HomeMy WebLinkAboutResolution 2016 (16) Resolution No. 16 (2016)
ST RO .,, RESOLUTION AWARDING THE SALE OF $10,000,000
' �' GENERAL OBLIGATION HEALTH CENTER BONDS, SERIES
2016A; PROVIDING THE FORM OF THE BONDS; AND
LEVYING A TAX IN CONNECTION THEREWITH
1 WHEREAS, on May 5, 2015, the County Board of St. Croix County, Wisconsin (the
2 "County") adopted a resolution entitled: "Resolution Authorizing the Borrowing of Not to
3 Exceed $20,000,000; and Providing for the Issuance and Sale of General Obligation Health
4 Center Bonds Therefor" (the"Authorizing Resolution")which authorized the issuance and sale
5 of general obligation Health Center Bonds for the purpose of paying the costs of constructing
6 and equipping a new skilled nursing, community based residential and dementia crisis facility
7 (the"Project");
8 WHEREAS, on September 3, 2015, the County issued $10,000,000 of General
9 Obligation Health Center Bonds, Series 2015A to pay a portion of the Project;
10 WHEREAS,pursuant to the Authorizing Resolution, the Finance Director(in
11 consultation with the County's financial advisor, Springsted, Incorporated) caused an Official
12 Notice of Sale to be distributed, offering the final portion of the aforesaid general obligation
13 Health Center Bonds in the amount of$10,000,000 for public sale on February 1, 2016; and
14 WHEREAS, sealed bid proposals were received as summarized on Exhibit C attached
15 hereto; and
16 WHEREAS, it has been determined that the bid proposal (the "Proposal") submitted by
17 Stifel, Nicolaus & Company, Incorporated, Birmingham, Alabama, fully complies with the bid
18 requirements set forth in the Official Notice of Sale and is deemed to be the most advantageous
19 to the County. A copy of said bid is attached hereto as Exhibit A and incorporated herein by this
20 reference.
21 NOW, THEREFORE, BE IT RESOLVED by the County Board of the County that:
22 Section 1. Award of the Bonds. The bid proposal of Stifel,Nicolaus & Company,
23 Incorporated, Birmingham, Alabama (the "Purchaser")is hereby accepted, said proposal
24 offering to purchase the TEN MILLION DOLLARS ($10,000,000) General Obligation Health
25 Center Bonds, Series 2016A (the"Bonds") for the sum of TEN MILLION EIGHTY ONE
26 THOUSAND THREE HUNDRED FORTY-SEVEN DOLLARS AND THIRTY-FIVE CENTS
27 ($10,081,347.35),plus accrued interest to the date of delivery resulting in a net interest cost of
28 THREE MILLION ONE HUNDRED THIRTY-SIX THOUSAND THREE HUNDRED
29 SIXTEEN DOLLARS AND FIFTY-FIVE CENTS ($3,136,316.55) and a true interest rate of
30 2.3114%.
31
32 Section 2. Terms of the Bonds. The Bonds shall be designated"General Obligation
33 Health Center Bonds, Series 2016A"; shall be dated March 2, 2016; shall be in the denomination
34 of$5,000 or any integral multiple thereof, shall bear interest at the rates per annum and mature
35 on April 1 of each year, in the years and principal amounts as set forth in the Pricing Summary
36 attached hereto as Exhibit D and incorporated herein by this reference. Interest is payable semi-
37 annually on April 1 and October 1 of each year commencing October 1, 2016. The schedule of
38 principal and interest payments due on the Bonds is set forth on the Debt Service Schedule
39 attached hereto as Exhibit E and incorporated herein by this reference (the "Schedule").
40 Section 3. Designation of Purchaser as Agent. The County hereby designates the
41 Purchaser as its agent for purposes of distributing the Final Official Statement relating to the
42 Bonds to any participating underwriter in compliance with Rule 15c2-12 of the Securities and
43 Exchange Commission.
44 Section 4. Redemption Provisions. At the option of the County, the Bonds maturing
45 on April 1, 2026 and thereafter shall be subject to redemption prior to maturity on April 1, 2025
46 or on any date thereafter. Said Bonds shall be redeemable as a whole or in part, from maturities
47 selected by the County and within each maturity by lot, at the principal amount thereof,plus
48 accrued interest to the date of redemption.
49 Section 5. Form of the Bonds. The Bonds shall be issued in registered form and shall
50 be executed and delivered in substantially the form attached hereto as Exhibit B and incorporated
51 herein by this reference.
52 Section 6. Direct Annual Irrepealable Tax Levy. For the purpose of paying the
53 principal of and interest on the Bonds as the same becomes due, the full faith, credit and
54 resources of the County are hereby irrevocably pledged and a direct annual irrepealable tax is
55 hereby levied upon all taxable property of the County. Said direct annual irrepealable tax shall
56 be levied in the years 2016 through 2034 for payments due in 2017 through 2035 in the amounts
57 as set forth on the Schedule. The County shall use $81,347.35 of the bid premium received on
58 the Bonds and $57,954.05 of County funds on hand to make the October 1, 2016 interest
59 payment on the Bonds.
60 The aforesaid direct annual irrepealable tax hereby levied shall be collected in addition to
61 all other taxes and in the same manner and at the same time as other taxes of the County levied in
62 said years are collected. So long as any part of the principal of or interest on the Bonds remains
63 unpaid, the tax herein above levied shall be and continues irrepealable except that the amount of
64 tax carried onto the tax roll may be reduced in any year by the amount of any surplus in the Debt
65 Service Fund Account created herein, including any capitalized interest funded with proceeds of
66 the Bonds.
67 Section 7. Debt Service Fund Account. There is hereby established in the County
68 treasury a fund account separate and distinct from every other County fund or account designated
69 "Debt Service Fund Account for $10,000,000 St. Croix County General Obligation Health
70 Center Bonds, Series 2016A, dated March 2, 2016." There shall be deposited in said fund
71 account any premium plus accrued interest paid on the Bonds at the time of delivery to the
72 Purchaser, all money raised by taxation pursuant to Section 6 hereof and all other sums as may
73 be necessary to pay interest on the Bonds when the same shall become due and to retire the
74 Bonds at their respective maturity dates. Said fund account shall be used for the sole purpose of
75 paying the principal of and interest on the Bonds and shall be maintained for such purpose until
76 such indebtedness is fully paid or otherwise extinguished.
77 Section 8. Segregated Borrowed Money Fund. The proceeds of the Bonds (the "Bond
78 Proceeds") (other than any premium and accrued interest which must be paid at the time of the
79 delivery of the Bonds into the Debt Service Fund Account created above) shall be deposited into
80 an account separate and distinct from all other funds and be disbursed solely for the purposes for
81 which borrowed or for the payment for the principal of and the interest on the Bonds.
82 Section 9. Arbitrage Covenant. The County shall not take any action with respect to
83 the Bond Proceeds which, if such action had been reasonably expected to have been taken, or
84 had been deliberately and intentionally taken on the date of the delivery of and payment for the
85 Bonds (the "Closing"), would cause the Bonds to be "arbitrage bonds"within the meaning of
86 Section 148 of the Internal Revenue Code of 1986, as amended (the "Code") and any income tax
87 regulations promulgated thereunder(the"Regulations").
88 The Bond Proceeds may be temporarily invested in legal investments until needed,
89 provided however, that the County hereby covenants and agrees that so long as the Bonds remain
90 outstanding, moneys on deposit in any fund or account created or maintained in connection with
91 the Bonds, whether such moneys were derived from the Bond Proceeds or from any other source,
92 will not be used or invested in a manner which would cause the Bonds to be "arbitrage bonds"
93 within the meaning of the Code or Regulations.
94 The County Clerk, or other officer of the County charged with responsibility for issuing
95 the Bonds, shall provide an appropriate certificate of the County, for inclusion in the transcript of
96 proceedings, setting forth the reasonable expectations of the County regarding the amount and
97 use of the Bond Proceeds and the facts and estimates on which such expectations are based, all as
98 of the Closing.
99 Section 10. Additional Tax Covenants, Exemption from Rebate, Qualified Tax-
100 Exempt Obligation Status. The County hereby further covenants and agrees that it will take all
101 necessary steps and perform all obligations required by the Code and Regulations (whether prior
102 to or subsequent to the issuance of the Bonds) to assure that the Bonds are obligations described
103 in Section 103(a) of the Code, the interest on which is excluded from gross income for federal
104 income tax purposes, throughout their term. The County Clerk or other officer of the County
105 charged with the responsibility of issuing the Bonds, shall provide an appropriate certificate of
106 the County as of the Closing, for inclusion in the transcript of proceedings, certifying that it can
107 and covenanting that it will comply with the provisions of the Code and Regulations.
108 Further, it is the intent of the County to take all reasonable and lawful actions to comply
109 with any new tax laws enacted so that the Bonds will continue to be obligations described in
110 Section 103(a) of the Code, the interest on which is excluded from gross income for federal
111 income tax purposes.
112 The County anticipates that the Bonds will qualify for the two year expenditure
113 exemption from the rebate requirements of the Code. The County Clerk or other officer of the
114 County charged with the responsibility of issuing the Bonds, shall provide an appropriate
115 certificate of the County as of the Closing, for inclusion in the transcript of proceedings, with
116 respect to said exemption from the rebate requirements, and said County Clerk or other officer is
117 hereby authorized to make any election on behalf of the County in order to comply with the
118 rebate requirements of the Code. If, for any reason, the County did not qualify for any
119 exemption from the rebate requirements of the Code, the County covenants that it would take all
120 necessary steps to comply with such requirements.
121 The County hereby designates the Bonds to be "qualified tax-exempt obligations"
122 pursuant to the provisions of Section 265(b)(3) of the Code and in support of such designation,
123 the County Clerk or other officer of the County charged with the responsibility for issuing the
124 Bonds, shall provide an appropriate certificate of the County, all as of the Closing.
125 Section 11. Persons Treated as Owners, Transfer of Bonds. The fiscal agent appointed
126 in Section 15 hereof shall keep books for the registration and for the transfer of the Bonds. The
127 person in whose name any Bond shall be registered shall be deemed and regarded as the absolute
128 owner thereof for all purposes and payment of either principal or interest on any Bond shall be
129 made only to the registered owner thereof. All such payments shall be valid and effectual to
130 satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.
131 Any Bond may be transferred by the registered owner thereof by surrender of the Bond at
132 the office of said fiscal agent, duly endorsed for the transfer or accompanied by an assignment
133 duly executed by the registered owner or his attorney duly authorized in writing. Upon such
134 transfer, said fiscal agent shall deliver in the name of the transferee or transferees a new Bond or
135 Bonds of a like aggregate principal amount, series and maturity and said fiscal agent shall record
136 the name of each transferee in the registration book. No registration shall be made to bearer.
137 Said fiscal agent shall cancel any Bond surrendered for transfer.
138 The County shall cooperate in any such transfer, and the County Board Chairperson and
139 County Clerk are authorized to execute any new Bond or Bonds necessary to effect any such
140 transfer.
141 The fifteenth day of each calendar month next preceding each interest payment date shall
142 be the record date for the Bonds. Payment of interest on the Bonds on any interest payment date
143 shall be made to the registered owners of the Bonds as they appear on the registration book of the
144 County maintained by said fiscal agent at the close of business on the corresponding record date.
145 Section 12. Utilization of The Depository Trust Company Book-Entry-Only-System.
146 In order to make the Bonds eligible for the services provided by The Depository Trust Company,
147 New York, New York("DTC"), the County has heretofore agreed to the applicable provisions
148 set forth in the DTC Blanket Issuer Letter of Representation and an official of the County has
149 executed such Letter of Representation and delivered it to the DTC on behalf of the County.
150 Section 13. Official Statement. The County Board hereby approves the Preliminary
151 Official Statement with respect to the Bonds and deems the Preliminary Official Statement as
152 "final" as of its date for purposes of SEC Rule 15c2-12 promulgated by the Securities and
153 Exchange Commission pursuant to the Securities and Exchange Act of 1934 (the"Rule"). All
154 actions taken by officers of the County in connection with the preparation of such Preliminary
155 Official Statement and any addenda to it or Final Official Statement are hereby ratified and
156 approved. In connection with Closing, the appropriate County official shall certify the
157 Preliminary Official Statement and any addenda or Final Official Statement. The appropriate
158 County official shall cause copies of the Preliminary Official Statement and any addenda or Final
159 Official Statement to be distributed to the Purchaser.
160 Section 14. Execution of the Bonds. The Bonds shall be issued in typewritten form,
161 one Bond for each maturity, executed on behalf of the County by the manual or facsimile
162 signatures of the County Board Chairperson and County Clerk(except that one of the foregoing
163 signatures shall be manual), sealed with its official or corporate seal, if any, and delivered to the
164 Purchaser upon payment to the County of the purchase price thereof,plus accrued interest to the
165 date of delivery. In the event that either of the officers whose signatures appear on the Bonds
166 shall cease to be such officers before the delivery of the Bonds, such signatures shall,
167 nevertheless, be valid and sufficient for all purposes to the same extent as if they had remained in
168 office until such delivery. The aforesaid officers are hereby authorized to do all acts and execute
169 and deliver all documents as may be necessary and convenient to effectuate the Closing.
170 Section 15. Payment of the Bonds. The principal of and interest on the Bonds shall be
171 paid by U.S. Bank National Association, St. Paul, Minnesota, which is hereby appointed as the
172 County's registrar and fiscal agent pursuant to the provisions of Section 67.10(2), Wisconsin
173 Statutes (the"Fiscal Agent"). The Fiscal Agency Agreement between the County and the Fiscal
174 Agent shall be substantially in the form attached hereto as Exhibit F and incorporated herein by
175 this reference.
176 Section 16. Continuing Disclosure. The County hereby covenants and agrees that it
177 will comply with and carry out all of the provisions of its Continuing Disclosure Certificate,
178 which the County will execute and deliver on the Closing Date. Any Bondholder may take such
179 actions as may be necessary and appropriate, including seeking mandate or specific performance
180 by court order, to cause the County to comply with its obligations under this Section.
