HomeMy WebLinkAbout06. 19-324 JUNE 11, 2019 19-324 RESOLUTION
(CARRIED 6-0 LOST LAID OVER WITHDRAWN )
PURPOSE: AUTHORIZE THE ISSUANCE OF $5,380,000 AGGREGATE
PRINCIPAL AMOUNT OF GENERAL OBLIGATION STREET
IMPROVEMENT BONDS, SERIES 2019A, 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,
LEVYING TAXES, AND RELATED MATTERS
INITIATED BY: FINANCE DEPARTMENT
WHEREAS, cities are authorized by the provisions of Chapter 67, Wisconsin Statutes, as
supplemented and amended (the "Statute"),to issue bonds for any public purpose; and
WHEREAS, the term `public purpose" is defined in the Statute as "the performance of any
power or duty of the issuing municipality;" and
WHEREAS, cities are empowered by the Wisconsin Statutes, as supplemented and
amended, to finance streets and street improvements; and
WHEREAS,the City of Oshkosh, Winnebago County, Wisconsin (the "City"), now wishes
to finance projects relating to streets and street improvements; and
WHEREAS, by an initial resolution (the "Initial Resolution") duly adopted by the
Common Council of the City (the "Common Council") on April 23, 2019, there have been
authorized to be issued bonds of the City for the public purposes as follows:
$5,450,000 for streets and street improvements;
WHEREAS, official notice of the adoption of the Initial Resolution was published on
April 27, 2019, in the Oshkosh Northwestern, and,
WHEREAS, no petition was filed with the City Clerk of the City requesting that the Initial
Resolution be submitted to the electors of the City within a period of 30 days following the
adoption of the Initial Resolution and, as such, the City is therefore authorized to issue its general
obligation bonds for the purposes set forth in the Initial Resolution; and
WHEREAS, it is now necessary and desirable by the Common Council that the City
borrow $5,380,000 for the purpose aforesaid and issue its General Obligation Street
Improvement Bonds, Series 2019A (the "Bonds") to evidence the indebtedness thereby incurred;
and
WHEREAS, it is now necessary that the Bonds be sold and issued for the purposes
aforesaid in the aggregate principal amount of$5,380,000; and
WHEREAS, notice of the sale of bonds for such purpose was previously duly published in
The Bond Buyer, and
WHEREAS, pursuant to the advertisement aforesaid, sealed bids were received for the
purchase of said bonds in the aggregate principal amount of $5,380,000 until 11:00 A.M.,
Central Time, on June 11, 2019, and are as follows:
NAME OF BIDDER TRUE INTEREST RATE
Hutchinson, Shockey, Erley & Company, Inc. 2.576538%*
Robert W. Baird & Co., Inc. 2.602671%
FTN Financial Capital Markets 2.610418%
and
WHEREAS, the bid of Hutchinson, Shockey, Erley & Company, Inc., at a price of
$5,665,798.69, was the best bid submitted, which bid is as follows:
(Here Insert or Attach a True Copy of the Winning Bid)
* True interest cost of 2.5814%after resizing.
Now, THEREFORE, Be It Resolved by the Common Council of the City of Oshkosh,
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 General Obligation Street
Improvement Bonds, Series 2019A, 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 Common Council of the City, or such other council,
board, commission or body, by whatever name known, which shall succeed to its powers.
"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 $5,380,000 aggregate principal amount of
the Bonds is hereby authorized for the purpose of providing funds in an amount sufficient to
finance the public purpose projects, as set out in the preamble to this Resolution.
The Bonds shall be designated "General Obligation Street Improvement Bonds, Series
2019A," 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 December 1 of the
years, and in the principal amounts, and shall bear interest at the rates per annum, as follows:
PRINCIPAL INTEREST PRINCIPAL INTEREST
YEAR AMOUNT RATE YEAR AMOUNT RATE
2020 $455,000 0.05% 2030 $365,000 4.00%
2021 355,000 0.05% 2031 220,000 4.00%
2022 310,000 0.05% 2032 225,000 4.00%
2023 300,000 2.00% 2033 235,000 2.75%
2024 300,000 3.00% 2034 240,000 2.75%
2025 310,000 4.00% 2038 725,000 3.00%
2026 320,000 4.00%
2027 330,000 4.00%
2028 340,000 4.00%
2029 350,000 4.00%
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 June 1 and December 1 of each year,
commencing on June 1, 2020. 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 S. Registration of Bonds; Persons Treated as Owners. (a) 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.
