HomeMy WebLinkAboutResolution 2019 (27) Resolution No. 27 (2019)
ST. R�.J►9, �'w '° �..1NTY INITIAL RESOLUTION AUTHORIZING THE ISSUANCE OF $8,025,000
,I'SOYI`'V? GENERAL OBLIGATION BONDS OR PROMISSORY NOTES
1 WHEREAS, the County Board of Supervisors (the "County Board") of St. Croix
2 County, Wisconsin (the "County") hereby finds and determines that it is necessary, desirable and
3 in the best interest of the County to issue, pursuant to Chapter 67, Wisconsin Statutes, general
4 obligation bonds and/or promissory notes (collectively, the "Obligations")in an amount of not to
5 exceed $8,025,000 for the public purpose of paying the cost of capital projects included in the
6 County's budget, including but not limited to, improvements to the Government Center and Jail
7 and acquiring equipment for the same (collectively, the "Project");
8
9 WHEREAS, the County Board finds and determines that the Project is within the
10 County's power to undertake and serves a "public purpose" as that term is defined in Wis. Stat. §
11 67.04(1)(b); and
12
13 WHEREAS, counties are authorized by the provisions of Chapter 67, Wisconsin Statutes
14 to borrow money and to issue the Obligations for such public purposes.
15
16 NOW, THEREFORE, BE IT RESOLVED by the St. Croix County Board of
17 Supervisors that:
18 Section 1. Authorization of Obligations. For the purpose of financing the Project, the
19 County shall issue Obligations pursuant to Chapter 67 of the Wisconsin Statutes in an amount
20 not to exceed $8,025,000.
21 Section 2. Sale of the Obligations. The County Board hereby authorizes and directs that
22 the Obligations be offered for public sale. At a subsequent meeting, the County Board shall
23 consider such bids for the Obligations as may have been received and take action thereon.
24 Section 3. Official Notice of Sale. The County Administrator(in consultation with the
25 County's municipal advisor, Ehlers & Associates, Inc. ("Ehlers"))is hereby authorized and
26 directed to cause the sale of the Obligations to be publicized at such times and in such manner as
27 the County Administrator may determine and to cause copies of a complete Notice of Sale and
28 other pertinent data to be forwarded to interested bidders as the County Administrator may
29 determine.
30 Section 4. Official Statement. The County Administrator(in consultation with Ehlers)
31 shall also cause an Official Statement to be prepared and distributed. The appropriate County
32 officials shall determine when the Official Statement is final for purposes of Securities and
33 Exchange Commission Rule 15c2-12 and shall certify said Statement, such certification to
34 constitute full authorization of such Statement under this Resolution.
35
36 Section 5. Conflicting Resolutions; Severability; Effective Date. All prior resolutions, rules or
37 other actions of the County Board or any parts thereof in conflict with the provisions hereof shall
38 be, and the same are, hereby rescinded insofar as the same may so conflict. In the event that any
39 one or more provisions hereof shall for any reason be held to be illegal or invalid, such illegality
40 or invalidity shall not affect any other provisions hereof. The foregoing shall take effect
41 immediately upon adoption and approval in the manner provided by law.
Legal—Fiscal—Administrative Approvals:
Legal Note:
Fiscal Impact: Debt service will increase on avarage about$500,000 per year for the next 20
years.
aftCorporation n 3/2019 K Coo i "i 6/12/2019
K21100_�
P Ck Thompson,County Administrator 6/13/2019
06/17/19 Administration Committee RECOMMENDED
......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ..........
RESULT: RECOMMENDED [3 TO 1]
MOVER: David Peterson, Chair
SECONDER: Roy Sjoberg, Vice-Chair
AYES: Roy Sjoberg, David Peterson, Nancy Hable
NAYS: Tammy Moothedan
ABSENT: Dan Fosterling
Vote Confirmation.
v,
,d
David Pete=Adrnknsireti ChairmanJY 6/18/2019
St. Croix County Board of Supervisors Action:
Roll Call -Vote Requirement—Three-quarters Majority of Entire Membership (15)
......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ..........