181 Section 17. Conflicting Resolutions, Severability; Effective Date. All prior
182 resolutions, rules or other actions of the County or any parts thereof in conflict with the
183 provisions hereof shall be, and the same are,hereby rescinded insofar as the same may so
184 conflict. In the event that any one or more provisions hereof shall for any reason be held to be
185 illegal or invalid, such illegality or invalidity shall not affect any other provisions hereof. The
186 foregoing shall take effect immediately upon adoption and approval in the manner provided by
187 law.
Legal—Fiscal—Administrative Approvals:
Legal Note:
Fiscal Impact: The County is directly impacted by the issuance of$10,000,000 in general obligation
debt. The Health Center Project requires$20,000,000 of general obligation debt to
complete construction and remodeling. $10,000,000 of this amount was obtained in
2015 and this bond issue completes the debt issuance for the project. Over the
term of the bonds, from 2015 through 2035, the County will pay an additional
$3,232,315 in interest on the earlier bonds and estimated $3,750,000 on this second
bond issue. Net revenues of the Health Center Project will contribute an estimated
$8,100,000 towards payment of the debt and interest. From 2016 to 2035, the debt
repayments will affect the County's Property Tax Mill Rate.
a 01
c Coo,Corpora o o el ] 6�2i1I6 bert M' Fiffahce Director I 12016
(11121oo-
P TlX County Adutini 1126/20I6
02/2/16 Administrative Committee Adopted
02/02/16 Administration Committee APPROVED
......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ..........
RESULT: APPROVED [UNANIMOUS] Next: 2/2/2016 9:00 AM
MOVER: Jill Ann Berke, Supervisor
SECONDER: Travis Schachtner, Chair
AYES: Schachtner, Sjoberg, Berke, Kiesler, Achterhof
Vote Confirmation.
a,chtncr,5u ZC3l2{l I b
St. Croix County Board of Supervisors Action:
Roll Call -Vote Requirement— Majority of Supervisors Present
RESULT: ADOPTED [UNANIMOUS]
MOVER: Travis Schachtner, Supervisor
SECONDER: Jill Ann Berke, Supervisor
AYES: Schachtner, Ring, Babbitt, Novotny, Sjoberg, Koch, Nelson, Berke, Ostness,
Larson, Hansen, Kiesler, Brinkman, Peterson, Anderson, Achterhof, Leibfried,
Peavey
ABSENT: Chris Kilber
This Resolution was Adopted by the St. Croix County Board of Supervisors on February 2, 2016
Cindy Campbell, County Clerk
EXHIBIT F
FISCAL AGENCY AGREEMENT
THIS AGREEMENT is made and entered into the day of March, 2016, by and
between St. Croix County, Wisconsin (the "Issuer"), and U.S. Bank National Association, a
national banking association with trust powers located in St. Paul, Minnesota(the "Agent").
WITNESSETH:
WHEREAS, the Issuer has authorized the borrowing of the sum of TEN MILLION
DOLLARS ($10,000,000)pursuant to Section 67.04, Wisconsin Statutes, and resolutions
adopted by the Issuer's governing body on May 5, 2015 and February 2, 2016 and has authorized
the issuance and sale of$10,000,000 principal amount of general obligation health center bonds
to evidence such indebtedness (the "Obligations"). The Obligations shall be designated "General
Obligation Health Center Bonds, Series 2016A"; shall be dated March 2, 2016; shall bear interest
at the rates; and shall mature on the dates and in the years and principal amounts as set forth on
Exhibit A attached hereto and incorporated herein by this reference. Interest shall be payable
semi-annually on April 1 and October 1 of each year commencing on October 1, 2016 until the
principal of the Obligations is paid in full or discharged;
WHEREAS, the Issuer is issuing the Obligations in registered form pursuant to Section
149 of the Internal Revenue Code of 1986, as amended, and any applicable income tax
regulations; and,
WHEREAS,pursuant to the aforesaid resolution or resolutions and Section 67.10(2),
Wisconsin Statutes, the governing body of the Issuer has authorized the appointment of the
Agent as Fiscal Agent of the Issuer for the purpose of performing any or all of the following
functions with respect to the Obligations: paying the principal of and interest on the Obligations;
accounting for such payments; registering, authenticating, transferring, and canceling the
Obligations; and maintaining a registration book in addition to other applicable responsibilities
all in accordance with the provisions of Section 67.10(2), Wisconsin Statutes.
NOW, THEREFORE, the Issuer and the Agent do hereby agree as follows:
L APPOINTMENT
The Agent is hereby appointed Fiscal Agent of the Issuer with respect to the Obligations
for the purpose of performing such of the responsibilities stated in Section 67.10(2)(a),
Wisconsin Statutes, as are delegated herein or as may be otherwise specifically delegated in
writing to the Fiscal Agent by the Issuer.
II. INVESTMENT RESPONSIBILITY
The Fiscal Agent shall not be under any obligation to invest funds held for the payment
of interest or principal on the Obligations.
III. PAYMENTS
At least one(1)business day before each semi-annual interest payment date
(commencing with the first interest payment date and continuing thereafter until the principal of
and interest on the Obligations should have been fully paid or prepaid in accordance with their
terms) the Issuer agrees to and shall pay to the Fiscal Agent, in immediately available funds, a
sum equal to the amount payable as principal of and the premium, if any, and interest on the
Obligations on such semi-annual interest payment date. Said semi-annual interest and/or
principal payment dates and amounts are set forth in Exhibit A, which is attached hereto and
incorporated herein by this reference.
IV. CANCELLATION
In every case of the surrender of any Obligation for the purpose of payment, the Fiscal
Agent shall cancel and destroy the same and deliver to the Issuer a certificate regarding such
cancellation, setting forth an accurate description of the Obligation, specifying its number, date,
purpose, amount, rate of interest, and payment date and stating the date and amount of each
payment of principal or interest thereon. The Fiscal Agent shall also cancel and destroy
Obligations presented for transfer or exchange and deliver a certificate with respect to such
transfer or exchange to the Issuer. The Fiscal Agent shall be permitted to microfilm, or
otherwise photocopy and record said canceled Obligations.
V. REGISTRATION BOOK
Fiscal Agent shall maintain in the name of the Issuer a Registration Book containing the
names and addresses of all registered owners of the Obligations. The Fiscal Agent shall keep
confidential said information in accordance with applicable banking and governmental
regulations.
VI. INTEREST PAYMENT
Payment of each installment of interest shall be made to the registered owner who shall
appear on the Registration Book at the close of business on the 15th day of the calendar month
next preceding the interest payment date and shall be paid by check or draft of the Fiscal Agent
mailed to such registered owner at his address as it appears in such Registration Book or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent.
VII. PAYMENT OF PRINCIPAL
Principal shall be paid to the registered owner of an Obligation upon surrender of the
Obligation on or after its maturity or redemption date.
2
VIII. REDEMPTION NOTICE[, MANDATORY REDEMPTION]
In the event the Issuer exercises its option, if any, to redeem any of the Obligations, the
Issuer shall direct the Fiscal Agent to give notice of such redemption by registered or certified
mail at least thirty days prior to the date fixed for redemption to the registered owner of each
Obligation to be redeemed in whole or in part at the address shown in the Registration Book.
Such direction shall be given at least thirty-five days prior to such redemption date.
In addition, in accordance with the recommendations of the Securities and Exchange
Commission, the Fiscal Agent shall give notice of any call for redemption to all registered
securities depositories and to a national information service that disseminates notices of
redemption of such Obligations, but neither a defect in this additional notice nor any failure to
give all or any portion of such additional notice shall in any manner defeat the effectiveness of a
call for redemption.
[The Obligations maturing on April 1, 20 , 20 and 20 (the "Term Bonds") are
subject to mandatory sinking fund redemption, in part, on April 1 of each of the years and in the
amounts set forth in Exhibit C attached hereto and incorporated herein by this reference, at a
redemption price equal to 100% of the principal amount thereof plus accrued interest to the
redemption date. The Fiscal Agent is hereby directed to give notice of said redemption to the
Depository in the same manner as is required for optional redemptions under this Section VIII.]
IX. UTILIZATION OF THE DEPOSITORY TRUST COMPANY
The Depository Trust Company's Book-Entry-Only system is to be utilized for the
obligations. The Fiscal Agent agrees to comply with the provisions of the attached Blanket
Issuer Letter of Representation, which has been executed and delivered to The Depository Trust
Company by the Issuer.
X. TRANSFER AND EXCHANGE OF OBLIGATIONS
The Fiscal Agent shall transfer Obligations upon presentation of a written assignment
duly executed by the registered owner or by such owner's duly authorized legal representative.
Upon such transfer, a new registered Obligation of authorized denomination or denominations in
the same aggregate principal amount shall be issued to the transferee in exchange thereof, and
the name of such transferee shall be entered as the new registered owner in the Registration
Book. Upon request of the registered owner, the Fiscal Agent shall exchange Obligations of the
issue for a like aggregate principal amount of Obligations of the same maturity in authorized
whole integral multiples of$5,000.
The Obligations shall be numbered 1 and upward. Upon any transfer or exchange, the
Obligation or Obligations issued shall bear the next highest consecutive unused number or
numbers.
3
XI. STATEMENTS
The Fiscal Agent shall furnish the Issuer with an accounting of payments received and
made and funds on hand annually.
XII. FEES
The Issuer agrees to pay the Fiscal Agent fees in accordance with the fee schedule
provided by the Fiscal Agent which is attached hereto as Exhibit B and incorporated herein by
this reference until the final principal payment(or redemption date in the event the Issuer
exercises its option, if any, to redeem the Obligations). Such fees are payable on the dates
principal is due or pursuant to statements provided to the Issuer by the Fiscal Agent. In the event
the Issuer exercises its option, if any, to redeem the Obligations, the Fiscal Agent shall be
reimbursed for mailing costs related therewith.
XIII. MISCELLANEOUS
(a) Nonpresentment of Checks. In the event the check or draft mailed by the Fiscal
Agent to the registered owner is not presented for payment within six years of its date, then the
monies representing such nonpayment shall be returned to the Issuer or to such board, officer or
body as may then be entitled by law to receive the same, together with the name of the registered
owner of the Obligation and the last mailing address of record. Thereafter, the Fiscal Agent shall
not be responsible for the payment of such check or draft.
(b) Resignations, Successor Fiscal Agent. Fiscal Agent may at any time resign by
giving not less than sixty days written notice to Issuer. Upon receiving such notice of
resignation, the Issuer shall promptly appoint a successor Fiscal Agent by an instrument in
writing executed by order of its governing body. If no successor Fiscal Agent shall have been so
appointed and have accepted appointment within sixty days after such notice of resignation, the
resigning Fiscal Agent may petition any court of competent jurisdiction for the appointment of a
successor fiscal agent. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribes, appoint a successor fiscal agent.
Any successor fiscal agent shall be qualified to act pursuant to Section 67.10(2),
Wisconsin Statutes, as amended.
Any successor fiscal agent shall execute, acknowledge and deliver to the Issuer and to its
predecessor fiscal agent an instrument accepting such appointment hereunder, and thereupon the
resignation of the predecessor fiscal agent shall become effective and such successor fiscal agent,
without any further act, deed or conveyance, shall become vested with all the rights,powers,
trusts, duties and obligations of its predecessor, with like effect as if originally named as fiscal
agent herein; but nevertheless, on written request of Issuer, or on the request of the successor, the
fiscal agent ceasing to act shall execute and deliver an instrument transferring to such successor
fiscal agent, all the rights,powers, and trusts of the fiscal agent so ceasing to act. Upon the
request of any such successor fiscal agent, the Issuer shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor fiscal agent all
such rights,powers and duties. Any predecessor fiscal agent shall pay over to its successor fiscal
agent any funds of the Issuer.
4
(c) Indemnification. The Issuer agrees to hold the Agent harmless and to indemnify
the Agent against any loss, liability, expenses (including attorney's fees and expenses), claims,
or demand arising out of or in connection with the performance of its obligations in accordance
with the provisions of this Agreement, except for negligence or willful misconduct of the Agent.
The foregoing indemnities in this paragraph shall survive the resignation of the Agent or the
termination of this Agreement.
(d) Termination. This Agreement shall terminate six years after the last principal
payment on the Obligations is due whether by maturity or earlier redemption or the final
discharge of the Issuer's responsibilities for payment of the Obligations, whichever is later. The
parties realize that any funds hereunder as shall remain upon termination shall be turned over to
the Issuer after deduction of any unpaid fees and disbursements of Fiscal Agent. Termination of
this Agreement shall not, of itself, have any effect on Issuer's obligation to pay the outstanding
Obligations in full in accordance with the terms thereof.
(e) Execution. This Agreement shall be executed on behalf of the Issuer and the
Agent by their duly authorized officers. This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement, being duly
authorized so to do, each in the manner most appropriate to it, on the date first above written.
5
SIGNATURE PAGE TO THE FISCAL AGENCY AGREEMENT
ST. CROIX COUNTY, WISCONSIN
By:
Roger Larson,
County Board Chairperson
(SEAL)
And:
Cindy Campbell,
County Clerk
6
SIGNATURE PAGE TO THE FISCAL AGENCY AGREEMENT
U.S. BANK NATIONAL ASSOCIATION
ST. PAUL, MINNESOTA
(SEAL) By:
And:
7
EXHIBIT B
(Form of Bond)
UNITED STATES OF AMERICA
REGISTERED STATE OF WISCONSIN
NO. R- ST. CROIX COUNTY
GENERAL OBLIGATION HEALTH CENTER BOND, SERIES 2016A
MATURITY DATE: ORIGINAL DATE OF ISSUE: INTEREST CUSIP:
RATE:
APRIL 1, 20 MARCH 2, 2016 % 789228
DEPOSITORY OR ITS NOMINEE NAME: CEDE& CO.
