dane county, wisconsin $9,140,000* general ......a political subdivision that did not levy its full...
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PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 10, 2020
In the opinion of Quarles & Brady LLP, Bond Counsel, assuming continued compliance with the requirements of the Internal Revenue Code of 1986, as amended, under existing law interest on the Bonds is excludable from gross income and is not an item of tax preference for federal income tax purposes. See "TAX EXEMPTION" herein for a more detailed discussion of some of the federal income tax consequences of owning the Bonds. The interest on the Bonds is not exempt from present Wisconsin income or franchise taxes.
The County will NOT designate the Bonds as "qualified tax-exempt obligations" pursuant to Section 265 of the Internal Revenue Code of 1986, as amended, which permits financial institutions to deduct interest expenses allocable to the Bonds to the extent permitted under prior law.
New Issue Rating Application Made: S&P Global Ratings
DANE COUNTY, WISCONSIN
$9,140,000* GENERAL OBLIGATION CONSERVATION FUND BONDS, SERIES 2020B
BID OPENING: September 17, 2020, 10:00 A.M., C.T. CONSIDERATION: September 17, 2020, 7:00 P.M., C.T.
PURPOSE/AUTHORITY/SECURITY: The $9,140,000* General Obligation Conservation Fund Bonds, Series 2020B(the "Bonds") of the Dane County, Wisconsin (the "County") are being issued pursuant to Section 67.04, WisconsinStatutes, for the public purpose of paying the cost of acquiring property in connection with the Dane County ConservationFund. The Bonds are general obligations of the County, and all the taxable property in the County is subject to the levyof a tax to pay the principal of and interest on the Bonds as they become due which tax may, under current law, be leviedwithout limitation as to rate or amount. Delivery is subject to receipt of an approving legal opinion of Quarles & BradyLLP, Milwaukee, Wisconsin.
DATE OF BONDS: October 7, 2020
MATURITY: June 1 as follows:
Year Amount* Year Amount* Year Amount*
2021 $395,000 2028 $440,000 2035 $480,000
2022 415,000 2029 445,000 2036 490,000
2023 420,000 2030 450,000 2037 495,000
2024 420,000 2031 455,000 2038 505,000
2025 425,000 2032 460,000 2039 515,000
2026 430,000 2033 465,000 2040 525,000
2027 435,000 2034 475,000
MATURITYADJUSTMENTS:
* The County reserves the right to increase or decrease the principal amount of the Bonds onthe day of sale, in increments of $5,000 each. Increases or decreases may be made in anymaturity. If any principal amounts are adjusted, the purchase price proposed will be adjustedto maintain the same gross spread per $1,000.
TERM BONDS: See “Term Bond Option” herein.
INTEREST: June 1, 2021 and semiannually thereafter.
OPTIONALREDEMPTION:
Bonds maturing on June 1, 2031 and thereafter are subject to call for prior optionalredemption on June 1, 2030 and any date thereafter, at a price of par plus accrued interest.
MINIMUM BID: $9,025,750.
MAXIMUM BID: $9,505,600.
GOOD FAITH DEPOSIT:A good faith deposit in the amount of $182,800 shall be made by the winning bidder by wiretransfer of funds.
PAYING AGENT: To be named by Issuer.
BOND COUNSEL: Quarles & Brady LLP.
MUNICIPAL ADVISOR: Ehlers and Associates, Inc.
BOOK-ENTRY-ONLY: See “Book-Entry-Only System” herein (unless otherwise specified by the purchaser).
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the County to give any information or to make any representation otherthan those contained in this Official Statement and, if given or made, such other information or representations must not be relied upon ashaving been authorized by the County. This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy anyof the Bonds in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.
This Official Statement is not to be construed as a contract with the Syndicate Manager or Syndicate Members. Statements contained hereinwhich involve estimates or matters of opinion are intended solely as such and are not to be construed as representations of fact. Ehlers andAssociates, Inc. prepared this Official Statement and any addenda thereto relying on information of the County and other sources for whichthere is reasonable basis for believing the information is accurate and complete. Bond Counsel has not participated in the preparation of thisOfficial Statement and is not expressing any opinion as to the completeness or accuracy of the information contained therein. Compensationof Ehlers and Associates, Inc., payable entirely by the County, is contingent upon the delivery of the Bonds.
COMPLIANCE WITH S.E.C. RULE 15c2-12
Certain municipal obligations (issued in an aggregate amount over $1,000,000) are subject to Rule 15c2-12 promulgated by the Securities andExchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Rule”).
Preliminary Official Statement: This Preliminary Official Statement was prepared for the County for dissemination to potential investors. Its primary purpose is to disclose information regarding the Bonds to prospective underwriters in the interest of receiving competitive proposalsin accordance with the sale notice contained herein. Unless an addendum is posted prior to the sale, this Preliminary Official Statement shallbe deemed nearly final for purposes of the Rule subject to completion, revision and amendment in a Final Official Statement as defined below.
Review Period: This Official Statement has been distributed to prospective bidders for review. Comments or requests for the correction ofomissions or inaccuracies must be submitted to Ehlers and Associates, Inc. at least two business days prior to the sale. Requests for additionalinformation or corrections in the Official Statement received on or before this date will not be considered a qualification of a proposal receivedfrom an underwriter. If there are any changes, corrections or additions to the Official Statement, interested bidders will be informed by anaddendum prior to the sale.
Final Official Statement: Copies of the Final Official Statement will be delivered to the underwriter (Syndicate Manager) within sevenbusiness days following the proposal acceptance.
Continuing Disclosure: Subject to certain exemptions, issues in an aggregate amount over $1,000,000 may be required to comply withprovisions of the Rule which require that underwriters obtain from the issuers of municipal securities (or other obligated party) an agreementfor the benefit of the owners of the securities to provide continuing disclosure with respect to those securities. This Official Statement describesthe conditions under which the County is required to comply with the Rule.
CLOSING CERTIFICATES
Upon delivery of the Bonds, the underwriter (Syndicate Manager) will be furnished with the following items: (1) a certificate of the appropriateofficials to the effect that at the time of the sale of the Bonds and all times subsequent thereto up to and including the time of the delivery ofthe Bonds, this Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessaryto make the statements therein, in the light of the circumstances under which they were made, not misleading; (2) a receipt signed by theappropriate officer evidencing payment for the Bonds; (3) a certificate evidencing the due execution of the Bonds, including statements that(a) no litigation of any nature is pending, or to the knowledge of signers, threatened, restraining or enjoining the issuance and delivery of theBonds, (b) neither the corporate existence or boundaries of the County nor the title of the signers to their respective offices is being contested,and (c) no authority or proceedings for the issuance of the Bonds have been repealed, revoked or rescinded; and (4) a certificate setting forthfacts and expectations of the County which indicates that the County does not expect to use the proceeds of the Bonds in a manner that wouldcause them to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or within the meaningof applicable Treasury Regulations.
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TABLE OF CONTENTS
INTRODUCTORY STATEMENT. . . . . . . . . . . . . . . . . . . . . . 1
THE BONDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1GENERAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1OPTIONAL REDEMPTION. . . . . . . . . . . . . . . . . . . . . . . 1AUTHORITY; PURPOSE. . . . . . . . . . . . . . . . . . . . . . . . . 2ESTIMATED SOURCES AND USES. . . . . . . . . . . . . . . 2SECURITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2CONCURRENT FINANCING. . . . . . . . . . . . . . . . . . . . . 3RATING.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3CONTINUING DISCLOSURE. . . . . . . . . . . . . . . . . . . . . 3LEGAL OPINION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4TAX EXEMPTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4ORIGINAL ISSUE DISCOUNT. . . . . . . . . . . . . . . . . . . . 5BOND PREMIUM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5NON-QUALIFIED TAX-EXEMPT OBLIGATIONS. . . . 6MUNICIPAL ADVISOR. . . . . . . . . . . . . . . . . . . . . . . . . . 6MUNICIPAL ADVISOR AFFILIATED COMPANIES. . 6INDEPENDENT AUDITORS. . . . . . . . . . . . . . . . . . . . . . 6RISK FACTORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
VALUATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10WISCONSIN PROPERTY VALUATIONS;
PROPERTY TAXES. . . . . . . . . . . . . . . . . . . . . . . 10CURRENT PROPERTY VALUATIONS. . . . . . . . . . . . 112020 EQUALIZED VALUE BY CLASSIFICATION.. . 11TREND OF VALUATIONS. . . . . . . . . . . . . . . . . . . . . . 11LARGER TAXPAYERS. . . . . . . . . . . . . . . . . . . . . . . . . 12
DEBT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13DIRECT DEBT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13DEBT LIMIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13SCHEDULE OF GENERAL
OBLIGATION INDEBTEDNESS. . . . . . . . . . . . . 14UNDERLYING DEBT.. . . . . . . . . . . . . . . . . . . . . . . . . . 19DEBT RATIOS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23DEBT PAYMENT HISTORY. . . . . . . . . . . . . . . . . . . . . 23FUTURE FINANCING. . . . . . . . . . . . . . . . . . . . . . . . . . 23
TAX LEVIES AND COLLECTIONS. . . . . . . . . . . . . . . . . . . 24TAX LEVIES AND COLLECTIONS. . . . . . . . . . . . . . . 24PROPERTY TAX RATES OF LARGER
MUNICIPALITIES WITHIN THE COUNTY.. . . 25DEBT ISSUANCE CONDITIONS FOR COUNTIES. . . 26LEVY LIMITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
THE ISSUER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28COUNTY GOVERNMENT.. . . . . . . . . . . . . . . . . . . . . . 28EMPLOYEES; PENSIONS. . . . . . . . . . . . . . . . . . . . . . . 28OTHER POST EMPLOYMENT BENEFITS. . . . . . . . . 29LITIGATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29MUNICIPAL BANKRUPTCY. . . . . . . . . . . . . . . . . . . . 29FUNDS ON HAND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30SUMMARY GENERAL FUND
FINANCIAL INFORMATION. . . . . . . . . . . . . . . 31
GENERAL INFORMATION.. . . . . . . . . . . . . . . . . . . . . . . . . 32LOCATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32LARGER EMPLOYERS. . . . . . . . . . . . . . . . . . . . . . . . . 32U.S. CENSUS DATA.. . . . . . . . . . . . . . . . . . . . . . . . . . . 33EMPLOYMENT/UNEMPLOYMENT DATA. . . . . . . . 33
FINANCIAL STATEMENTS. . . . . . . . . . . . . . . . . . . . . . . . A-1
FORM OF LEGAL OPINION. . . . . . . . . . . . . . . . . . . . . . . . B-1
BOOK-ENTRY-ONLY SYSTEM. . . . . . . . . . . . . . . . . . . . . C-1
FORM OF CONTINUING DISCLOSURE CERTIFICATE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1
NOTICE OF SALE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1
BID FORM
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DANE COUNTYCOUNTY BOARD(All Terms Expire April 2022)
Blaire Adkins Supervisor Tim Kiefer Supervisor
Richelle Andrae Supervisor Richard Kilmer Supervisor
Kristen Audet 2nd Vice Chair Dorothy Krause Supervisor
Mike Bare Supervisor Jeremy Levin Supervisor
Carousel Bayrd Supervisor Maureen McCarville Sergeant at Arms
Jerry Bollig Supervisor Kate McGinnity Supervisor
Yogesh Chawla Supervisor Patrick Miles Supervisor
Carl Chenoweth Supervisor Steven Peters Supervisor
Ann Degarmo Supervisor Melissa Ratcliff Supervisor
Michele Doolan Supervisor Dave Ripp Supervisor
Patrick Downing Supervisor Paul Rusk Supervisor
Elizabeth Doyle Supervisor Andrew Schauer Supervisor
Analiese Eicher Chair Julie Schwellenbach Supervisor
Chuck Erickson Supervisor Sarah Smith Supervisor
Anthony Gray Supervisor Shelia Stubbs Supervisor
Elena Haasl Supervisor Matt Veldran Supervisor
Holly Hatcher Supervisor Heidi Wegleitner Supervisor
Alex Joers Supervisor
ADMINISTRATION
Joe Parisi, County Executive/Administrator
Charles Hicklin, County Controller
Adam Gallagher, County Treasurer
Scott McDonnell, County Clerk
Marcia A. MacKenzie, County Attorney
PROFESSIONAL SERVICES
Quarles & Brady LLP, Bond Counsel, Milwaukee, Wisconsin
Ehlers and Associates, Inc., Municipal Advisors, Waukesha, Wisconsin(Other offices located in Roseville, Minnesota and Denver, Colorado)
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INTRODUCTORY STATEMENT
This Official Statement contains certain information regarding Dane County, Wisconsin (the "County") and theissuance of its $9,140,000* General Obligation Conservation Fund Bonds, Series 2020B (the "Bonds"). Anydescriptions or summaries of the Bonds, statutes, or documents included herein are not intended to be complete andare qualified in their entirety by reference to such statutes and documents and the form of the Bonds to be includedin the resolution authorizing the issuance and sale of the Bonds ("Award Resolution") to be adopted by the Boardof Supervisors on September 17, 2020.