RESULT: ADOPTED [15 TO 3]
MOVER: David Peterson, Supervisor
SECONDER: Dave Ostness, Vice Chair
AYES: Schachtner, Endle, Miller, Sjoberg, Malick, Fosterling, Feidler, Ostness, Larson,
Tellijohn, Peterson, Anderson, Achterhof, Hable, Peavey
NAYS: Tom Coulter, Tammy Moothedan, Daniel Hansen
ABSENT: District 13
This Resolution was Adopted by the St. Croix County Board of Supervisors on August 6, 2019
Cindy Campbell, County Clerk
Overall Project Budget
DRAFT
Description Jail Portion Gov't Ctr Portion ^^^^^w e a.�"^�'^'^ Totals Remarks
Phase II ESS CIP
CIP Project 10068 Retro Commissioning $150,000
Utility Rebates
Other Income
Interest Earnings
Total Available Dollars $0 $150,000 $0 $150,000
Construction Costs
Building Construction
Building Construction Jail KMA $3,384,446 $0 $0
Mechanical D500 Penthouse Equipment KFI $1,068,516 $0 $0
Government Center Mechanical KFI $0 $2,100,741 $0
Construction Contingency $0 $0 $0 In Estimate 4
Project Design Contingency $0 $0 $0 In Estimate 2
Subtotal $4,452,962 $2,100,741 $0 $6,553,703
Soft Costs
Owner Costs
Architectural&Engineering Fees KMA $329,983 $0 $0 Per Scott
Architectural&Engineering Fees KFI $64,752 $127,305 $0 Per Bob
Construction Manager Preconstruction Fee $5,000 $0 $0
Construction Manager Fee $0 $0 $0 In Estimate 2
State of WI Plan Review $0 $0 $0 In Estimate
DOC Plan Review $0 $0 $0 In Estimate
City of Hudson Permits/Inspections $0 $0 $0 In Estimate
Plumbing Plan Review Fee $0 $0 $0 In Estimate
Construction Testing/Special inspections $0 $0 $0 In Estimate
Controls All $400,000 $400,000 $0 Includes 5%contingency
T&B/Commissioning Jail/Government Center $0 $65,000 $0 KFI
T&B/Commissioning D500 $10,000 $0 $0 KFI
Builders Risk Insurance $0 $0 $0 By Owner.Existing Building Policy
Government Center Master Plan $50,000 $0 $0
Owner Contingency $0 $0 $0 Need to confirm
Subtotal $859,736 $592,305 $0 $1,452,040
Furniture Fixtures and Equipment/Technology
Command Vehicle Cost $0 $0 $0
Command Vehicle Equipment Cost $0 $0 $0
Furniture Fixtures and Equipment $0 $0 $0 Need to confirm
Technology/Equipment $0 $0 $0 Need to confirm
Subtotal $0 $0 $0 $0
Total Project Costs $5,312,698 $2,693,046 $0 $8,005,743
Project Balance Available over/(under) $5,312,698 $2,543,046 $0 $7,855,743
E H L E R S
August 6, 2019 (DRAFT)
Pre-Sale Report for
St. Croix County, Wisconsin
$8,025,000 General Obligation Bonds, Series 2019A
ST CRO,,,.),.IX
� I Y
Prepared by:
Sean Lentz, CIPMA
Senior Municipal Advisor
And
Brian Reilly, CIPMA
Senior Municipal Advisor
BUILDING COMIM6JMTIES MS WI IAT WE DO. ', �Pfo(&ehllers-d nr.r,..om 1(800) 552-Ml v ww,ehilersQmir,r,;¢.;)m
Executive Summary of Proposed Debt
Proposed Issue: $8,025,000 General Obligation Bonds, Series 2019A
Purposes: The proposed issue includes financing for the following purposes:
• Government Center Portion: Debt service will be paid from ad valorem
property taxes.
• Jail Portion: Debt service will be paid from ad valorem property taxes.
Authority: The Bonds are being issued pursuant to Wisconsin Statute:
• 67.04
The Bonds will be general obligations of the County for which its full faith,credit and
taxing powers are pledged.
The Bonds count against the County's General Obligation Debt Capacity Limit of 5%
of total County Equalized Valuation. Following issuance of the Bonds,the County's
total General Obligation debt principal outstanding will be$63,758,079,which is 13%
of its limit. Remaining General Obligation Borrowing Capacity will be approximately
$420,283,661.
Term/Call Feature: The Bonds are being issued for a term of 20 years. Principal on the Bonds will be due
on April 1 in the years 2020 through 2039. Interest is payable every six months
beginning April 1, 2020.
The Bonds will be subject to prepayment at the discretion of the County on April 1,
2027 for Bonds maturing April 1, 2028 and thereafter.