PRINCIPAL AMOUNT: DOLLARS
KNOW ALL MEN BY THESE PRESENTS, that St. Croix County, Wisconsin (the
"County"), hereby acknowledges itself to owe and for value received promises to pay to the
Depository or its Nominee Name (the "Depository")identified above(or to registered assigns),
on the maturity date identified above, the principal amount identified above, and to pay interest
thereon at the rate of interest per annum identified above all subject to the provisions set forth
herein regarding redemption prior to maturity. Interest is payable semi-annually on April 1 and
October 1 of each year commencing October 1, 2016 until the aforesaid principal amount is paid
in full. Both the principal of and interest on this Bond are payable in lawful money of the United
States by U.S. Bank National Association, the fiscal agent appointed by the County pursuant to
the provisions of Section 67.10(2), Wisconsin Statutes, to act as bond registrar and paying agent
(the "Bond Registrar"). The principal of this Bond shall be payable only upon presentation and
surrender of the Bond at the office of the Bond Registrar. Interest payable on any interest
payment date shall be paid by wire transfer to the Depository in whose name this Bond is
registered on the Bond Register maintained by the Bond Registrar at the close of business on the
15th day of the calendar month next preceding the semi-annual interest payment date(the
"Record Date").
For the prompt payment of this Bond together with interest hereon as aforesaid and for
the levy of taxes sufficient for that purpose, the full faith, credit and resources of the County are
hereby irrevocably pledged.
This Bond is one of an issue of Bonds aggregating the principal amount of$10,000,000,
all of which are of like tenor, except as to denomination, interest rate, maturity date and
redemption provision, issued by the County pursuant to the provisions of Chapter 67, Wisconsin
Statutes, for the purpose of paying the costs of constructing and equipping a new skilled nursing,
community based residential and dementia crisis facility, all as authorized by resolutions of the
County Board duly adopted by said governing body at meetings held on May 5, 2015 and
February 2, 2016. Said resolutions are recorded in the official minutes of the County Board for
said dates.
At the option of the County, the Bonds maturing on April 1, 2026 and thereafter are
subject to redemption prior to maturity on April 1, 2025 or on any date thereafter. Said Bonds
are redeemable as a whole or in part, from maturities selected by the County and within each
maturity by lot(as selected by the Depository), at the principal amount thereof,plus accrued
interest to the date of redemption.
[The Bonds maturing on April 1, 20 , 20 and 20 are also subject to mandatory
redemption by lot as provided in the resolution awarding the sale of the Bonds dated February 2,
2016 at the redemption price of par plus accrued interest to the date of redemption and without
premium.]
In the event the Bonds are redeemed prior to maturity, as long as the Bonds are in
book-entry-only form, official notice of the redemption will be given by mailing a notice by
registered or certified mail, or overnight express delivery, to the Depository not less than thirty
(30) days nor more than sixty (60) days prior to the redemption date. If less than all the Bonds of
a maturity are to be called for redemption, the Bonds of such maturity to be redeemed will be
selected by lot. Such notice will include but not be limited to the following: the designation,
date and maturities of the Bonds called for redemption, CUSIP numbers, and the date of
redemption. Any notice mailed as provided herein shall be conclusively presumed to have been
duly given, whether or not the Depository receives the notice. The Bonds shall cease to bear
interest on the specified redemption date,provided that federal or other immediately available
funds sufficient for such redemption are on deposit at the office of the Depository at that time.
Upon such deposit of funds for redemption the Bonds shall no longer be deemed to be
outstanding.
It is hereby certified and recited that all conditions, things and acts required by law to
exist or to be done prior to and in connection with the issuance of this Bond have been done,
have existed and have been performed in due form and time; that the aggregate indebtedness of
the County, including this Bond and others issued simultaneously herewith, does not exceed any
limitation imposed by law or the Constitution of the State of Wisconsin; and that a direct annual
irrepealable tax has been levied sufficient to pay this Bond, together with the interest thereon,
when and as payable. It is hereby further certified that the County has designated this Bond to be
a"qualified tax-exempt obligation"pursuant to the provisions of Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
This Bond is transferable only upon the books of the County kept for that purpose at the
office of the Bond Registrar. In the event that the Depository does not continue to act as
depository for the Bonds, and the County Board appoints another depository, new fully
registered Bonds in the same aggregate principal amount shall be issued to the new depository
upon surrender of the Bonds to the Bond Registrar, in exchange therefor and upon the payment
of a charge sufficient to reimburse the County for any tax, fee or other governmental charge
required to be paid with respect to such registration. The Bond Registrar shall not be obliged to
make any transfer of the Bonds (i) after the Record Date, (ii) during the fifteen (15) calendar
days preceding the date of any publication of notice of any proposed redemption of the Bonds, or
2
(iii) with respect to any particular Bond, after such Bond has been called for redemption. The
County and the Bond Registrar may treat and consider the Depository in whose name this Bond
is registered as the absolute owner hereof for the purpose of receiving payment of, or on account
of, the principal or redemption price hereof and interest due hereon and for all other purposes
whatsoever.
IN WITNESS WHEREOF, St. Croix County, Wisconsin, by its governing body, has
caused this Bond to be executed for it and in its name by the signatures of its duly qualified
County Board Chairperson and County Clerk; and to be sealed with its official or corporate seal,
if any, all as of the day of March, 2016.
ST. CROIX COUNTY, WISCONSIN
By:
Roger Larson, County Board Chairperson
(SEAL)
By:
Cindy Campbell, County Clerk
3
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
(Name and Address of Assignee)
(Social Security or other Identifying Number of Assignee)
the within Bond and all rights thereunder and hereby irrevocably constitutes and appoints
, Legal Representative, to transfer said Bond on the books kept for
registration thereof, with full power of substitution in the premises.
Dated:
Signature Guaranteed:
(e.g. Bank, Trust Company (Depository or its Nominee
or Securities Firm) Name)
(Authorized Officer) NOTICE: The above-named
Depository or its Nominee Name must
correspond with the name as it appears upon
the face of the within Bond in every
particular, without alteration or enlargement
or any change whatever.
4
I IIII
III � � IIII III
13 i iN 10 N St. Croix County, W1
28 January 2016
New Issue - Moody's assigns Aa1 to St. Croix County, WI's
l`,,Jevr lssi,ue $10M GO Health Center Bonds, Ser. 2016A
Suinimary Ratf n IRationale
Mood y g y s Investors Service assigns a Aa1 to St.Croix County,WI's $10 million General
�1»illii�i)��lll»ilii» i111111»ilil»»i�ll»l»)��iillllllllllll�
Obligation (GO) Health Center Bonds,Series 2016A. Moody's also maintains the Aa1 on the
county's outstanding GO debt,which totals $32.1 million of GO debt post-sale.
contacts The Aa1 rating reflects the county's strong financial profile,average debt burden,and
moderate exposure to enterprise risk associated with its nursing home.The rating also
III null°uu dun tuur:n�r;aN�� n;;;,". li(VI-a �ro��rt,a,!"
,r,�4y " I111 incorporates the county's moderately sized tax base in western Wisconsin (Aa2 positive)that
ki 0 11 it y�I,giregor gulIroody,r,r oIr has returned to growth mode.
I`nunuoutt°
Residents benefit from employment opportunities in the Twin Cities
+��Ian�;i ir+I�I i u i r�i i N,�.,u i n"��r:l,+,�r,7h•r"
Strong population growth and above average demographic profile
Moderate pension pressures and fixed costs
Credit Challenges
Strict levy limits restrict county's revenue raising flexibility
Overall debt burden elevated compared to state and national medians
Ratf n g Outlook
Outlooks are generally not assigned to local government credits with this amount of debt.
if::actour t1hat Could Ill„ gym to an Upgrade
Significant expansion and diversification of the tax base
Continued growth in liquidity and fund balance
if::actour t1hat Could Ill„ gym to a IIDowin urad
Deterioration of the local economy and weakening of the county's demographic profile
Declines in liquidity and fund balance
Significant growth to fixed costs
II� I�ii� II I�I Iii I �IIII II II iil IIII III iil II II II III IIII III I��� III III
Key Indicators
Exhibit 1
St.Croix(County of)WI 2010 2011 2012 2013 2014
Economy/Tax Base
Total Full Value($000) $ 7,653,462 $ 7,335,670 $ 6,930,949 $ 7,154,298 $ 7,591,908
Full Value Per Capita $ 90,740 $ 86,381 $ 81,309 $ 83,279 $ 87,506
Median Family Income(%of US Median) 124.9% 124.9% 124.7% 124.7% 124.7%
Finances
Operating Revenue($000) $ 48,573 $ 49,789 $ 48,225 $ 49,322 $ 50,821
Fund Balance as a%of Revenues 25.7% 31.1% 37.1% 40.9% 44.4%
Cash Balance as a%of Revenues 35.7% 30.0% 37.6% 43.1% 43.1%
Debt/Pensions
Net Direct Debt($000) $ 9,261 $ 7,567 $ 5,815 $ 4,475 $ 13,310
Net Direct Debt/Operating Revenues(x) 0.2x 0.2x 0.1x 0.1x 0.3x
Net Direct Debt/Full Value(%) 0.1% 0.1% 0.1% 0.1% 0.2%
Moody's-adjusted Net Pension Liability(3-yr average)to Revenues(x) N/A N/A 0.4x 0.5x N/A
Moody's-adjusted Net Pension Liability(3-yr average)to Full Value(%) N/A N/A 0.3% 0.3% N/A
Post-sale,the county's net direct debt increases to$32.1 million,0.4%of full value and 0.6 times operating revenues.
Source:Moody's Investors Service,US Census Bureau
Recent IDevelopilments
Since our last report on July 30,2015,the county has released it fiscal 2014 audit.Audited results indicate $1.4 million of growth to the
General Fund fund balance and $360,000 growth to the Health and Human Services Fund fund balance.
",coriorlr"rly arid il�a:x IBase cll9pyPrNIVIrig c.milrV'ty Ifini WIVS cdri illlr'll Iriea it li"wlhril r`.IhJes
A reduction in the number of foreclosures, ongoing investment in the county,and recent increases in full value, point to a stable
economy in the county.St.Croix County covers approximately 730 square miles in northwestern Wisconsin and is considered a part
of the Minneapolis-St. Paul(both rated Aa1 stable) metropolitan area. Residents benefit from employment opportunities in both
Wisconsin and Minnesota (Aa1 stable). Roughly half of residents work outside the county,and many work in the Twin Cities. Looking
ahead,the St.Croix Crossing,a four-lane highway bridge replacing the existing two-lane Stillwater Lift Bridge, is expected to open in
late 2017 and provide better access for residents in the northern part of the county to Minnesota.After four consecutive valuation
declines beginning in 2009,the tax base has grown at rates of 6.1%and 6.2% in 2014 and 2015, respectively.Overall,since 2010,
the tax base has grown at an average annual rate of 1.0%and currently stands at$8.1 billion.As the local economy has improved,
foreclosures throughout the county have also fallen.After peaking at 828 in 2010,foreclosures declined significantly to 165 in 2015.
The county has been the fastest growing in the state for several years. Population has increased significantly over the last 30 years,
from 43,262 in 1980 to 86,741 in 2015, including a 33.6% increase between 2000 and 2010.County management expects the
county's population to continue to grow significantly over the next 20 years.At 3.4% in November 2015,the county's unemployment
rate was lower than both the state and national rates of 4.0%and 4.8%, respectively.The county's demographic profile is strong with
median family income at 125%of the nation.
II. ,lre NlP°re l 1,)IL))e aV°.r,lT arid I Zrm r . em nV..N,,PN,lh .
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I-'IIo Irn e
The county's financial profile is expected to remain strong given prudent management that has generated nine consecutive operating
surpluses. In fiscal 2014,the General Fund closed with an operating surplus of$1.6 million, prior to $182,000 of transfers out.The
operating surplus increased the available General Fund reserve to $20.2 million,or a strong 57.2%of General Fund revenues.While
INS hcublicautlon does neat announce n ei ed[L rautlnr„auctl0n.11 01 any ei°ed[L i nLings i elei eneed In Lhl;LLublIcaLloil,please Seethe i nLlnr„S Laub nn Lhe issLuei/enu''t t Lnr„e on
NAmmcmoodys.enm I'01 Lhe 1190St Lupdai-ed eied[L i nLlnh auctlnn Inlni mautlnn and i autin„history.
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P? 21:N 11anuary 20"Il6 Pa K.iru:i�li. P�nuuuna:y,,wll II N���vv llrrruur II N��na.�i��:Ny vrru�„nrr Ary vll a�,n Sa:,Puuiu P:�nu�uuna,P,P^''S'll rr'e"iItlPII N a�u:':'u II...II� vVVIIu K.r�,�rena a lluniunall.�:r„P�a a"tlPlld:',A
II� I�ii' II I�I iii I �Ills II II iii Ills iii iii II II II III III I III I��� III III
audited figures are not yet available for fiscal 2015, management anticipates additional growth to the General Fund balance. Recent
fund balance growth has been driven by sales tax revenue growth and a reduction in delinquent property taxes.As foreclosures have
declined,so have delinquent property taxes.At the close of fiscal 2014,delinquent property taxes totaled $1.9 million,down from
$3.1 million in 2012 and $4.1 million in 2010.The county has implemented and collects a 0.5%sales tax which is used to finance
General Fund operations although any amount in excess of budget is used for capital expenditures. In recent years,sales tax collections
have significantly exceeded budgeted amounts. In 2015,the county collected $6.8 million in sales tax, roughly$600,000 more than
budgeted. For 2016, management budgeted $6.7 million for sales tax collections.The county is one of a few counties in the state with
a wheel tax, a fee imposed on vehicle registrations in the county,which can finance transportation related expenditures.The county
estimates collections total$750,000 annually.The county levies directly to its Health and Human Services Fund and holds a small fund
balance in the fund.Combined,the available fund balance in the county's major operating funds(General Fund, Health and Human
Services Fund,and Debt Service Fund)totaled $22.6 million,or a healthy 44.4%of revenues.
