 potentially 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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 6, 2022
City Council Meeting to Award Sale of the Bonds: June 14, 2022
Estimated Closing Date: July 7, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Debt Service Schedule
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate
Sale 6-14-2022
Est. Dated 7-7-2022
Storm Water
Utility Revenue
Bonds
Series 2022C
Tax-Exempt
Capital Projects1 8,385,000$
Reserve Fund Adjustments
New Reserve Fund Requirement 7,730,697$
Less Current Reserve Requirement (7,535,319)$
Net Deposit to Reserve Fund Required 195,378$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 43,100$
Chapman & Cutler (Bond Counsel) 23,000$
Maximum Discount (Bid Item) @ 1.25% 109,750$
Moody's Investors Service (Rating Fee) 19,000$
U.S. Bank (Paying Agent) 1,000$
TOTAL TO BE FINANCED 8,776,228$
Estimated Interest Earnings2 (978)$
Rounding 4,750$
NET BOND SIZE 8,780,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget.
2Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 Revenue Bond Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Rev Sizing 2022
Schedule of Storm Water Utility Revenue Debt Outstanding Plus Proposed 2022 Issues
As of January 1, 2022
Amount
Dated
Paying Agent
Callable
Callable Amt
Rate/Term Est. TIC 2.992%2023‐2042
Year Principal Interest Total Prin (5/1)Est. Rate1 Interest Total Total P&I Net Revs2 1.2X Req'd Rev P&I G.O. P&I Total Net Revs@ Year
2022 4,775,000 2,752,789 7,527,789 7,527,789 9,537,247 1.27 7,527,789 820,269 8,348,057 9,537,247 1.14 2022
2023 5,040,000 2,493,519 7,533,519 200,000 3.050%446,695 646,695 8,180,214 9,537,247 1.17 8,180,214 547,369 8,727,583 9,537,247 1.09 2023
2024 5,235,000 2,294,359 7,529,359 315,000 3.310%330,265 645,265 8,174,625 9,537,247 1.17 8,174,625 438,194 8,612,818 9,537,247 1.11 2024
2025 5,435,000 2,100,319 7,535,319 325,000 3.430%319,478 644,478 8,179,797 9,537,247 1.17 8,179,797 421,869 8,601,666 9,537,247 1.11 2025
2026 5,400,000 1,914,213 7,314,213 340,000 3.460%308,023 648,023 7,962,235 9,537,247 1.20 7,962,235 410,694 8,372,929 9,537,247 1.14 2026
2027 5,630,000 1,722,447 7,352,447 350,000 3.550%295,928 645,928 7,998,375 9,537,247 1.19 7,998,375 394,513 8,392,887 9,537,247 1.14 2027
2028 5,820,000 1,523,869 7,343,869 365,000 3.650%283,054 648,054 7,991,923 9,537,247 1.19 7,991,923 378,475 8,370,398 9,537,247 1.14 2028
2029 6,065,000 1,318,353 7,383,353 375,000 3.720%269,418 644,418 8,027,771 9,537,247 1.19 8,027,771 12,581 8,040,352 9,537,247 1.19 2029
2030 6,315,000 1,110,747 7,425,747 390,000 3.790%255,053 645,053 8,070,799 9,537,247 1.18 8,070,799 17,259 8,088,059 9,537,247 1.18 2030
2031 5,025,000 924,050 5,949,050 405,000 3.840%239,886 644,886 6,593,936 9,537,247 1.45 6,593,936 16,856 6,610,792 9,537,247 1.44 2031
2032 5,195,000 753,484 5,948,484 420,000 3.890%223,941 643,941 6,592,425 9,537,247 1.45 6,592,425 16,425 6,608,850 9,537,247 1.44 2032
2033 4,910,000 586,978 5,496,978 440,000 3.930%207,126 647,126 6,144,104 9,537,247 1.55 6,144,104 20,900 6,165,004 9,537,247 1.55 2033
2034 3,965,000 443,800 4,408,800 455,000 3.970%189,448 644,448 5,053,248 9,537,247 1.89 5,053,248 20,300 5,073,548 9,537,247 1.88 2034
2035 3,505,000 328,641 3,833,641 475,000 4.000%170,917 645,917 4,479,557 9,537,247 2.13 4,479,557 0 4,479,557 9,537,247 2.13 2035
2036 2,860,000 233,694 3,093,694 495,000 4.030%151,442 646,442 3,740,136 9,537,247 2.55 3,740,136 0 3,740,136 9,537,247 2.55 2036
