HomeMy WebLinkAbout14. 16-286R E V I S E D
JUNE 14, 2016 16-286 RESOLUTION
(CARRIED 6-0 LOST________LAID OVER________WITHDRAWN________)
PURPOSE: RESOLUTION DETERMINING TO ISSUE $9,850,000
AGGREGATE PRINCIPAL AMOUNT OF TAXABLE GENERAL
OBLIGATION REFUNDING BONDS, SERIES 2016C, OF THE
CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN, IN
SUCH AMOUNT, PROVIDING DETAILS, PRESCRIBING THE
FORM OF BOND, AWARDING THE BONDS TO THE BEST
BIDDER, AND LEVYING TAXES
INITIATED BY: CITY ADMINISTRATION
W, by initial resolutions duly adopted on March 22, 2016, there have been
HEREAS
authorized to be issued not to exceed $9,995,000 general obligation bonds of the City of
Oshkosh, Winnebago County, Wisconsin (the “City”) for the public purpose of refunding
outstanding obligations of the City;
W, notice of the sale of bonds for such purposes was published on June 9, 2016,
HEREAS
in The Bond Buyer; and
W, it is now necessary and desirable that said bonds be sold and issued for the
HEREAS
purposes aforesaid in the aggregate principal amount of $9,850,000; and
W, pursuant to the advertisement aforesaid, sealed bids were received for the
HEREAS
purchase of said bonds in the aggregate principal amount of $9,850,000 until 10:00 A.M., C.S.T.,
on June 14, 2016, and are as follows:
NB TIR
AME OF IDDERRUE NTEREST ATE
Piper Jaffray & Co. 2.6642%
2.7383
FTN Financial Capital Markets
2.8064
Bosc, Inc.
2.8124
Fifth Third Securities, Inc.
2.8163
Robert W. Baird & Co. Incorporated
2.9721
Raymond James & Associates, Inc.
; and
W, the bid of Piper Jaffray & Co. of Minneapolis, Minnesota, at a price of
HEREAS
$9,848,118.95, plus accrued interest to the date of delivery, was the best bid submitted, which
bid is as follows:
(Here Insert or Attach a True Copy of the Winning Bid)
True interest cost after re-sizing is 2.6491%.
N, T, Be It Resolved by the City Council of the City of Oshkosh,
OWHEREFORE
Winnebago County, Wisconsin, as follows:
Section 1. Definitions. For all purposes of this Resolution, except as otherwise
expressly provided herein or unless the context otherwise requires, the terms defined in this
Section 1 shall have the meanings set forth below, and shall include the plural as well as the
singular:
“Bond” or “Bonds” shall mean one or more of the Taxable General Obligation
Refunding Bonds, Series 2016C, authorized to be issued by the terms of this Resolution.
“Bond Register” shall mean the books of the City kept by the Registrar to evidence the
registration and transfer of the Bonds.
“City” shall mean the City of Oshkosh, Winnebago County, Wisconsin, and any
successor to the duties or functions of the City.
“Code” shall mean the Internal Revenue Code of 1986, as amended.
“Governing Body” shall mean the City Council of the City, or such other council, board,
commission or body, by whatever name known, which shall succeed to its powers.
“Refunded Obligations” means all of the City’s outstanding State Trust Fund Loan dated
August 22, 2014, originally issued in the aggregate principal amount of $10,233,802 and
currently outstanding in the aggregate principal amount of $9,677,802.
“Registrar” shall mean U.S. Bank National Association, or a successor designated as
Registrar under this Resolution.
“Resolution” shall mean this resolution as adopted by the Governing Body of the City.
Section 2. Authorization. The issuance of $9,850,000 aggregate principal amount of
Bonds is hereby authorized for the purpose of providing funds in an amount sufficient to refund
the Refunded Obligations, as set out in the preamble to this Resolution.
The Bonds shall be designated “Taxable General Obligation Refunding Bonds, Series
2016C,” shall be dated the date of issuance, as originally issued, and shall also bear the date of
their authentication by the Registrar. The Bonds shall be in fully registered form, shall be in
denominations of $5,000 each and integral multiples thereof (but no single Bond shall represent
installments of principal maturing on more than one date), shall be lettered “R” and numbered
consecutively starting with the number one, shall mature as to principal on April 1 of the years,
and in the principal amounts, and shall bear interest at the rates per annum, as follows:
P I P I
RINCIPALNTERESTRINCIPALNTEREST
D A R D A R
ATEMOUNTATEATEMOUNTATE
2017 $ 230,000 2.250% 2026 540,000 2.250 %
2018 310,000 2.250 2027 585,000 2.375
2019 330,000 2.250 2028 620,000 2.375
2020 360,000 2.250 2029 660,000 2.500
2021 385,000 2.250 2030 705,000 2.625
2022 415,000 2.250 2031 745,000 2.750
2023 450,000 2.250 2034 2,525,000 3.000
2024 480,000 2.250
2025 510,000 2.250
Section 3. Interest; Payment Provisions. The Bonds shall bear interest from their date
or from the most recent interest payment date to which interest has been paid or duly provided
for, at the interest rates set out above, such interest (computed upon the basis of a 360-day year
consisting of twelve 30-day months) being payable on April 1 and October 1 of each year,
commencing on April 1, 2017. Interest on each Bond shall be paid by check or draft of the
Registrar to the person or entity in whose name such Bond is registered at the close of business
on the fifteenth day of the calendar month immediately preceding the applicable interest payment
date. The principal of each Bond shall be payable in lawful money of the United States of
America only upon presentation and surrender of such Bond at the designated office of the
Registrar.
Section 4. Execution; Authentication. The Bonds shall be executed on behalf of the
City with the manual or facsimile signature of the City Manager of the City and with the manual
or facsimile signature of the City Clerk of the City, and sealed with the official seal of the City or
a printed facsimile of said seal. In case any officer whose signature shall appear on any Bond
shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless
be valid and sufficient for all purposes, the same as if such officer had remained in office until
delivery. The Bonds may be prepared in printed or typewritten form.