Taxes, including property taxes,wheel taxes,and sales taxes,are the largest revenue source for the county. In fiscal 2014,taxes
comprised 68.5%of operating revenues. Intergovernmental revenues,of which over half were for the Health and Human Services
Fund,accounted for 22.2%of revenues in fiscal 2014.
The current issue will finance renovations at the county's nursing home.While property tax support for operations has been declining
in recent years, county management anticipates levying for debt service. In addition,while projections for the new nursing home show
positive operations and no requirement for property tax support,should occupancy rates fall below projections or unexpected costs
occur,the nursing home may require additional property tax support.
LIQUIDITY
The county maintains healthy liquidity.At the close of fiscal 2014,the county held $21.9 million in cash across its operating funds
(General Fund, Health and Human Services Fund,and Debt Service Fund) or a strong 43.1%of revenues.
,`)e.bt alrid Il�eini«uoinir« Average IL)ebt ILLuuIIdeini Il',)e«II:AV:e "'13 011'lr ow finig for II Juulrrallnig IHorne Il�usr�rr.auV:
At 0.4%of full value and 0.6 times operating revenues,the county's current direct debt burden is in line with state and national
medians. Including borrowing by overlapping entities,the county's overall debt burden increases to 4.0%of full value,which is higher
than state and national medians.The county's debt burden will likely remain manageable given limited future borrowing plans and
expected tax base growth. Management may issue a $5 million state trust fund loan for capital projects in the medium term.Total
fixed costs, including debt service, pension,and OPEB costs totaled $3.6 million in fiscal 2014,or a moderate 7%of revenues.
DEBT STRUCTURE
All of the county's debt is long-term and fixed rate. Principal amortization is relatively slow at 55.1%of GO debt retired within 10 years.
All debt matures by 2035.
DEBT—RELATED DERIVATIVES
The county has no exposure to any debt-related derivatives.
PENSIONS AND OPEB
Budgetary exposure to the state multi-employer cost sharing pension plan,the Wisconsin Retirement System (WRS), is expected to
remain manageable.The county's contribution to WRS in fiscal 2014 totaled $2.1 million or roughly 4.2%of operating revenues while
county employees contributed $2.0 million.The county has historically made its required contributions to WRS. In 2013, Moody's
adjusted net pension liability(ANPL) for the county, under our methodology for adjusting reported pension data was $12.8 million,or
a modest 0.3 times operating fund revenues(inclusive of the General Fund, Health and Human Services Fund,and Debt Service Fund)
and 0.2%of full value. Moody's ANPL reflects certain adjustments we make to improve comparability of reported pension liabilities.
The adjustments are not intended to replace the county's reported liability information, but to improve comparability with other rated
entities.We determined the county's share of liability in proportion to its contributions to the plan.
Ma iniaVgeIlneinit aIYid CP1Yf'eIrIYia ini e xt oini g "Irallll ewoIrk,wIh]h HIIstoryof C.oini re val.IVVfe '13kid ge IVIIVg
Wisconsin counties have an institutional framework score of"Aa," or strong. Revenues are moderately predictable,with a mixture
of highly predictable property taxes and more economically sensitive sales taxes representing the main sources. Counties have a
moderate ability to increase revenues. Property tax increases are limited to amounts represented by net new construction growth, but
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r.'� 21: January 2016 rt yua.�o li'. yrruuuu�, ,,wll II Nu',^�vv 1l.:a hour II Nr�r aar[�y v„au�.„m�ra Arvvll��ln �„K.uaiu K.:alnu�uun��r,�^'''ll ra'',e"iItl IIN ��::'u ll..al� vVV IIu K.r�,�ren� aIl�diumtll.�.a„ �u 20166.A
II� I�ii' II I�I Iii I �IIII II II iil IIII III iil II II II III IIII III I��� III III
counties may implement a 0.5%sales tax,which diversifies operating revenue. Expenditures mostly consist of personnel costs,which
are moderately predictable.Counties have a high ability to reduce expenditures,as workforces are mainly comprised of non-public
safety employees,for whom collective bargaining is limited.
County management has a history of conservatively budgeting revenues which has led to nine consecutive General Fund operating
surpluses.
Debt service on the bonds is secured by the county's general obligation unlimited tax pledge that benefits from a dedicated property
tax levy that is not limited by rate or amount.
Use of IPilroc '
Proceeds of the bonds will be used to finance the second and final phase of construction of the county's skilled nursing,community
based residential and dementia crisis facility.
Ibligor IPil-ofulul
St.Croix County is located in northwestern Wisconsin across the St.Croix River from Minnesota.The county covers approximately
730 square miles and includes all or portions of four cities,10 villages,and 21 townships.The county's 2010 Census population totaled
84,345, up 33.6%from 2000.
Methodology
The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. Please see
the Credit Policy page on www.moodys.com for a copy of this methodology.
Ratfin
Exhibit 2
511'"e 01lZ(")II x (1`;':cm.!I II"',F.,l'y(,')fl)"Afl
Issue Rating
General Obligation Health Center Bonds,Series Aa1
2016A
Rating Type Underlying LT
Sale Amount $10,000,000
Expected Sale Date 02/01/2016
Rating Description General Obligation
Source:Moody's Investors Service
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PRELIMINARY OFFICIAL STATEMENT DATED JANUARY 19,2016
NEW ISSUE Moody's Rating: Requested
BANK QUALIFIED
In the opinion of Griggs Law Office LLC, Bond Counsel, assuming continuing compliance with the requirements of the Internal Revenue Code of 1986, as
amended(the "Code'), interest on the Bonds is excluded from gross income and is not an item of tax preference for federal income tax purposes under
existing law. See "TAX EXEMPTION"for a more detailed discussion of federal tax consequences of owning the Bonds. Interest on the Bonds is not exempt
from present Wisconsin income taxes. The Bonds will be designated by the County as "Qualified Tax-Exempt Obligations"for purposes ofSection 265 of the
Code.
a
$10,000,000*
St. Croix County, Wisconsin
General Obligation Health Center Bonds, Series 2016A
(the "Bonds")
(Book Entry Only)
Dated Date: Date of Delivery Interest Due: Each April 1 and October 1,
commencing October 1,2016
The Bonds will mature April 1 in the years and amounts* as follows:
2018 $125,000 2022 $140,000 2026 $735,000 2030 $820,000 2033 $890,000
2019 $130,000 2023 $140,000 2027 $755,000 2031 $840,000 2034 $915,000
G 2020 $130,000 2024 $145,000 2028 $775,000 2032 $865,000 2035 $945,000
m„a
2021 $135,000 2025 $715,000 2029 $800,000
Bids for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds.
+ All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the
�., date of redemption scheduled to conform to the maturity schedule set forth above.
The County may elect on April 1, 2025, and on any day thereafter, to redeem Bonds due on or after April 1, 2026 at
a price of par plus accrued interest.
The Bonds will be general obligations of the County for which the County pledges its full faith, credit and power
and unlimited taxing authority to levy direct general ad valorem taxes without limit as to rate or amount. The
proceeds will be used to finance the construction of a new skilled nursing, community based residential and
dementia crisis facility.
Bids shall be for not less than $10,000,000 (Par) or more than $10,200,000 (102%)plus accrued interest, if any, on
j the total principal amount of the Bonds. Bids shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The
initial price to the public for each maturity must be 98.0% or greater. Following receipt of proposals, a good faith
deposit will be required to be delivered to the County by the lowest bidder as described in the "Official Terms of
Offering”herein. Award of the Bonds will be made on the basis of True Interest Cost(TIC).
The County will designate the Bonds as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the
, name of Cede & Co., as nominee of The Depository Trust Company ("DTC"). DTC will act as securities
depository for the Bonds. Individual purchases may be made in book entry form only, in the principal amount of
$5,000 and integral multiples thereof. Investors will not receive physical certificates representing their interest in
the Bonds purchased. (See "Book Entry System"herein.) U.S. Bank National Association, St.Paul, Minnesota will
act as fiscal agent/registrar (the "Fiscal Agent/Registrar") for the Bonds. The Bonds will be available for delivery
9 at DTC on or about March 2, 2016.
BID OPENING: February 1,2016(Monday) at 1:00 P.M., Central Time
AWARD: February 2,2016(Tuesday) at 9:00 A.M., Central Time
Further information may be obtained from SPRINGSTED Incorporated,
S i li s�1�e d Municipal Advisor to the County, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota 55101-2887(651)223-3000.
* Preliminary;subject to change.
ST. CROIX COUNTY, WISCONSIN
BOARD OF SUPERVISORS
Roger Larson, Chair
Dave Ostness,Vice Chair
Travis Schachtner
Agnes M. Ring
Christopher C. Babbit
Howard F.Novotny
Roy Sjoberg
Carah Koch
Chris Kilber
Scott J.Nelson
Jill Ann Berke
Daniel Hansen
David Peterson
Paulette Anderson
Judy Achterhof
Shaela Leibfried
William Peavey
Ron Kiesler
Andy Brinkman
ADMINISTRATOR
Patrick Thompson
FINANCE DIRECTOR
Robert Mittet
CLERK
Cindy Campbell
MUNICIPAL ADVISOR
Springsted Incorporated
St.Paul, Minnesota and Milwaukee, Wisconsin
BOND COUNSEL
Griggs Law Office LLC
Milwaukee, Wisconsin
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this
document, as the same may be supplemented or corrected by the County from time to time, may be
treated as a Preliminary Official Statement with respect to the Bonds described herein that is deemed final
as of the date hereof(or of any such supplement or correction)by the County.
By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the
County agrees that, no more than seven business days after the date of such award, it shall provide
without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded copies
of the Final Official Statement in the amount specified in the Official Terms of Offering.
No dealer, broker, salesman or other person has been authorized by the County to give any information or
to make any representations with respect to the Bonds, other than as contained in the Preliminary Official
Statement or the Final Official Statement, and if given or made, such other information or representations
must not be relied upon as having been authorized by the County.
Certain information contained in the Preliminary Official Statement or the Final Official Statement may
have been obtained from sources other than records of the County and, while believed to be reliable, is
not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF
OPINION IN THE PRELIMINARY OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE
PRELIMINARY OFFICIAL STATEMENT NOR THE FINAL OFFICIAL STATEMENT NOR ANY
SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT
THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COUNTY SINCE THE RESPECTIVE
DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not
purport to be comprehensive or definitive. All references to such documents are qualified in their entirety
by reference to the particular document, the full text of which may contain qualifications of and
exceptions to statements made herein. Where full texts have not been included as appendices to the
Preliminary Official Statement or the Final Official Statement, they will be furnished upon request.
Any CUSIP numbers for the Bonds included in the Final Official Statement are provided for convenience
of the owners and prospective investors. The CUSIP numbers for the Bonds are assigned by an
organization unaffiliated with the County. The County is not responsible for the selection of the CUSIP
numbers and makes no representation as to the accuracy thereof as printed on the Bonds or as set forth in
the Final Official Statement. No assurance can be given by the County that the CUSIP numbers for the
Bonds will remain the same after the delivery of the Final Official Statement or the date of issuance and
delivery of the Bonds.
TABLE OF CONTENTS
Page(s)
OfficialTerms of Offering................................................................................................................. i-iv
IntroductoryStatement....................................................................................................................... 1
ContinuingDisclosure ....................................................................................................................... 1
TheBonds.......................................................................................................................................... 2
Authorityand Purpose ....................................................................................................................... 4
Sourcesand Uses of Funds................................................................................................................ 4
Securityand Financing ...................................................................................................................... 4
FutureFinancing................................................................................................................................ 5
Litigation............................................................................................................................................ 5
Legality.............................................................................................................................................. 5
TaxExemption................................................................................................................................... 5
Bank-Qualified Tax-Exempt Obligations.......................................................................................... 6
PropertyTax Limits........................................................................................................................... 7
Rating................................................................................................................................................. 8
MunicipalAdvisor............................................................................................................................. 8
Certification....................................................................................................................................... 8
CountyProperty Values..................................................................................................................... 9
CountyIndebtedness.......................................................................................................................... 11
County Tax Rates, Levies and Collections........................................................................................ 14
Cashon Hand..................................................................................................................................... 15
Investments........................................................................................................................................ 15
General Information Concerning the County..................................................................................... 16
Governmental Organization and Services.......................................................................................... 21
Proposed Form of Legal Opinion ............................................................................................ Appendix I
Continuing Disclosure Certificate............................................................................................ Appendix II
Wisconsin Property Valuation and Tax Levies ....................................................................... Appendix III
Excerpt of 2014 Annual Financial Statements ........................................................................ Appendix IV
OFFICIAL TERMS OF OFFERING
$10,000,000*
ST. CROIX COUNTY,WISCONSIN
GENERAL OBLIGATION HEALTH CENTER BONDS, SERIES 2016A
(BOOK ENTRY ONLY)
Bids for the Bonds will be received on Monday, February 1, 2016, until 1:00 P.M., Central Time, at the
offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time
bids will be opened and tabulated. Consideration for award of the Bonds will be by the County Board at
9:00 A.M., Central Time, of the following day, Tuesday, February 2, 2016.
SUBMISSION OF BIDS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specified above. All bidders are advised that each bid shall be deemed to constitute a contract
between the bidder and the County to purchase the Bonds regardless of the manner by which the bid is
submitted.
(a) Sealed bidding. Bids may be submitted in a sealed envelope or by fax(651) 223-3046 to Springsted.
Signed bids,without final price or coupons, may be submitted to Springsted prior to the time of sale. The
bidder shall be responsible for submitting to Springsted the final bid price and coupons, by telephone
(651) 223-3000 or fax(651) 223-3046 for inclusion in the submitted bid.