Bank Qualification: Because the County is expecting to issue no more than $10,000,000 in tax exempt
debt during the calendar year,the County will be able to designate the Bonds as"bank
qualified" obligations. Bank qualified status broadens the market for the Bonds,
which can result in lower interest rates.
Rating: The County's most recent bond issues were rated by Moody's Investors Service. The
current ratings on those bonds are "Aal". The County will request a new rating for
the Bonds.
If the winning bidder on the Bonds elects to purchase bond insurance, the rating for
the issue may be higher than the County's bond rating in the event that the bond rating
of the insurer is higher than that of the County.
Basis for Based on our knowledge of your situation,your objectives communicated to us, our
Recommendation: advisory relationship as well as characteristics of various municipal financing options,
we are recommending the issuance of Bonds as a suitable option based on:
Presale Report August 6, 2019
St. Croix County, Wisconsin Page 1
• The expectation this form of financing will provide the overall lowest cost
of funds while also meeting the County's objectives for term, structure and
optional redemption.
• The County has sufficient General Obligation Borrowing Capacity to finance
the 2019 projects
Method of We will solicit competitive bids for the purchase of the Bonds from underwriters and
Sale/Placement: banks.
We will include an allowance for discount bidding in the terms of the issue. The
discount is treated as an interest item and provides the underwriter with all or a portion
of their compensation in the transaction.
If the Bonds are purchased at a price greater than the minimum bid amount(maximum
discount),the unused allowance may be used to reduce your borrowing amount.
Presale Report August 6, 2019
St. Croix County, Wisconsin Page 2
Premium Pricing: In some cases, investors in municipal bonds prefer"premium" pricing structures. A
premium is achieved when the coupon for any maturity (the interest rate paid by the
issuer) exceeds the yield to the investor, resulting in a price paid that is greater than
the face value of the bonds. The sum of the amounts paid in excess of face value is
considered "reoffering premium."The underwriter of the bonds will retain a portion
of this reoffering premium as their compensation (or "discount") but will pay the
remainder of the premium to the County. The amount of the premium varies,but it is
not uncommon to see premiums for new issues in the range of 2.00%to 10.00% of
the face amount of the issue. This means that an issuer with a $2,000,000 offering
may receive bids that result in proceeds of$2,040,000 to $2,200,000.
For this issue of Bonds, any premium amount received that is in excess of the
underwriting discount and any capitalized interest amounts must be placed in the debt
service fund and used to pay a portion of the interest payments due on the Bonds.
The amount of premium allowed can be restricted in the bid
specifications. Restrictions on premium may result in fewer bids, but may also
eliminate large adjustments on the day of sale and unintended results with respect to
debt service payment impacts. Ehlers will identify appropriate premium restrictions
for the Bonds intended to achieve the County's objectives for this financing.
Other The Bonds will be offered with the option of the successful bidder utilizing a term
Considerations: bond structure. By offering underwriters the option to "term up" some of the
maturities at the time of the sale, it gives them more flexibility in finding a market for
your Bonds. This makes your issue more marketable, which can result in lower
borrowing costs. In the event that the successful bidder utilizes a term bond structure,
we recommend the County retain a paying agent to handle responsibility for
processing mandatory redemption/call notices associated with term bonds.
Review of Existing We have reviewed all outstanding indebtedness for the County and find that two issues
Debt: are worthy of additional discussion. The$117,456 State Trust Fund Loan of 2016 has
an interest rate of 3.25%, final maturity in 2026, and $85,059 outstanding. The
County should consider prepaying this issue with cash available. The $3,707,099
State Trust Fund Loan of 2016 has an interest rate of 3.25%, final maturity in 2026,
and $2,698,212 outstanding. The County would like to issue the 2019A Bonds on a
bank qualified basis to minimize the interest expense. This limits the issue size to
$10,000,000,therefore refunding the full amount outstanding as a part of the 2019A
Bonds is not possible. We will be discussing options for potentially refunding the
2016 State Trust Fund Loan as a separate issue or bank loan. The refunding issue
would need to be issued a minimum of 15 days after the proposed 2019A Bonds. The
County is also considering the use of proceeds expected from the sale of the old
Highway Department sight as revenues to pay off all or a portion of the 2016 State
Trust Fund Loan.
We will continue to monitor the market and the call dates for the County's outstanding
debt and will alert you to any future refunding opportunities.