All Bonds shall have thereon a certificate of authentication substantially in the form
hereinafter set forth duly executed by the Registrar as authenticating agent of the City and
showing the date of authentication of the Bonds. No Bond shall be valid or obligatory for any
purpose or be entitled to any security or benefit under this Resolution unless and until such
certificate of authentication shall have been duly executed by the Registrar by manual signature,
and such certificate of authentication upon any such Bond shall be conclusive evidence that such
Bond has been authenticated and delivered under this Resolution. The certificate of
authentication on any Bond shall be deemed to have been executed by the Registrar if signed by
an authorized officer of the Registrar, but it shall not be necessary that the same officer sign the
certificate of authentication on all of the Bonds issued under this Resolution.
Section 5. Registration of Bonds; Persons Treated as Owners. The City shall cause
books (the “Bond Register”) for the registration and for the transfer of the Bonds as provided in
this Resolution to be kept at the designated office of the Registrar, which is hereby constituted
and appointed the registrar of the City with respect to the Bonds herein authorized.
Upon surrender for transfer of any Bond at the designated office of the Registrar duly
endorsed by, or accompanied by a written instrument or instruments of transfer in form
satisfactory to the Registrar duly executed by, the registered owner thereof or his attorney duly
authorized in writing, the City shall execute and the Registrar shall authenticate, date and deliver
in the name of the transferee or transferees a new fully registered Bond or Bonds of the same
maturity and interest rate of authorized denomination or denominations, for a like aggregate
principal amount. Any fully registered Bond or Bonds may be exchanged at said office of the
Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity and
interest rate of other authorized denomination or denominations. The execution by the City of
any fully registered Bond shall constitute full and due authorization of such Bond, and the
Registrar shall thereby be authorized to authenticate, date and deliver such Bond; provided,
however, that the principal amount of the outstanding Bonds authenticated by the Registrar shall
never exceed the authorized principal amount of the Bonds, less previous retirements.
The Registrar may, but shall not be required to, transfer or exchange any Bond during the
period of fifteen (15) days next preceding any interest payment date on such Bond, nor to
transfer or exchange any Bond after notice calling such Bond for redemption prior to maturity
has been mailed nor during the period of fifteen (15) days next preceding mailing of a notice of
redemption of any Bonds.
The person in whose name any Bond shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes, and payment of the principal of, premium (if any) or
interest on any Bond shall be made only to or upon the order of the registered owner thereof or
his legal representative. All such payments shall be valid and effectual to satisfy and discharge
the liability upon such Bond to the extent of the sum or sums so paid.
The Registrar shall never register any Bond to bearer.
No service charge shall be made for any transfer or exchange of Bonds, but the City or
the Registrar may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of Bonds, except in the
case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for
redemption.
The City and/or the Registrar may enter into an agreement with a securities depository
registered under Section 17A of the Securities Exchange Act of 1934, as amended (the
“Securities Depository”), including without limitation The Depository Trust Company, which is
the record owner of the Bonds, to establish procedures with respect to Bonds owned by such
Securities Depository. Such agreement may impose additional requirements on the Registrar
with respect to the Bonds.
Section 6. Prior Redemption. The Bonds maturing on and after April 1, 2026, shall be
subject to redemption prior to maturity at the option of the City, as a whole or in part in such
order as the City may determine (less than all of the Bonds of a single maturity to be selected by
the Registrar as hereinafter provided), on April 1, 2025, and on any date thereafter, at a
redemption price of 100% of the principal amount thereof being redeemed plus accrued interest
to the date fixed for redemption.
The Bonds maturing on April 1, 2034 shall be subject to mandatory redemption, in
integral multiples of $5,000 selected by the Registrar, at a redemption price of 100% of the
principal amount thereof being redeemed plus accrued interest to the date fixed for redemption,
on April 1 of the following years and in the following amounts:
RD PA
EDEMPTION ATERINCIPAL MOUNT
A1 R
PRIL OF EDEMPTION
2032 $785,000
2033 840,000
2034* 900,000
______________________________
* Maturity
The Bonds shall be redeemed only in the principal amount of $5,000 each and integral
multiples thereof. At least forty-five (45) days prior to the date fixed for an optional redemption
(unless a shorter notice shall be satisfactory to the Registrar), the City shall notify the Registrar
of such date fixed for redemption and of the order and the principal amount of the Bonds to be
redeemed. For purposes of any redemption of less than all of the outstanding Bonds of a single
maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by the
Registrar from the outstanding Bonds of such maturity then outstanding by such method as the
Registrar shall deem fair and appropriate, and which may provide for the selection for
redemption of Bonds or portions of Bonds in principal amounts of $5,000 and integral multiples
thereof.
The Registrar shall promptly notify the City in writing of the Bonds or portions of Bonds
selected for redemption prior to maturity and, in the case of any Bond selected for partial
redemption, the principal amount thereof to be redeemed.
Section 7. Redemption Procedure. Unless waived by any registered owner of Bonds
(or portions thereof) to be redeemed, notice of the call for any such redemption prior to maturity
shall be given by the Registrar on behalf of the City by mailing the redemption notice by first
class mail, postage prepaid, not less than thirty (30) days and not more than sixty (60) days prior
to the date fixed for redemption to the registered owner of the Bond or Bonds to be so redeemed
at the address shown on the Bond Register or at such other address as is furnished in writing by
such registered owner to the Registrar. Failure to give such notice by mailing to any owner of
any Bond, or any defect therein, shall not affect the validity of any proceedings for the
redemption of any other Bonds.
All notices of redemption shall state:
(1) the date fixed for redemption,
(2) the redemption price,
(3) if less than all outstanding Bonds are to be redeemed, the identification,
including CUSIP numbers (and, in the case of any partial redemption, the respective
principal amounts) of the Bonds to be redeemed,
(4) that on the date fixed for redemption the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption, and that
interest thereon shall cease to accrue from and after said date, and
(5) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the designated office of the Registrar.
Prior to any date fixed for redemption, the City shall deposit with the Registrar an amount
of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are
to be redeemed on that date. With respect to an optional redemption of any Bonds, unless
moneys sufficient to pay the principal of and interest on the Bonds to be redeemed shall have
been received by the Registrar prior to the giving of such notice of redemption, such notice may,
at the option of the City, state that said redemption shall be conditional upon the receipt of such
moneys by the Registrar on or prior to the date fixed for redemption. If such moneys are not
received, such notice shall be of no force and effect, the City shall not redeem such Bonds, and
the Registrar shall give notice, in the same manner in which the notice of redemption was given,
that such moneys were not so received and that such Bonds will not be redeemed.
Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so
to be redeemed shall, on the date fixed for redemption, become due and payable at the
redemption price therein specified, and from and after such date (unless the City shall default in
the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear
interest. Upon surrender of such Bonds for redemption in accordance with said notice, such
Bonds shall be paid by the Registrar at the redemption price. Installments of interest due on or
prior to the date fixed for redemption shall be payable as herein provided for the payment of
interest. Upon surrender for any partial redemption of any Bond, there shall be prepared for the
registered owner a new Bond or Bonds of the same maturity and interest rate in the amount of
the unpaid principal. All Bonds which have been redeemed shall be cancelled and destroyed by
the Registrar, and shall not be reissued.
In addition to the redemption notice required above, unless all of the Bonds are owned by
one (1) registered owner, further notice of redemption (the “Additional Redemption Notice”)
shall be given by the Registrar as set forth below, but no defect in the Additional Redemption
Notice nor any failure to give all or any portion of the Additional Redemption Notice shall in any
manner affect the effectiveness of a call for redemption if notice thereof is given as prescribed
above.
Each Additional Redemption Notice given hereunder shall contain the information
required above, plus (i) the date such notice required above has been or will be mailed; (ii) the
date of issuance of the Bonds being redeemed, as originally issued; (iii) the maturity date of each
Bond (or portion thereof) to be redeemed; and (iv) any other descriptive information needed to
identify accurately the Bonds being redeemed prior to maturity.
Each Additional Redemption Notice shall be sent at least thirty (30) days before the date
fixed for redemption by legible facsimile transmission, registered or certified mail (postage
prepaid) or overnight delivery service to The Depository Trust Company of New York, New
York, and to at least two (2) national information services that disseminate notices of redemption
of obligations such as the Bonds.
Section 8. Form of Bonds. The Bonds, the certificate of authentication to be endorsed
thereon and the form of assignment to be endorsed thereon are all to be in substantially the
following forms with necessary and appropriate variations, omissions and insertions as permitted
or required by this Resolution:
(Form of Bond—Front Side)
No. R-__________ $______________
USA
NITED TATES OF MERICA
SW
TATE OF ISCONSIN
CW
OUNTY OF INNEBAGO
CO
ITY OF SHKOSH
TGORB
AXABLE ENERAL BLIGATION EFUNDING OND
S2016C
ERIES
R
ATE OF
I MD DD CUSIPN
NTERESTATURITY ATEATED ATE UMBER
_____% April 1, ____ July __, 2016 __________
Registered Owner:
Principal Amount:
K A M T P: That the City of Oshkosh in the County of
NOWLLENBYHESERESENTS
Winnebago and the State of Wisconsin (the “City”), hereby acknowledges itself to owe and for
value received promises to pay to the Registered Owner hereinabove identified, or registered
assigns as hereinafter provided, on the Maturity Date hereinabove identified, the Principal
Amount hereinabove identified and to pay interest (computed on the basis of a 360-day year
consisting of twelve 30-day months) on such Principal Amount from the Dated Date hereinabove
identified or from the most recent interest payment date to which interest has been paid at the
Rate of Interest per annum hereinabove identified on April 1 and October 1 of each year,
commencing on April 1, 2017, until said Principal Amount is paid, except as the provisions
hereinafter set forth with respect to redemption prior to maturity may be and become applicable
to this Bond.
The principal of this Bond is payable in lawful money of the United States of America
only upon presentation and surrender of this Bond at the designated office of U.S. Bank National
Association, as registrar and paying agent, or any successor thereto (the “Registrar”). Payment
of each installment of interest hereon shall be made to the Registered Owner hereof who shall
appear on the registration books of the City maintained by the Registrar at the close of business
on the fifteenth day of the calendar month immediately preceding the applicable interest payment
date, and shall be paid by check or draft of the Registrar mailed to such Registered Owner at his
address as it appears on such registration books or at such other address as may be furnished in
writing by such Registered Owner to the Registrar.
Reference is hereby made to the further provisions of this Bond set forth on the reverse
side hereof, and such further provisions shall for all purposes have the same effect as if set forth
on the front side of this Bond.
It is hereby certified, recited and declared that all acts, conditions and things required to
be done, exist, happen and be performed precedent to and in the issuance of this Bond have been
done, have existed, have happened and have been performed in due time, form and manner as
required by the Constitution and the laws of the State of Wisconsin; that this Bond, together with
all other indebtedness of the City, does not exceed any limitation prescribed by law; and that the
City has levied a direct annual irrepealable tax sufficient to pay the interest hereon when it falls
due and also to pay and discharge the principal hereof at maturity.
The full faith, credit and resources of the City are hereby pledged for the payment of the
principal of and interest on this Bond and the issue of which it is a part as the same respectively
become due and for the levy and collection of sufficient taxes for that purpose.
This Bond shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Registrar.
I W W the City of Oshkosh, Winnebago County, Wisconsin, by its City
NITNESSHEREOF
Council, has caused this Bond to be executed with the duly authorized manual or facsimile
signature of its City Manager and with the duly authorized manual or facsimile signature of its
City Clerk, and its official seal or a facsimile thereof to be impressed or reproduced hereon, as of
the Dated Date hereinabove identified.
________________________________ ____________________________________
City Clerk City Manager
[S]
EAL
CA
ERTIFICATE OF UTHENTICATION
This Bond is one of the Bonds described in the within mentioned Resolution, and is one
of the Taxable General Obligation Refunding Bonds, Series 2016C, of the City of Oshkosh,
Winnebago County, Wisconsin.
Date of Authentication: _____________________
By ____________________________________
U.S. Bank National Association
[Form of Bond - Reverse Side]
This Bond is one of an authorized issue of Taxable General Obligation Refunding Bonds,
Series 2016C, aggregating the principal amount of $9,850,000 (the “Bonds”) issued for the
purpose of refunding outstanding obligations of the City pursuant to and in all respects in
compliance with Chapter 67, Wisconsin Statutes, as supplemented and amended and a resolution
adopted by the City Council of the City on June 14, 2016 (the “Resolution”).