The City is authorized to prepare, and the Registrar shall keep custody of, multiple Bond blanks
executed by the City for use in the transfer and exchange of Bonds.
Upon surrender for transfer of any Bond at the principal corporate trust office of the
Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in
form satisfactory to the Registrar and duly executed by, the registered owner or his or her
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 of authorized 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 of other authorized
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, the principal amount of outstanding Bonds of each
maturity authenticated by the Registrar shall not exceed the authorized principal amount of
Bonds for such maturity less previous retirements.
The Registrar shall not be required to transfer or exchange any Bond during the period
beginning at the close of business on the 15th day of the month next preceding any interest
payment date on such Bond and ending at the opening of business on such interest payment date,
nor to transfer or exchange any Bond after notice calling such Bond for redemption has been
mailed, nor during a 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 or interest on any
Bond shall be made only to or upon the order of the registered owner thereof or his or her 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.
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.
(b) Global Book-Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds determined as
described in Section 2 hereof. Unless otherwise requested by any Purchaser, upon initial
issuance, the ownership of each such Bond shall be registered in the Bond Register in the name
of Cede & Co., or any successor thereto ("Cede"), as nominee of The Depository Trust
Company, New York, New York, and its successors and assigns ("DTC"). All of the
outstanding Bonds shall be registered in the Bond Register in the name of Cede, as nominee of
DTC, except as hereinafter provided. The Mayor, the City Manager, the Treasurer, the Director
of Finance and any other business official of the City and the Registrar are each authorized to
execute and deliver, on behalf of the City, such letters to or agreements with DTC as shall be
necessary to effectuate such book-entry system (any such letter or agreement being referred to
herein as the "Representation Letter"), which Representation Letter may provide for the
payment of principal of or interest on the Bonds by wire transfer.
With respect to Bonds registered in the Bond Register in the name of Cede, as nominee
of DTC, the City and the Registrar shall have no responsibility or obligation to any broker-
dealer, bank or other financial institution for which DTC holds Bonds from time to time as
securities depository (each such broker-dealer, bank or other financial institution being referred
to herein as a "DTC Participant") or to any person on behalf of whom such a DTC Participant
holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City
and the Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the
records of DTC, Cede or any DTC Participant with respect to any ownership interest in the
Bonds, (ii) the delivery to any DTC Participant or any other person, other than a registered owner
of a Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any
notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than
a registered owner of a Bond as shown in the Bond Register, of any amount with respect to the
principal of or interest on the Bonds. The City and the Registrar may treat and consider the
person in whose name each Bond is registered in the Bond Register as the holder and absolute
owner of such Bond for the purpose of payment of principal and interest with respect to such
Bond, for the purpose of giving notices of redemption and other matters with respect to such
Bond, for the purpose of registering transfers with respect to such Bond, and for all other
purposes whatsoever. The Registrar shall pay all principal of and interest on the Bonds only to
or upon the order of the respective registered owners of the Bonds, as shown in the Bond
Register, or their respective attorneys duly authorized in writing, and all such payments shall be
valid and effective to fully satisfy and discharge the City's obligations with respect to payment
of the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person
other than a registered owner of a Bond as shown in the Bond Register, shall receive a Bond
evidencing the obligation of the City to make payments of principal and interest with respect to
any Bond. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede, and subject to the provisions in
Section 3 hereof with respect to the payment of interest to the registered owners of Bonds at the
close of business on the 15th day of the month next preceding the applicable interest payment
date,the name "Cede" in this resolution shall refer to such new nominee of DTC.
In the event that (i) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among the
City, the Registrar and DTC evidenced by the Representation Letter shall be terminated for any
reason or (iii) the City determines that it is in the best interests of the beneficial owners of the
Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC
Participants of the availability through DTC of certificated Bonds and the Bonds shall no longer
be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC.
At that time, the City may determine that the Bonds shall be registered in the name of and
deposited with such other depository operating a universal book-entry system, as may be
acceptable to the City, or such depository's agent or designee, and if the City does not select
such alternate universal book-entry system, then the Bonds may be registered in whatever name
or names registered owners of Bonds transferring or exchanging Bonds shall designate, in
accordance with the provisions of Section 5(a) hereof.