Presale Report August 6, 2019
St. Croix County, Wisconsin Page 3
Continuing Because the County has more than $10,000,000 in outstanding debt (including this
Disclosure: issue)and this issue is over$1,000,000,the County will be agreeing to provide certain
updated Annual Financial Information and its Audited Financial Statement annually,
as well as providing notices of the occurrence of certain reportable events to the
Municipal Securities Rulemaking Board (the "MSRB"), as required by rules of the
Securities and Exchange Commission (SEC). The County will now be obligated to
provide such reports and may do this on their own or contract with Ehlers to prepare
and file the reports.
Arbitrage Monitoring: Because the Bonds tax-exempt obligations,the County must ensure compliance with
certain Internal Revenue Service (IRS) rules throughout the life of the issue. These
rules apply to all gross proceeds of the issue, including initial bond proceeds and
investment earnings in construction,escrow,debt service,and any reserve funds.How
issuers spend bond proceeds and how they track interest earnings on funds
(arbitrage/yield restriction compliance) are common subjects of IRS inquiries. Your
specific responsibilities will be detailed in the Tax Exemption Certificate prepared by
your Bond Attorney and provided at closing. We recommend that you regularly
monitor compliance with these rules and/or retain the services of a qualified firm to
assist you. We also recommend that you establish written procedures regarding
compliance with IRS rules.
Presale Report August 6, 2019
St. Croix County, Wisconsin Page 4
Investment of and In order to more efficiently segregate funds for this project and maximize interest
Accounting for earnings,we recommend using an investment advisor,to assist with the investment of
Proceeds: bond proceeds until they are needed to pay project costs. Ehlers Investment Partners,
a subsidiary of Ehlers and registered investment advisor, can discuss an appropriate
investment strategy with the County.
Other Service This debt issuance will require the engagement of other public finance service
Providers: providers. This section identifies those other service providers, so Ehlers can
coordinate their engagement on your behalf Where you have previously used a
particular firm to provide a service, we have assumed that you will continue that
relationship. For services you have not previously required, we have identified a
service provider. Fees charged by these service providers will be paid from proceeds
of the obligation, unless you notify us that you wish to pay them from other
sources. Our pre-sale bond sizing includes a good faith estimate of these fees,but the
final fees may vary. If you have any questions pertaining to the identified service
providers or their role, or if you would like to use a different service provider for any
of the listed services please contact us.
Bond Counsel: Quarles &Brady LLP
Paying Agent: TBD
Rating Agency: Moody's Investors Service
Presale Report August 6, 2019
St. Croix County, Wisconsin Page 5
Proposed Debt Issuance Schedule
Pre-Sale Review by Board of Supervisors: August 6, 2019
Due Diligence Call to review Official Statement: Week of August 19, 2019
Distribute Official Statement: Week of August 19, 2019
Conference with Rating Agency: Week of August 26, 2019
Board of Supervisors Meeting to Award Sale of the Bonds: September 3, 2019
Estimated Closing Date: September 24, 2019
Attachments
Estimated Sources and Uses of Funds &Proposed Debt Service Schedule
Projected General Obligation Borrowing Capacity—with proposed 2019A Bonds
Projected Total County Debt Service Levy—with proposed 2019A Bonds
Ehlers Contacts
Municipal Advisors: Sean Lentz (651) 697-8509
Brian Reilly (651) 697-8541
Disclosure Coordinator: Emily Wilkie (651) 697-8588
Financial Analyst: Beth Mueller (651) 697-8553
The Preliminary Official Statement for this financing will be sent to the Board of Supervisors at their home or
email address for review prior to the sale date.