Inquiries may be directed to Ehlers and Associates, Inc. ("Ehlers" or the "Municipal Advisor"), Waukesha,Wisconsin, (262) 785-1520, the County's municipal advisor. A copy of this Official Statement may be downloadedfrom Ehlers’ web site at www.ehlers-inc.com by connecting to the Bond Sales link and following the directions atthe top of the site.
THE BONDS
GENERAL
The Bonds will be issued in fully registered form as to both principal and interest in denominations of $5,000 eachor any integral multiple thereof, and will be dated, as originally issued, as of October 7, 2020. The Bonds will matureon June 1 in the years and amounts set forth on the cover of this Official Statement. Interest will be payable on June1 and December 1 of each year, commencing June 1, 2021, to the registered owners of the Bonds appearing of recordin the bond register as of the close of business on the 15th day (whether or not a business day) of the immediatelypreceding month. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will berounded pursuant to rules of the Municipal Securities Rulemaking Board ("MSRB"). All Bonds of the same maturitymust bear interest from the date of issue until paid at a single, uniform rate. Each rate must be expressed in anintegral multiple of 5/100 or 1/8 of 1%.
Unless otherwise specified by the purchaser, the Bonds will be registered in the name of Cede & Co., as nominee forThe Depository Trust Company, New York, New York ("DTC"). (See "Book-Entry-Only System" herein.) As longas the Bonds are held under the book-entry system, beneficial ownership interests in the Bonds may be acquired inbook-entry form only, and all payments of principal of, premium, if any, and interest on the Bonds shall be madethrough the facilities of DTC and its participants. If the book-entry system is terminated, principal of, premium, ifany, and interest on the Bonds shall be payable as provided in the Award Resolution.
The County may select a bank or trust company to act as paying agent (the “Paying Agent”). If a Paying Agent isselected, the County will pay the charges for Paying Agent services. The County reserves the right to remove thePaying Agent and to appoint a successor.
OPTIONAL REDEMPTION
At the option of the County, the Bonds maturing on or after June 1, 2031 shall be subject to optional redemption priorto maturity on June 1, 2030 or any date thereafter, at a price of par plus accrued interest.
*Preliminary, subject to change
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Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selectionof the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the County. If only part ofthe Bonds having a common maturity date are called for redemption, then the County or Paying Agent, if any, willnotify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of eachparticipant's interest in such maturity to be redeemed and each participant will then select by lot the beneficialownership interest in such maturity to be redeemed.
Notice of such call shall be given by sending a notice by registered or certified mail, facsimile or electronictransmission, overnight delivery service or in any other manner required by DTC, not less than 30 days nor more than60 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the addressshown on the registration books.
AUTHORITY; PURPOSE
The Bonds are being issued pursuant to Section 67.04, Wisconsin Statutes, for the public purpose of paying the costof acquiring property in connection with the Dane County Conservation Fund.
ESTIMATED SOURCES AND USES*
Sources
Par Amount of Bonds $9,140,000
Estimated Interest Earnings 9,000
Total Sources $9,149,000
Uses
Underwriter's Discount $114,250
Costs of Issuance 33,396
Deposit to Project Construction Fund 9,000,000
Rounding Amount 1,354
Total Uses $9,149,000
*Preliminary, subject to change
SECURITY
For the prompt payment of the Bonds with interest thereon and for the levy of taxes sufficient for this purpose, thefull faith, credit and resources of the County will be irrevocably pledged. The County will levy a direct, annual,irrepealable tax on all taxable property in the County sufficient to pay the interest on the Bonds when it becomes dueand also to pay and discharge the principal on the Bonds at maturity, in compliance with Article XI, Section 3 of theWisconsin Constitution. Such tax may, under current law, be levied without limitation as to rate or amount.
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CONCURRENT FINANCING
By means of a separate Official Statement, the County will be issuing General Obligation Promissory Notes, Series2020A and Taxable General Obligation Promissory Notes, Series 2020C (the "Concurrent Obligations" or the "Series2020A Notes" and the "Series 2020C Notes" ) on October 7, 2020.
RATING
General obligation debt of the County is currently rated "AAA" by S&P Global Ratings ("S&P"). The County hasrequested a rating on the Bonds from S&P, and bidders will be notified as to the assigned rating prior to the sale. Such rating reflects only the views of such organization and explanations of the significance of such rating may beobtained from S&P. Generally, a rating agency bases its rating on the information and materials furnished to it andon investigations, studies and assumptions of its own. There is no assurance that such rating will continue for anygiven period of time or that it will not be revised downward or withdrawn entirely by such rating agency, if in thejudgment of such rating agency circumstances so warrant. Any such downward revision or withdrawal of such ratingmay have an adverse effect on the market price of the Bonds.
Such rating is not to be construed as a recommendation of the rating agency to buy, sell or hold the Bonds, and therating assigned by the rating agency should be evaluated independently. Except as may be required by the DisclosureUndertaking described under the heading “CONTINUING DISCLOSURE” neither the County nor the underwriterundertake responsibility to bring to the attention of the owner of the Bonds any proposed changes in or withdrawalof such rating or to oppose any such revision or withdrawal.
CONTINUING DISCLOSURE
In order to assist brokers, dealers, and municipal securities dealers, in connection with their participation in theoffering of the Bonds, to comply with Rule 15c2-12 promulgated by the Securities and Exchange Commission,pursuant to the Securities and Exchange Act of 1934, as amended (the "Rule"), the County shall agree to providecertain information to the Municipal Securities Rulemaking Board ("MSRB") through its Electronic MunicipalMarket Access ("EMMA") system, or any system that may be prescribed in the future. The Rule was last amended,effective February 27, 2019, to include an expanded list of material events.
On the date of issue and delivery, the County shall execute and deliver a Continuing Disclosure Certificate, underwhich the County will covenant for the benefit of holders including beneficial holders, to provide electronically, orin a manner otherwise prescribed, certain financial information annually and to provide notices of the occurrence ofcertain events enumerated in the Rule (the "Disclosure Undertaking"). The details and terms of the DisclosureUndertaking for the County are set forth in Appendix D. Such Disclosure Undertaking will be in substantially theform attached hereto.
A failure by the County to comply with any Disclosure Undertaking will not constitute an event of default on theBonds. However, such a failure may adversely affect the transferability and liquidity of the Bonds and their marketprice.
The December 31, 2014 Comprehensive Annual Financial Report was filed timely however there were some missingpages in the original filings. The complete report has since been filed. Except to the extent that the preceding isdeemed to be material, the County believes it has not failed to comply in the previous five years in all materialrespects with its prior undertakings under the Rule. The County has reviewed its continuing disclosureresponsibilities along with any changes to the Rule, to ensure compliance. Ehlers is currently engaged asdissemination agent for the County.
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LEGAL OPINION
An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will befurnished by Quarles & Brady LLP, Bond Counsel to the County, and will be available at the time of delivery of theBonds. The legal opinion will be issued on the basis of existing law and will state that the Bonds are valid andbinding general obligations of the County; provided that the rights of the owners of the Bonds and the enforceabilityof the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affectingcreditors' rights and by equitable principles (which may be applied in either a legal or equitable proceeding).
STATEMENT REGARDING COUNSEL PARTICIPATION
Bond Counsel has not assumed responsibility for this Official Statement or participated in its preparation (except withrespect to the section entitled ?TAX EXEMPTION" in the Official Statement and the ?FORM OF LEGAL OPINION"found in Appendix B of the Official Statement).
TAX EXEMPTION
Quarles & Brady LLP, Milwaukee, Wisconsin, Bond Counsel, will deliver a legal opinion with respect to the federalincome tax exemption applicable to the interest on the Bonds under existing law substantially in the following form:
"The interest on the Bonds is excludable for federal income tax purposes from the gross income of theowners of the Bonds. The interest on the Bonds is not an item of tax preference for purposes of the federalalternative minimum tax imposed by Section 55 of the Internal Revenue Code of 1986, as amended (the"Code") on individuals. The Code contains requirements that must be satisfied subsequent to the issuanceof the Bonds in order for interest on the Bonds to be or continue to be excludable from gross income forfederal income tax purposes. Failure to comply with certain of those requirements could cause the intereston the Bonds to be included in gross income retroactively to the date of issuance of the Bonds. The Countyhas agreed to comply with all of those requirements. The opinion set forth in the first sentence of thisparagraph is subject to the condition that the County comply with those requirements. We express noopinion regarding other federal tax consequences arising with respect to the Bonds."
The interest on the Bonds is not exempt from present Wisconsin income or franchise taxes.
Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federalincome tax consequences to certain taxpayers. Bond Counsel will not express any opinion as to such collateral taxconsequences. Prospective purchasers of the Bonds should consult their tax advisors as to collateral federal incometax consequences.
From time to time legislation is proposed, and there are or may be legislative proposals pending in the Congress ofthe United States that, if enacted, could alter or amend the federal tax matters referred to above or adversely affectthe market value of the Bonds. It cannot be predicted whether, or in what form, any proposal that could alter one ormore of the federal tax matters referred to above or adversely affect the market value of the Bonds may beenacted. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending orproposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal taxlegislation.
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ORIGINAL ISSUE DISCOUNT
To the extent that the initial public offering price of certain of the Bonds is less than the principal amount payableat maturity, such Bonds ("Discounted Bonds") will be considered to be issued with original issue discount. Theoriginal issue discount is the excess of the stated redemption price at maturity of a Discounted Bond over the initialoffering price to the public, excluding underwriters or other intermediaries, at which price a substantial amount ofsuch Discounted Bonds were sold (issue price). With respect to a taxpayer who purchases a Discounted Bond in theinitial public offering at the issue price and who holds such Discounted Bond to maturity, the full amount of originalissue discount will constitute interest that is not includible in the gross income of the owner of such Discounted Bondfor federal income tax purposes and such owner will not, subject to the caveats and provisions herein described,realize taxable capital gain upon payment of such Discounted Bond upon maturity.
Original issue discount is treated as compounding semiannually, at a rate determined by reference to the yield tomaturity of each individual Discounted Bond, on days that are determined by reference to the maturity date of suchDiscounted Bond. The amount treated as original issue discount on a Discounted Bond for a particular semiannualaccrual period is generally equal to (a) the product of (i) the yield to maturity for such Discounted Bond (determinedby compounding at the close of each accrual period) and (ii) the amount that would have been the tax basis of suchDiscounted Bond at the beginning of the particular accrual period if held by the original purchaser; and less (b) theamount of any interest payable for such Discounted Bond during the accrual period. The tax basis is determined byadding to the initial public offering price on such Discounted Bond the sum of the amounts that have been treatedas original issue discount for such purposes during all prior periods. If a Discounted Bond is sold or exchangedbetween semiannual compounding dates, original issue discount that would have been accrued for that semiannualcompounding period for federal income tax purposes is to be apportioned in equal amounts among the days in suchcompounding period. For federal income tax purposes, the amount of original issue discount that is treated as having accrued with respectto such Discounted Bond is added to the cost basis of the owner in determining gain or loss upon disposition of aDiscounted Bond (including its sale, exchange, redemption, or payment at maturity). Amounts received upondisposition of a Discounted Bond that are attributable to accrued original issue discount will be treated as tax-exemptinterest, rather than as taxable gain. The accrual or receipt of original issue discount on the Discounted Bonds may result in certain collateral federalincome tax consequences for the owners of such Discounted Bonds. The extent of these collateral tax consequenceswill depend upon the owner's particular tax status and other items of income or deduction.
The Code contains additional provisions relating to the accrual of original issue discount. Owners who purchaseDiscounted Bonds at a price other than the issue price or who purchase such Discounted Bonds in the secondarymarket should consult their own tax advisors with respect to the tax consequences of owning the Discounted Bonds. Under the applicable provisions governing the determination of state and local taxes, accrued interest on theDiscounted Bonds may be deemed to be received in the year of accrual even though there will not be a correspondingcash payment until a later year. Owners of Discounted Bonds should consult their own tax advisors with respect tothe state and local tax consequences of owning the Discounted Bonds.
BOND PREMIUM
To the extent that the initial offering price of certain of the Bonds is more than the principal amount payable atmaturity, such Bonds ("Premium Bonds") will be considered to have bond premium.
Any Premium Bond purchased in the initial offering at the issue price will have "amortizable premium" within themeaning of Section 171 of the Code. The amortizable premium of each Premium Bond is calculated on a daily basis
5
from the issue date of such Premium Bond until its stated maturity date (or call date, if any) on the basis of a constantinterest rate compounded at each accrual period (with straight line interpolation between the compounding dates). An owner of a Premium Bond that has amortizable premium is not allowed any deduction for the amortizablepremium; rather the amortizable premium attributable to a taxable year is applied against (and operates to reduce)the amount of tax-exempt interest payments on the Premium Bonds. During each taxable year, such an owner mustreduce his or her tax basis in such Premium Bond by the amount of the amortizable premium that is allocable to theportion of such taxable year during which the holder held such Premium Bond. The adjusted tax basis in a PremiumBond will be used to determine taxable gain or loss upon a disposition (including the sale, exchange, redemption,or payment at maturity) of such Premium Bond.
Owners of Premium Bonds who did not purchase such Premium Bonds in the initial offering at the issue price shouldconsult their own tax advisors with respect to the tax consequences of owning such Premium Bonds. Owners ofPremium Bonds should consult their own tax advisors with respect to the state and local tax consequences of owningthe Premium Bonds.