Notwithstanding any other provisions of this resolution to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to
principal of and interest on such Bond and all notices with respect to such Bond shall be made
and given, respectively, in the name provided in the Representation Letter.
Section 6. Prior Redemption. The Bonds maturing on and after December 1, 2028,
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 December 1, 2027, 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 December 1, 2038 shall be subject to mandatory sinking fund
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 December 1 of the following years and in the following amounts:
REDEMPTION DATE PRINCIPAL AMOUNT
MAY 1 OF REDEMPTION
2035 $175,000
2036 180,000
2037 185,000
2038* 185,000
* Maturity
The principal amounts of Bonds to be mandatorily redeemed in each year may be reduced
through the earlier optional redemption thereof, with any partial optional redemptions of such
Bonds credited against future mandatory redemption requirements in such order of the
mandatory redemption dates as the City may determine. In addition, on or prior to the 60th day
preceding any mandatory redemption date, the Registrar may, and if directed by the Common
Council shall, purchase Bonds required to be retired on such mandatory redemption date. Any
such Bonds so purchased shall be cancelled and the principal amount thereof shall be credited
against the mandatory redemption required on such next mandatory redemption date.
The Bonds shall be redeemed only in the principal amount of $5,000 and integral
multiples thereof. The City shall, at least forty-five (45) days prior to any optional redemption
date (unless a shorter time period shall be satisfactory to the Registrar) notify the Registrar of
such redemption date and of the principal amount and maturity or maturities of Bonds to be
redeemed. For purposes of any redemption of less than all of the outstanding Bonds of a single
series and maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected
by lot by the Registrar from the Bonds of such series and maturity by such method of lottery as
the Registrar shall deem fair and appropriate; provided that such lottery shall provide for the
selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000 portion
of a Bond shall be as likely to be called for redemption as any other such $5,000 Bond or $5,000
portion. The Registrar shall make such selection upon the earlier of the irrevocable deposit of
funds with an escrow agent sufficient to pay the redemption price of the Bonds to be redeemed
or the time of the giving of official notice of redemption.
The Registrar shall promptly notify the City in writing of the Bonds or portions of Bonds
selected for redemption 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 holder of Bonds to be
redeemed, notice of the call for any such redemption shall be given by the Registrar on behalf of
the City by mailing the redemption notice by first class mail at least 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 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.
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.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed at the
option of the City 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 shall have been given, that such moneys were not so received and that
such Bonds will not be redeemed. Otherwise, prior to any redemption date, 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.
Subject to the provisions for a conditional redemption described above, notice of
redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, 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 redemption date shall be
payable as herein provided for payment of interest. Upon surrender for any partial redemption of
any Bond, there shall be prepared for the registered holder a new Bond or Bonds of the same
maturity in the amount of the unpaid principal.
If any Bond or portion of Bond called for redemption shall not be so paid upon surrender
thereof for redemption, the principal shall, until paid, bear interest from the redemption date at
the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have
been redeemed shall be cancelled and destroyed by the Registrar and shall not be reissued.
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:
No. R- $
(FORM OF BOND)
UNITED STATES OF AMERICA
STATE OF WISCONSIN
COUNTY OF WINNEBAGO
CITY OF OSHKOSH
GENERAL OBLIGATION STREET IMPROVEMENT BOND
SERIES 2019A
RATE OF
INTEREST MATURITY DATE DATED DATE CUSIP NUMBER
% December 1, , 2019
Registered Owner:
Principal Amount:
KNow ALL MEN BY THESE PRESENTS: That the City of Oshkosh in the County of
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 June 1 and December 1 of each year,
commencing on June 1, 2020, 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.
IN WITNESS WHEREOF the City of Oshkosh, Winnebago County, Wisconsin, by its
Common 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
[SEAL]
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within mentioned Resolution, and is one
of the General Obligation Street Improvement Bonds, Series 2019A, of the City of Oshkosh,
Winnebago County, Wisconsin.
Date of Authentication:
By
City Treasurer
[Form of Bond - Reverse Side]
This Bond is one of an authorized issue of General Obligation Street Improvement
Bonds, Series 2019A, aggregating the principal amount of$5,380,000 (the "Bonds") issued for
the following public purpose:
$5,380,000 for streets and street improvements;
pursuant to and in all respects in compliance with Chapter 67, Wisconsin Statutes, as
supplemented and amended and a resolution adopted by the Common Council of the City on
June 11, 2019 (the "Resolution").
