Debt Refinancing Saves City of Oshkosh Taxpayers
Over $2.6 Million
City's Aa2 Bond Rating Affirmed by
- August 10, 2010 - The City of Oshkosh Common Council has awarded
the sale of $34,330,000 in General Obligation bonds and notes.
Savings to City taxpayers and utility customers of $2,611,155 were
achieved by issuing $21,040,000 in bonds to refund existing City debt
at lower interest rates. The balance of $13,290,000 in bonds and
notes are being issued to pay for costs of capital improvements to
include street and park improvements, facility improvements, and
acquisition of capital equipment. Competitive bids for purchase
of the bonds were taken by Ehlers & Associates, the City's independent
"We are very pleased with
the results the City achieved in the markets today" said Mike Harrigan, Senior Financial
Advisor at Ehlers. "Strong national interest in the Oshkosh name
coupled with the competitive sale mechanism produced a total of twenty
bids for the four series of obligations that were offered."
submitted to the Council by Harrigan included:
- Purchase of $9,140,000
in taxable General Obligation bonds by Stifel Nicolaus &
Company, Inc. at a True Interest Cost (TIC) of 4.42%. The
City has designated the bonds as "Build America Bonds"
which provides for a 35% federal rebate on interest payments made,
reducing the effective interest rate that will be paid to
2.89%. Proceeds of the bonds will be used to pay the costs
of street, park and facility improvements.
- Purchase of $4,150,000
in taxable General Obligation notes by Morgan Keegan & Co.,
Inc. at a TIC of 2.99%. The City has also designated the
notes as "Build America Bonds" reducing the effective
interest rate that will be paid to 1.98%. Proceeds of the
notes will be used to pay for acquisition of capital equipment,
and other minor capital improvement projects.
- Purchase of $12,620,000
in tax-exempt General Obligation Refunding bonds by First
Southwest Company at a TIC of 2.18%, resulting in refinancing
savings of $1,592,240 for City tax and rate payers.
- Purchase of $8,420,000
in taxable General Obligation Refunding bonds by Baird at a TIC of
3.04%, resulting in refinancing savings of $1,018,915 for City tax
As part of the debt planning and issuance process, the
City's Aa2 bond rating was reviewed and affirmed by Moody's Investors
Service. "The Aa2 rating, the third highest assigned,
indicates the strong credit quality of the City of Oshkosh" said Todd Taves, Financial Advisor with Ehlers.
In its credit report, Moody's acknowledged the City's "stable
financial operations" and its "conservative budgeting
practices" as positive factors leading to the rating affirmation.
About the City
The City of Oshkosh
(http://www.ci.oshkosh.wi.us/) is a city in Winnebago County, Wisconsin, located
where the Fox River enters Lake Winnebago.
The population was 62,916 at the 2000 census and had a
metropolitan area of 159,972 people. The University of Wisconsin Oshkosh has been providing
the residents of northeastern Wisconsin
with high-quality affordable education since 1871.
The City is also
known for being home of the Oshkosh Corporation, a Fortune 500 Company. Oshkosh
Corporation is a leading manufacturer and marketer of access equipment,
specialty vehicles and truck bodies for the primary markets of defense,
concrete placement, refuse hauling, access equipment and fire &
Oshkosh is also the
location of Wittman Field, host of the annual Experimental
Aircraft Association (EAA) Aviation
Museum and annual AirVenture
largest gathering of aviation enthusiasts. Redevelopment
is currently undergoing throughout Oshkosh.
Ehlers, an independent
public finance advisor for over 50 years, is ranked third nationally in
number of competitive sales advised. Our goal is to expand public
sector clients' horizons and achieve practical solutions at the lowest
cost to taxpayers. Our allegiance is to the communities whom we serve.
Our success is the result of established long-term relationships, hard
work, and years of experience. Ehlers works with counties, cities,
townships, school districts and other governmental units to build
better communities through the products and service we offer: Debt
Issuance Services, Economic Development and Redevelopment, Financial
Planning, and Management, Communication and Public Participation. Visit
http://www.ehlers-inc.com/index.php for more
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Cautionary Note Regarding Forward-Looking
This press release may contain forward-looking
statements. Statements that are not historical or current facts,
including statements about beliefs and expectations, are
forward-looking statements and are subject to significant risks and
uncertainties that are difficult to predict. These forward-looking
statements cover, among other things, statements made about general
economic and market conditions, our current deal pipelines, market
share gains and trends, the environment and prospects for capital
markets transactions and institutional brokerage activity, anticipated
financial results (including expectations regarding revenue and expense
levels, the compensation ratio, return on shareholders' equity, and our
quarterly run rate for non-compensation expenses), liquidity and
capital resources, inventory positions, share repurchase plans or other
similar matters. These statements involve inherent risks and
uncertainties, both known and unknown, and important factors could
cause actual results to differ materially from those anticipated or
discussed in the forward-looking statements. Forward-looking statements
speak only as of the date they are made, and readers are cautioned not
to place undue reliance on them. Ehlers undertakes no obligation
to update them in light of new information or future events.