This Bond is transferable by the Registered Owner hereof in person or by his attorney
duly authorized in writing at the designated office of the Registrar, but only in the manner,
subject to the limitations and upon payment of the charges provided in the Resolution, and upon
surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of the same
maturity and interest rate of authorized denomination or denominations and for a like aggregate
principal amount will be issued to the transferee in exchange for this Bond.
The Bonds are issuable in fully registered form in denominations of $5,000 each and
integral multiples thereof. This Bond may be exchanged at the designated office of the Registrar
for a like aggregate principal amount of Bonds of the same maturity and interest rate of other
authorized denominations, upon the terms set forth in the Resolution.
The City and the Registrar may deem and treat the registered owner hereof as the
absolute owner hereof for the purpose of receiving payment of or on account of principal hereof
and interest due hereon and for all other purposes, and neither the City nor the Registrar shall be
affected by any notice to the contrary.
Bonds of the issue of which this Bond is one maturing on and after April 1, 2026, are
subject to redemption prior to maturity at the option of the City, as a whole or in part in such
order as the City may determine in integral multiples of $5,000, less than all the Bonds of a
single maturity to be selected by the Registrar, as provided in the Resolution, in such manner as
it shall deem fair and appropriate, on April 1, 2025, and on any date thereafter, at a redemption
price of 100% of the principal amount thereof being redeemed plus accrued interest to the date
fixed for redemption.
The Bonds maturing on April 1, 2034 shall be subject to mandatory redemption, in
integral multiples of $5,000 selected by the Registrar, at a redemption price of 100% of the
principal amount thereof being redeemed plus accrued interest to the date fixed for redemption,
on April 1 of the following years and in the following amounts:
RD PA
EDEMPTION ATERINCIPAL MOUNT
A1 R
PRIL OF EDEMPTION
2032 $785,000
2033 840,000
2034* 900,000
______________________________
* Maturity
Notice of any intended redemption shall be sent by first class mail, postage prepaid, not
less than thirty (30) days and not more than sixty (60) days prior to the date fixed for redemption
to the registered owner of each Bond to be redeemed (in whole or in part) at the address shown
on the registration books of the City maintained by the Registrar or at such other address as is
furnished in writing by such registered owner to the Registrar. Such notice of optional
redemption may be conditional as provided in the Resolution. When so called for redemption,
this Bond, or the portion hereof being so called for redemption, will cease to bear interest on the
specified redemption date, provided funds for redemption are on deposit at the place of payment
on that date, and shall not be deemed to be outstanding.
The following abbreviations, when used in the inscription on the face of the within Bond,
shall be construed as though they were written out in full according to applicable laws or
regulations:
TC- as tenants in common UG/TMA-
EN OMNIF IFTRANS IN CT
_________Custodian _________
(Cust) (Minor)
TE- as tenants by the entirety under Uniform Gifts/Transfers to Minors
EN NT
JT- as joint tenants with right of Act___________________________
T EN
survivorship and not as (State)
tenants in common
Additional abbreviations may also be used though not listed above.
A
SSIGNMENT
F V R, the undersigned hereby sells, assigns and transfers unto
ORALUEECEIVED
______________________________________________________________________________
______________________________________________________________________________
(Name and Address of Assignee)
the within Bond, and does hereby irrevocably constitute and appoint _______________________
_____________________________________________________, or its successor as Registrar, to transfer the
said Bond on the books kept for registration thereof with full power of substitution in the
premises.
Dated: _________________________
________________________________________________
N: The signature to this Assignment must correspond with the name of the registered
OTICE
owner as it appears upon the face of the within Bond in every particular, without
alteration or enlargement or any change whatever.
Signature guaranteed: ____________________________
N: Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the
OTICE
requirements of the Registrar, which requirements include membership or
participation in STAMP or such other “signature guaranty program” as may be
determined by the Registrar in addition to or in substitution for STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.
Section 9. Sale of Bonds. The sale of the Bonds to Piper Jaffray & Co. of
Minneapolis, Minnesota, at the price of $9,848,118.95 plus accrued interest to the date of
delivery, is hereby confirmed. The City Treasurer of the City is hereby authorized to deliver the
Bonds to said purchasers upon payment of the purchase price.
Section 10. Tax Levy. In order to provide for the collection of a direct annual tax
sufficient to pay the interest on the Bonds and to pay and discharge the principal thereof at
maturity, there is hereby levied upon all the taxable property in the City of Oshkosh, Winnebago
County, Wisconsin, a direct annual tax in amounts sufficient for that purpose, and there is hereby
levied upon all taxable property in the City the following direct annual tax in each of the years
and amounts, to-wit:
Y A
EARMOUNT
2016 $536,548.44
2017 551,425.00
2018 564,225.00
2019 586,462.50
2020 603,081.25
2021 624,081.25
2022 649,350.00
2023 668,887.50
2024 687,750.00
2025 705,937.50
2026 737,915.63
2027 758,606.26
2028 782,993.76
2029 810,490.63
2030 830,993.75
2031 848,975.00
2032 879,600.00
2033 913,500.00
In each of said years from 2016 to 2033, inclusive, the direct annual tax above levied
shall be extended upon the tax rolls of the City in the same manner and time as taxes for general
City purposes, and when collected the proceeds of said taxes shall be deposited into the account
of the debt service fund established in favor of the Bonds, to be used solely for paying the
principal of and interest on the Bonds as long as any of the Bonds remain outstanding.
Section 11. Sufficiency. Interest or principal maturing at any time during the life of the
Bonds when there shall be insufficient funds on hand from the above tax levy to pay the same
shall be paid promptly when due from the general fund of the City, and said fund shall be
reimbursed in a like amount out of the proceeds of taxes hereby levied when the same shall have
been collected.
Section 12. Debt Service Fund. There has been ordered to be established in the City
Treasury a fund separate and distinct from all other funds of the City to be designated the “Debt
Service Fund,” which fund shall be used solely for the purpose of paying the principal of,
premium, if any, and interest on municipal obligations issued pursuant to Chapter 67, Wisconsin
Statutes, as supplemented and amended. There is hereby created, and there shall be deposited in,
an account known as the “Series 2016C Refunding Bond Account,” to be held as a part of the
Debt Service Fund, all premium, if any, and accrued interest paid on the Bonds at the time the
Bonds are delivered to the purchasers thereof; all money raised by taxation pursuant to Section
10 hereof; and such other sums as may be necessary to pay the interest on the Bonds when the
same shall become due and to retire the Bonds at their respective maturity dates.