Bonds of the issue of which this Bond is one maturing on and after December 1, 2028,
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 December 1, 2027, 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 December 1, 2038 shall be subject to mandatory sinking fund
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 December 1 of the following years and in the following amounts:
REDEMPTION DATE PRINCIPAL AMOUNT
MAY 1 OF REDEMPTION
2035 $175,000
2036 180,000
2037 185,000
2038* 185,000
* 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.
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.
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:
TEN COM- as tenants in common UNIF GIFT/TRANS MIN ACT-
Custodian
(Cust) (Minor)
TEN ENT- as tenants by the entirety under Uniform Gifts/Transfers to Minors
JT TEN- as joint tenants with right of Act
survivorship and not as (State)
tenants in common
Additional abbreviations may also be used though not listed above.
ASSIGNMENT
FOR VALUE RECEIVED,the undersigned hereby sells, assigns and transfers unto
(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:
NOTICE: The signature to this Assignment must correspond with the name of the registered
owner as it appears upon the face of the within Bond in every particular, without
alteration or enlargement or any change whatever.
Signature guaranteed:
NOTICE: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the
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 Hutchinson, Shockey, Erley &
Company, Inc. at a price of$5,665,798.69, 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:
YEAR AMOUNT
2019 $667,414.07
2020 503,545.00
2021 458,367.50
2022 448,212.50
2023 442,212.50
2024 443,212.50
2025 440,812.50
2026 438,012.50
2027 434,812.50
2028 431,212.50
2029 432,212.50
2030 272,612.50
2031 268,812.50
2032 269,812.50
2033 268,350.00
2034 196,750.00
2035 196,500.00
2036 196,100.00
2037 190,550.00
In each of said years from 2019 to 2037, 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 2019A Street Improvement Bond Account"to be held as a part
of the Debt Service Fund, all premium, if any, and accrued interest, if any, 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; No Arbitrage; Bonds to Remain in Registered Form;
Reimbursement. The principal proceeds of the Bonds shall be deposited in a special fund, and
used solely for the purpose of financing the public purpose projects for which the Bonds are
hereby authorized. Such proceeds deposited into the Construction Fund from the sale of the
Bonds shall be used only to pay the costs of the public projects aforesaid and the Governing
Body hereby covenants and agrees that said principal proceeds shall be devoted to and used with
due diligence for such purposes.
The City recognizes that the purchasers and owners of the Bonds will have accepted them
on, and paid therefor a price which reflects, the understanding that the interest thereon is
excludible from gross income of the owners thereof for Federal income tax purposes under laws
in force at the time the Bonds shall have been delivered. In this connection, the City agrees that
it shall take no action which may render the interest on any of the Bonds includible in gross
income of the owners thereof for Federal income tax purposes and that the principal proceeds of
the sale of the Bonds shall be devoted to and used with due diligence for the purposes for which
the Bonds are hereby authorized to be issued. The City agrees that, to the extent possible under
state law, it will comply with whatever Federal law is adopted in the future, which applies to the
Bonds and affects the tax-exempt status of the interest on the Bonds.
The City Manager, the City Clerk, the City Treasurer/Finance Director or any of them,
are hereby authorized to execute on behalf of the City a Tax Exemption Certificate and
Agreement to assure the purchasers and owners of the Bonds that the proceeds of the Bonds are
not expected to be used in a manner which would or might result in the Bonds being
"reimbursement bonds" issued in contravention of Section 1.103-18 of the United States
Treasury Department Regulations (the "Regulations") or "arbitrage bonds"under Section 148 of
the Code or the Regulations currently in effect or proposed. Such Tax Exemption Certificate and
Agreement shall constitute a representation, certification and covenant of the City, and shall be
incorporated herein by reference, and no use or investment of Bond proceeds or of moneys
accumulated to pay the Bonds herein authorized shall be made in violation of the expectations
prescribed by said Tax Exemption Certificate and Agreement. Such Tax Exemption Certificate
and Agreement shall constitute an agreement of the City to follow certain covenants which may
require the City to take certain actions (including the payment of certain amounts to the United
States of America) or which may prohibit certain actions (including the establishment of certain
funds and account) under certain conditions as specified in such Tax Exemption Certificate and
Agreement.