OR
(b) Electronic bidding Notice is hereby given that electronic bids will be received via PARITY®. For
purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the
official time with respect to all bids submitted to PARITY®. Each bidder shall be solely responsible for
making necessary arrangements to access PARITY°for purposes of submitting its electronic bid in a
timely manner and in compliance with the requirements of the Official Terms of Offering. Neither the
County, its agents nor PARITY® shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
neither the County, its agents nor PARITY® shall be responsible for a bidder's failure to register to bid or
for any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The County is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY®is not an agent
of the County.
If any provisions of this Official Terms of Offering conflict with information provided by PARITY®, this
Official Terms of Offering shall control. Further information about PARITY®,including any fee charged,
may be obtained from:
PARITY®, 1359 Broadway, 2nd Floor,New York,New York 10018
Customer Support: (212) 849-5000
Preliminary;subject to change.
-i -
DETAILS OF THE BONDS
The Bonds will be dated as of the date of delivery, and will bear interest payable on April 1 and October 1
of each year, commencing October 1, 2016. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.
The Bonds will mature April 1 in the years and amounts* as follows:
2018 $125,000 2022 $140,000 2026 $735,000 2030 $820,000 2033 $890,000
2019 $130,000 2023 $140,000 2027 $755,000 2031 $840,000 2034 $915,000
2020 $130,000 2024 $145,000 2028 $775,000 2032 $865,000 2035 $945,000
2021 $135,000 2025 $715,000 2029 $800,000
* The County reserves the right, after bids are opened and prior to award, to increase or reduce the principal
amount of the Bonds or the amount of any maturity in multiples of$5,000. In the event the amount of any
maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per
$1,000 of Bonds as that of the original bid. Gross spread is the differential between the price paid to the
County for the new issue and the prices at which the securities are initially offered to the investing public.
Bids for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term
bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus
accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above.
In order to designate term bonds,the bid must specify "Years of Term Maturities" in the spaces provided
on the bid form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made
to the public. The Bonds will be issued in fully registered form and one Bond,representing the aggregate
principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as
nominee of The Depository Trust Company ("DTC"),New York, New York, which will act as securities
depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of
$5,000 or any multiple thereof of a single maturity through book entries made on the books and records of
DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as
registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be
the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants
will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as
a condition of delivery of the Bonds,will be required to deposit the Bonds with DTC.
FISCAL AGENT/REGISTRAR
U.S. Bank National Association, St. Paul, Minnesota will act as fiscal agent/registrar (the "Fiscal
Agent/Registrar") and shall be subject to applicable SEC Regulations. The County will pay for the
services of the Fiscal Agent/Registrar.
OPTIONAL REDEMPTION
The County may elect on April 1, 2025, and on any day thereafter, to redeem Bonds due on or after
April 1, 2026. Redemption may be in whole or in part and if in part at the option of the County and in
such manner as the County shall determine. If less than all Bonds of a maturity are called for redemption,
the County will notify DTC of the particular amount of such maturity to be redeemed. DTC will
determine by lot the amount of each participant's interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All
redemptions shall be at a price of par plus accrued interest.
-ii -
SECURITY AND PURPOSE
The Bonds will be general obligations of the County for which the County will pledge its full faith, credit
and power and unlimited taxing authority to levy direct general ad valorem taxes without limit as to rate
or amount. The proceeds will be used to finance the construction of a new skilled nursing, community
based residential and dementia crisis facility.
BIDDING PARAMETERS
Bids shall be for not less than $10,000,000 (Par) or more than 810,200,000 (102%) plus accrued interest,
if any, on the total principal amount of the Bonds. No bid can be withdrawn or amended after the time set
for receiving bids unless the meeting of the County scheduled for award of the Bonds is adjourned,
recessed, or continued to another date without award of the Bonds having been made. Rates shall be in
integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity must be 98.0%
or greater. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of
maturity. No conditional bids will be accepted.
GOOD FAITH DEPOSIT
To have its bid considered for award, the lowest bidder is required to submit a good faith deposit to the
County in the amount of $100,000 (the "Deposit") no later than 3:00 P.M., Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier's
check payable to the County; or(ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the County nor
Springsted Incorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the County may, at its sole discretion, reject the bid of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
Certified or Cashier's Check. A Deposit made by certified or cashier's check will be considered timely
delivered to the County if it is made payable to the County and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St.Paul,Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the County upon
submission of a federal wire reference number by the specified time. Wire transfer instructions will be
available from Springsted Incorporated following the receipt and tabulation of bids. The successful
bidder must send an e-mail including the following information: (i) the federal reference number and time
released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the lowest bidder (the "purchaser") will be
retained by the County and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted bid, said amount will be retained by the County.
AWARD
The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true
interest cost(TIC) basis calculated on the bid prior to any adjustment made by the County. The County's
computation of the interest rate of each bid,in accordance with customary practice,will be controlling.
The County will reserve the right to: (i) waive non-substantive informalities of any bid or of matters
relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and (iii)reject any
bid that the County determines to have failed to comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
The County has not applied for or pre-approved a commitment for any policy of municipal bond
insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder
desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired
-iii -
insurer must be set forth on the bidder's official bid form. The County specifically reserves the right to
reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to
the County. All costs associated with the issuance and administration of such policy and associated
ratings and expenses (other than any independent rating requested by the County) shall be paid by the
successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds
shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but
neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute
cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau
charge for the assignment of CUSIP identification numbers shall be paid by the purchaser.
SETTLEMENT
On or about March 2, 2016, the Bonds will be delivered without cost to the purchaser through DTC in
New York,New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion
of Griggs Law Office LLC, Milwaukee, Wisconsin, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or
equivalent, funds that shall be received at the offices of the County or its designee not later than
12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made
impossible by action of the County, or its agents, the purchaser shall be liable to the County for any loss
suffered by the County by reason of the purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In order to assist bidders in complying with SEC Rule 15c2-12, as amended, the County will undertake,
pursuant to a resolution adopted on February 2, 2016, to provide annual reports and timely notice of
certain events for the benefit of holders of the Bonds. A description of these details and terms of the
undertaking is set forth in the Official Statement.
OFFICIAL STATEMENT
The County has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Bonds, and said Preliminary Official Statement will serve as a nearly-final
Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For
copies of the Preliminary Official Statement and the official bid form or for any additional information
prior to sale, any prospective purchaser is referred to the Municipal Advisor to the County,
Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone
(651) 223-3000.
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other information
required by law. By awarding the Bonds to an underwriter or underwriting syndicate, the County agrees
that, no more than seven business days after the date of such award, it shall provide without cost to the
sole underwriter or to the senior managing underwriter of the syndicate (the "Underwriter" for purposes
of this paragraph) to which the Bonds are awarded up to 25 copies of the Final Official Statement. The
County designates the Underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Such
Underwriter agrees that if its bid is accepted by the County, (i) it shall accept designation and (ii) it shall
enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of
assuring the receipt by each such Participating Underwriter of the Final Official Statement.
BY ORDER OF THE COUNTY BOARD
/s/Cindy Campbell
County Clerk
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OFFICIAL STATEMENT
$10,000,000*
ST. CROIX COUNTY,WISCONSIN
GENERAL OBLIGATION HEALTH CENTER BONDS, SERIES 2016A
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to St. Croix County, Wisconsin (the
"County") and its issuance of$10,000,000* General Obligation Health Center Bonds, Series 2016A (the
"Bonds"). The Bonds will be general obligations of the County for which it pledges its full faith and
credit and power and unlimited taxing authority to levy direct general ad valorem taxes without limit as to
rate or amount.
Inquiries may be directed to Mr. Robert Mittet, Finance Director, St. Croix County Government Center,
1101 Carmichael Road, Hudson, Wisconsin 54016, by telephoning (715) 381-4306, or by e-mailing
robert.mittet @ co.saint-croix.wi.us. Inquiries may also be made to Springsted Incorporated, 380 Jackson
Street, Suite 300, St. Paul, Minnesota 55101-2887, by telephoning (651) 223-3000, or by e-mailing
bond_services@springsted.com. If information of a specific legal nature is desired, requests may be
directed to Mr. Tom Griggs, 500 West Silver Spring Drive, Suite K-200, Glendale, Wisconsin, 53217,
Bond Counsel, by telephoning (414) 375-2630), or by e-mailing tgriggs@tgriggslaw.com.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 promulgated by the Securities
and Exchange Commission, pursuant to the Securities and Exchange Act of 1934 (the "Rule"), pursuant
to a resolution adopted on February 2, 2016, the County has entered into an undertaking (the
"Undertaking") for the benefit of holders of the Bonds to provide to certain repositories certain financial
information and operating data relating to the County, and notices of the occurrence of certain events
enumerated in the Rule. The Undertaking is substantially set forth in the Continuing Disclosure
Certificate attached hereto as Appendix II to be executed and delivered by the County at the time the
Bonds are delivered.
To the best of its knowledge, the County has complied for the past five years in all material respects in
accordance with the terms of its previous continuing disclosure undertakings entered into pursuant to the
Rule. A failure by the County to comply with the Undertaking will not constitute an event of default on
the Bonds. Nevertheless, such a failure must be reported in accordance with the Rule and must be
considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale
of the Bonds in the secondary market. Consequently, such a failure may adversely affect the
transferability and liquidity of the Bonds and their market price.
* Preliminary;subject to change.
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THE BONDS
General Description
The Bonds are dated as of the date of delivery and will mature annually on April 1 as set forth on the front
cover of this Official Statement. The Bonds are issued in book entry form. Interest on the Bonds is
payable on April 1 and October 1 of each year, commencing October 1, 2016. Interest will be payable to
the holder (initially Cede & Co.) registered on the books of the Fiscal Agent/Registrar as of the fifteenth
day of the calendar month next preceding such interest payment date. Interest will be computed on the
basis of a 360-day year of twelve 30-day months. Principal of and interest on the Bonds will be paid as
described in the section herein entitled "Book Entry System." U.S. Bank National Association, St. Paul,
Minnesota will serve as Fiscal Agent/Registrar for the Bonds, and the County will pay for fiscal
agent/registrar services.
Redemption Provisions
Thirty days' written notice of redemption shall be given to the registered owner(s) of the Bonds. Failure
to give such written notice to any registered owner of the Bonds or any defect therein shall not affect the
validity of any proceedings for the redemption of the Bonds. All Bonds or portions thereof called for
redemption will cease to bear interest after the specified redemption date, provided funds for their
redemption are on deposit at the place of payment.
Optional Redemption
The County may elect on April 1, 2025, and on any day thereafter, to redeem Bonds due on or after
April 1, 2026. Redemption may be in whole or in part and if in part at the option of the County and in
such manner as the County shall determine. If less than all the Bonds of a maturity are called for
redemption, the County will notify DTC of the particular amount of such maturity to be redeemed. DTC
will determine by lot the amount of each participant's interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All
redemptions shall be at a price of par plus accrued interest.
Book Entry System
The Depository Trust Company ("DTC"), New York,New York, will act as securities depository for the
Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co.
(DTC's partnership nominee) or such other name as may be requested by an authorized representative of
DTC. One fully-registered certificate will be issued for each maturity of the Bonds, each in the aggregate
principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a "clearing corporation"within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity
issues, corporate and municipal debt issues, and money market instruments (from over 100 countries)that
DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade
settlement among Direct Participants of sales and other securities transactions in deposited securities
through electronic computerized book-entry transfers and pledges between Direct Participants' accounts.
This eliminates the need for physical movement of securities certificates. Direct Participants include both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing
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Corporation, and Fixed Income Clearing Corporation all of which are registered clearing agencies.
DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to
others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC
Rules applicable to its Participants are on file with the Securities and Exchange Commission. More
information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each
Bond (`Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records.
Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners
are, however, expected to receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished
by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except
in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in
the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the
Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial
Owners. The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants,by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be
governed by arrangements among them, subject to any statutory or regulatory requirements as may be in
effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Bonds, such as redemptions,
tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of
the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain
and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
Bonds unless authorized by a Direct Participant in accordance with DTC's MMI procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the County as soon as possible after the record date.
The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to
whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus
Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or
such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to
credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information
from the County or its agent on the payable date in accordance with their respective holdings shown on
DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions
and customary practices, as is the case with securities held for the accounts of customers in bearer form or
registered in "street name," and will be the responsibility of such Participant and not of DTC or the
County, subject to any statutory or regulatory requirements as may be in effect from time to time.
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Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other
nominee as may be requested by an authorized representative of DTC) is the responsibility of the County
or agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect
Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to County or its agent. Under such circumstances, in the event that a successor
depository is not obtained, certificates are required to be printed and delivered.
County may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC's book-entry system has been obtained from
sources that the County believes to be reliable, but the County takes no responsibility for the accuracy
thereof.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Wisconsin Statutes, Chapter 67. The proceeds will be used to
finance the construction of a new skilled nursing, community based residential and dementia crisis
facility.
SOURCES AND USES OF FUNDS
The composition of the Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $10,000,000
Estimated Reoffering Premium 176,103
Total Sources of Funds $10,176,103
Uses of Funds:
Deposit to Project Fund $9,937,250
Deposit to Debt Service Fund(Estimated Premium) 106,103
Estimated Underwriter's Compensation 70,000
Costs of Issuance 62,750
Total Uses of Funds $10,176,103
SECURITY AND FINANCING
The Bonds will be general obligations of the County for which it pledges its full faith and credit and
unlimited taxing authority to levy general ad valorem taxes without limit as to rate or amount. The
County will make its first levy for the Bonds in 2016 for collection in 2017. The interest payment due on
October 1, 2016 will be made from premium received on the Bonds or County funds on hand. Thereafter,
each year's tax levy will be sufficient to make the April 1 principal and interest payment and the
October 1 interest payment in each year.