NON-QUALIFIED TAX-EXEMPT OBLIGATIONS
The County will NOT designate the Bonds as "qualified tax-exempt obligations" pursuant to Section 265 of theInternal Revenue Code of 1986, as amended, which permits financial institutions to deduct interest expenses allocableto the Bonds to the extent permitted under prior law.
MUNICIPAL ADVISOR
Ehlers has served as municipal advisor to the County in connection with the issuance of the Bonds. The MunicipalAdvisor cannot participate in the underwriting of the Bonds. The financial information included in this OfficialStatement has been compiled by the Municipal Advisor. Such information does not purport to be a review, audit orcertified forecast of future events and may not conform with accounting principles applicable to compilations offinancial information. Ehlers is not a firm of certified public accountants. Ehlers is registered with the Securitiesand Exchange Commission and the MSRB as a municipal advisor. Ehlers makes no representation, warranty orguarantee regarding the accuracy or completeness of the information in this Official Statement, and its assistance inpreparing this Official Statement should not be construed as a representation that it has independently verified suchinformation.
MUNICIPAL ADVISOR AFFILIATED COMPANIES
Bond Trust Services Corporation ("BTSC") and Ehlers Investment Partners, LLC ("EIP") are affiliate companies ofEhlers. BTSC is chartered by the State of Minnesota and authorized in Minnesota, Wisconsin, Colorado, and Illinoisto transact the business of a limited purpose trust company. BTSC provides paying agent services to debt issuers. EIP is a Registered Investment Advisor with the Securities and Exchange Commission. EIP assists issuers with theinvestment of bond proceeds or investing other issuer funds. This includes escrow bidding agent services. Issuers,such as the County, have retained or may retain BTSC and/or EIP to provide these services. If hired, BTSC and/orEIP would be retained by the County under an agreement separate from Ehlers.
INDEPENDENT AUDITORS
The basic financial statements of the County for the fiscal year ended December 31, 2019 have been audited by BakerTilly Virchow Krause LLP, Madison, Wisconsin, independent auditors (the "Auditor"). The report of the Auditor,together with the basic financial statements, component units financial statements, and notes to the financial
6
statements are attached hereto as “APPENDIX A – FINANCIAL STATEMENTS”. The Auditor has not beenengaged to perform and has not performed, since the date of its report included herein, any procedures on thefinancial statements addressed in that report. The Auditor also has not performed any procedures relating to thisOfficial Statement.
RISK FACTORS
Following is a description of possible risks to holders of the Bonds without weighting as to probability. Thisdescription of risks is not intended to be all-inclusive, and there may be other risks not now perceived or listed here.
Taxes: The Bonds are general obligations of the County, the ultimate payment of which rests in the County's abilityto levy and collect sufficient taxes to pay debt service. In the event of delayed billing, collection or distribution ofproperty taxes, sufficient funds may not be available to the County in time to pay debt service when due.
State Actions: Many elements of local government finance, including the issuance of debt and the levy of propertytaxes, are controlled by state government. Future actions of the state may affect the overall financial condition ofthe County, the taxable value of property within the County, and the ability of the County to levy and collect propertytaxes.
Future Changes in Law: Various State and federal laws, regulations and constitutional provisions apply to the County and to the Bonds. The County can give no assurance that there will not be a change in or interpretation ofany such applicable laws, regulations and provisions which would have a material effect on the County or the taxingauthority of the County.
Property Tax Collection: Although the levying of the property tax for the payment of principal and interest on theBonds is irrepealable, and the County Clerk is mandated to carry the tax onto the rolls, the levy could be inadvertentlyomitted, causing a delay in payments when due. Property tax statements are distributed to taxpayers by the town,village and city clerks in December of the levy year. Current property tax settlement law directs counties to settlein full for all taxes levied by cities, villages, towns and school districts on or about August 20 of the collection year.
Ratings; Interest Rates: In the future, the County's credit rating may be reduced or withdrawn, or interest rates forthis type of obligation may rise generally, either possibility resulting in a reduction in the value of the Bonds forresale prior to maturity.
Tax Exemption: If the federal government taxes all or a portion of the interest on municipal bonds or notes or ifthe State government increases its tax on interest on bonds and notes, directly or indirectly, or if there is a changein federal or state tax policy, then the value of these Bonds may fall for purposes of resale. Noncompliance by theCounty with the covenants in the Authorizing Resolution relating to certain continuing requirements of the Code mayresult in inclusion of interest to be paid on the Bonds in gross income of the recipient for United States income taxpurposes, retroactive to the date of issuance.
Continuing Disclosure: A failure by the County to comply with the Disclosure Undertaking for continuingdisclosure (see "CONTINUING DISCLOSURE") will not constitute an event of default on the Bonds. Any suchfailure must be reported in accordance with the Rule and must be considered by any broker, dealer, or municipalsecurities dealer before recommending the purchase or sale of the Bonds in the secondary market. Such a failure mayadversely affect the transferability and liquidity of the Bonds and their market price.
Book-Entry-Only System: The timely credit of payments for principal and interest on the Bonds to the accountsof the Beneficial Owners of the Bonds may be delayed due to the customary practices, standing instructions or forother unknown reasons by DTC participants or indirect participants. Since the notice of redemption or other notices
7
to holders of these obligations will be delivered by the County to DTC only, there may be a delay or failure by DTC,DTC participants or indirect participants to notify the Beneficial Owners of the Bonds.
Depository Risk: Wisconsin Statutes direct the local treasurer to immediately deposit upon receipt thereof, the fundsof the municipality in a public depository designated by the governing body. A public depository means a federalor state credit union, federal or state savings and loan association, state bank, savings and trust company, mutualsavings bank or national bank in Wisconsin or the local government pooled investment fund operated by the StateInvestment Board. It is not uncommon for a municipality to have deposits exceeding limits of federal and stateinsurance programs. Failure of a depository could result in loss of public funds or a delay in obtaining them. Sucha loss or delay could interrupt a timely payment of municipal debt.
Economy: A combination of economic, climatic, political or civil disruptions or terrorist actions outside of thecontrol of the County, including loss of major taxpayers or major employers, could affect the local economy andresult in reduced tax collections and/or increased demands upon local government. Real or perceived threats to thefinancial stability of the County may have an adverse effect on the value of the Bonds in the secondary market.
Secondary Market for the Bonds: No assurance can be given that a secondary market will develop for the purchaseand sale of the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Theunderwriters are not obligated to engage in secondary market trading or to repurchase any of the Bonds at the requestof the owners thereof. Prices of the Bonds as traded in the secondary market are subject to adjustment upward anddownward in response to changes in the credit markets and other prevailing circumstances. No guarantee exists asto the future market value of the Bonds. Such market value could be substantially different from the originalpurchase price.
Bankruptcy: The rights and remedies of the holders may be limited by and are subject to the provisions of federalbankruptcy laws, to other laws, or equitable principles that may affect the enforcement of creditors’ rights, to theexercise of judicial discretion in appropriate cases and to limitations on legal remedies against local governments. The opinion of Bond Counsel to be delivered with respect to the Bonds will be similarly qualified. See “MUNICIPALBANKRUPTCY” herein.
Cybersecurity: The County is dependent on electronic information technology systems to deliver services. Thesesystems may contain sensitive information or support critical operational functions which may have value forunauthorized purposes. As a result, the electronic systems and networks may be targets of cyberattack. There canbe no assurance that the County will not experience an information technology breach or attack with financialconsequences that could have a material adverse impact.
Impact of the Spread of COVID-19: In late 2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan,Hubei Province, China. COVID-19 has spread throughout the world, including to the United States, resulting in theWorld Health Organization proclaiming COVID-19 to be a pandemic and President Trump declaring a nationalemergency. In response to the spread of COVID-19, the United States government, state governments, localgovernments and private industries have taken measures to limit social interactions in an effort to limit the spreadof COVID-19. The effects of the spread of COVID-19 and the government and private responses to the spreadcontinue to rapidly evolve. COVID-19 has caused significant disruptions to the global, national and State economy. The extent to which the coronavirus impacts the County and its financial condition will depend on futuredevelopments, which are highly uncertain and cannot be predicted by the County, including the duration of theoutbreak and measures taken to address the outbreak. On March 12, 2020, Wisconsin Governor Tony Evers declared a public health emergency in the state in response tothe growing threat of COVID-19. That declaration included direction to the state Department of Health Services touse any and all required resources to respond to and contain the outbreak. Governor Evers followed that up with a"safer at home" order on March 24, 2020, closing nonessential businesses, banning gatherings of any size andimposing strict travel restrictions through April 24, 2020. On April 16, 2020, the “safer at home” order (the “Order”)
8
was extended from April 24, 2020 through May 26, 2020. Schools remained closed for the duration of the 2019-2020school year, but certain non-essential businesses were allowed to open operations on a limited basis during this time,including curbside pickup, delivery, mailings and minimum basic operations.
Also on April 16, 2020, President Trump outlined “Guidelines for Opening Up America Again,” a three-phasedapproach to restarting the economy based on public health experts’ advice. The guidelines start with a set of criteriathat should be met before starting phases one to three. The criteria include a downward trajectory of people with flu-like and COVID-19-like symptoms for 14 days; a downward trajectory of documented cases for 14 days or adownward trajectory of positive tests as a percentage of total tests over a 14-day period; and hospitals with the abilityto treat all patients without crisis care and a robust testing program for at-risk healthcare workers.
On April 20, 2020, Governor Evers announced Wisconsin’s three-phased approach to reopening the State’s economy,based on President Trump’s guidelines, including similar criteria to be met before phase one can begin. On April 21,2020, Republican legislators in the State filed a lawsuit challenging the legality of the Order. On May 13, 2020, theWisconsin Supreme Court ruled that the State's "safer at home" order is unlawful, invalid and unenforceable becausethe emergency rulemaking procedures under Section 227.24 of the Wisconsin Statutes and procedures establishedby the Wisconsin Legislature for rulemaking if criminal penalties were to follow were not followed in connectionwith the order. The Supreme Court's decision does not invalidate any local health officials' orders or prevent futurelocal health officials' orders related to the COVID-19 pandemic.
The Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") provides for federal payments fromthe Coronavirus Relief Fund to the State for the discrete purpose of covering expenses directly incurred as a resultof COVID-19 between March 1 and December 30, 2020. On May 27, 2020, Governor Tony Evers announced aprogram titled, "Routes to Recovery: Local Government Aid Grants," which will distribute $190 million of the State'sCoronavirus Relief Fund monies to all counties, cities, villages and towns across Wisconsin for unbudgeted eligibleexpenditures incurred due to COVID-19 between March 1 and October 31, 2020. The State allocated funds basedon population with a guaranteed minimum allocation of $5,000. The County's allocation is $8,735,631. These fundswill be disbursed up to the amount of the allocation after eligible expenditures are reported through the State's costtracker application. The County also received $95,394,061 of COVID Relief Funds under the CARES Act.
On July 30, 2020, Governor Evers issued Executive Order #82, declaring a public health emergency in Wisconsinto combat the spread of COVID-19. In conjunction with Executive Order #82, Governor Evers issued EmergencyOrder #1, requiring most people to wear face coverings when indoors, with certain exemptions in accordance withCDC guidelines. Executive Order #1 went into effect on August 1, 2020, and expires on September 28, 2020.
The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Bonds. In orderfor potential investors to identify risk factors and make an informed investment decision, potential investors shouldbe thoroughly familiar with this entire Official Statement and the Appendices hereto.
9
VALUATIONS
WISCONSIN PROPERTY VALUATIONS; PROPERTY TAXES
Equalized Value
Section 70.57, Wisconsin Statutes, requires the Department of Revenue to annually determine the equalized value(also referred to as full equalized value or aggregate full value) of all taxable property in each county and taxationdistrict. The equalized value is an independent estimate of value used to equate individual local assessment policiesso that property taxes are uniform throughout the various subdivisions in the State. Equalized value is calculatedbased on the history of comparable sales and information about value changes or taxing status provided by the localassessor. A comparison of the State-determined equalized value and the local assessed value, expressed as apercentage, is known as the assessment ratio or level of assessment. The Department of Revenue notifies each countyand taxing jurisdiction of its equalized value on August 15; school districts are notified on October 1. The equalizedvalue of each county is the sum of the valuations of all cities, villages, and towns within its boundaries. Taxingjurisdictions lying in more than one municipality, such as counties, school districts, or special taxing districts, usethe equalized value of the underlying units in calculating and levying their respective levies. Equalized values are also used to apportion state aids and calculate municipal general obligation debt limits.
Assessed Value
The "assessed value" of taxable property in a municipality is determined by the local assessor, except formanufacturing properties which are valued by the State. Each city, village or town retains its own local assessor, whomust be certified by the State Department of Revenue. Assessed value is used by these municipalities to determinetax levy mill rates and to apportion levies among individual property owners. Each taxing district must assessproperty at full value at least once in every five-year period. The State requires that the assessed values must bewithin 10% of State equalized values at least once every four years. The local assessor values property as of January1 each year and submits those values to each municipality by the second Monday in June. The assessor also reportsany value changes taking place since the previous year, to the Department of Revenue, by the second Monday in June.