2037 2,600,000 153,113 2,753,113 515,000 4.070%130,988 645,988 3,399,100 9,537,247 2.81 3,399,100 0 3,399,100 9,537,247 2.81 2037
2038 1,970,000 86,569 2,056,569 535,000 4.090%109,567 644,567 2,701,136 9,537,247 3.53 2,701,136 0 2,701,136 9,537,247 3.53 2038
2039 1,295,000 42,306 1,337,306 560,000 4.110%87,118 647,118 1,984,424 9,537,247 4.81 1,984,424 0 1,984,424 9,537,247 4.81 2039
2040 745,000 17,859 762,859 580,000 4.120%63,662 643,662 1,406,521 9,537,247 6.78 1,406,521 0 1,406,521 9,537,247 6.78 2040
2041 450,000 4,781 454,781 605,000 4.150%39,160 644,160 1,098,942 9,537,247 8.68 1,098,942 0 1,098,942 9,537,247 8.68 2041
2042 0 0 0 635,000 4.190%13,303 648,303 648,303 9,537,247 14.71 648,303 0 648,303 9,537,247 14.71 2042
TOTALS 82,235,000 20,805,889 103,040,889 8,780,000 4,134,472 12,914,472 115,955,360 115,955,360 3,515,703 119,471,064
NOTES: = Maturities Subject to Optional Redemption
1Estimated rates are 4-19-2022 MMD AA scale plus 1.00%.
2Net revenue calculation based the City's 2020 audited financial statements.
Debt Service CoverageDebt Service Coverage
07‐Jul‐22
TBD
Existing +
Future Issues
$8,780,000
Presale Estimate
$5,295,000
01‐May‐32
Total Utility DebtStorm Water Utility Revenue Bonds,
Series 2022CExisting Stormwater Revenue Debt Issue
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Storm Rev Debt
May 10, 2022
Pre-Sale Report for
City of Oshkosh, Wisconsin
$8,615,000 Water System Revenue Bonds, Series
2022D
Prepared by:
Ehlers
N21W23350 Ridgeview Parkway West,
Suite 100
Waukesha, WI 53188
Advisors:
Todd Taves, Senior Municipal Advisor
Jon Cameron, Senior Municipal Advisor
Harry Allen, Financial Specialist
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 1
Proposed Issue:
$8,615,000 Water System Revenue Bonds, Series 2022D (the “Bonds”)
Purposes:
The proposed issue includes financing for construction of water system improvements (the
“Projects”).
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 2023 through 2042. Interest is payable every six months beginning
January 1, 2023. The Bonds will be subject to prepayment at the discretion of the City on
January 1, 2032 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 outstanding Water System Revenue Bonds are rated “Aa3” by Moody’s Investors
Service. 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 if the bond rating of the insurer is higher than that of the City.
Basis for Recommendation:
Issuance of Water System Revenue Bonds is a suitable debt instrument to achieve the City’s
objectives for this financing. The City expects to have 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 has been to issue
revenue bonds to finance enterprise system improvements to reduce its use of General
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 2
Obligation debt capacity. The City’s current Capital Improvements Plan has also identified
issuance of revenue bonds to finance the Projects.
The City is an active capital markets participant with staff having the requisite experience to
meet the City’s obligations related to issuance of municipal securities to include secondary
market disclosure and any other post-issuance requirements.
Method of Sale/Placement:
A competitive public offering is recommended. The City’s existing Water System Revenue
Bonds are rated Aa3 by Moody’s Investors Service. Based on that rating, the City’s credit
characteristics, and history of receiving multiple bids in the competitive markets a competitive
public offering is expected to produce the lowest total cost of financing.