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FUTURE FINANCING
The County is considering the issuance of an estimated $5,000,000 State Trust Fund Loan from the
Wisconsin Board of Commissioners of Public Lands within the next 90-days to finance other County
2016 capital improvement projects, including its emergency dispatch center renovations. Repayment of
said loan would be a general obligation of the County.
LITIGATION
The County is not aware of any threatened or pending litigation affecting the validity of the Bonds or the
County's ability to meet its financial obligations with respect to the Bonds.
LEGALITY
The Bonds are subject to approval as to certain matters by Griggs Law Office LLC, of Milwaukee,
Wisconsin, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official
Statement except for guidance concerning the following section, "TAX EXEMPTION," and will not pass
upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to
examine or verify, any of the financial or statistical statements, or data contained in this Official
Statement and will express no opinion with respect thereto. A legal opinion in substantially the form set
out in Appendix I herein will be delivered at closing.
TAX EXEMPTION
In the opinion of Griggs Law Office LLC, Milwaukee, Wisconsin, Bond Counsel,interest on the Bonds is
excluded from gross income for present federal income tax purposes, except for the treatment of interest
on Bonds owned by certain corporations and other taxpayers as discussed below.
The County will issue its certificate to the effect that on the basis of the facts, estimates and circumstances
in existence on the date of delivery of the Bonds, it is not expected that the proceeds of the Bonds will be
used in a manner that would cause the Bonds to be "arbitrage bonds" under Section 148 of the Internal
Revenue Code. The County has covenanted that it will comply with all requirements of the Internal
Revenue Code to ensure that interest on the Bonds continues to be excluded from gross income for
federal income tax purposes.
The interest on the Bonds is not excluded from income and therefore is not exempt from present
Wisconsin income taxes.
Prospective purchasers of the Bonds should consult their tax advisors to determine the specific tax
consequences of their owning the Bonds.
From time to time legislation is proposed, and there are or may be legislative proposals pending in the
Congress of the United States that, if enacted, could alter or amend the federal tax matters referred to
above or adversely affect the market value of the Bonds. It cannot be predicted whether, or in what form,
any proposal that could alter one or more of the federal tax matters referred to above or adversely affect
the market value of the Bonds may be enacted. Prospective purchasers of the Bonds should consult their
own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no
opinion regarding any pending or proposed federal tax legislation.
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Aspects of Federal Taxation
The Internal Revenue Code of 1986, as amended (the "Code"), includes many requirements for interest
on the Bonds to be and to continue to be excluded from gross income. These requirements apply to the
County. The proceedings of the County and the documents relating to the Bonds include covenants and
provisions which, if complied with by the County, meet the requirements of the Code. Failure to comply
with certain of these covenants and provisions may cause interest on the Bonds to be includible in gross
income retroactive to the date of issuance of the Bonds.
Assuming continuing compliance by the County with the covenants and provisions referred to above,
interest on the Bonds will not, under present law, be includable in the gross income of registered owners
for federal income tax purposes, except for the treatment of interest on Bonds owned by certain
corporations and other taxpayers described below.
Effect On Corporations
The Code provides for an alternative minimum tax ("AMT") for corporations which is levied in addition
to the regular corporate tax in certain cases. The AMT, if any, is based upon the corporation's alternative
minimum taxable income ("AMTI"), which is taxable income with certain adjustments. One adjustment
used in computing AMTI of a corporation is an amount equal to seventy-five percent(75%) of the excess
of the corporation's "adjusted current earnings" over its AMTL "Adjusted current earnings" includes
certain tax-exempt interest including interest on the Bonds.
Effect On Other Taxpayers
Prospective purchasers of the Bonds should be aware that Section 265 of the Code denies a deduction for
interest on indebtedness incurred or continued to purchase or carry the Bonds or, in the case of certain
financial institutions (within the meaning of Section 265(b)(5)), that portion of a holder's interest expense
allocated to interest on the Bonds.
The County will designate the Bonds as "qualified tax-exempt obligations"for purposes of Section 265 of
the Internal Revenue Code of 1986 relating to the ability of financial institutions to deduct from income
for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt
obligations.
Insurance companies subject to the tax imposed by Section 831 of the Code should be aware that the
Code reduces the deduction for loss reserves by fifteen percent (15%) of the sum of certain items,
including interest on the Bonds.
Interest on the Bonds earned by certain foreign corporations doing business in the United States may be
subject to a branch profits tax imposed by Section 884 of the Code. Passive investment income including
interest on the Bonds may be subject to federal income taxation under Section 1375 of the Code for
certain S corporations.
Finally, Section 86 of the Code requires recipients of certain Social Security and Railroad Retirement
benefits to take into account receipts or accruals of interest on the Bonds in determining gross income.
BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS
The County will designate the Bonds as "qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Code, relating to the ability of financial institutions to deduct from income for
federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt
obligations.
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PROPERTY TAX LIMITS
Section 66.0602 of the Wisconsin Statutes, imposes a limit on property tax levies by cities, villages,
towns, and counties. No city, village, town, or county is permitted to increase its tax levy by a percentage
that exceeds its valuation factor (which is defined as a percentage equal to the greater of the percentage
change in the political subdivision's January 1 equalized value due to new construction less
improvements removed or zero percent (0%)). The base amount in any year to which the levy limit
applies is the actual levy for the immediately preceding year. This levy limitation is an overall limit,
applying to levies for operations as well as for other purposes.
A political subdivision that did not levy its full allowable levy in the prior year can carry forward the
difference between the allowable levy and the actual levy, up to a maximum of 1.5% of the prior year's
actual levy. The carry forward resolution may be passed by a majority vote of the governing body if the
increase is .5%or less of the prior year's actual levy. If the increase is between .5%and 1.5%of the prior
year's actual levy the governing body must pass the carry forward resolution by an extraordinary vote.
For municipal governing bodies that have less than five members, passage must be by a two-thirds
majority vote. If the governing body consists of at least five members, then the carry forward resolution
must be passed by a three-fourths majority vote.
Special provisions are made with respect to property taxes levied to pay general obligation debt service,
as described below. In addition, the statute provides for certain other exclusions from and adjustments to
the tax levy limit. Among the items excluded from the tax levy limit are amounts levied for any revenue
shortfall for debt service on a revenue bond issued under Section 66.0621. Among the adjustments
permitted is an adjustment applicable when a tax increment district terminates, which allows an amount
equal to the prior year's allowable levy multiplied by 50% of the political subdivision's percentage
growth due to the district's termination.
With respect to general obligation debt service, the following provisions are made:
(a) If a political subdivision's levy for the payment of general obligation debt service, including debt
service on debt issued or reissued to fund or refund outstanding obligations of the political subdivision
and interest on outstanding obligations of the political subdivision, on debt originally issued before July 1,
2005,is less in the current year than in the previous year, the political subdivision is required to reduce its
levy limit in the current year by the amount of the difference between the previous year's levy and the
current year's levy. This required adjustment does not apply to political subdivisions in any year that the
subdivision does not claim the carry forward adjustment described above.
(b) For obligations authorized before July 1, 2005, if the amount of debt service in the preceding year is
less than the amount of debt service needed in the current year, the levy limit is increased by the
difference between the two amounts. This adjustment is based on scheduled debt service rather than the
amount actually levied for debt service (after taking into account offsetting revenues such as sales tax
revenues, special assessments, utility revenues, tax increment revenues or surplus funds). Therefore, the
levy limit could negatively impact political subdivisions that experience a reduction in offsetting
revenues.
(c) The levy limits do not apply to property taxes levied to pay debt service on general debt authorized on
or after July 1, 2005. The Bonds were authorized after July 1, 2005 and therefore are not subject to the
levy limits.
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RATING
Application for a rating of the Bonds has been made to Moody's Investors Service ("Moody's"), 7 World
Trade Center, 250 Greenwich Street, 23rd Floor, New York, New York. If a rating is assigned, it will
reflect only the opinion of Moody's. Any explanation of the significance of the rating may be obtained
only from Moody's.
There is no assurance that the rating, if assigned, will continue for any given period of time, or that such
rating will not be revised, suspended or withdrawn, if, in the judgment of Moody's, circumstances so
warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price
of the Bonds.
MUNICIPAL ADVISOR
The County has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota and
Milwaukee, Wisconsin ("Springsted"), as municipal advisor in connection with certain aspects of the
issuance of the Bonds. In preparing this Official Statement, Springsted has relied upon governmental
officials, and other sources, who have access to relevant data to provide accurate information for this
Official Statement, and Springsted has not been engaged, nor has it undertaken, to independently verify
the accuracy of such information. Springsted is not a public accounting firm and has not been engaged by
the County to compile, review, examine or audit any information in this Official Statement in accordance
with accounting standards. Springsted is an independent advisory firm, registered as a municipal advisor,
and is not engaged in the business of underwriting, trading or distributing municipal securities or other
public securities.
CERTIFICATION
The County has authorized the distribution of the Preliminary Official Statement for use in connection
with the initial sale of the Bonds and a Final Official Statement following award of the Bonds. The
Purchaser will be furnished with a certificate signed by the appropriate officers of the County stating that
the County examined each document and that, as of the respective date of each and the date of such
certificate, each document did not and does not contain any untrue statement of material fact or omit to
state a material fact necessary, in order to make the statements made therein, in light of the circumstances
under which they were made,not misleading.
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COUNTY PROPERTY VALUES
Trend of Values
Equalized Value Net Equalized Value
(Includes Captured Percent (Excludes Captured Percent
Tax Increment Value) Change Tax Increment Value) Change
2015 $8,062,750,500 6.2% $7,894,280,200 6.2%
2014 7,591,908,200 6.1 7,430,431,900 6.0
2013 7,154,298,100 3.2 7,006,832,000 3.5
2012 6,930,949,400 (5.5) 6,771,869,900 (5.8)
2011 7,335,670,300 -- 7,188,884,400 --
Source: Wisconsin Department of Revenue, lam://www.revenue.wi. ov/.
2015 Equalized Value by Class of Property*
Real Estate:
Residential $6,292,288,800 78.0%
Commercial 1,130,062,600 14.0
Manufacturing 169,632,700 2.1
Agricultural 39,739,000 0.5
Undeveloped/Ag Forest/
Forest/Other 296,074,000 3.7
Personal Property 134,953,400 1.7
Total Equalized Value $8,062,750,500 100.0%
Less: Captured Tax Increment Value (168,470,300)
2015 Net Equalized Value $7,894,280,200
Source: Wisconsin Department of Revenue, lam://www.revenue.wi.gov/.
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2015 Equalized Value by Municipality(Including Tax Increment Value)
Cities:
Glenwood City $ 56,961,800
Hudson 1,664,033,200
New Richmond 607,269,700
River Falls (portion) 303,920,200
Villages:
Baldwin 255,871,400
Deer Park 12,035,600
Hammond 117,982,300
North Hudson 351,463,400
Roberts 122,336,500
Somerset 189,265,600
Spring Valley(portion) 1,015,500
Star Prairie 33,380,000
Wilson 9,523,100
Woodville 77,843,000
21 Towns 4,259,849,200
Total 2015 Equalized Value $8,062,750,500
Source: Wisconsin Department of Revenue, lam://www.revenue.wi.gov/.
Ten of the Largest Taxpayers in the County
2015
Assessed
Taxpayer Type of Business/Service Value
Hanley Road LLC Warehouse/Distribution $ 31,774,300
Hudson Memorial Hospital Inc. Healthcare 15,840,500
Thomson Reuters Property Tax
(General Motors LLC) Commercial 15,542,100
Wal-Mart Real Estate Business Trust Retail 11,346,800
Russ Davis Wholesale, Inc Commercial 10,173,500
Bradley Associates Residential 10,056,200
Ristow Trucking Inc. Trucking 9,858,600
Red Cedar Canyon Villas LLC Residential 9,032,200
Convenience Store Investments Retail 9,008,300
GNA Holdings LLC Commercial 6,047,100
Total $128,679,600*
* Represents 1.7%of the County's total 2015 assessed value of$7,676,609,575.
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Tax Increment Districts
Municipalities in the County have created Tax Increment Districts (the "TID's") under Section 66.1105
(formerly 66.46) of the Wisconsin Statutes. The TID's increment valuation has been excluded from the
District's tax base.
TID Creation Base 2015
Municipality Number Date Value Value Increment
V.Baldwin 005 1995 $ 22,500 $ 3,070,000 $ 3,047,500
V.Baldwin 006 2005 12,224,500 15,000,300 2,775,800
V.Baldwin 007 2007 5,002,200 3,137,700
V. Hammond 003 1993 139,200 304,100 164,900
V.Hammond 004 1993 201,100 447,100 246,000
V.Hammond 005 1995 142,600 12,876,000 12,733,400
V.Hammond 006 1999 16,000 12,105,800 12,089,800
V.Roberts 001 1997 4,435,100 19,241,100 14,806,000
V. Somerset 002 1996 1,890,600 30,959,800 29,069,200
V. Somerset 003 2005 1,135,500 1,015,900
V. Somerset 004 2008 1,085,700 136,600
V.Woodville 003 1995 1,001,000 18,490,400 17,489,400
V.Woodville 004 2005 193,600 730,300 536,700
C. Glenwood City 003 2000 5,240,600 6,396,200 1,155,600
C.New Richmond 005 1987 77,900 18,480,400 18,402,500
C.New Richmond 006 1995 228,500 11,418,700 11,190,200
C.New Richmond 007 2003 2,557,800 5,203,300 2,645,500
C.New Richmond 008 2005 15,731,300 20,488,100 4,756,800
C.New Richmond 009 2008 6,476,100 7,509,300 1,033,200
C.New Richmond 010 2014 3,853,800 3,715,400
C.River Falls 004 1988 1,235,500 15,687,100 14,451,600
C.River Falls 005 1994 467,400 22,098,100 21,630,700
C.River Falls 010 2014 71,500 317,000 245,500
Total $168,470,300
* These districts have a zero or negative increment; therefore, no increment value is shown.