Section 13. Use of Proceeds; Bonds to Remain in Registered Form. The principal
proceeds of the Bonds in the amount of $9,818,099.95 shall be deposited in the debt service fund
established with respect to the Refunded Obligations, together with other available funds of the
City, and used solely for the purpose of refunding the Refunded Obligations. The balance of the
principal proceeds of the Bonds shall be deposited in a special fund, and used solely for the
purpose of financing the costs of issuance of the Bonds.
The City further recognizes that the Bonds must be issued and remain in fully registered
form. In this connection, the City agrees that it will not take any action to permit the Bonds to be
issued in, or converted into, bearer or coupon form.
Section 14. Duties of Registrar. If requested by the Registrar, the City Manager of the
City is hereby authorized to execute, and the City Clerk of the City is hereby authorized to attest
and to affix the official seal of the City, and said City Manager and City Clerk are hereby
authorized to deliver, the Registrar’s standard form of agreement between the City and the
Registrar with respect to the obligations and duties of the Registrar hereunder, which shall
include the following:
(a) to act as Registrar, authenticating agent, paying agent and transfer agent as
provided herein;
(b) to give notice of redemption of Bonds as provided herein;
(c) to cancel and destroy Bonds which have been paid at maturity or upon
earlier redemption or submitted for exchange or transfer;
(d) to furnish the City at least annually a certificate of destruction with respect
to Bonds cancelled and destroyed; and
(e) to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to the interest on the Bonds.
The City Clerk of the City is hereby directed to file a certified copy of this Resolution
with the Registrar.
The City covenants that it shall at all times retain a Registrar with respect to the Bonds,
that it will maintain at the designated office of such Registrar a place or places where Bonds may
be presented for payment or registration of transfer or exchange, and that it shall require that the
Registrar properly maintain the Bond Register and perform the other duties and obligations
imposed upon it by this Resolution in a manner consistent with the standards, customs and
practices of the municipal securities industry.
The Registrar shall signify its acceptance of the duties and obligations imposed upon it by
this Resolution by executing the certificate of authentication on any Bond, and by such execution
the Registrar, shall be deemed to have certified to the City that it has all requisite power to accept
and has accepted such duties and obligations. The Registrar is the agent of the City, and shall
not be liable in connection with the performance of its duties, except for its own negligence or
willful wrongdoing. The Registrar shall, however, be responsible for any representation in its
certificate of authentication on the Bonds.
The Registrar may be removed at any time by the City by an instrument in writing
delivered to the Registrar.
In case the Registrar shall be removed, or shall be dissolved, or shall be in the course of
dissolution or liquidation, or otherwise become incapable of acting hereunder, or in case it shall
be taken under the control of any public officer or officers, or of a receiver appointed by a court,
a successor may be appointed by the City by an instrument in writing, a copy of which shall be
delivered to the retiring Registrar, the successor Registrar and the registered owners of the
Bonds. The City shall mail notice of any such appointment made by it to each registered owner
of any Bond within twenty (20) days after such appointment. Any Registrar appointed under the
provisions of this Section 14 shall be an officer of the City or a bank, trust company or national
banking association.
Any corporation or association into which the Registrar may be converted or merged, or
with which it may be consolidated, or to which it may sell or transfer its corporate trust business
as a whole or substantially as a whole, or any corporation or association resulting from any such
conversion, merger or consolidation to which it is a party, shall be and become successor
Registrar hereunder, and vested with all the duties, powers, discretions, immunities, privileges
and all other matters as was its predecessor, without the execution or filing of any instrument or
any further act, deed or conveyance on the part of any of the parties hereto, anything herein to
the contrary notwithstanding. Any such successor Registrar shall give notice thereof to the City
and the registered owners of the Bonds.
Section 15. Continuing Disclosure Undertaking. The City Manager or the City
Treasurer/Finance Director of the City is hereby authorized, empowered and directed to execute
and deliver a Continuing Disclosure Undertaking with respect to the Bonds (the “Continuing
Disclosure Undertaking”) in substantially the form as the individual executing the Continuing
Disclosure Undertaking on behalf of the City shall approve, his or her execution to constitute
conclusive evidence of his or her approval of the form of such Continuing Disclosure
Undertaking. When the Continuing Disclosure Undertaking is executed and delivered on behalf
of the City as herein provided, the Continuing Disclosure Undertaking will be binding on the
City and the officers, employees and agents of the City, and the officers, employees and agents
of the City are hereby authorized, empowered and directed to do all such acts and things and to
execute all such documents as may be necessary to carry out and comply with the provisions of
the Continuing Disclosure Undertaking, as executed. Copies of the Continuing Disclosure
Undertaking shall be placed in the official records of the City, and shall be available for public
inspection at the offices of the City. Notwithstanding any other provision of this Resolution to
the contrary, the sole remedy for failure to comply with the Continuing Disclosure Undertaking
shall be the ability of any beneficial owner of any Bond to seek mandamus or specific
performance by court order to cause the City to comply with its obligations under the Continuing
Disclosure Undertaking.
Section 16. Other Documents. The City Manager, the City Clerk, the City
Treasurer/Finance Director and all other officers of the City are hereby authorized to execute all
documents and certificates and to take all actions as may be necessary in connection with the
authorization and delivery of the Bonds and the performance of the obligations of the City
hereunder and to carry out and comply with the terms of this Resolution, including without
limitation an official statement describing the Bonds and the City. This Resolution and all such
documents shall be in substantially the same form contemplated by this Resolution, with such
changes as shall be approved by the officers executing this Resolution and said documents, the
execution thereof to constitute conclusive proof of such approval.
Section 17. Prior Action. The action of the City Treasurer/Finance Director of the City
in causing the notice of the sale of the Bonds to be published is hereby in all respects ratified and
confirmed.
Section 18. Severability. If any section, paragraph or provision of this Resolution shall
be held to be invalid or unenforceable for any reason, the invalidity or unenforceability or such
section, paragraph or provision shall not affect any of the remaining sections, paragraphs and
provisions of this Resolution.
Section 19. Conflicting Proceedings Superseded. All ordinances, resolutions or orders,
or parts thereof, heretofore enacted, adopted or entered, in conflict with the provisions of this
Resolution, shall be, and the same are hereby, superseded to the extent of such conflict, and this
Resolution shall be in effect from and after its passage.