The City further recognizes that Section 149(a) of the Code requires the Bonds to be
issued and to remain in fully registered form in order that the interest thereon is excludible from
gross income of the owners thereof for Federal income tax purposes under laws in force at the
time the Bonds are delivered. 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 said 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 for 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 thereof 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 (including without limitation any certificate or agreement executed to
comply with Rule 15c2-12 of the Securities and Exchange Commission) and to take all actions
as may be necessary in connection with the authorization, issuance, sale 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 of 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 11, 2019.
Approved June 11, 2019.
Recorded June 11, 2019.
/s/
Mayor
ATTEST:
/s/
City Clerk
eLle
City
of
Oshkosh
TO: Honorable Mayor and Members of the Common Council
FROM: Trena Larson, Finance Director
DATE: June 6, 2019
RE: AUTHORIZE THE ISSUANCE OF $5,450,000 AGGREGATE PRINCIPAL
AMOUNT OF GENERAL OBLIGATION STREET IMPROVEMENT
BONDS, SERIES 2019A, 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, LEVYING TAXES, AND RELATED MATTERS
AUTHORIZE THE ISSUANCE OF$16,405,000 AGGREGATE PRINCIPAL
AMOUNT OF GENERAL OBLIGATION PROMISSORY NOTES, SERIES
2019B, OF THE CITY OF OSHKOSH, WINNEBAGO COUNTY,
WISCONSIN, IN SUCH AMOUNT, PROVIDING DETAILS,
PRESCRIBING THE FORM OF NOTE,AWARDING THE NOTES TO THE
BEST BIDDER, LEVYING TAXES, AND RELATED MATTERS
AUTHORIZE THE ISSUANCE OF $8,630,000 AGGREGATE PRINCIPAL
AMOUNT OF STORM WATER UTILITY REVENUE BONDS, SERIES
2019C, 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 PROVIDING FOR THE PAYMENT OF SAID
BONDS AND COVENANTS WITH RESPECT THERETO
BACKGROUND
In November of 2018 the Common Council adopted the 2019 Capital Improvement Program (CIP).
Staff was then able to execute a reimbursement declaration in November of 2018. On April 23, 2019 the
Common Council approved the initial borrowing resolutions which stated the intent to borrow and
authorized staff to proceed with the preparation and documentation needed to sell the bonds. The sale
of the bonds will be completed and the final approval is needed to authorize the sale of the General
Obligation Bonds and Notes as well as the Storm Water System Revenue Bonds. As noted in the April
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.
Finance Director,Trena Larson
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130
http://www.ci.oshkosh.wi.us
As is normal practice, the bonds and notes as outlined above will be offered to the public through
competitive sales at 11 AM on Tuesday,June 11, 2019. Following the sales and tentative agreements the
terms will be presented for approval to the Council at Tuesday's meeting.
As outlined in the initial resolutions,we are separating the Utility borrowing from the general
obligation borrowing to match the obligations with the funds that benefit from the borrowing. This
also helps manage the City's debt burden in recognition of the regulatory limit of 5%of Equalized
Value for General Obligation Debt, and to reserve general obligation borrowing capacity for future
needs.
ANALYSIS
While we will not be able to do an exact dollar analysis of the bids until they are received on Tuesday,
June 11, the information below provides details of a typical tax-exempt borrowing.
Tax-Exempt Borrowing Option is traditionally the lowest cost option to obtain funds for public use.
There are certain requirements that the City must follow in executing the bonds that include the proper
use, recordkeeping, and accountability of the funds.
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 3.10% for the General Obligation Bonds, 2.72% for the General Obligation Notes,
and 3.32%for the Storm Water Revenue Bonds. Since the time the planning runs were prepared,
market conditions have been improved so we would anticipate more favorable results.
FISCAL IMPACT
The$16,405,000 of Promissory Notes will be paid off over ten years. This issuance of the Promissory
Notes,includes refunding of the 2009A issuance. It is anticipated this refunding will save the
approximately$425,000 over the remaining life of the bond. The$5,450,000 of General Obligation
Bonds will be paid off over twenty years. The Storm Water System Revenue Bonds of$8,630,000 will be
paid off over twenty years. All issues will be added to the City's outstanding debt obligations.
RECOMMENDATION
Staff recommends adoption both of the above noted resolutions.
Respectfully Submitted, Approved:
Xena arson
Trena Larson Mark Rohloff
Finance Director City Manager