Source: Wisconsin Department of Revenue, lam://www.revenue.wi.gov/.
COUNTY INDEBTEDNESS
Legal Debt Limit and Margin
Legal Debt Limit(5% of Equalized Value of$8,062,750,500) $403,137,525
Less: Outstanding Debt Subject to Limit(Including the Bonds) (32,110,000)
Debt Margin as of March 2,2016 $371,027,525
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General Obligation Debt*
Est.Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 3-2-16
11-1-08 $ 3,180,000 Promissory Notes 4-1-2016 $ 525,000
4-14-10 3,360,000 Taxable Promissory Notes 4-1-2017 1,585,000
9-1-14 10,000,000 Promissory Notes 4-1-2024 10,000,000
9-1-15 10,000,000 Health Center Bonds 4-1-2035 10,000,000
3-2-16 10,000,000 Health Center Bonds (the "Bonds") 4-1-2035 10,000,000
Total $32,110,000
These issues are subject to the legal debt limit.
Estimated Calendar Year Debt Service Payments
Including the Bonds
General Obligation Debt
Principal
Year Principal &Interest(a)
2016 (at 3-2) $ 1,630,000 $ 2,335,165
2017 1,270,000 2,022,791
2018 1,840,000 2,556,623
2019 1,875,000 2,554,473
2020 1,915,000 2,556,573
2021 1,955,000 2,551,048
2022 2,000,000 2,549,323
2023 2,045,000 2,553,173
2024 2,100,000 2,562,960
2025 1,215,000 1,638,360
2026 1,250,000 1,642,548
2027 1,285,000 1,643,973
2028 1,320,000 1,641,904
2029 1,365,000 1,650,016
2030 1,400,000 1,647,888
2031 1,440,000 1,648,188
2032 1,480,000 1,646,114
2033 1,525,000 1,646,538
2034 1,575,000 1,649,639
2035 1,625,000 1,650,291
Total $32,110,000(') $40,347,588
(a) Includes the Bonds at an assumed average annual interest rate of 2.78%.
(b) 55.6%of this debt will be retired within ten years.
Other Debt Obligations
Operating Leases
The County has entered into various operating leases for vehicles. A total of$28,470 of future minimum
lease payments is required under these operating leases as of December 31, 2015 with a final payment in
2017.
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Indirect Debt(a)
Debt Applicable to
2015 Net Est. G.O. Debt Value in County
Taxing Unit Equalized Value As of 3-2-16(') Percent Amount
Cities:
Hudson $ 1,664,033,200 $14,065,000 100.0 $ 14,065,000
New Richmond 569,241,500 15,684,596 100.0 15,684,596
River Falls 829,899,100 17,694,080 32.2 5,697,494
Villages:
Baldwin 250,048,100 3,270,000(c) 100.0 3,270,000
Deer Park 12,035,600 31,439(c) 100.0 31,439
Hammond 92,748,200 3,578,039(c) 100.0 3,578,039
North Hudson 351,463,400 1,860,754(c) 100.0 1,860,754
Roberts 107,530,500 3,455,000(c) 100.0 3,455,000
Somerset 160,196,400 6,650,378(c) 100.0 6,650,378
Spring Valley 58,380,500 1,225,704(c) 1.7 20,837
Woodville 59,816,900 2,486,389(c) 100.0 2,486,389
Towns:
Baldwin 69,736,300 106,009(c) 100.0 106,009
Emerald 49,622,900 233,477(c) 100.0 233,477
Glenwood 49,522,300 107,467(c) 100.0 107,467
Richmond 287,532,200 86,040(c) 100.0 86,040
Saint Joseph 484,413,700 2,480,000(c) 100.0 2,480,000
Somerset 373,906,300 191,270(c) 100.0 191,270
Stanton 57,990,900 50,000(c) 100.0 50,000
Star Prairie 274,615,300 494,246(c) 100.0 494,246
Troy 719,918,200 29,026(c) 100.0 29,026
School Districts:
Amery 828,370,178 7,355,000 3.3 242,715
Baldwin-Woodville 580,366,737 35,915,000 100.0 35,915,000
Boyceville 270,295,653 8,981,369 0.4 35,925
Clear Lake 200,660,317 13,950,000 18.3 2,552,850
Glenwood City 228,218,537 10,405,000 84.5 8,792,225
Hudson 3,647,401,031 19,420,000 100.0 19,420,000
Menomonie 1,674,263,510 37,510,000 0.1 37,510
New Richmond 1,249,288,114 87,275,000 100.0 87,275,000
Osceola 758,173,846 12,285,000 6.0 737,100
River Falls 1,783,728,944 32,105,000 44.9 14,415,145
St. Croix Central 540,459,428 39,055,000 100.0 39,055,000
Somerset 656,230,926 10,680,000 100.0 10,680,000
Technical Colleges:
Chippewa Valley 21,767,542,539 29,800,000 4.2 1,251,600
Wisconsin Indianhead 31,605,894,273 30,930,000 22.1 6,835,530
Total $287,823,061
(a) Only those taxing units with general obligation debt outstanding are shown here.
(b) Includes general obligation bonds, promissory notes, and State Trust Fund Loans. Excludes tax and revenue
anticipation bonds, and revenue debt.
(c) Debt as of December 31, 2014, which is the most recent information available from the Wisconsin Department
ofRevenue, hi�2://www.revenue.wi.gov/report/dhtml#debt.
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Debt Ratios*
G.O. G.O. Direct&
Direct Debt Overlapping Debt
To 2015 Net Equalized Value ($7,894,280,200) 0.41% 4.05%
Per Capita(86,169-2015 State Estimate) $373 $3,713
* Excludes other debt obligations.
COUNTY TAX RATES,LEVIES AND COLLECTIONS
Tax Rates Per $1,000 of Assessed Value
City of Hudson
2011/12 2012/13 2013/14 2014/15 2015/16
City of Hudson 4.50 4.50 4.82 4.82 4.99
St. Croix County 3.70 3.98 3.77 3.95 3.95
Hudson School District 8.60 9.19 9.11 9.16 9.44
State of Wisconsin 0.17 0.16 0.17 0.18 0.18
Wisconsin Indianhead
Technical College 1.18 1.20 1.23 0.37 0.40
Gross Tax Rate 18.15 19.03 19.10 18.48 18.97
Less: State Credits 1.32 1.35) 1.35) 1.37 1.58)
Net Tax Rate 16.83 17.68 17.75 17.11 17.39
Ratio of Assessed to
Equalized Value 100.21% 103.61% 101.81% 96.54% 93.96
Source: City of Hudson.
City of New Richmond
2011/12 2012/13 2013/14 2014/15 2015/16
State of Wisconsin 0.159 0.161 0.160 0.168 0.175
City of New Richmond 8.960 8.967 8.967 8.318 8.405
St. Croix County 3.474 3.420 3.419 3.760 3.842
New Richmond School District 11.203 10.320 10.320 11.819 12.316
Wisconsin Indianhead
Technical College 1.099 1.117 1.117 0.357 0.386
Gross Tax Rate 24.895 23.985 23.980 24.422 25.124
Less: State Credits 1.773 1.795) 1.794) LL75 1 1.957)
Net Tax Rate 23.122 22.190 22.191 22.671 23.167
Ratio of Assessed to
Equalized Value 93.52% 94.66% 105.60% 101.09% 96.77
Source: City of New Richmond.
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Tax Levies and Collections
Levy for
County Amount Percent Collected
Levy/Collect Purposes Only Collected as of 12-31-15
2015/16 $29,391,118 (In process of collection)
2014/15 28,311,063 $27,593,906 97.5%
2013/14 26,870,181 26,478,944 98.5
2012/13 26,575,346 26,428,065 99.4
2011/12 26,625,346 26,584,981 99.8
2010/11 26,495,226 26,476,151 99.9
CASH ON HAND
As of November 30,2015
Fund Cash and Investments
General Fund $25,376,391
Special Revenue 3,380,112
Debt Service 359,462
Capital Projects 12,184,464
Enterprise 1,561,329
Internal Service 11,204,629
Trust&Agency 2,060,066
Total $8556,126,453
INVESTMENTS
The County is required to invest its funds in accordance with State Statutes. The County's investment
policy has delegated authority for investing the County's funds to the Finance Director and the
Administration Committee. As of November 30, 2015, the County had its funds invested in the following
categories:
Wisconsin State Treasurer's Local Government
Pooled Investment Fund $28,542,323
Money Market Savings & Checking 1,053,442
US Agencies 26,530,688
Total $56,126,453
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GENERAL INFORMATION CONCERNING THE COUNTY
St. Croix County, bounded by the St. Croix River on the west, is located in northwest Wisconsin. The
County is one of two Wisconsin counties included in the 16-county Minneapolis/St.Paul, Minnesota-
Wisconsin Standard Metropolitan Statistical Area (SMSA). The County encompasses an area of 729.45
square miles (466,848 acres) and contains all or portions of four cities, ten villages and 21 townships.
The City of Hudson is the county seat and is located 20 miles east of downtown St.Paul.
Population
The County's population trend is shown below.
Percent
Population Change
2015 Estimate* 86,169 2.2%
2010 U.S. Census 84,345 33.6
2000 U.S. Census 63,155 25.7
1990 U.S. Census 50,251 16.2
1980 U.S. Census 43,262 --
* As ofdanuary 1, 2015(Wisconsin State Department of Administration.
Sources: U.S. Census Bureau, lath://www.census.goi,/ and Wisconsin State Department of Administration
lattp://www.doa.state.w i.us/.
The County's population by age group for the past three years is as follows:
Data Year/
Report Year 0-17 18-34 35-64 65 and Over
2014/15 22,340 17,110 36,726 10,565
2013/14 22,501 17,039 36,384 9,817
2012/13 23,045 16,916 36,176 9,441
Source: Claritas,Inc.
Transportation
Interstate Highway 94, traversing the County east to west, and Minnesota State Highway 36 provide easy
access across the St. Croix River to the cities of Minneapolis and St. Paul and surrounding suburbs. The
St. Croix Crossing, a new four-lane bridge across the St. Croix River to connect the City of Oak Park
Heights, Minnesota and the Town of St. Joseph, Wisconsin in the County, is currently under
construction, and is expected to open by mid-2016. U.S. Highways 12 and 63 run through the County as
well as State Highways 35, 64, 65, 29, and 128. A regional airport is located in the City of New
Richmond, Wisconsin.
- 16 -
Major Employers in and Around St. Croix County
St. Croix County residents have employment opportunities throughout the Minneapolis/St. Paul
metropolitan area, including many diverse local employers and several nearby major metropolitan area
employers. A listing of the major local employers and major area employers is shown below.
Approximate
Number
Employer Product/Service of Employ
Andersen Corporation(Bayport) Windows and doors manufacturing 2,500
Washington County(Stillwater) County government 1,127
Independent School District No. 834 (Stillwater) Public education 1,040
Hudson School District Public education 852
Lakeview Memorial Hospital(Stillwater) Medical care 770
St. Croix County County government 605
Minnesota Correctional Facility(Oak Park
Heights and Bayport) Correctional institution 525
Wal-Mart(Hudson and Stillwater) Discount retail store 500
Wisconsin Indianhead Technical College
(New Richmond) Post-secondary education 500*
OEM Fabricators, Inc. (Woodville) Metal fabrication 489
Nor-Lake, Inc. (Hudson) Commercial refrigeration units 404
Stillwater Medical Clinic(Stillwater) Healthcare 390
Hudson Hospital and Clinic Hospital 365
New Richmond School District Public education 360
Phillips Medisize
(Hudson and New Richmond) Plastic injection molding 350
McMillan Electric Company(Woodville) Electric motors 300
Bosch Packaging Technology Inc.
(New Richmond) Packaging machinery manufacturing 280
Westfields Hospital(New Richmond) Medical care 250
Lakeside Foods (New Richmond) Canned vegetables 250
DiaSorin Inc. (Stillwater) Medical manufacturing 240
Somerset School District Public education 220
Cub Foods, Inc. (Stillwater) Retail grocery 200
Loparex(Hammond) Custom coatings and film sheeting 200
Donaldson Co., Inc. (Baldwin) Air filtration equipment 180
United Gear&Assembly(Hudson) Machine gears 150
* Includes full-time,part-time, and hundreds of adjunct employees.
Source: This does notpurport to be a comprehensive list and is based on a July 2015 best efforts telephone survey
of individual employers. Some employers do not respond to inquiries.
- 17 -
Labor Force Data
Annual Average November
2011 2012 2013 2014 2015
Labor Force:
St. Croix County 47,281 47,362 47,756 48,527 48,994
State of Wisconsin 3,069,021 3,062,636 3,074,589 3,093,918 3,104,521
Unemployment Rate:
St. Croix County 6.0% 5.4% 4.8% 4.5% 3.4%
State of Wisconsin 7.5 6.9 6.7 5.5 4.0
Source: Wisconsin Department of Workforce Development, http://www.worknet wisconsin.gov. 2015 figures are
preliminary.
Retail Sales and Effective Buying Income (EBI)
St. Croix County
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI(5000) Household EBI
2014/15 $1,834,210 $2,272,805 $57,816
2013/14 1,771,214 1,927,033 49,391
2012/13 1,243,774 2,055,843 51,271
2011/12 1,255,078 1,951,123 49,911
2010/11 1,254,868 1,931,303 50,090
State of Wisconsin
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI($000) Household EBI
2014/15 $92,852,449 $127,369,578 $44,087
2013/14 92,741,954 121,091,308 42,412
2012/13 83,844,552 113,701,892 39,628
2011/12 82,226,196 112,597,555 40,485
2010/11 82,203,555 111,168,297 40,584
The 2014/15 median household EBI for the United States is $45,448.
Source: Claritas,Inc.