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.
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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 3
Review of Existing Debt:
The City’s Series 2012F Water Revenue Bonds became callable on January 1, 2022 and could
potentially be refinanced for debt service savings as a part of the Bonds. Based on current
market conditions, the refunding would not generate significant savings. However, we will
continue to evaluate this savings opportunity as we get closer to the sale date and will make
a recommendation to the City based on market conditions at the time.
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
detailed in the Tax Exemption Certificate and Agreement (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 limitation, 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.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 4
Risk Factors:
Utility Revenue: 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: U.S. Bank Trust Company, National Association (only if Term Bonds)
Rating Agency: Moody's Investors Service, Inc.
Presale Report
City of Oshkosh, Wisconsin
May 10, 2022
Page 5
Pre-Sale Review by City Council: May 10, 2022
Conference with Rating Agency: May 23, 2022
Due Diligence Call to review Official Statement: May 23, 2022
Distribute Official Statement: Week of June 20, 2022
City Council Meeting to Award Sale of the Bonds: June 28, 2022
Estimated Closing Date: July 21, 2022
Attachments
Estimated Sources and Uses of Funds
Estimated Debt Service Schedule
EHLERS’ CONTACTS
Todd Taves, Senior Municipal Advisor (262) 796-6173
Jon Cameron, Senior Municipal Advisor (262) 796-6179
Harry Allen, Financial Specialist (262) 796-6182
Sue Porter, Senior Public Finance Analyst/Marketing Coordinator (262) 796-6167
Kathy Myers, Senior Financial Analyst (262) 796-6177
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Presale Estimate
Sale 6-28-2022
Est. Dated 7-21-2022
Water System
Revenue Bonds
Series 2022D
Tax-Exempt
Capital Projects1 7,850,000$
Reserve Fund Adjustments
New Reserve Fund Requirement 4,355,610$
Less Current Reserve Requirement (3,785,657)$
Net Deposit to Reserve Fund Required 569,953$
Estimated Issuance Expenses
Ehlers (Municipal Advisor) 43,000$
Chapman & Cutler (Bond Counsel) 22,000$
Maximum Discount (Bid Item) @ 1.25% 107,688$
Moody's Investors Service (Rating Fee) 19,000$
U.S. Bank (Paying Agent) 1,000$
TOTAL TO BE FINANCED 8,612,640$
Estimated Interest Earnings2 (916)$
Rounding 3,276$
NET BOND SIZE 8,615,000$
NOTES:
1Capital projects amounts taken from City of Oshkosh 2022 Budget.
2Assumes temporary investment of available new money proceeds at 0.07% for 60 days. (January 2022 LGIP Rate).
2022 Revenue Bond Sizing Worksheet
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Rev Sizing 2022
Schedule of Water Utility Revenue Debt Outstanding Plus Proposed 2022 Issue
As of January 1, 2022
Amount
Dated
Paying Agent
Callable
Callable Amt
Rate/Term Est. TIC 2.700%2023‐2042
Year Principal Interest Total Prin (1/1) Rate Interest Total Net Revs2 1.2X Req'd Rev P&I G.O. P&I Total Net Revs2 Year
2022 4,269,223 1,593,992 5,863,215 0 5,863,215 9,412,071 1.61 5,863,215 650,794 6,514,009 9,412,071 1.44 2022
