2021-1903 RESOLUTION NO. 2021-1903
RESOLUTION AWARDING $21,730,000 GENERAL OBLIGATION
PROMISSORY NOTES, SERIES 2021, OF THE CITY
OF JANESVILLE, WISCONSIN, ESTABLISHING INTEREST RATES
THEREON AND LEVYING TAXES THEREFOR
WHEREAS, this City Council has heretofore authorized the issuance and sale of$21,730,000
General Obligation Promissory Notes, Series 2021 (the "Notes"), in a resolution adopted on June
14, 2021 and entitled "Resolution Authorizing the Issuance of $21,730,000 General Obligation
Promissory Notes, Series 2021, of the City of Janesville, Wisconsin, and Providing the Details
Thereof; and
WHEREAS, pursuant to advertised public sale the following sealed bids were received for
the Notes on July 12, 2021, by 10:30 a.m., local time:
Names of Bidders True Interest
(Account Manager) Rates
J.P. Morgan Securities LLC, New York, NY 0.946675%*
Fifth Third Securities, Inc., Cincinnati, OH 0.955009%
Robert W. Baird & Co., Inc., Red Bank, NJ 0.971211%
Mesirow Financial, Inc., Chicago, IL 0.982359%
Morgan Stanley& Co., LLC, New York, NY 0.984373%
Bank of America Merrill Lynch, New York, NY 1.00124%
Huntington Securities, Inc., Chicago, IL 1.005031%
KeyBanc Capital Markets, Cleveland, OH 1.042785%
BNYMellon Capital Markets, Pittsburgh, PA 1.184553%
*Subsequent to receipt of bids, the 2022, 2023, 2027 and 2031 maturities were adjusted resulting in
an issue size of $21,715,000, a purchase price of $22,451,472.89, gross interest cost of
$1,543,901.67, premium of$736,472.89, net interest cost of$807,428.78, and a true interest rate of
0.8994409%;
and
WHEREAS, it has been determined that the highest and best bid for the Notes was that of
J.P. Morgan Securities, LLC, New York, NY, which bid is as follows:
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BID FORM
City of Janesville, City Council July 12, 2021
c/o Wisconsin Public Finance Professionals, LLC, Municipal Advisor
1025 South Moorland Road, Suite 504
Brookfield, WI 53005
(414) 434-9644 —Office (414) 226-2014 — Fax
Email: cawirth@wipublicfinance.com
Re: $21,730,000* General Obligation Promissory Notes, Series 2021 ("Notes")
Dated July 28, 2021
(Non-Bank Qualified)
For all or none of the above Notes, in accordance with the Official Notice of Sale, we will pay you
$22,485,549.51 (no less than $21,730,000 nor more than $22,500,000) plus accrued interest to date of
delivery, for Notes bearing interest rates and maturing on February 1, in the stated years as follows:
Maturity Principal* Interest Rate Maturity Principal* Interest Rate
02/01/22 $3,230,000 2.00% 02/01/27 $1,900,000 2.00%
02/01/23 3,345,000 2.00% 02/01/28 1,790,000 1.50%
02/01/24 2,335,000 2.00% 02/01/29 1,645,000 1.50%
02/01/25 2,235,000 1.50% 02/01/30 1,650,000 2.00%
02/01/26 1,950,000 1.50% 02/01/31 1,650,000 2.00%
*The City reserves the right, after bids are opened and prior to award, to increase or decrease the
principal amount of the Notes in increments of $5,000, or, to increase or decrease the amount of
any individual maturity of the Notes in increments of $5,000. In the event of any such modification,
the aggregate purchase price proposed will be adjusted to maintain the same gross spread relating
to underwriter compensation per$1,000.
The Notes maturing on February 1, 2030 and thereafter shall be subject to redemption prior to maturity, at
the option of the City, beginning February 1, 2029 or on any date thereafter. Said Notes are redeemable
as a whole or in part, and if in part, from maturities selected by the City and within each maturity by lot, at
the principal amount thereof, plus accrued interest to the date of redemption.
This bid is a firm offer for the purchase of the Notes identified in the Official Notice of Sale, on the terms as
set forth in this bid form and the Official Notice of Sale, and is not subject to any conditions, except as
permitted by the Official Notice of Sale. By submitting this bid, we confirm that we have an
established industry reputation for underwriting new issuances of municipal securities. (If the
bidder cannot confirm an established industry reputation for underwriting new issuances of municipal
securities, the preceding sentence should be crossed out.)
If the competitive sale requirements are not met, to determine the issue price of the Notes, we elect to use
the:
(select one) 10% test / hold-the offering-price rule
The successful bidder will be responsible for the cost of obtaining CUSIP numbers.
Per the Official Notice of Sale, the winning bidder must submit a certified or cashier's check on a solvent
bank or trust company, in the amount of $434,600, payable to the City Treasurer, with the delivery of a bid
to the office of WPFP, prior to the time established for bid opening; OR, alternatively, successful bidder
shall submit a wire transfer to the City no later than 2 p.m. (Central Time) on the sale date.
The Notes are to be accompanied by the unqualified approving legal opinion of Kutak Rock LLP, Bond
Counsel, and a certificate evidencing that no litigation is pending against the City, which will affect the
validity or security of these Notes.
Respectively submitted,
J.P. Morgan Securities LLC
Underwriter (Account Manager)
By 4.47tJ
We, the duly authorized officials of the City of Janesville, do hereby accept and award the Notes pursuant
to the foregoing offer, in legal meeting this 12th day of July, 2021 at (g 14=' p.m. central time.