The economic impact of COVID-19 may impact assessed and equalized valuations of property in the State, includingin the County. The County cannot predict the extent of any such changes, but a material decrease in the equalizedvaluations of property in the County may materially adversely affect the financial condition of the County (see “RISKFACTORS - Impact of the Spread of COVID-19" herein).
10
CURRENT PROPERTY VALUATIONS
2020 Equalized Value $74,243,627,000
2020 Equalized Value Reduced by Tax Increment Valuation $70,070,629,900
2020 EQUALIZED VALUE BY CLASSIFICATION
2020 Equalized Value1
Percent of TotalEqualized Value
Residential $ 49,092,354,900 66.123%
Commercial 21,570,090,600 29.053%
Manufacturing 1,294,691,700 1.744%
Agricultural 106,848,400 0.144%
Undeveloped 88,006,300 0.119%
Ag Forest 119,447,900 0.161%
Forest 61,735,800 0.083%
Other 719,679,800 0.969%
Personal Property 1,190,771,600 1.604%
Total $ 74,243,627,000 100.000%
TREND OF VALUATIONS
Year
EqualizedValue Reduced
by TaxIncrementValuation
EqualizedValue1
PercentIncrease/Decreasein Equalized Value
2016 $ 54,247,628,050 $ 56,550,867,750 4.89%
2017 57,729,416,450 60,784,157,550 7.49%
2018 62,134,842,350 65,007,455,200 6.95%
2019 66,490,116,700 69,924,979,100 7.56%
2020 70,070,629,900 74,243,627,000 6.18%
Source: Wisconsin Department of Revenue, Bureau of Equalization and Local Government Services Bureau.
1 Includes tax increment valuation.
11
LARGER TAXPAYERS
Taxpayer Type of Business/Property
2019Equalized
Value1
Percent of County's TotalEqualized Value
Epic Systems Corporation Medical Software $ 842,008,685 1.20%
Madison Joint Venture Shopping Centers 162,113,007 0.23%
American Family Insurance Insurance 127,398,355 0.18%
Promega Corporation Biotechnology 124,538,426 0.18%
Ax Madison Greenway LLC Property Management 115,458,669 0.17%
Core Campus Madison LLC Property Management 84,464,333 0.12%
CG Growth LLC Property Management 77,763,810 0.11%
University Research Park Inc. Research and Tech Park 77,314,970 0.11%
Core Campus Madison II LLC Property Development 72,384,518 0.10%
Covance Labs Research Lab 70,737,699 0.10%
Total $ 1,754,182,472 2.51%
County's Total 2019 Equalized Value2 $69,924,979,100
Source: The County.
1 Calculated by dividing the 2019 Assessed Values by the 2019 Aggregate Ratio of assessment for the DaneCounty.
2 Includes tax increment valuation.
12
DEBT
DIRECT DEBT (includes the Obligations and the Concurrent Obligations, as defined herein)*
General Obligation Debt (see schedules following)
Total General Obligation Debt $ 425,010,000
DEBT LIMIT (includes the Obligations and the Concurrent Obligations)*
The constitutional general obligation debt limit for Wisconsin municipalities, including cities, villages, and counties(Article XI, Section 3 of the Wisconsin Constitution and Section 67.03, Wisconsin Statutes) is 5% of the currentequalized value.
Equalized Value $ 74,243,627,000
Multiply by 5% 0.05
Statutory Debt Limit $ 3,712,181,350
Less: General Obligation Debt* (425,010,000)
Unused Debt Limit* $ 3,287,171,350
*Preliminary, subject to change.
13
Dan
e Co
unty, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness
Gen
eral Obligation Deb
t Secured
by Ta
xes
(As of 10/07
/202
0)
3650
133
8679
3666
733
8685
3666
933
8683
3785
133
9624
3869
033
8698
3869
133
8695
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
2020
00
1,72
0,00
010
1,07
10
99,575
010
,028
020
,650
094
,775
2021
215,00
04,30
01,84
5,00
014
2,80
32,10
5,00
016
7,57
595
5,00
010
,028
1,02
0,00
031
,100
415,00
018
1,25
020
221,96
0,00
075
,460
2,15
0,00
010
3,75
01,04
5,00
010
,450
435,00
016
4,25
020
232,20
0,00
035
,750
450,00
014
8,80
020
2446
5,00
013
5,07
520
2548
0,00
012
0,90
020
2649
5,00
010
6,27
520
2750
5,00
091
,275
2028
520,00
075
,900
2029
540,00
060
,000
2030
560,00
043
,500
2031
575,00
026
,475
2032
595,00
08,92
520
3320
3420
3520
3620
3720
3820
3920
40
215,00
04,30
05,52
5,00
031
9,33
46,45
5,00
040
6,65
095
5,00
020
,055
2,06
5,00
062
,200
6,03
5,00
01,25
7,40
0
‐‐Con
tinue
d on
next p
age
Refund
ing Bo
nds
Serie
s 20
08A
05/01/20
08$1
5,45
5,00
0
03/01
Refund
ing Bo
nds
Serie
s 20
10E
11/09/20
10$2
3,73
5,00
0
06/01
Taxable Re
fund
ing Bo
nds
Serie
s 20
10C
11/09/20
10$1
7,03
5,00
0
12/01
Prom
issory Notes
Serie
s 20
12B
10/11/20
12$1
5,88
5,00
0
06/01
Prom
issory Notes
Serie
s 20
11A
11/09/20
11$1
1,41
5,00
0
06/01
Capital Improv
emen
t Bon
dsSe
ries 20
12C
10/11/20
12$9
,225
,000
06/01
14
Dan
e Co
unty, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness con
tinue
dGen
eral Obligation Deb
t Secured
by Ta
xes
(As of 10/07
/202
0)
3266
5632
6829
3266
5732
6832
3272
4932
7617
3272
5032
7619
3281
0332
9374
3281
0432
9369
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
2020
028
0,72
70
56,419
016
0,45
00
366,95
90
270,37
50
455,30
320
2188
0,00
054
3,85
41,27
0,00
096
,169
2,72
5,00
029
1,94
71,24
0,00
070
9,11
93,45
5,00
048
8,92
52,59
5,00
088
4,65
620
2292
0,00
050
7,85
41,30
5,00
059
,925
2,81
0,00
020
6,79
41,29
5,00
065
8,41
93,56
0,00
038
3,70
02,65
0,00
082
8,89
420
2395
0,00
047
5,20
41,34
5,00
020
,175
2,90
0,00
011
4,34
41,34
5,00
060
5,61
93,66
0,00
027
9,97
52,71
5,00
076
5,14
420
2498
0,00
044
4,41
62,97
5,00
039
,047
1,39
0,00
055
7,86
93,77
0,00
017
3,10
02,79
0,00
068
9,35
620
251,01
5,00
041
0,11
61,43
5,00
051
5,49
43,88
5,00
058
,275
2,88
0,00
060
4,30
620
261,05
5,00
037
2,57
31,47
5,00
047
1,84
42,97
5,00
051
6,48
120
271,09
5,00
033
2,26
01,52
0,00
042
6,91
93,07
0,00
042
5,80
620
281,13
5,00
028
9,02
91,57
0,00
038
0,56
91,97
5,00
034
7,66
320
291,18
5,00
024
2,62
91,61
5,00
033
1,78
41,17
0,00
029
6,55
620
301,23
0,00
019
4,32
91,67
5,00
027
9,33
11,20
5,00
025
7,96
320
311,28
5,00
014
3,22
61,73
0,00
022
2,91
91,25
0,00
021
6,50
620
321,33
5,00
088
,354
1,78
0,00
016
2,57
51,29
5,00
017
1,96
920
331,39
5,00
029
,993
1,84
0,00
099
,225
1,34
0,00
012
5,85
620
341,91
5,00
033
,513
1,38
5,00
077
,303
2035
1,44
0,00
026
,100
2036
2037
2038
2039
2040
14,460
,000
4,35
4,56
13,92
0,00
023
2,68
811
,410
,000
812,58
121
,825
,000
5,82
2,15
618
,330
,000
1,65
4,35
030
,735
,000
6,68
9,86
3
‐‐Con
tinue
d on
next p
age
Capital Improv
emen
t Bon
dsSe
ries 20
13A
10/02/20
13$1
9,83
5,00
0
06/01
Prom
issory Notes
Serie
s 20
14A
07/02/20
14$3
5,07
5,00
0
06/01
Prom
issory Notes
Serie
s 20
13B
10/02/20
13$2
5,60
5,00
0
06/01
Prom
issory Notes
Serie
s 20
15A
10/08/20
15$4
3,08
5,00
0
06/01
Capital Improv
emen
t Bon
dsSe
ries 20
14B
07/02/20
14$2
8,45
5,00
0
06/01
Corporate Pu
rpose Bo
nds
Serie
s 20
15B
10/08/20
15$4
0,96
0,00
0
06/01
15
Dan
e Co
unty, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness con
tinue
dGen
eral Obligation Deb
t Secured
by Ta
xes
(As of 10/07
/202
0)
3290
8033
1201
3290
8133
1203
3309
3033
3589
3309
3133
3591
3309
3233
3593
3318
9833
5237
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
2020
016
8,82
50
18,688
060
1,83
80
113,63
80
177,16
50
585,30
020
213,48
5,00
028
5,37
585
,000
36,525
5,99
0,00
01,14
3,77
549
5,00
021
9,85
01,36
0,00
032
7,13
05,10
5,00
01,09
4,02
520
221,85
5,00
020
5,27
585
,000
34,825
6,18
0,00
096
0,27
551
0,00
020
4,77
51,42
0,00
027
1,53
04,80
5,00
094
5,37
520
231,91
5,00
014
8,72
590
,000
33,075
5,09
0,00
073
4,87
553
0,00
018
9,17
51,48
0,00
021
3,53
04,94
5,00
079
9,12
520
241,96
0,00
010
0,40
090
,000
31,275
5,30
0,00
052
7,07
554
5,00
017
3,05
01,54
0,00
015
3,13
04,24
0,00
066
1,35
020
252,00
0,00
060
,800
95,000
29,425
5,49
0,00
033
8,72
557
0,00
015
3,47
51,59
0,00
010
3,25
04,39
5,00
050
9,85
020
262,04
0,00
020
,400
95,000
27,525
5,62
5,00
020
0,12
559
5,00
013
0,17
51,63
0,00
063
,795
4,55
0,00
035
3,70
020
2795
,000
25,625
5,75
5,00
071
,938
620,00
010
5,87
51,67
0,00
021
,710
4,68
5,00
021
5,17
520
2810
0,00
023
,675
635,00
087
,125
4,83
0,00
072
,450
2029
100,00
021
,625
650,00
073
,463
2030
105,00
019
,394
670,00
056
,100
2031
105,00
016
,848
200,00
043
,050
2032
110,00
014
,053
205,00
036
,975
2033
110,00
011
,193
210,00
030
,750
2034
115,00
08,18
122
0,00
024
,300
2035
120,00
04,95
022
5,00
017
,625
2036
120,00
01,65
023
5,00
010
,725
2037
240,00
03,60
020
3820
3920
40
13,255
,000
989,80
01,62
0,00
035
8,53
039
,430
,000
4,57
8,62
57,35
5,00
01,67
3,72
510
,690
,000
1,33
1,24
037
,555
,000
5,23
6,35
0
‐‐Con
tinue
d on
next p
age
Prom
issory Notes
Serie
s 20
16A
09/28/20
16$2
8,86
5,00
0
06/01
Prom
issory Notes
Serie
s 20
17A
09/28/20
17$5
9,76
5,00
0
06/01
Capital Improv
emen
t Bon
dsSe
ries 20
16B
09/28/20
16$1
,935
,000
06/01
Taxable Prom
issory Notes
Serie
s 20
17C
09/28/20
17$1
5,03
0,00
0
06/01
Corporate Pu
rpose Bo
nds
Serie
s 20
17B
09/28/20
17$8
,860
,000
06/01
Prom
issory Notes
Serie
s 20
18A
09/27/20
18$4
8,45
0,00
0
06/01
16
Dan
e Co
unty, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness con
tinue
dGen
eral Obligation Deb
t Secured
by Ta
xes
(As of 10/07
/202
0)
3318
9933
5240
3319
0033
5241
3319
0133
5247
3338
3933
9576
3338
4033
9579
3338
4133
9580
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
2020
084
,500
015
5,23
00
61,988
049
1,80
00
245,90
90
40,903
2021
170,00
016
4,75
01,10
0,00
029
4,78
51,40
0,00
099
,475
6,20
5,00
092
1,55
093
5,00
048
2,46
91,08
0,00
069
,656
2022
175,00
015
6,12
51,13
0,00
026
2,44
31,44
5,00
056
,913
6,17
5,00
079
7,75
083
5,00
046
4,76
91,10
5,00
045
,075
2023
185,00
014
7,12
51,16
5,00
022
8,00
91,48
0,00
019
,425
6,02
0,00
067
5,80
085
0,00
044
7,91
91,12
5,00
024
,909
2024
195,00
013
7,62
51,20
5,00
019
1,56
56,14
0,00
055
4,20
087
0,00
043
0,71
91,14
5,00
08,58
820
2520
5,00
012
7,62
51,24
0,00
015
3,04
84,73
5,00
044
5,45
088
5,00
041
3,16
920
2621
5,00
011
7,12
51,28