2023 4,348,901 1,490,986 5,839,887 325,000 2.750%286,308 611,308 6,451,195 9,412,071 1.46 6,451,195 497,825 6,949,020 9,412,071 1.35 2023
2024 4,333,809 1,352,767 5,686,575 315,000 3.010%294,203 609,203 6,295,778 9,412,071 1.49 6,295,778 389,700 6,685,478 9,412,071 1.41 2024
2025 4,288,950 1,219,640 5,508,590 325,000 3.130%284,376 609,376 6,117,965 9,412,071 1.54 6,117,965 249,425 6,367,390 9,412,071 1.48 2025
2026 4,409,331 1,091,145 5,500,476 335,000 3.160%273,997 608,997 6,109,473 9,412,071 1.54 6,109,473 252,994 6,362,467 9,412,071 1.48 2026
2027 3,829,958 963,502 4,793,460 345,000 3.250%263,097 608,097 5,401,557 9,412,071 1.74 5,401,557 150,434 5,551,992 9,412,071 1.70 2027
2028 3,800,836 841,536 4,642,372 355,000 3.350%251,545 606,545 5,248,917 9,412,071 1.79 5,248,917 151,544 5,400,461 9,412,071 1.74 2028
2029 3,455,000 723,659 4,178,659 370,000 3.420%239,272 609,272 4,787,931 9,412,071 1.97 4,787,931 47,569 4,835,500 9,412,071 1.95 2029
2030 3,550,000 608,866 4,158,866 380,000 3.490%226,314 606,314 4,765,179 9,412,071 1.98 4,765,179 51,478 4,816,657 9,412,071 1.95 2030
2031 3,240,000 501,372 3,741,372 395,000 3.540%212,691 607,691 4,349,063 9,412,071 2.16 4,349,063 50,269 4,399,332 9,412,071 2.14 2031
2032 3,030,000 406,538 3,436,538 410,000 3.590%198,340 608,340 4,044,878 9,412,071 2.33 4,044,878 53,900 4,098,778 9,412,071 2.30 2032
2033 2,450,000 325,300 2,775,300 425,000 3.630%183,267 608,267 3,383,567 9,412,071 2.78 3,383,567 52,400 3,435,967 9,412,071 2.74 2033
2034 2,330,000 253,900 2,583,900 440,000 3.670%167,479 607,479 3,191,379 9,412,071 2.95 3,191,379 55,825 3,247,204 9,412,071 2.90 2034
2035 2,245,000 187,031 2,432,031 460,000 3.700%150,895 610,895 3,042,926 9,412,071 3.09 3,042,926 0 3,042,926 9,412,071 3.09 2035
2036 1,845,000 129,881 1,974,881 475,000 3.730%133,526 608,526 2,583,408 9,412,071 3.64 2,583,408 0 2,583,408 9,412,071 3.64 2036
2037 1,455,000 85,506 1,540,506 495,000 3.770%115,337 610,337 2,150,843 9,412,071 4.38 2,150,843 0 2,150,843 9,412,071 4.38 2037
2038 955,000 55,231 1,010,231 510,000 3.790%96,342 606,342 1,616,573 9,412,071 5.82 1,616,573 0 1,616,573 9,412,071 5.82 2038
2039 980,000 32,669 1,012,669 530,000 3.810%76,581 606,581 1,619,249 9,412,071 5.81 1,619,249 0 1,619,249 9,412,071 5.81 2039
2040 685,000 14,066 699,066 555,000 3.820%55,884 610,884 1,309,949 9,412,071 7.19 1,309,949 0 1,309,949 9,412,071 7.19 2040
2041 350,000 3,500 353,500 575,000 3.850%34,214 609,214 962,714 9,412,071 9.78 962,714 0 962,714 9,412,071 9.78 2041
2042 0 0 0 595,000 3.890%11,573 606,573 606,573 9,412,071 15.52 606,573 0 606,573 9,412,071 15.52 2042
55,851,008 11,881,087 67,732,095 8,615,000 3,555,237 12,170,237 79,902,332 79,902,332 2,654,156 82,556,488
NOTES:
1Estimated rates are 4-19-2022 MMD AA scale plus 0.70%.
2Net revenue calculation based the City's 2020 audited financial statements. = Maturities Subject to Optional Redemption
Presale Estimate
$5,060,000
01‐Jan‐32
TBD
$8,615,000
Debt Service CoverageIssue Existing Water Revenue Debt
Water System Revenue Bonds,
Series 2022D
Existing +
Future Issues Debt Service Coverage Total Utility Debt
21‐Jul‐22
4/27/2022
File: Oshkosh Debt Base Case_2022‐4‐20 ‐ NO REFUNDING ‐ 2022 & 2023 Projects/Water Rev Debt