Presale Report August 6, 2019
St. Croix County, Wisconsin Page 6
Exhibit 1 For Discussion Only
St. Croix County,WI
Estimated Debt Service and Capitalization Schedule
$8,025,000 General Obligation Bonds, Series 2019A
Year Principal Rate Interest IMotel P&I
2019
2020 100,000 1.95% 211,699 311,699
2021 1,115,000 2.05% 195,239 1,310,239
2022 765,000 2.10% 175,778 940,778
2023 730,000 2.15% 159,898 889,898
2024 390,000 2.20% 147,760 537,760
2025 390,000 2.30% 138,985 528,985
2026 370,000 2.40% 130,060 500,060
2027 370,000 2.45% 121,088 491,088
2028 370,000 2.60% 111,745 481,745
2029 300,000 2.70% 102,885 402,885
2030 280,000 2.80% 94,915 374,915
2031 280,000 2.90% 86,935 366,935
2032 280,000 3.00% 78,675 358,675
2033 280,000 3.10% 70,135 350,135
2034 280,000 3.15% 61,385 341,385
2035 275,000 3.20% 52,575 327,575
2036 375,000 3.25% 42,081 417,081
2037 375,000 3.30% 29,800 404,800
2038 375,000 3.35% 17,331 392,331
2039 325,000 3.40% 5,525 330,525
Totals 8,025,000 2,034,493 10,059,493
Issue Summary
Key Dates
Dated Date: 9/24/2019
First Interest Payment: 4/1/2020
First Principal Payment: 4/1/2020
Estimated Interest Rates
Presale
True Interest Cost(TIC): 3.07%
All Inclusive Cost(AIC): 3.20%
Total Principal &Interest: 10,059,493
Sources and Uses
Total
Par Amount of Bonds 8,025,000
Total Sources $8,025,000
Underwriter's Discount 96,300
Costs of Issuance 69,500
Deposit to Project Fund 7,855,744
Rounding Amount 3,456
Total Uses $8,025,000
Notes:
Prepared by Ehlers 6/12/2019
>> rn
c
OC)
o CN
O N
y
N
7
U
O
L
111111 oN
o
a
''... ''.., ''.... IIIIIIIIIIIIIIIIIIIIIIII �
m
Q
01
cV
.� a
IIIIIIIIIIIIIIIIIIIIIIII
x
W m
° 1111111
0
L
c�
L
OO O O O O V
O O O O O O L
O O O O O Oco
O O O O O O Q CL
O O O O O O
O O O O O O L
Vl Vl Vl Vl Vl Vl !1
_>1 CF)
7 o
O N
N
O �
N
N
7
N o o o o o o o o
oq n Io a
Q o o o o o o o o
LL �w*"'"�u ��lllllllllllll��llll N
IIIIIIIIIII /� ON
IIIIIIIIIII / N
(IIIIIIIIIIIIIIIIIIII
,Imm7
O
V
O
O
O O
5 IIIIIIIIIIIIIIIIIII/ N
L
O
/
/
IIIIIIIIIIIIIIIIIII
/
N N
O
00
J
o -o
IIIIIIIIIIIIIIIIIII% N
t �
o a`
M J
0
IIIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII (III N �
A-0 >
J
m `o
�a IIIIIIIIIIIIIIIIIII
o m
■� � N
0
o
(IIIIIIIIIIIIIIIIIII j
W
n �
N o
Y
o
� N -
0
(IIIIIIIIIIIIIIIIIIIII"�f
o
IIIIIIIIIU��J�,!,usuMEMO= o
D////%
IIIIIIIIIIIIIIIIIIIIIIII�� EMOMMOMMEMIE
L
CL
I
O
I
I
i
0
IIIIIIIIIIIIIIIIIIII ����������
N
IIIIIIIIII1111111111111111111//D//GO/////G////G////G///%�/G/0//G//lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
0
IIIIIIIIII lllllllllllllllllllllllllllll llllllllllllllllllll
0
m
o
(III
O O O O O O O O L
O O O O O O O Vf
O O O O O O O
o o o o o o O
O O O O O O O
O O O O O O O
vl M N rl
L
co
Q
^L
LL
ST. CRC IX Community JusticeCollaborating
Council - CJCC
1101 Carmichael Road Hudson WI 54016
w Telephone: 715-386-4725 Fax: 715-381-4400
www.sccwi.gov
July 26, 2019
Roger Larson
St. Croix County Board Chair
1101 Carmichael Road
Hudson, WI 54016
Dear Mr. Larson,
At our most recent Community Justice Collaborating Council (CJCC) meeting on July 18, 2019,
Sheriff Scott Knudson gave a presentation on the proposed addition of mental health beds in
the Jail. After the presentation and a follow up discussion a motion was made by the CJCC
Council to fully support this project as a need exists for these types of secure beds in the Jail.
The motion passed on a unanimous voice vote with The Honorable Scott R. Needham and Scott
Cox abstaining. If you require further input on this matter please feel free to contact me.
Sin cejorble
The cott R. NeedhaSt. CCircuit Court, Branch III
Chair, CJCC