0,00
011
2,08
84,83
0,00
034
9,80
091
0,00
039
0,66
920
2722
5,00
010
7,25
01,32
5,00
068
,774
4,92
5,00
025
2,25
093
5,00
036
2,99
420
2823
5,00
098
,050
1,37
0,00
023
,290
5,02
5,00
015
2,75
096
5,00
033
4,49
420
2924
0,00
089
,750
5,12
5,00
051
,250
995,00
030
5,09
420
3025
0,00
082
,400
1,02
5,00
027
4,79
420
3126
0,00
074
,425
1,05
5,00
024
3,59
420
3226
5,00
065
,894
1,08
5,00
021
6,24
120
3327
5,00
057
,119
1,11
0,00
019
2,22
520
3428
5,00
047
,841
1,13
5,00
016
6,25
920
3529
5,00
038
,053
1,16
0,00
013
9,00
620
3630
5,00
027
,738
1,19
0,00
011
0,35
620
3731
5,00
016
,888
1,22
0,00
080
,231
2038
325,00
05,68
81,25
0,00
049
,356
2039
1,28
5,00
016
,866
2040
4,42
0,00
01,64
5,96
99,81
5,00
01,48
9,23
04,32
5,00
023
7,80
049
,180
,000
4,69
2,60
019
,695
,000
5,36
7,13
14,45
5,00
018
9,13
1
‐‐Con
tinue
d on
next p
age
Capital Improv
emen
t Bon
dsSe
ries 20
18B
09/27/20
18$4
,865
,000
06/01
Airport P
roject Promissory Notes
Serie
s 20
18D
09/27/20
18$7
,010
,000
06/01
Taxable Gas Pipeline Project P
rom
Note
Serie
s 20
18C
09/27/20
18$1
1,86
0,00
0
06/01
Corporate Pu
rposes Bon
dsSe
ries 20
19B
09/25/20
19$2
0,99
5,00
0
06/01
Prom
issory Notes
Serie
s 20
19A
09/25/20
19$5
6,12
0,00
0
06/01
Airport P
roject Promissory Notes
Serie
s 20
19C
09/25/20
19$5
,510
,000
06/01
17
Dan
e Co
unty, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness con
tinue
dGen
eral Obligation Deb
t Secured
by Ta
xes
(As of 10/07
/202
0)
3338
4233
9585
3389
2434
7917
3389
2334
7922
3390
7334
7923
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Principa
lEstim
ated
Interest
Principa
lEstim
ated
Interest
Principa
lEstim
ated
Interest
Total P
rincipa
lTo
tal Interest
Total P
& I
Principa
l Outstan
ding
% Paid
Calend
ar
Year
Ending
2020
038
9,45
00
00
00
01,72
0,00
05,05
1,56
46,77
1,56
442
3,29
0,00
0.40%
2020
2021
6,05
0,00
068
8,15
05,60
5,00
043
9,28
439
5,00
013
0,28
91,73
5,00
026
7,05
259
,915
,000
10,215
,864
70,130
,864
363,37
5,00
014
.50%
2021
2022
6,24
0,00
050
3,80
05,70
0,00
034
2,29
941
5,00
011
0,45
31,78
0,00
021
6,43
557
,985
,000
8,57
7,61
166
,562
,611
305,39
0,00
028
.15%
2022
2023
4,94
5,00
033
6,02
55,74
0,00
030
3,68
842
0,00
010
7,63
51,80
0,00
019
9,69
253
,345
,000
7,05
3,74
160
,398
,741
252,04
5,00
040
.70%
2023
2024
3,33
5,00
021
1,82
55,33
5,00
026
4,69
942
0,00
010
4,67
41,81
5,00
018
0,07
446
,505
,000
5,76
9,11
152
,274
,111
205,54
0,00
051
.64%
2024
2025
3,11
0,00
013
0,70
05,38
0,00
022
3,43
842
5,00
010
1,42
01,84
0,00
015
7,22
041
,655
,000
4,65
6,68
546
,311
,685
163,88
5,00
061
.44%
2025
2026
1,84
5,00
081
,150
3,64
0,00
018
4,90
543
0,00
097
,721
1,58
0,00
013
3,13
435
,265
,000
3,72
9,48
338
,994
,483
128,62
0,00
069
.74%
2026
2027
995,00
052
,750
3,67
5,00
014
9,41
843
5,00
093
,524
1,60
5,00
010
7,96
333
,135
,000
2,91
1,50
536
,046
,505
95,485
,000
77.53%
2027
2028
1,02
0,00
032
,600
3,71
0,00
011
0,45
644
0,00
088
,908
1,63
5,00
080
,090
25,165
,000
2,19
7,04
727
,362
,047
70,320
,000
83.45%
2028
2029
1,04
0,00
012
,000
3,75
5,00
068
,458
445,00
083
,929
1,66
5,00
049
,804
18,525
,000
1,68
6,34
020
,211
,340
51,795
,000
87.81%
2029
2030
40,000
1,20
03,79
5,00
023
,339
450,00
078
,580
1,69
5,00
017
,035
12,700
,000
1,32
7,96
414
,027
,964
39,095
,000
90.80%
2030
2031
40,000
400
455,00
072
,878
6,95
5,00
01,06
0,32
08,01
5,32
032
,140
,000
92.44%
2031
2032
460,00
066
,792
7,13
0,00
083
1,77
67,96
1,77
625
,010
,000
94.12%
2032
2033
465,00
060
,247
6,74
5,00
060
6,60
77,35
1,60
718
,265
,000
95.70%
2033
2034
475,00
053
,290
5,53
0,00
041
0,68
65,94
0,68
612
,735
,000
97.00%
2034
2035
480,00
046
,007
3,72
0,00
027
1,74
13,99
1,74
19,01
5,00
097
.88%
2035
2036
490,00
038
,392
2,34
0,00
018
8,86
02,52
8,86
06,67
5,00
098
.43%
2036
2037
495,00
030
,462
2,27
0,00
013
1,18
12,40
1,18
14,40
5,00
098
.96%
2037
2038
505,00
022
,211
2,08
0,00
077
,255
2,15
7,25
52,32
5,00
099
.45%
2038
2039
515,00
013
,591
1,80
0,00
030
,456
1,83
0,45
652
5,00
099
.88%
2039
2040
525,00
04,59
452
5,00
04,59
452
9,59
40
100.00
%20
40
28,660
,000
2,44
0,05
046
,335
,000
2,10
9,98
39,14
0,00
01,40
5,59
317
,150
,000
1,40
8,49
642
5,01
0,00
056
,790
,391
481,80
0,39
1
*Prelim
inary, su
bject to chan
ge
Refund
ing Bo
nds
Serie
s 20
19D
09/25/20
19$3
4,39
5,00
0
06/01
Cons
erva
tion
Fund
Bon
dsSe
ries 20
20B
10/07/20
20$9
,140
,000
*
06/01
Prom
issory Notes
Serie
s 20
20A
10/07/20
20$4
6,33
5,00
0*
06/01
Taxable Prom
issory Notes
Serie
s 20
20C
10/07/20
20$1
7,15
0,00
0*
06/01
18
UNDERLYING DEBT1
Taxing District
2020Equalized
Value% In
County Total
G.O. Debt2
County'sProportionate Share
Towns of:
Albion $249,439,000 100.0000% $323,388 $323,388
Berry 214,646,800 100.0000% 959,445 959,445
Black Earth 87,538,700 100.0000% 267,921 267,921
Bristol 630,083,000 100.0000% 132,024 132,024
Cottage Grove 499,405,700 100.0000% 853,397 853,397
Dane 142,144,600 100.0000% 559,410 559,410
Deerfield 214,144,400 100.0000% 454,669 454,669
Dunn 857,854,200 100.0000% 1,216,905 1,216,905
Madison 488,360,000 100.0000% 1,048,167 1,048,167
Mazomanie 141,825,600 100.0000% 141,964 141,964
Medina 162,073,300 100.0000% 561,944 561,944
Middleton 1,467,676,700 100.0000% 2,460,000 2,460,000
Montrose 155,602,400 100.0000% 95,533 95,533
Oregon 427,710,100 100.0000% 377,952 377,952
Perry 94,236,900 100.0000% 848,601 848,601
Pleasant Springs 542,022,100 100.0000% 150,991 150,991
Roxbury 279,334,200 100.0000% 53,737 53,737
Rutland 294,190,600 100.0000% 716,920 716,920
Springfield 513,347,100 100.0000% 600,000 600,000
Vienna 282,849,900 100.0000% 238,309 238,309
Westport 951,526,600 100.0000% 2,380,000 2,380,000
Villages of:
Belleville 217,507,200 0.3100% 5,691,230 17,643
Black Earth 129,955,400 100.0000% 2,549,202 2,549,202
Blue Mounds 87,125,000 100.0000% 1,570,000 1,570,000
Brooklyn 87,446,100 72.0000% 1,661,457 1,196,249
1 Overlapping debt is as of the dated date of the Obligations. Only those taxing jurisdictions with generalobligation debt outstanding are included in this section. There are also some municipalities/districts that mayhave outstanding general obligation debt but did not respond to an information request as of the time ofpublication for this Official Statement.
2 Outstanding debt based on information obtained on EMMA and the Municipal Advisor's records.
19
Taxing District
2020Equalized
Value% In
County Total
G.O. Debt1
County'sProportionate Share
Cambridge $182,940,900 0.2700% $4,787,253 $12,926
Cottage Grove 842,628,700 100.0000% 19,460,366 19,460,366
Cross Plains 423,574,200 100.0000% 9,836,000 9,836,000
Deerfield 249,864,100 100.0000% 3,925,000 3,925,000
De Forest 1,449,753,200 100.0000% 44,440,672 44,440,672
Maple Bluff 498,956,400 100.0000% 8,850,000 8,850,000
Marshall 252,278,400 100.0000% 3,396,534 3,396,534
Mazomanie 172,681,000 100.0000% 3,583,473 3,583,473
McFarland 1,127,280,700 100.0000% 18,400,000 18,400,000
Mount Horeb 838,224,300 100.0000% 21,448,506 21,448,506
Oregon 1,312,188,300 100.0000% 22,415,726 22,415,726
Shorewood Hills 649,033,900 100.0000% 16,616,387 16,616,387
Waunakee 2,150,021,500 100.0000% 36,763,548 36,763,548
Windsor 1,048,228,900 100.0000% 29,795,000 29,795,000
Cities of:
Edgerton 27,423,300 0.6400% 2,435,154 15,585
Fitchburg 3,706,378,900 100.0000% 44,915,000 44,915,000
Madison 33,036,794,000 100.0000% 442,152,500 442,152,500
Middleton 4,077,208,900 100.0000% 40,240,000 40,240,000
Monona 1,451,017,900 100.0000% 46,790,000 46,790,000
Stoughton 1,268,041,900 100.0000% 36,680,214 36,680,214
Sun Prairie 3,864,128,900 100.0000% 88,143,441 88,143,441
Verona 3,723,069,100 100.0000% 51,109,654 51,109,654
School Districts of:2
Belleville 660,197,453 54.0400% 9,935,000 5,368,874
Cambridge 705,025,784 44.8400% 2,784,193 1,248,432
1 Outstanding debt based on information obtained on EMMA and the Municipal Advisor's records.
2 Only Town, Village and City equalized values are 2020 values. School District equalized values are 2019 valuesas 2020 values are not available as of the printing of this Official Statement.
20
Taxing District
2020Equalized
Value% In
County Total
G.O. Debt1
County'sProportionate Share
Columbus $857,157,969 8.9500% $24,965,000 $2,234,368
Deerfield Community 486,140,053 92.5000% 5,215,000 4,823,875
DeForest Area 3,043,114,338 80.8800% 140,160,000 113,361,408
Edgerton 1,226,984,625 21.3200% 42,195,000 8,995,974
Evansville Community 853,567,054 0.1000% 35,935,000 35,935
Madison Metropolitan 31,072,817,455 88.4300% 49,980,000 44,197,314
McFarland 1,605,599,732 88.3900% 61,160,000 54,059,324
Middleton-Cross Plains 7,971,115,065 88.7000% 199,570,000 177,018,590
Monona Grove 2,539,745,297 84.4300% 85,895,000 72,521,149
Mount Horeb Area 1,582,245,515 90.2100% 42,445,000 38,289,634
New Glarus 527,770,646 10.2700% 10,340,000 1,061,918
Oregon 2,663,018,294 84.2600% 88,180,000 74,300,468
Poynette 764,503,245 0.1700% 28,596,229 48,614
Sauk Prairie 2,138,702,161 11.7100% 65,740,000 7,698,154
Stoughton Area 2,445,980,210 92.7000% 4,200,000 3,893,400
Sun Prairie Area 5,440,369,285 85.4000% 308,115,000 263,130,210
Verona Area 5,065,192,079 77.2500% 187,366,998 144,741,006
Waunakee Community 3,233,887,957 84.7200% 74,405,000 63,035,916
Technical College Districts:2
Madison Area Technical College 94,997,912,017 62.9700% 166,390,000 104,775,783
Southwest Wisconsin TechnicalCollege
9,132,180,121 0.1116% 24,315,000 27,136
1 Outstanding debt based on information obtained on EMMA and the Municipal Advisor's records.
2 Only Town, Village and City equalized values are 2020 values. School District equalized values are 2019 valuesas 2020 values are not available as of the printing of this Official Statement.