- 18 -
Building Permits
City of Hudson
Total Permits Residential
Number Value Number Value
2015 307 $62,644,770 58 $11,176,500
2014 301 29,872,508 55 12,725,200
2013 329 35,354,233 124 19,688,528
2012 284 58,474,903 57 12,768,820
2011 342 24,291,230 150 16,580,900
2010 367 19,216,795 39 7,484,800
2009 230 9,425,235 20 3,704,000
2008 337 23,787,209 60 11,468,100
2007 385 46,757,821 66 12,185,171
2006 397 38,110,710 94 15,753,800
Source: City of Hudson, Wisconsin.
City of New Richmond
Total Permits Residential
Number Value Number Value
2015 285 $33,492,461 225 $ 8,867,830
2014 230 24,273,237 155 7,559,583
2013 202 6,061,709 145 2,218,992
2012 267 22,463,297 197 10,682,582
2011 175 15,174,089 112 2,393,547
2010 209 24,700,201 150 2,907,103
2009 266 5,258,692 255 3,141,194
2008 616 70,230,081 507 8,816,805
2007 444 32,699,885 346 10,107,900
2006 370 23,803,084 251 12,128,053
Source: City of New Richmond, Wisconsin.
Financial Institutions
The following full service banks are located in the County*:
Deposits as
Institution of 9-30-15
First National Community Bank(New Richmond) $173,300,000
First American Bank,N.A. (Hudson) 154,897,000
The First Bank of Baldwin 134,327,000
Citizen's State Bank(Hudson) 134,107,000
Total $596,631,000
In addition, branch offices of Associated Bank, National Association; Bank Mutual; BMO Harris Bank
National Association; Bremer Bank, National Association; Central Bank; First State Bank and Trust;
Hiawatha National Bank; Security Financial Bank; U.S. Bank National Association; and Wells Fargo
Bank,National Association are located throughout the County.
* This does not purport to he a comprehensive list.
Source: Federal Deposit Insurance Corporation, htII2://www2.fdic.gov/ida,�p/main.asp.
- 19 -
Health Care Services
The County owns and operates the St. Croix County Nursing Home, a 50-bed facility, which is operated
as a not-for-profit, tax-exempt, licensed nursing home. The following list includes some additional health
care facilities located in the County:
Facilily Facilily Type Location
Hudson Hospital and Clinic Clinic, Hospital Hudson
Baldwin Area Medical Center Clinic, Hospital Baldwin
Westfields Hospital Hospital New Richmond
Christian Community Home Clinic,Nursing Home Hudson
St. Croix Health Center Clinic,Nursing Home New Richmond
Lutheran Home River Falls Nursing Home River Falls
American Heritage Care Center Clinic,Nursing Home Hammond
Park View Home Nursing Home Woodville
Glenhaven, Inc Nursing Home Glenwood City
Baldwin Care Center, Inc Clinic,Nursing Home Baldwin
Deerfield Care Center, LLC Nursing Home New Richmond
Kinnic Health and Rehab Nursing Home River Falls
Source: Wisconsin DepartnzentofHealthServices, htII2://www.dlas.Wisconsin.gov/byaconsumer/search.htm.
* This does not purport to be a comprehensive list.
Education
Public Education
The following districts serve the residents of the County:
2014/15
School Location Enrollment*
Baldwin-Woodville Area Baldwin 1,663
Boyceville Community Boyceville 787
Clear Lake Clear Lake 609
Glenwood City Glenwood City 750
Hudson Hudson 5,492
Menomonie Area Menomonie 3,365
New Richmond New Richmond 3,265
Osceola Osceola 1,782
River Falls River Falls 3,220
St. Croix Central Hammond 1,545
Somerset Somerset 1,585
Spring Valley Spring Valley 746
* 2015116 enrollment not yet available.
Source: Wisconsin Department ofPublic Instruction, http://dpi.wi.gov/.
Non-Public Education
County residents are also served by the following private schools: Baldwin Christian School,North Haus
Academy, Saint Patrick Catholic School, Trinity Academy, Saint Mary's School, and Saint Anne Grade
School.
Source: Wisconsin Department ofPublic Instruction, http://d2i.wi.gov/.
-20 -
Post-Secondary Education
One of the four campuses of the Wisconsin Indianhead Technical College ("WTTC") is a 38-acre site in
the City of New Richmond. The University of Wisconsin-River Falls, located just south of the County in
Pierce County, is a four-year liberal arts college which is part of the State of Wisconsin's University
system.
GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
St. Croix County was organized in 1840. The County is governed by a 19-member Board of Supervisors,
each elected to two-year terms of office. The term of office for all current County Board members
expires April 2016. The current County Board of Supervisors is comprised of the following people:
Roger Larson, Chair Jill Ann Berke
Dave Ostness,Vice Chair Daniel Hansen
Travis Schachtner David Peterson
Agnes M. Ring Paulette Anderson
Christopher C. Babbit Judy Achterhof
Howard F.Novotny Shaela Leibfried
Roy Sjoberg William Peavey
Carah Koch Ron Kiesler
Chris Kilber Andy Brinkman
Scott J.Nelson
Elected officials in the County are as follows:
Expiration of Term
Cindy Campbell Clerk January 1, 2017
Laurie Noble Treasurer January 1, 2017
Eric Johnson District Attorney January 1, 2017
John Shilts Sheriff January 1, 2019
Kristi Severson Clerk of Court January 1, 2019
Beth Pabst Registrar of Deeds January 1, 2017
The County Clerk is responsible for the administration of all elections, recording all County Board
proceedings, preparation of the County Directory and licensing. The County Treasurer is responsible for
the depositing of County funds in a timely manner. According to Wisconsin Statutes, the person
occupying this position is also responsible for the investing of County funds. However, this duty is
handled by the Finance Department in St. Croix County.
The chief administrator of the County is Mr. Patrick Thompson, Administrator. Mr. Thompson's position
is an appointive, professional position reporting to the County Board, with the responsibility for
supervision of the departments of the County. Mr. Thompson has served as Administrator since June
2011.
Mr. Robert Mittet, Finance Director, is responsible for accounts payable, payroll, preparation of the
County budget in conjunction with the County Administrator and County Board of Supervisors, and
preparation of the County's annual financial statements in conjunction with the County's independent
certified public accounting firm. The position of Finance Director is appointive. Mr. Mittet has served as
Finance Director since January 2016. Mr. Mittet previously served as the County's Assistant Finance
Director since July 2012 and Interim Finance Director since April 2015. Prior to working for the County,
Mr. Mittet also served as the Finance Director for the City of Maplewood,Minnesota.
-21 -
County Services
County services include the maintenance of public records, circuit court, clerk of court, sheriff's
department, jail, emergency support services, highway department, health and human services,
community development, veteran's affairs, administration, child support, treasurer, county clerk, register
of deeds, and University of Wisconsin extension service. Total full- and part-time employment is 605.
Labor Contracts
The status of labor contracts in the County is as follows:
Expiration Date
Barg Unit No. of Employ of Current Contract
WPPAO) 71 December 31, 2015(')
Non-unionized employees 534
Total employees 605
(a) Wisconsin Professional Police Association, which represents the County's sworn protective service Sheriff
officers.
(h) In negotiations.
Employee Pensions
All eligible employees of the County are participants in the State of Wisconsin Retirement System
(WRS), a cost-sharing multiple-employer defined benefit Public Employee Retirement System. The
WRS is one of the strongest government pension plans in the country. It is fully funded and Moody's
Ratings Service issued a report dated June 27, 2013 that found WRS among the most prepared to pay its
pension obligations over the long term. All employees, initially employed by a participating WRS
employer prior to July 1, 2011, expected to work at least 600 hours a year (440 hours for teachers) and
expected to be employed for at least one year from employee's date of hire are eligible to participate in
the WRS. All employees, initially employed by a participating WRS employer on or after July 1, 2011,
expected to work at least 1,200 hours a year (880 for teachers) and expected to be employed for at least
one year from employee's date of hire are eligible to participate in the WRS.
Contributions are based upon an annual actuarial valuation for the plan as a whole which is performed in
accordance with Wisconsin Retirement Fund Policies. The payroll for employees covered by WRS and
the County's total payroll for the past five years are as follows:
Covered by WRS Total Pam
2014 $28,226,246 $29,131,602
2013 27,181,415 27,687,263
2012 27,181,415 27,687,263
2011 28,140,484 28,564,669
2010 27,748,256 29,324,397
-22 -
The total required contribution, with the contributions and percentage of payroll from the County and
employees for the past five years, are as follows:
Total Required County County Employee Employee
Contribution Contribution Percentage Contribution* Percentage*
2014 $3,795,554 $2,144,437 7.6% $1,973,352 7.0%
2013 3,360,615 1,796,205 6.6 1,564,410 5.8
2012 3,360,615 1,796,205 6.6 1,564,410 5.8
2011 3,512,253 1,771,418 5.4 1,740,835 5.5
2010 3,293,393 1,613,567 5.5 1,679,826 5.7
* Prior to June 29, 2011, the County made these contributions on behalf of its employees. Thereafter, the
employees have been making these contributions, unless an existing collective bargaining agreement states the
County may pay the employee required contribution.
For more information regarding the liability of the County with respect to its employees,please reference
"Note 4, Other Information, A. Employee Retiree Plan" of the County's Annual Financial Statements for
fiscal year ended December 31, 2014, an excerpt of which is included as Appendix IV of this Official
Statement. (The County's Annual Financial Statements for the fiscal year ended December 31, 2015 are
not yet available.)
Sources: County's Annual Financial Statements.
Other Postemployment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45), which
addresses how state and local governments must account for and report their obligations related to Post-
employment healthcare and other non-pension benefits (referred to as Other Post Employment Benefits or
"OPEB").
All employees who retire through the WRS are eligible to participate in the retiree medical plan if they
pay 100% of the retiree premium. With the advent of GASB Statement 45, the County has engaged
actuaries to provide actuarial valuation reports. Under GASB 45 such costs must be accounted for on an
accrual basis. The County must report an annual OPEB cost based on actuarially determined amounts
that, if paid on an ongoing basis, will provide sufficient resources to pay these benefits. Components of
the County's annual OPEB cost, the amount actually contributed to the plan, and the changes in the
County's net OPEB obligation to the plan for the fiscal year ended December 31,2014 are as follows:
Annual required contribution $ 379,928
Interest on net OPEB obligation 47,145
Adjustment to annual required contribution (64,318)
Annual OPEB cost(expense) $ 362,755
Contributions made (90,570)
Increase in net OPEB obligation $ 272,185
Net OPEB obligation—beginning of year $1,047,658
Net OPEB obligation— end of year 1 319 843
-23 -
Funded status of the County's OPEB as reported in the actuarial reports received to-date:
Unfunded UAAL as
Actuarial Actuarial a percentage
Actuarial Actuarial Value Accrued Accrued of Annual
Valuation Date of Assets Liability Liability(UAAL) Covered Pam
January 1, 2011 -0- $1,618,068 $1,618,068 5.4%
January 1, 2012 -0- 2,758,087 2,758,087 11.9
January 1, 2014 -0- 3,092,984 3,092,984 31.0
Required contributions as reported in the actuarial reports received to-date:
Fiscal Annual Employer % of Annual OPEB Net OPEB
Year Ended OPEB Cost Contributions Cost Contributed Obligation
December 31, 2010 $238,413 $40,984 17.2% $ 383,829
December 31, 2011 225,373 53,801 23.9 555,401
December 31, 2012 319,111 63,002 19.7 811,510
December 31, 2013 304,820 68,672 22.5 1,047,658
December 31, 2014 362,755 90,570 25.0 1,319,843
For more information regarding the liability of the County with respect to its employees,please reference
"Note 5, Other Postemployment Benefit Plan" of the County's Annual Financial Statements for fiscal
year ended December 31, 2014, an excerpt of which is included as Appendix IV of this Official
Statement. (The County's Annual Financial Statements for the fiscal year ended December 31, 2015 are
not yet available.)
Sources: County's Annual Financial Statements.
-24 -
County Budget Summary
2015 Year
2015 Budget End Estimates 2016 Budget
Revenues:
Other Taxes $ 6,220,000 $6,658,362 $6,720,000
General Property Taxes 29,831,211 $29,569,711 30,484,252
Delinquent Taxes 320,000 615,636 260,000
State and Federal Aid 14,631,972 12,561,766 15,348,221
Fines and Fees 1,636,325 1,613,287 1,452,435
Charges for Services 18,814,141 19,067,683 25,308,762
Revenue from Debt Issuance 25,000 10,026,900 19,259
Commercial 215,181 215,181 440,672
Surplus Applied 3,963,341 3,695,186 785,560
Total Revenues $75,657,171 $84,023,712 $80,819,161
Expenditures:
General Government $15,017,531 $14,379,034 $19,590,952
Capital Project Fund 2,222,632 2,522,000 538,600
Public Safety 12,216,638 12,235,510 12,275,673
Health and Human Services & SCI 22,611,479 22,825,477 23,324,095
Highways 16,585,350 16,190,111 16,617,257
County Aid Bridges 364,620 364,620 79,300
Education and Recreation 2,200,581 2,103,412 2,081,390
Conservation and Development 2,705,664 3,304,830 3,932,423
Debt Service 1,532,676 1,589,628 2,179,471
Contingency 200,000 92,000 200,000
Total Expenditures $75,657,171 $75,606,622 $80,819,161
Source: The County and the County's 2015 Budget.
Major General Fund Revenue Sources
Revenue 2010 2011 2012 2013 2014
Taxes $20,462,656 $24,890,971 $26,159,166 $27,205,292 $28,045,707
Intergovernmental 4,894,200 4,697,053 4,123,143 4,243,313 4,745,522
Public Charges for Services 2,042,915 2,009,471 2,108,754 1,929,436 1,673,832
Licenses and Permits 177,161 180,862 214,973 339,993 210,983
Fines and Forfeits 338,651 270,163 297,889 234,883 210,561
Intergovernmental Charges
for Services 497,825 410,225 398,752 469,640 57,358
Sources: County's Annual Financial Statements.
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