Adopted June 14, 2016.
Approved June 14, 2016.
Recorded June 14, 2016.
/s/ Steve Cummings
Mayor
A:
TTEST
/s/ Pamela R. Ubrig
City Clerk
City of Oshkosh
Finance Department
215 Church Ave., PO Box 1 130
Oshkosh, WI 54903 -1130
(920) 236 -5080 (920) 236 -5039 FAX
O.IHKQfH
ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Trena Larson, Finance Director
DATE: June 9, 2016
RESOLUTION determining to issue $[9,995,000] aggregate principal
amount of Taxable General Obligation Refunding Bonds, Series 2016C, of
the City of Oshkosh, Winnebago County, Wisconsin, in such amount,
providing details, prescribing the form of bond, awarding the bonds to the
best bidder, and levying taxes.
RESOLUTION providing for the issuance and sale of $[13,605,000] aggregate
principal amount of Sewer System Revenue Bonds, Series 2016D, of the City
of Oshkosh, Winnebago County, Wisconsin, providing details, prescribing the
form of bond, awarding said revenue bonds to the best bidder, and providing
for the payment of said revenue bonds and other details and covenants with
respect thereto
BACKGROUND
In November of 2015 the Common Council adopted the 2015 Capital Improvement Program (CIP). Staff
was then able to execute a reimbursement declaration in November of 2015. In March of 2016 the initial
borrowing resolutions stated the intent to borrow and authorized staff to proceed with the preparation and
documentation needed to sell the bonds. As noted in the March Council communication, the sale of the
bonds needed to occur at least 30 days after the initial resolution was authorized, and this requirement
has been satisfied.
As discussed prior, the City has split the borrowings for this year's CIP needs due to the large Utility
needs and the desire to maintain a prudent level of our General Obligation borrowing capacity for future
needs. As you know, the first bond sale (the General Obligation Bonds and Notes for projects funded by
the General Fund) was completed on May 24, 2016 and this is the second bond sale. Our first sale
yielded positive results. The City is planning to sell the Water and Storm Water Revenue Bonds, for the
water and storm water projects, on June 28, 2016.
As is normal practice, the Taxable General Obligation Bonds and Sewer Revenue Bonds, as outlined
above, will be offered to the public through a competitive sale on Tuesday, June 12, 2016. Following the
sales, and tentative agreement, the sales and accompanying terms will be presented for approval to the
Council at Tuesday's meeting.
ANALYSIS
In June of 2014 the City applied for a State Trust Fund Loan to refinance our WRS prior service pension
liability in the amount of $10,400,000.00. By securing this loan the City was able to payoff of its
unfunded pension liability which was estimated to save $13,726,721.00 over twenty year period. This
loan is now eligible to be refunded. It is estimated that by refunding this debt with the issuance of a
Taxable General Obligation Refunding Bonds an additional $421,112.00 can be saved.
While market conditions and specific bidders dictate what the interest rates are, the City will not have the
exact numbers until next week. The interest rate assumptions used for planning were a True Interest
Cost (TIC) of 3.72% for the Taxable General Obligation Refunding Bonds and 3.14% for the Sewer
Revenue Bonds. Based on current market conditions we would expect to see results more favorable
than the initial planning estimates.
FISCAL IMPACT
The above amounts will be added to the General Obligation and Sewer Utilities outstanding debt
obligations, with the bonds being paid off over eighteen to twenty years.
The interest expense (the cost of borrowing the funds) that will be incurred over the life of the obligations
will be determined next Tuesday, and presented to the Council at the meeting that evening.
RECOMMENDATION
Staff recommends adoption both of the above noted resolutions.
Respectfully Submitted,
Yena larvon
Trena Larson
Finance Director
Approved:
Mark Rohloff
City Manager
Larson, Trena
From: Todd Taves <TTaves @ehlers - inc.com>
Sent: Wednesday, June 8, 2016 4:36 PM
To: Larson, Trena
Subject: Series C & D Memo
Trena-
Assuming you will want /need this info again. The planning TICS for Series C and D were:
Series C Taxable G.Q. Refunding Bonds — 3.72%
Series D Sewer Revenue Bonds — 3.14%
The Series A G.O. Bonds came in at a 2.41% TIC and the markets have not moved much since that sale so we would
expect to come in well under these estimates. The TICS will still be higher than the Series A though since Series C is
taxable and Series D is a revenue bond.
Let me know if you need anything else prior to the sale Tuesday. I'll be out of the office after 3pm Thursday for the rest
of the week.
Thanks,
Todd
Todd Taves, CIPMA j Senior Municipal Advisor /Principal
D: (262) 796 -6173 1 C: (414) 416-09621 ehlers- inc.corn
61 EHLERS,
This e -mail and any attachments may contain information which Is privileged or confidential. If you are not the intended recipient, note that any disclosure, copying, distribution
or use of the contents of this message is prohibited. If you have received this e-mail in error, please destroy it and notify us Immediately by return e-mail or at our telephone
number, 800.552 -1171. Any views or opinions presented In this e-mail are solely those of the author and may not represent the views or opinions of Ehlers Companies. To
view our complete disclaimer, please visit htto�l /www ,ehlers- ino.com/termsltlemail
Existing Debt Service To Be Refunded
2014 State Trust Fund Loan
Estimated Refunding Savings
Issue
Taxable General Obligation Refunding Bonds Series
State Trust Fund Loan
Amount
2016C
$10,233,802
22- Aug -14
Annually 8/1 -8/31
$9,677,802
Amount
Dated
Call Date
Call Amt
Rate /Term
4.250%
Call Amt
Rate /Term
2016 -2034
Year
Prin (3/15)
Rate
Interest
Total
2016
198,000
4.250%
420,872
618,872
2017
1
223,0001
4.250%
411,307
634,307
2018
249,0001
4.250%
401,829
650,829
2019 )
277,000)
4.250%
391,247
668,247
2020
306,0001
4.250%
380,514
686,514
2021
338,0001
4.250%
366,469
704,469
2022 )
371,0001
4.250%
352,104
723,104
2023 '
407,0001
4.250%
336,337
743,337
2024 (
444,0001
4.2509.