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Taxing District
2020Equalized
Value% In
County Total
G.O. Debt1
County'sProportionate Share
Special Districts:
Madison Metro Sewer $52,280,502,467 100.00% $116,388,853 $116,388,853
County's Share of Total Underlying Debt $2,310,021,236
1 Outstanding debt based on information obtained on EMMA and the Municipal Advisor's records.
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DEBT RATIOS
G.O. Debt
Debt/EqualizedValue
$74,243,627,000
Debt/ PerCapita
543,3981
Total General Obligation Debt (includes theObligations and the Concurrent Obligations)*
$ 425,010,000 0.57% $ 782.13
County's Share of Total Overlapping Debt 2,310,021,236 3.11% 4,251.07
Total* $ 2,735,031,236 3.68% $ 5,033.20
*Preliminary, subject to change.
DEBT PAYMENT HISTORY
The County has no record of default in the payment of principal and interest on its debt.
FUTURE FINANCING
Aside from the Obligations and the Concurrent Obligations, the County has no current plans for additionalfinancing in the next 12 months.
1 Estimated 2020 population.
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TAX LEVIES AND COLLECTIONS
TAX LEVIES AND COLLECTIONS
Levy/Collect
Levy for CountyPurposes Only
Total Levyfor All
Units in County% Collected
to Date
Levy/Equalized Value Reduced by Tax
Increment Valuation in Dollars per $1,000
2015/16 $161,701,984 $1,269,505,165 99.97% $3.12
2016/17 169,313,923 1,260,913,294 99.92% 3.15
2017/18 183,125,301 1,308,019,935 99.78% 3.13
2018/19 184,586,083 1,379,827,990 99.90% 3.17
2019/20 192,653,828 1,417,559,476 In progress 2.97
Property tax statements are distributed to taxpayers by the town, village, and city treasurers in December of thelevy year. Current state law requires counties to pay 100% of the real property taxes levied to cities, villages,towns, school districts and other taxing entities on or about August 20 of the collection year.
Personal property taxes, special assessments, special charges and special taxes must be paid to the town, city orvillage treasurer in full by January 31, unless the municipality, by ordinance, permits special assessments to bepaid in installments. Real property taxes must be paid in full by January 31 or in two equal installments byJanuary 31 and July 31. Alternatively, municipalities may adopt a payment plan which permits real property taxesto be paid in three or more equal installments, provided that the first installment is paid by January 31, one-halfof the taxes are paid by April 30 and the remainder is paid by July 31. Amounts paid on or before January 31 arepaid to the town, city or village treasurer. Amounts paid after January 31, are paid to the county treasurer unlessthe municipality has authorized payment in three or more installments in which case payment is made to the town,city or village treasurer. On or before January 15 and February 20 the town, city or village treasurer settles withother taxing jurisdictions for all collections through December and January, respectively. In municipalities whichhave authorized the payment of real property taxes in three or more installments, the town, city or village treasurersettles with the other taxing jurisdictions on January 15, February 20 and on the fifteenth day of each monthfollowing the month in which an installment payment is required. On or before August 20, the county treasurermust settle in full with the underlying taxing districts for all real property taxes and special taxes. Any countyboard may authorize its county treasurer to also settle in full with the underlying taxing districts for all specialassessments and special charges. The county may then recover any tax delinquencies by enforcing the lien on theproperty and retain any penalties or interest on the delinquencies for which it has settled. Uncollected personalproperty taxes owed by an entity that has ceased operations or filed a petition for bankruptcy, or are due onpersonal property that has been removed from the next assessment roll are collected from each taxing entity inthe year following the levy year.
The spread of COVID-19 and responses taken by the United States government, state governments, localgovernments and private industries have caused significant disruptions to the national and State economy. See"RISK FACTORS - Impact of the Spread of COVID-19" herein. On April 15, 2020, Governor Tony Evers signedinto law 2020 Wisconsin Act 185, which provides that for property taxes payable in 2020, a taxation district may,after making a general or case-by-case finding of hardship, choose to waive interest or penalties on property taxinstallment payments paid after April 1, 2020 but on or before October 1, 2020. In order to take such action, thecounty board of supervisors must first adopt a resolution authorizing such waiver and determining criteria fordetermining hardship and the taxation district must subsequently adopt a similar resolution. In the case of a countyadopting such a resolution, the county shall proportionally settle with the taxation districts any taxes, interest and
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penalties collected on or before July 31, 2020 on August 20, 2020, and settle the remaining unpaid taxes, interest,and penalties on September 20, 2020. The County has adopted such resolutions. The County cannot predictwhether and how much payment of property taxes will be impacted by COVID-19 this year or in future years. Anydelays or reduction in the receipt of property taxes may materially adversely impact the County's finances andpayment of debt obligations, including the Obligations.
PROPERTY TAX RATES OF LARGER MUNICIPALITIES WITHIN THE COUNTY
Full value rates for property taxes expressed in dollars per $1,000 of equalized value (excluding tax incrementvaluation) that have been collected in recent years have been as follows:
Year Levied/Year Collected Schools1 County Local Other2 Total
City of Madison
2015/16 $12.99 $2.95 $9.14 $0.18 $25.26
2016/17 12.82 2.95 9.22 0.18 25.17
2017/18 12.49 2.99 9.05 0.00 24.53
2018/19 11.93 2.78 8.67 0.00 23.38
2019/20 11.31 2.55 7.91 0.00 21.77
City of Fitchburg
2015/16 $12.98 $3.15 $8.13 $0.19 $24.45
2016/17 12.89 3.13 8.35 0.19 24.56
2017/18 13.00 3.15 8.50 0.00 24.65
2018/19 12.68 2.97 8.05 0.00 23.70
2019/20 12.07 2.77 7.39 0.00 22.23
Source: Property Tax Rates were extracted from Statement of Taxes prepared by the Wisconsin Department ofRevenue, Division of State and Local Finance.
1 The Schools tax rate reflects the composite rate of all local school districts and the technical college district.
2 Includes the state reforestation tax which is apportioned to each county on the basis of its full value. Counties,in turn, apportion the tax to the tax districts within their borders on the basis of full value. It also includes taxeslevied for special purpose districts such as metropolitan sewerage districts, sanitary districts, and public inlandlake protection districts. Tax increment values are not included. State property taxes were eliminated in theState's 2017 - 2019 budget act.
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DEBT ISSUANCE CONDITIONS FOR COUNTIES
Wisconsin counties may not issue general obligation bonds or promissory notes unless the county qualifies forone of the exceptions allowed under the statute, as described below:
General obligation bonds or notes can be issued by a county only if one of the following conditions is met: (a) thebonds or notes are approved at a referendum; (b) the county board adopts a resolution that sets forth its reasonableexpectation that the issuance will not cause the county to exceed its debt levy rate limit; (c) the debt is issued forregional projects; (d) the debt is issued to refund existing debt or (e) the resolution authorizing the debt isapproved by a vote of at least 3/4 of the members elect of the county board. In addition, counties generally areprohibited from using the proceeds of general obligation bonds or notes to fund the operating expenses of thegeneral fund of the county or to fund the operating expenses of any special revenue fund of the county that issupported by property taxes, although this prohibition does not apply to notes issued to pay unfunded prior serviceliability contributions.
The Obligations were approved by votes of at least 3/4 of the members elect of the County Board at meetings heldon January 23, 2020, April 2, 2020, May 7, 2020 and June 18, 2020.
LEVY LIMITS
Section 66.0602 of the Wisconsin Statutes, imposes a limit on property tax levies by cities, villages, towns andcounties. No city, village, town or county is permitted to increase its tax levy by a percentage that exceeds itsvaluation factor (which is defined as a percentage equal to the greater of either the percentage change in thepolitical subdivision's January 1 equalized value due to new construction less improvements removed betweenthe previous year and the current or zero percent). The base amount in any year to which the levy limit appliesis the actual levy for the immediately preceding year. This levy limitation is an overall limit, applying to leviesfor 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 differencebetween the allowable levy and the actual levy, up to a maximum of 1.5% of the prior year's actual levy. The useof the carry forward levy adjustment needs to be approved by a majority vote of the political subdivision'sgoverning body (except in the case of towns) if the amount of carry forward levy adjustment is less than or equalto 0.5% and by a super majority vote of the political subdivision's governing body (three-quarters vote if thegoverning body is comprised of five or more members, two-thirds vote if the governing body is comprised offewer than five members) (except in the case of towns) if the amount of the carry forward levy adjustment isgreater than 0.5% up to the maximum increase of 1.5%. For towns, the use of the carry forward levy adjustmentneeds to be approved by a majority vote of the annual town meeting or special town meeting after the town boardhas adopted a resolution in favor of the adjustment by a majority vote if the amount of carry forward levyadjustment is less than or equal to 0.5% or by two-thirds vote or more if the amount of carry forward levyadjustment is greater than 0.5% up to the maximum of 1.5%.
Beginning with levies imposed in 2015, if a political subdivision does not make an adjustment in its levy asdescribed in the above paragraph in the current year, the political subdivision may increase its levy by theaggregate amount of the differences between the political subdivision’s valuation factor in the previous year andthe actual percent increase in a political subdivision’s levy attributable to the political subdivision’s valuationfactor in the previous year, for the five years before the current year, less any amount of such aggregate amountalready claimed as an adjustment in any of the previous five years. The calculation of the aggregate amountavailable for such adjustment may not include any year before 2014, and the maximum adjustment allowed maynot exceed 5%. The use of the adjustment described in this paragraph requires approval by a two-thirds vote ofthe political subdivision’s governing body, and the adjustment may only be used if the political subdivision’s level
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of outstanding general obligation debt in the current year is less than or equal to the political subdivision’s levelof outstanding general obligation debt in the previous year.
Special provisions are made with respect to property taxes levied to pay general obligation debt service. Thoseare described below. In addition, the statute provides for certain other exclusions from and adjustments to the taxlevy limit. Among the items excluded from the limit are amounts levied for any revenue shortfall for debt serviceon a revenue bond issued under Section 66.0621. Among the adjustments permitted is an adjustment applicablewhen a tax increment district terminates, which allows an amount equal to the prior year's allowable levymultiplied 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 ondebt issued or reissued to fund or refund outstanding obligations of the political subdivision and interest onoutstanding obligations of the political subdivision, on debt originally issued before July 1, 2005, is less in thecurrent year than in the previous year, the political subdivision is required to reduce its levy limit in the currentyear by the amount of the difference between the previous year's levy and the current year's levy.
(b) For obligations authorized before July 1, 2005, if the amount of debt service in the preceding year is less thanthe amount of debt service needed in the current year, the levy limit is increased by the difference between thetwo amounts. This adjustment is based on scheduled debt service rather than the amount actually levied for debtservice (after taking into account offsetting revenues such as sales tax revenues, special assessments, utilityrevenues, tax increment revenues or surplus funds). Therefore, the levy limit could negatively impact politicalsubdivisions that experience a reduction in offsetting revenues.
(c) The levy limits do not apply to property taxes levied to pay debt service on general obligation debt authorizedon or after July 1, 2005.
The Obligations were authorized after July 1, 2005 and therefore the levy limits do not apply to taxes levied topay debt service on the Obligations.
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THE ISSUER
COUNTY GOVERNMENT
The County was organized in 1839 and is governed by a Chairman and a 37-member County Board. All BoardMembers are elected to two-year terms. Current terms all expire in 2022. The appointed Director of Departmentof Administration and the County Controller are responsible for administrative details and financial records.
EMPLOYEES; PENSIONS
The County has 2,403 full-time employees. The County is a participant in the Wisconsin Retirement System("WRS") covering all protective employees on a non-contributory basis. See the Obligations to FinancialStatements in Appendix A for a detailed description of the plan.
Recognized and Certified Bargaining Units
All eligible County personnel are covered by the Municipal Employment Relations Act (MERA) of the WisconsinStatutes. Pursuant to that law, employees have limited rights to organize and collectively bargain with themunicipal employers. MERA was amended by 2011 Wisconsin Act 10 (the "Act") and by 2011 Wisconsin Act32, which altered the collective bargaining rights of public employees in Wisconsin.
As a result of the 2011 amendments to MERA, the County is prohibited from bargaining collectively withmunicipal employees, other than public safety and transit employees, with respect to any factor or condition ofemployment except total base wages. Even then, the County is limited to increasing total base wages beyond anyincrease in the consumer price index since 180 days before the expiration of the previous collective bargainingagreement (unless County were to seek approval for a higher increase through a referendum). Ultimately, theCounty can unilaterally implement the wages for a collective bargaining unit.
Under the changes to MERA, impasse resolution procedures were removed from the law for municipal employeesof the type employed by the County, including binding interest arbitration. Strikes by any municipal employeeor labor organization are expressly prohibited. As a practical matter, it is anticipated that strikes will be rare. Furthermore, if strikes do occur, they may be enjoined by the courts. Additionally, because the only legal subjectof bargaining is the base wage rates, all bargaining over items such as just cause, benefits, and terms of conditionsof employment are prohibited and cannot be included in a collective bargaining agreement. Impasse resolutionfor public safety employees and transit employees is subject to final and binding arbitration procedures, whichdo not include a right to strike. Interest arbitration is available for transit employees if certain conditions are met.