City an er
NOT A PART OF BID
Our calculation of total net interest cost using the above rates are:
Gross Interest Cost Less: Premium Net Interest Cost True Interest Rate
$1,664,254.17 ($755,549.51) $908,704.66 0;946675%
NOTE: Subsequent to receipt of bids, the 2022, 2023, 2027 and 2031 maturities were adjusted
resulting in an issue size of $21,715,000, a purchase price of $22,451,472.89, gross interest
cost of $1,543,901.67, premium of $736,472.89, net interest cost of $807,428.78, and a true
interest rate of 0.8994409%.
Account Members: Estrada Hinojosa
Academy Securities
WHEREAS, it is now necessary to award the Notes to the successful bidder and to establish
the interest rates thereon;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Janesville,
Wisconsin, as follows:
Section 1. Sale of Notes. The sale of $21,715,000 General Obligation Promissory Notes,
Series 2021, to J.P. Morgan Securities LLC, New York, NY, at a price of$22,451,471.89 and accrued
interest to the date of delivery is hereby ratified and confirmed.
Section 2. Interest Rates. The Notes shall mature on February 1 of the following years,
and bear interest at the following rates, payable on February 1, 2022 and each August 1 and
February 1 thereafter
Maturities Amounts ($) Interest Rates (%)
2022 3,585,000 2.00%
2023 3,685,000 2.00%
2024 2,335,000 2.00%
2025 2,235,000 1.50%
2026 1,950,000 1.50%
2027 1,890,000 2.00%
2028 1,790,000 1.50%
2029 1,645,000 1.50%
2030 1,650,000 2.00%
2031 950,000 2.00%
Section 3. Redemption Provisions. The Notes maturing on or after February 1, 2030 shall
be subject to redemption prior to maturity as a whole or in part at the option of the City upon notice
as therein provide, in any order of maturity and by lot within a single maturity, on February 1, 2029,
and on any date thereafter, at a redemption price equal to 100% of the principal amount thereof to
be redeemed plus accrued interest to the redemption date and without premium.
Section 4. Execution and Delivery; Borrowed Money Fund. The Notes shall be executed
by the City Manager and the City Clerk in the manner heretofore provided, and upon authentication
by Associated Trust Company, National Association, City of Green Bay, Wisconsin, as note registrar,
shall thereupon be delivered by the City Clerk to the purchaser upon payment of the purchase price.
The principal proceeds from the sale of the Notes shall be paid into the City treasury and entered in
a fund separate and distinct from all other funds, which fund shall be designated "General Obligation
Promissory Notes, Series 2021, Borrowed Money Fund." Money in said funds shall be used solely
for the purposes for which the Notes were issued, including repayment of any temporary loan or
reimbursement of any temporary advance made in anticipation of the issuance of said Notes.
Section 5. Tax Levy. For the purpose of paying the principal amounts of the Notes as the
same shall mature, and to pay the interest thereon as the same shall come due, there is hereby
levied, for each year in which any of the Notes shall be outstanding, direct, annual, irrepealable taxes
in amounts fully sufficient to pay such principal and interest, and the specific amounts levied for each
year are as follows:
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Amount ($) of
Year of Levy Principal and
Interest
2021 $3,948,651.67
2022 $3,972,650.00
2023 $2,562,450.00
2024 $2,422,337.50
2025 $2,105,950.00
2026 $2,012,425.00
2027 $1,880,100.00
2028 $1,709,337.50
2029 $1,685,500.00
2030 $ 959,500.00
Section 6. Extension of Taxes. The amounts of taxes levied pursuant to Section 4 hereof
shall be carried onto the tax roll by the City from year to year and collected as other taxes are
collected, and such amounts may be reduced in any year only by any amount of surplus money in
the Debt Service Fund created pursuant to Section 67.11, Wisconsin Statutes.
Section 7. Debt Service Fund. There is hereby created a fund to be known as "General
Obligation Promissory Notes, Series 2021, Debt Service Fund" to be established and maintained in
accordance with generally accepted accounting principles.
Into the Debt Service Fund there shall be deposited the following: (a) all premium and
accrued interest from the sale of the respective Notes; (b) all allocable money raised by taxation
pursuant to Section 4 hereof; (c) any surplus in the Borrowed Money Fund created in Section 3
hereof; and (d) such additional amounts as may at any time be necessary to pay the principal of and
interest on the respective Notes as the same shall become due.
Section 8. Dated Date. The Notes shall be initially dated the date of their delivery.
Section 9. Continued Validity. If any section, paragraph, clause or provision of this
resolution shall be invalid or ineffective for any reason, the remainder of this resolution shall remain
in full force and effect, it being expressly hereby found and declared that the remainder of this
resolution would have been adopted by the City Council despite the invalidity of such section,
paragraph, clause or provision.
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Section 10. Effective Date. All orders or resolutions in conflict herewith are hereby
repealed insofar as such conflict exists, and this resolution shall take effect immediately upon its
passage, the public welfare requiring it.
ADOPTED: July 12, 2021 Motion by: Marklein
Second by: Williams
APPROVED: Councilmember Aye Nay Pass Absent
Benson
�✓� ���iiittt��� Jackson
Mark A. F itag, City Manager Johnson x
Marklein •
x
ATTEST: Marshick x
V--• Miller x
I171
Derr. eise, Interim City Clerk-Treasurer Williams x
APPROVED AS TO FORM:
Wald Klimczy , City Attorney
Proposed by: Finance Office
Prepared by: Kevin Barney, Bond Counsel
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