319,913
763,913
2025 1
484,0001
4.250%
300,169
784,169
2026
'
526,000)
4.250%
279,599
805,599
2027
571,000)
4.250%
257,244
828,244
2028 ]
618,000
4.250%
233,615
851,615
2029
668,0001
4.2509.
206,712
874,712
2030 1
721,0001
4.250%
178,322
899,322
2031 1
777,0001
4.250°%0
147,679
924,679
2032 1
836,0001
4.250%
114,971
950,971
2033 1
898,0001
4.250%
79,127
977,127
2034 1
963,802 1
4.250%
40,962
1,004,764
Total 9,875,802
Presaie Estimate
Estimated Debt Service After Refunding
Issue
Taxable General Obligation Refunding Bonds Series
2016C
Amount
$9,995,000
6- Jul -16
Dated
Call Date
Call Amt
Rate /Term
0.960 - 3.990%
2017 -2020
Year
Prin (4/1)
Est. Rate
Interest
Total
2016
2017
205,000
0.960%
404,184
609,184
2018
305,000
1.410%
323,658
628,658
2019
320,000
1.680%
318,820
638,820
2020
345,000
2.050%
312,595
657,595
2021
380,000
2.260%
304,765
684,765
2022
405,000
2.540%
295,328
700,328
2023
435,000
2.690%
284,333
719,333
2024
470,000
2.860%
271,762
741,762
2025
500,000
3.020%
257,491
757,491
2026
535,0001
3.150%
241,514
776,514
2027 (
580,0001
3.400%
223,228
803,228
2028
620,000'
3.630%
202,115
822,115
2029
675,0001
3.740%
178,240
853,240
2030 1
725,0001
3.820%
151,770
876,770
2031 1
785,0001
3.860%
122,772
907,772
2032 1
835,0001
3.940%
91,172
926,172
2033 1
905,0001
3.980%
56,713
961,713
2034 1
_970,0001
3.990%
19,352
989,352
5,218,989 15,094,791 Total 9,995,000
NOTES:
'Assumes 1/25/2016 taxable MMO AA Scale Plus 0.30 %.
'Estimated present value savings of S3S6,358. (3.682% of refunded principal).
40 EHLERS
LEAVE s.'i runcrc,,.ANC4
Prior Issue
DS Funds
(618,872)1
Total
Estimated
Savings
0
25,123
22,171
29,427
28,919
19,704
22,777
24,003
22,152
26,679
29,085
25,016
29,500
21,472
22,552
16,908
24,799
15,414
15,412
4,059,807 14,054,807 421,112
Plus Rounding 4,741
ESTIMATED FUTURE VALUE SAVINGS NET OF COST52 425,853
17- _ _ _ 1 Maturities Subject, to Optional Redemption
Prcn�rarl Fsv Fhlorc -�
4/26/2016
zeal ers in Pubic Finance File: Oshkosh Base Case 2016-2-4/2014 STFL Savings
JUNE 24, 2014 14 -278 RESOLUTION
(CARRIED 7 -0 LOST LAID OVER WITHDRAWN )
PURPOSE: AUTHORIZE BORROWING FROM STATE LAND TRUST /
REFINANCE WRS PRIOR SERVICE PENSION LIABILITY
($10,400,000)
INITIATED BY: CITY ADMINISTRATION
WHEREAS, by the provisions of sec. 24.66 of the Wisconsin Statutes, all
municipalities may borrow money for such purposes in the manner prescribed; and,
WHEREAS, by the provisions of Chapter 24 of the Wisconsin Statutes, the Board of
Commissioners of Public Lands of Wisconsin is authorized to make loans from the State
Trust Funds to municipalities for such purposes. (Municipality as defined by sec. 24.60(2),
Wisconsin Statutes, means a town, village, city, county, public inland lake protection and
rehabilitation district, town sanitary district created under sec. 60.71 or 60.72, metropolitan
sewerage district created under sec. 200.05 or 200.23, joint sewerage system created
under sec. 281.43 (4), school district or technical college district.)
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of
Oshkosh that the City of Oshkosh, in the County of Winnebago, Wisconsin, is authorized
to borrow from the Trust Funds of the State of Wisconsin, a sum of up to Ten Million Four
Hundred Thousand Dollars ($10,400,000) for the purpose of refinancing WRS prior service
pension liability
The loan is to be payable within 20 years from the 15th day of March preceding the
date the loan is made. The loan will be repaid in annual installments with interest at the
rate of 4.25 percent per annum from the date of making the loan to the 15th day of March
next and thereafter annually as provided by law.
BE IT FURTHER RESOLVED, that there shall be raised and there is levied upon all
taxable property, within the City of Oshkosh, in the County of Winnebago, Wisconsin, a
direct annual tax for the purpose of paying interest and principal on the loan as they
become due.
BE IT FURTHER RESOLVED, that no money obtained by the City of Oshkosh by
such loan from the state be applied or paid out for any purpose except for the purpose of
refinancing the WRS prior service pension liability without the consent of the Board of
Commissioners of Public Lands.
JUNE 24, 2014 14 -278 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED, that in case the Board of Commissioners of Public
Lands agrees to make the loan, that the City Manager and Clerk of the City of Oshkosh in
the County of Winnebago, Wisconsin, are authorized and empowered, in the name of the
City to execute and deliver to the Commission, certificates of indebtedness, in such form
as required by the Commission, for any sum of money that may be loaned to the City
pursuant to this resolution. The City Manager and Clerk of the City will perform all
necessary actions to fully carry out the provisions of Chapter 24 Wisconsin Statutes, and
these resolutions.
BE IT FURTHER RESOLVED, that this preamble and these resolutions and the
"aye" and "no" vote by which they were adopted, be recorded, and that the Clerk of this City
forward this certified record, along with the application for the loan, to the Board of
Commissioners of Public Lands of Wisconsin.