The following bargaining units represent employees of the County:
Bargaining UnitExpiration Date of Current Contract
Trades December 19, 2020
WPPA December 19, 2020
WPPA Supervisors December 19, 2020
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OTHER POST EMPLOYMENT BENEFITS
The County has obligations for some post-employment benefits for its employees. Accounting for theseobligations is dictated by Governmental Accounting Standards Board Statement No. 75 (GASB 75). The County'smost recent most recent actuarial study shows a total OPEB liability of $53,571,795 as of December 31, 201. TheCounty has been funding these obligations on a pay-as-you-go basis. Effective January 1, 2020, the Countyimplemented a Retirement Enhancement Program (REP) to assist county retirees with medical costs duringretirement. This REP provides the retiree with annual payments of $5,000 each (5 annual payments for employeeswith ten years of service, but less than twenty years; 10 annual payments for employees with twenty years or moreof service). This REP is funded on a pay-as-you-go basis and will be reviewed during the next actuarial study.
LITIGATION
There is no litigation threatened or pending questioning the organization or boundaries of the County or the rightof any of its officers to their respective offices or in any manner questioning their rights and power to execute anddeliver the Obligations or otherwise questioning the validity of the Obligations.
The County Attorney reports that any litigation and claims currently pending against the County are being handledby the County’s insurance carrier or outside counsel and will not affect the issuance of these Obligations.
MUNICIPAL BANKRUPTCY
Municipalities are prohibited from filing for bankruptcy under Chapter 11 (reorganization) or Chapter 7(liquidation) of the U.S. Bankruptcy Code (11 U.S.C. §§ 101-1532) (the "Bankruptcy Code"). Instead, theBankruptcy Code permits municipalities to file a petition under Chapter 9 of the Bankruptcy Code, but only ifcertain requirements are met. These requirements include that the municipality must be "specifically authorized"under State law to file for relief under Chapter 9. For these purposes, "State law" may include, without limitation,statutes of general applicability enacted by the State legislature, special legislation applicable to a particularmunicipality, and/or executive orders issued by an appropriate officer of the State’s executive branch.
As of the date hereof, Wisconsin law contains no express authority for municipalities to file for bankruptcy reliefunder Chapter 9 of the Bankruptcy Code.
Nevertheless, there can be no assurance (a) that State law will not change in the future, while the Obligations areoutstanding, in a way that would allow the County to file for bankruptcy relief under Chapter 9 of the BankruptcyCode; or (b) even absent such a change in State law, that an executive order or other executive action could noteffectively authorize the County to file for relief under Chapter 9. If, in the future, the County were to file abankruptcy case under Chapter 9, the relevant bankruptcy court would need to consider whether the County couldproperly do so, which would involve questions regarding State law authority as well as other questions such aswhether the County is a municipality for bankruptcy purposes. If the relevant bankruptcy court concluded thatthe County could properly file a bankruptcy case, and that determination was not reversed, vacated, or otherwisesubstantially altered on appeal, then the rights of holders of the Obligations could be modified in bankruptcyproceedings. Such modifications could be adverse to holders of the Obligations, and there could ultimately beno assurance that holders of the Obligations would be paid in full or in part on the Obligations. Further, undersuch circumstances, there could be no assurance that the Obligations would not be treated as general, unsecureddebt by a bankruptcy court, meaning that claims of holders of the Obligations could be viewed as having nopriority (a) over claims of other creditors of the County; (b) to any particular assets of the County, or (c) torevenues otherwise designated for payment to holders of the Obligations.
29
Moreover, if the County were determined not to be a "municipality" for the purposes of the Bankruptcy Code, norepresentations can be made regarding whether it would still be eligible for voluntary or involuntary relief underChapters of the Bankruptcy Code other than Chapter 9 or under similar federal or state law or equitable proceedingregarding insolvency or providing for protection from creditors. In any such case, there can be no assurance thatthe consequences described above for the holders of the Obligations would not occur.
FUNDS ON HAND (including investments, as of July 31, 2020)
Fund Amount
Airport $69,699,336
Bridge Aid 402,264
Capital Projects 14,366,652
CDBG-CLRF 686,940
Clerk of Courts Trust 2,805,936
Commerce 848,054
General Fund 244,191,354
Highway Capital 10,614,803
Highway Fund 8,541,552
HOME Program 362,634
JT Lyle Trust 165,648
Land Information 764,292
Liability Insurance Fund 4,477,541
Methane Gas Fund 4,367,489
Other Agency Funds 1,220,591
Solid Waste 6,292,862
Special Assessments 435,050
Worker’s Compensation 5,297,616
Total Funds on Hand $375,540,615
30
SUMMARY GENERAL FUND FINANCIAL INFORMATION
Following are summaries of the revenues and expenditures and fund balances for the County's General Fund. These summariesare not purported to be the complete audited financial statements of the County, and potential purchasers should read the includedfinancial statements in their entirety for more complete information concerning the County. Copies of the complete auditedfinancial statements are available upon request. See Appendix A for the County's 2019 audited financial statements.
FISCAL YEAR ENDING DECEMBER 31GENERAL FUND 2016
Audited2017
Audited2018
Audited2019
Audited2020 Adopted
Budget1
RevenuesTaxes $177,981,258 $187,830,936 $199,341,997 $204,809,566 $211,627,303Intergovernmental revenues 33,460,693 34,479,160 36,199,748 39,872,009 36,528,775Public charges for services 19,894,011 20,664,618 19,911,378 21,455,299 24,371,207Fines, forfeitures and penalties 2,325,433 2,165,815 1,973,370 1,956,122 2,109,800Licenses and permits 1,145,475 1,311,297 1,126,116 1,178,960 1,635,845Investment income 105,670 559,196 1,846,242 2,809,730 2,042,000Miscellaneous revenues 2,361,811 2,576,269 2,810,956 1,995,310 1,095,040
Total Revenues $237,274,351 $249,587,291 $263,209,807 $274,076,996 $279,409,970
ExpendituresCurrent:General government $31,279,907 $32,535,204 $34,925,141 $37,575,008 $40,243,525Health and human services 607,630 1,008,383 1,106,999 1,132,859 725,600Public safety and criminal justice 108,333,813 111,560,928 116,169,776 121,819,315 128,774,472Public works 994,231 632,985 634,900 671,944 1,338,175Culture, education and recreation 18,615,191 19,935,068 20,416,283 23,286,759 26,022,962Conservation and economic dev 4,508,475 4,644,547 4,827,488 4,942,381 5,337,962Capital outlay 79,661 132,265 54,419 117,437 0
Total Expenditures $164,418,908 $170,449,380 $178,135,006 $189,545,703 $202,442,696
Excess of revenues over (under)expenditures
$72,855,443 $79,137,911 $85,074,801 $84,531,293 $76,967,274
Other Financing Sources (Uses)Sale of capital assets 0 0 0 140,033 0Operating transfers in 80,987 5,856,088 4,466,519 438,539 3,016,144Operating transfers out (67,798,165) (81,285,630) (83,309,796) (82,628,762) (79,983,418)
Total Other Financing Sources (Uses) ($67,717,178 ($75,429,542 ($78,843,277 ($82,190,223 ($76,967,274)
Excess of revenues and other financingsources over (under) expenditures andother uses
$5,138,265 $3,708,369 $6,231,524 $2,481,103 $0
General Fund Balance January 1 37,422,776 42,561,041 46,269,410 52,500,934
General Fund Balance December 31 $42,561,041 $46,269,410 $52,500,934 $54,982,037
DETAILS OF 12/31 FUND BALANCE
Nonspendable 4,735,575 4,808,083 5,115,030 6,370,541Restricted 199,545 178,963 357,235 332,955Assigned 2,642,618 3,119,394 3,932,630 4,664,905Unassigned 34,983,303 38,162,970 43,096,039 43,613,636
Total $42,561,041 $46,269,410 $52,500,934 $54,982,037
1 The 2020 budget was adopted on November 12, 2019.
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GENERAL INFORMATION
LOCATION
The Dane County, with a 2010 U.S. Census population of 488,073 and a current estimated population of 543,398,comprises an area of 1,238 acres and is located in Southern Wisconsin approximately 90 minutes west of theMilwaukee metro area.
LARGER EMPLOYERS1
Larger employers in the County include the following:
Firm Type of Business/Product
EstimatedNo. of
Employees
State of Wisconsin State Government 36,717
University of Wisconsin-Madison University / College 19,764
UW Hospital & Clinics Hospital / Healthcare 16,394
EPIC Systems Software Services 9,600
American Family Insurance Insurance 4,322
Madison Metropolitan School District Elementary and Secondary Education 3,591
Wisconsin Physicians Service Insurance Health Benefits / Insurance 3,500
Meriter Home Health Home Health Services 3,000
Unitypoint Health - Meriter Hospital / Healthcare 2,293
CUNA Mutual Holding Co. Insurance 2,000
Source:The County
1 This does not purport to be a comprehensive list and is based on available data obtained through a survey ofindividual employers, as well as the sources identified above. Some employers do not respond to inquiries foremployment data. Estimates provided are accurate as of the date noted and may not reflect changes in the numberof employees resulting from the current COVID-19 pandemic. (See "RISK FACTORS - Impact of the Spread
of COVID-19").
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U.S. CENSUS DATA
Population Trend: The County
2000 U.S. Census 426,526
2010 U.S. Census 488,073
2020 Estimated Population 543,398
Percent of Change 2000-2010 14.43%
Income and Age Statistics
The CountyState of
WisconsinUnitedStates
2018 per capita income $38,757 $32,018 $32,621
2018 median household income $70,541 $59,209 $60,293
2018 median family income $94,813 $75,313 $73,965
2018 median gross rent $1,031 $837 $1,023
2018 median value owner occupied units $252,300 $173,600 $204,900
2018 median age 34.9 yrs. 39.3 yrs. 37.9 yrs.
State of Wisconsin United States
County % of 2018 per capita income 118.81% 118.81%
County % of 2018 median family income 128.19% 128.19%
Housing Statistics
The County
2010 2018 Percent of Change
All Housing Units 213,160 229,498 7.66%
Source: 2000 and 2010 Census of Population and Housing, and 2018 American Community Survey (Based ona five-year estimate), U.S. Census Bureau (https://data.census.gov/cedsci).
EMPLOYMENT/UNEMPLOYMENT DATA
Average Employment Average Unemployment
Year Dane County Dane County State of Wisconsin
2016 309,163 2.8% 4.0%
2017 312,894 2.4% 3.3%
2018 312,787 2.2% 3.0%
2019 312,824 2.4% 3.3%
2020, July1 289,842 5.9% 7.0%
Source: Wisconsin Department of Workforce Development.
1 Preliminary.
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APPENDIX A
FINANCIAL STATEMENTS
Potential purchasers should read the included financial statements in their entirety for more complete informationconcerning the County’s financial position. Such financial statements have been audited by the Auditor, to theextent and for the periods indicated thereon. The County has not requested or engaged the Auditor to perform, andthe Auditor has not performed, any additional examination, assessments, procedures or evaluation with respect tosuch financial statements since the date thereof or with respect to this Official Statement, nor has the Countyrequested that the Auditor consent to the use of such financial statements in this Official Statement. Although theinclusion of the financial statements in this Official Statement is not intended to demonstrate the fiscal conditionof the County since the date of the financial statements, in connection with the issuance of the Bonds, the Countyrepresents that there have been no material adverse change in the financial position or results of operations of theCounty, nor has the County incurred any material liabilities, which would make such financial statementsmisleading.
Copies of the complete audited financial statements for the past three years and the current budget are availableupon request from Ehlers.
A-1
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
COUNTY OF DANE WISCONSIN
As of and for the Year Ended December 31, 2019
CONTROLLER’S OFFICE
Charles Hicklin, Controller Margaret L. Krohn, CPA, Assistant Controller
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A-11
INDEPENDENT AUDITORS' REPORT
To the Honorable Members of the Board of SupervisorsCounty of DaneMadison, Wisconsin
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the County of Dane, Wisconsin, asof and for the year ended December 31, 2019, and the related notes to the financial statements, whichcollectively comprise the County of Dane's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of financialstatements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditors' judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control over financial reporting relevant to the County of Dane'spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of theCounty of Dane's internal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimates madeby management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinions.
Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP
A-12
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, the business-type activities, each major fund, and the aggregateremaining fund information of the County of Dane, Wisconsin, as of December 31, 2019 and the respectivechanges in financial position and, where applicable, cash flows thereof for the year then ended in accordancewith accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note I, the County of Dane adopted the provisions of GASB Statement No. 84, FiduciaryActivities, effective January 1, 2019. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementaryinformation as listed in the table of contents be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the Governmental AccountingStandards Board who considers it to be an essential part of financial reporting for placing the basic financialstatements in an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standards generally acceptedin the United States of America, which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management's responses to our inquiries, thebasic financial statements, and other knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any assurance on the information because the limited procedures donot provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the County of Dane's basic financial statements. The supplementary information as listed in the tableof contents is presented for purposes of additional analysis and is not a required part of the basic financialstatements. Such information is the responsibility of management and was derived from and relates directly tothe underlying accounting and other records used to prepare the basic financial statements. The information hasbeen subjected to the auditing procedures applied in the audit of the basic financial statements and certainadditional procedures, including comparing and reconciling such information directly to the underlying accountingand other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States ofAmerica. In our opinion, the supplementary information is fairly stated in all material respects, in relation to thebasic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the County of Dane's basic financial statements. The "Introductory Section" and "Statistical Section"are presented for purposes of additional analysis and are not a required part of the basic financial statements.Such information has not been subjected to the auditing procedures applied in the audit of the basic financialstatements, and accordingly, we do not express an opinion or provide any assurance on it.
