HomeMy WebLinkAbout06. 19-230 APRIL 23, 2019 19-230 RESOLUTION
(CARRIED 6-0 LOST LAID OVER WITHDRAWN )
PURPOSE: INITIAL RESOLUTION AUTHORIZING NOT EXCEEDING
$5,450,000 GENERAL OBLIGATION BONDS OF THE CITY OF
OSHKOSH
INITIATED BY: FINANCE DEPARTMENT
BE IT RESOLVED by the City Council of the City of Oshkosh, Winnebago County,
Wisconsin, that there shall be issued general obligation bonds of said City in an aggregate
principal amount not exceeding $5,450,000 for the public purpose of laying out, opening
and widening streets and providing street improvements. 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 said City a direct annual irrepealable tax sufficient for that purpose.
The City Clerk is hereby directed to publish notice of adoption of the foregoing
Initial Resolution, one time in the official city newspaper,not later than May 8, 2019, such
notice to be in substantially the form as follows:
OFFICIAL NOTICE TO ELECTORS
OF ADOPTION OF
INITIAL RESOLUTION
An Initial resolution was adopted at the regular meeting of the City Council of the City of
Oshkosh, Winnebago County, Wisconsin, on April 23, 2019, and promptly recorded, providing
for the issuance of general obligation bonds of the City in the amount and for the public purpose,
as follows:
AMOUNT PURPOSE
$5,450,000 streets and street improvements
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 23, 2019, 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: April 23, 2019
/s/ Pamela R. Ubrig
City Clerk
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City
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Oshkosh
TO: Honorable Mayor and Members of the Common Council
FROM: Trena Larson, Finance Director
DATE: April 15, 2019
RE: Approve Initial Resolutions Authorizing General Obligation and Utility Revenue
Bond Funding to Finance Projects Included in the City's 2019 Capital
Improvement Plan
Resolution directing the advertisement and sale of up to $5,450,000 aggregate principal amount
of General Obligation Corporate Purpose Bonds, Series 2019A, approximately $16,405,000
aggregate principal amount of General Obligation Promissory Notes, Series 2019B, and
approximately $8,835,000 aggregate principal amount of Storm Water Utility Revenue Bonds,
Series 2019C, approximately $11,085,000 aggregate principal amount of Water Utility Revenue
Bonds, Series 2019D, and approximately $16,115,000 aggregate principal amount of Sewer Utility
Revenue Bonds, Series 2019E, for the City of Oshkosh, Winnebago County, Wisconsin.
BACKGROUND
In order to borrow money through the bonding process, the City is required to issue initial
resolutions stating its intent, along with another resolution that authorize staff to proceed with
the preparation and documentation needed to sell the bonds and receive the proceeds. The sale
of the bonds and notes will occur at least 30 days after the initial resolution is authorized.
ANALYSIS
The currently proposed general obligation borrowing of $21,855,000 included the following:
• Up to $5,450,000 for the public purpose of laying out, opening and widening streets and
providing street improvements
• Approximately $8,620,000 for the public purpose of funding sidewalk replacement,
purchase of major equipment replacement, providing parking lots, park improvements,
traffic improvements, and other public property improvements.
• Approximately $7,785,000 for the public purpose of refinancing the City's Taxable
General Obligation Corporate Purpose Bonds, Series 2009A (Build America Bonds) for
debt service savings.
As part of the annual debt issuance process, a comprehensive review of outstanding debt issues
are evaluated for potential saving which would be realized through refinancing. Refinancing of
the 2009A Bonds noted above is projected to reduce debt service expense by approximately
$425,000 over the remaining nine-year term of the debt.
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
In addition, staff is proposing additional borrowing of $36,035,000 through issuance of utility
revenue bonds as noted below:
Up to $8,835,000 of Storm Water Revenue Bonds for storm water projects
Up to $11,085,000 of Water Revenue Bonds for water projects and to refinance the City's
Series 2011F Water System Revenue Bonds for debt service savings.
Up to $16,115,000 of Sewer Revenue Bonds for sewer projects and to refinance the City's
Series 201OG Taxable Sewer Revenue Bonds (Build America Bonds) and 2011E Sewer
Revenue Bonds for debt service savings.
These Revenue Bond issues will utilize a blended amortization schedule to include both ten and
twenty year projects which were included in the 2019 Capital Improvement Plan as approved
by the Council on November 14, 2018. The water revenue bond refinancing noted above is
expected to reduce debt service expense by approximately $223,000 over the remaining twelve-
year term of the debt. The sewer revenue bond refinancing noted above are expected to reduce
debt service expense by approximately $392,000 over the remaining life of the obligations.
FISCAL IMPACT
The above amounts, if borrowed, will be added to the City's outstanding debt obligations, and
funded through the applicable budgets (Debt Service Fund, Storm Water Utility Fund, Water
Utility Fund, and Sewer Utility Fund).
RECOMMENDATION
Staff recommends adoption both of the above noted resolutions.
Respectfully Submitted,
Trena Larson
Finance Director
Approved:
Mark Rohloff
City Manager
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1 130 920.236.5005 http://www.ci.oshkosh.wi.us