Exhibit A
City of Oshkosh Unfunded Pension Liability
WRS Unfunded Pension Liability
Refunding Analysis
Cash Cost
MWMl4�1Ur1y4./..:L':W
(1,533,282}
�
Proposed
Wate-Trust Fund
Loan
Cumulative
wisconsin
Retirement
Uffunded LiabilitY,
bated
7121/14
Beginning
Scheduled
Interest
Ending
Principal
Current
Interest
Scheduled
Savings
Balance
Payment'
Qa 7.20%
Batanco
3115
Rate
(A 4.25%
Payment
Most
YEAR
2013
10,513,576
460,592
723,815
10,776,799
0
0
0
2014
10 776,799
475,331
741,706
11,043.174
0
0
0
2015
11,043,174
490,542
759.789
11,312,421
321,000
4,250%
293,813
614,813
(124,271)
(124,271)
2016
11,312,421
506,239
778,045
11,584,228
204,000
4,250%
427,077
631,077
(124,838)
(249,109)
2017
11,584.228
522,439
796,449
11,858.238
230;000
4.250%
418,407
648,407
(125,968)
(375,078)
2018
11,858,238
539,157
814,974
12,134,055
256,000
4.250%
408,632
664,632
(125,475)
(58D,553)
2018
12.134,055
556,410
833,590
12,411,235
264,000
4.250%
397,752
681,752
(125,342)
(625,695)
2020
12,411,235
574,215
852.265
12,689,286
314,000
4.250%
385,682
699,682
(125,467)
(751,362)
2021
12,689,286
592,590
870,962
12,967,658
346,000
4.250%
372,337
718,337
(125,747)
(877,109)
2022
12,967,658
611,553
889,640
13,245,744
379,000
4.250%
357,632
736,632
(125,079)
(1,002.188)
2023
13,245,744
631,123
908,253
13,522,874
415,000
4.25014
341,525
756,525
(125,402)
(1,127,590)
2024
13,522,874
651,319
926,752
13,798,308
453,000
4,250%
323,887
776,087
(125,568)
(1,253,159)
2025
13,798,308
672,161
945,083
14,071 230
493,000
4.250%
3D4,635
797,63$
(125,474)
(1,378,632)
2026
14,071,230
693,670
963,184
14,340,744
535,000
4.250%
283,682
618,682
(125,012)
(1,503.644)
2027
14,340,744
715,868
980,991
14,605 868
580,000
4.250%
260,945
840,945
(125,077)
(1,628,721)
2028
14,605,868
738,775
998,431
14,865,523
628,000
4.250%
236,295
864,295
(125,519)
(1,754,241)
2029
14,865,523
762,416
1,015,424
15,118,530
678,000
4.250°,0
209,605
887,605
(125,188)
(1,879,429)
2030
15,118,530
786,814
1.031,884
15.363,600
732,000
4-250%
180,790
912,790
(125,976)
(2,005,405)
2031
15,363.600
811,992
1,047,716
15.599,325
788,000
'4,250%
149,580
937,680
(125,688)
(2,131,093)
2032
15,599.325
837,976
1,062,817
15,824,166
847,000
4.250%
116,190
963,190
(125,214)
(2,256,307)
2033
15,824,166
864,791
1,077,075
16.03 450
91D,000
4.250%
80,192
990,192
(125,401)
(2,381,7C8)
2034
18,036,450
892,464
1,090,367
16,234,353
976,874
4.250%
41,517
1,018,386
(125,924)
(2,SG7,632)
Totals 14 388 434 20 1099,211
Scheduled Payments if 14,388,434
UFPL Not Refunded
Balance Remaining it
UFPL Not Refunded
16,234,353
10,369,871 5,590,272 i5 960 143 ) (2,507,632
Scheduled Payments it UFPL 15,960,14
Refunded with STF Loan
Balance Remaining if UFPL
Refunded with STF Loan
(2,507,632)
Net Future
Cash Cost
MWMl4�1Ur1y4./..:L':W
(1,533,282}
�
Not Present Value
�.
Benefit 9, 4,20..
Assumes 3.2% annual increase In payroll used by the WRS a
Brookfield, hurl Office (262) 7854520 Roseville, MN OA1ce (651) 697 -8500
E H L E R S 3 r Bishops Way, Sufte 225 3060 Contra Pointe Dr1ve
Brookfield, WJ $3003: -6202 Roseville, JAN 55113 -1105
Prepared by Ehlers Associates, Inc. 5114/2014
O
C
rt
I
N
m
(nft
WH<D,H
OK 111E WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Trena Larson, Director of Finance
DATE: June 24, 2014
City of Oshkosh
215 Church Avenue
PO Box 1 130
Oshkosh, WI 54903-1130
,rrtna Lassen
Dinxtot of Financa
RE: Authorize Borrowing of $10,400,000 from State Trust Loan to finance WRS Prior
Service Pension Liability
BACKGROUND
The City has an unfunded pension liability with the Wisconsin Retirement System (WRS).
Currently the annual payments being made are not large enough to cover current interest costs.
During a March a bond rating call with Moody's Investor's Service, staff brought up the issue of
our liability. They questioned Moody's on the advantages of paying off this liability as there would
be financial benefit as long -term savings would be realized. Moody's belief was that our liability is
not much different than regular debt and it would factor into their review regardless of how it is
classified, As a result staff asked Ehlers and Associates to review the cost - benefit of paying off the
WRS Iiability.
Ehlers completed an initial analysis comparing the cost benefit of continuing to pay on the liability,
issuing Taxable Bonds, or applying for a state trust fund loan. It was determined that the state trust
fund loan offered the largest amount of savings.
ANALYSIS
Attached you will find an updated analysis prepared by Ehlers (see Exhibit A) to compare the cost -
benefit of continuing to pay on the unfunded pension liability or securing a 20 year state trust fund
loan. If the City would continue to make payments over 22 years it will have paid out $14,388,434
and have a remaining unfunded pension liability of $16,234,353. However, if a state trust fund loan
is obtained the city will pay out $15,960,143 over 20 years and this unfunded pension liability will
be paid in full.
The Long Range Finance Committee has also reviewed the Ehlers analysis and are recommending
for the Council to move forward with the State Trust Fund Loan.
This loan will be secured at 4.25% interest rate for twenty years.
FISCAL IMPACT
Securing a loan and the payoff of this unfunded pension liability will result in an estimated savings
of $13,726,721 over a twenty year period. This is calculated by taking the accumulated
Savings/Cost (2,507,632) and subtracting it from the balance remaining if unfunded pension
liability if not refunded 16,234,353.
RECOMMENATION
Staff recommends adoption of the above noted resolution.
Respectfully Submitted, Approved
j Cup— 4. 4014&
Trena Larson Mark Rohloff
Director of Finance City Manager