A-13
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we will issue a report on our consideration of the County ofDane's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describethe scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the County of Dane's internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the County of Dane's internal control over financial reporting and compliance.
Madison, WisconsinJune 19, 2020
A-14
net p
ositi
on
Sta
tem
ent o
f Net
Pos
ition
Sta
tem
ent o
f Act
iviti
es
Gov
ernm
enta
l Fun
ds –
A-15
Pro
prie
tary
Fun
ds –
Fidu
ciar
y Fu
nds
Not
es t
o th
e Fi
nanc
ial S
tate
men
ts –
Oth
er I
nfor
mat
ion
requ
ired
supp
lem
enta
ry in
form
atio
n
A-16
A-17
A-18
Gen
eral
Fun
d
Hum
an S
ervi
ces
Deb
t Ser
vice
Cap
ital P
roje
cts
A-19
Airp
ort
Hig
hway
San
itary
Lan
dfill
Bad
ger P
rairi
e H
ealth
Car
e C
ente
r
Met
hane
Gas
A-20
A-21
ASSETS
DEFERRED OUTFLOWS OF RESOURCES
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
NET POSITION (DEFICIT)
A-22
A-23
A-24
ASSETS
LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCES
A-25
A-26
A-27
ASSETS
DEFERRED OUTFLOWS OF RESOURCES
A-28
A-29
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
NET POSITION (DEFICIT)
A-30
A-31
A-32
A-33
A-34
A-35
A-36
A-37
ASSETS
LIABILITIES
NET POSITION
A-38
A-39
A-40
A
. R
EPO
RTI
NG
EN
TITY
B
. G
OVE
RN
MEN
T-W
IDE
AN
D F
UN
DFI
NA
NC
IAL
STA
TEM
ENTS
Fidu
ciar
y A
ctiv
ities
Cer
tain
Dis
clos
ures
Rel
ated
to D
ebt,
incl
udin
g D
irect
B
orro
win
gs a
nd D
irect
Pla
cem
ents
Gov
ernm
ent-W
ide
Fina
ncia
l Sta
tem
ents
B
. G
OVE
RN
MEN
T-W
IDE
AN
D F
UN
DFI
NA
NC
IAL
STA
TEM
ENTS
Fund
Fin
anci
al S
tate
men
ts
A-41
B.
GO
VER
NM
ENT-
WID
E A
ND
FU
ND
FIN
AN
CIA
L ST
ATE
MEN
TS
Fund
Fin
anci
al S
tate
men
ts
C
. M
EASU
REM
ENT
FOC
US,
BA
SIS
OF
AC
CO
UN
TIN
G, A
ND
FIN
AN
CIA
L ST
ATE
MEN
T PR
ESEN
TATI
ON
Gov
ernm
ent-W
ide
Fina
ncia
l Sta
tem
ents
Fund
Fin
anci
al S
tate
men
ts
A-42
C
. M
EASU
REM
ENT
FOC
US,
BA
SIS
OF
AC
CO
UN
TIN
G, A
ND
FIN
AN
CIA
L ST
ATE
MEN
T PR
ESEN
TATI
ON
Fund
Fin
anci
al S
tate
men
ts op
erat
ing
nono
pera
ting
All
Fina
ncia
l Sta
tem
ents
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
1. D
epos
its a
nd In
vest
men
ts
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
1. D
epos
its a
nd In
vest
men
ts
A-43
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
2. R
ecei
vabl
es
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
2. R
ecei
vabl
es
A-44
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
3. In
vent
orie
s an
d Pr
epai
d Ite
ms
4. R
estr
icte
d A
sset
s
5. C
apita
l Ass
ets
Gov
ernm
ent-W
ide
Stat
emen
ts
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
5. C
apita
l Ass
ets
Gov
ernm
ent-W
ide
Stat
emen
ts
Fund
Fin
anci
al S
tate
men
ts
6.
Def
erre
d O
utflo
ws
of R
esou
rces
A-45
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
Com
pens
ated
Abs
ence
s
8. L
ong-
Term
Obl
igat
ions
9. D
efer
red
Inflo
ws
of R
esou
rces
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
10.
Equi
ty C
lass
ifica
tions
Gov
ernm
ent–
Wid
e St
atem
ents
Fund
Sta
tem
ents
A-46
D
. A
SSET
S,D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES,L
IAB
ILIT
IES,
DEF
ERR
EDIN
FLO
WS
OF
RES
OU
RC
ES,
AN
D N
ET P
OSI
TIO
N O
R E
QU
ITY
10.
Equi
ty C
lass
ifica
tions
Fund
Sta
tem
ents
11.
Post
-Em
ploy
men
t Ben
efits
Oth
er T
han
Pens
ions
(OPE
B)
12.
Pens
ion
A.
EXPL
AN
ATI
ON
OF
CER
TAIN
DIF
FER
ENC
ES B
ETW
EEN
TH
E G
OVE
RN
MEN
TAL
F U
ND
BA
LAN
CE
SHEE
T A
ND
TH
E ST
ATE
MEN
T O
F N
ETPO
SITI
ON
fund
bal
ance
– to
tal g
over
nmen
tal
fund
s n
et p
ositi
on –
gov
ernm
enta
l act
iviti
es
A-47
A.
EXC
ESS
EXPE
ND
ITU
RES
OVE
RA
PPR
OPR
IATI
ON
S
B.
DEF
ICIT
BA
LAN
CES
C.
LIM
ITA
TIO
NS
ON
TH
E C
OU
NTY
’STA
XLE
VY
A.
DEP
OSI
TS A
ND
INVE
STM
ENTS
A-48
A.
DEP
OSI
TS A
ND
INVE
STM
ENTS
Cus
todi
al C
redi
t Ris
k
A.
DEP
OSI
TS A
ND
INVE
STM
ENTS
Cre
dit R
isk
Inte
rest
Rat
e R
isk
Con
cent
ratio
n of
Cre
dit R
isk
A-49
B.
REC
EIVA
BLE
S
Unc
olle
ctib
le A
mou
nts un
avai
labl
e or
une
arne
d re
venu
e
unav
aila
ble
reve
nue
unea
rned
reve
nue
Taxe
s
C.
RES
TRIC
TED
ASS
ETS
A-50
D.
CA
PITA
LA
SSET
SD
. C
API
TAL
ASS
ETS
A-51
D.
CA
PITA
LA
SSET
S
E.IN
TER
FUN
D R
ECEI
VAB
LES/
PAYA
BLE
S/A
DVA
NC
ES A
ND
TR
AN
SFER
S
Inte
rfun
d R
ecei
vabl
es/P
ayab
les
Adv
ance
s
E. I
NTE
RFU
ND
REC
EIVA
BLE
S/PA
YAB
LES/
AD
VAN
CES
AN
D T
RA
NSF
ERS
Tran
sfer
s
A-52
E.
INTE
RFU
ND
REC
EIVA
BLE
S/PA
YAB
LES/
AD
VAN
CES
AN
D T
RA
NSF
ERS
Tran
sfer
s
F.
LON
G-T
ERM
OB
LIG
ATI
ON
S
G
ener
al O
blig
atio
n D
ebt
F.LO
NG
-TER
M O
BLI
GA
TIO
NS
G
ener
al O
blig
atio
n D
ebt
A-53
F. L
ON
G-T
ERM
OB
LIG
ATI
ON
S
G
ener
al O
blig
atio
n D
ebt
F.
LON
G-T
ERM
OB
LIG
ATI
ON
S
G
ener
al O
blig
atio
n D
ebt
C
apita
l Lea
ses
O
ther
Deb
t Inf
orm
atio
n
C
urre
nt R
efun
ding
A-54
G.
LEA
SED
ISC
LOSU
RES
Less
ee –
Cap
ital L
ease
s
Less
ee –
Ope
ratin
g Le
ases
Less
or –
Airp
ort L
ease
s
G.
LEA
SED
ISC
LOSU
RES
H.
CLO
SUR
E A
ND
PO
STC
LOSU
RE
CA
RE
CO
ST
A-55
I. G
OVE
RN
MEN
TAL
AN
D B
USI
NES
S-TY
PEA
CTI
VITI
ES N
ETPO
SITI
ON
/FU
ND
BA
LAN
CES
G
over
nmen
tal A
ctiv
ities
I. G
OVE
RN
MEN
TAL
AN
D B
USI
NES
S-TY
PEA
CTI
VITI
ESN
ETPO
SITI
ON
/FU
ND
BA
LAN
CES
G
over
nmen
tal A
ctiv
ities
A-56
I. G
OVE
RN
MEN
TAL
AN
D B
USI
NES
S-TY
PEA
CTI
VITI
ESN
ETPO
SITI
ON
/FU
ND
BA
LAN
CES
B
usin
ess-
type
Act
iviti
es
J.
RES
TATE
MEN
T O
F N
ETPO
SITI
ON
/FU
ND
BA
LAN
CE
Fidu
ciar
y A
ctiv
ities
A.
EMPL
OYE
ES’R
ETIR
EMEN
T SY
STEM
Plan
des
crip
tion.
Vest
ing.
Ben
efits
pro
vide
d.
A-57
A.
EMPL
OYE
ES’R
ETIR
EMEN
T SY
STEM
Post
-ret
irem
ent a
djus
tmen
ts
Con
trib
utio
ns.
A.
EMPL
OYE
ES’R
ETIR
EMEN
T SY
STEM
Pens
ion
Liab
ility
/(Ass
et),
Pens
ion
Expe
nse,
Def
erre
d O
utflo
ws
of R
esou
rces
and
Def
erre
d In
flow
s of
Res
ourc
es R
elat
ed to
Pen
sion
s
A-58
A.
EMPL
OYE
ES’R
ETIR
EMEN
T SY
STEM
Act
uaria
l ass
umpt
ions
.
* N
o po
st-r
etire
men
t adj
ustm
ent i
s gu
aran
teed
. Act
ual a
djus
tmen
ts a
re b
ased
on
reco
gniz
ed in
vest
men
t re
turn
, act
uaria
l exp
erie
nce
and
othe
r fac
tors
. 1.9
% is
the
assu
med
ann
ual a
djus
tmen
t bas
ed o
n th
e in
vest
men
t ret
urn
assu
mpt
ion
and
the
post
-ret
irem
ent d
isco
unt r
ate.
A.
EMPL
OYE
ES’R
ETIR
EMEN
T SY
STEM
Long
-term
exp
ecte
d re
turn
on
plan
ass
ets.
A-59
A.
EMPL
OYE
ES’R
ETIR
EMEN
T SY
STEM
Sing
le d
isco
unt r
ate.
Sens
itivi
ty o
f the
Cou
nty’
s pr
opor
tiona
te s
hare
of t
he n
et p
ensi
on li
abili
ty/(a
sset
) to
chan
ges
in
the
disc
ount
rate
.
Pens
ion
plan
fidu
ciar
y ne
t pos
ition
.
B.
RIS
KM
AN
AG
EMEN
T
B.
RIS
KM
AN
AG
EMEN
T
Publ
ic E
ntity
Ris
k Po
ol
A-60
B.
RIS
KM
AN
AG
EMEN
T
Publ
ic E
ntity
Ris
k Po
ol
C.
CO
MM
ITM
ENTS
AN
D C
ON
TIN
GEN
CIE
S
D.
HEN
RY
VILA
SZO
O
E.
OTH
ERPO
STEM
PLO
YMEN
T B
ENEF
ITS
(OPE
B)
GEN
ERA
LIN
FOR
MA
TIO
N A
BO
UT
THE
OPE
BPL
AN
Plan
des
crip
tion.
Ben
efits
pro
vide
d.
Empl
oyee
s co
vere
d by
ben
efit
term
s.
A-61
E.
OTH
ERPO
STEM
PLO
YMEN
T B
ENEF
ITS
T O
TAL
OPE
BLI
AB
ILIT
Y
Act
uaria
l ass
umpt
ions
and
oth
er in
puts
.
C
HA
NG
ES IN
TH
E TO
TAL
OPE
BLI
AB
ILIT
Y
E.
OTH
ERPO
STEM
PLO
YMEN
T B
ENEF
ITS
C
HA
NG
ES IN
TH
E TO
TAL
OPE
BLI
AB
ILIT
Y
Sens
itivi
ty o
f the
tota
l OPE
B li
abili
ty to
cha
nges
in th
e di
scou
nt ra
te.
Sens
itivi
ty o
f the
OPE
B li
abili
ty to
cha
nges
in th
e he
alth
care
cos
t tre
nd ra
tes.
O
PEB
E XPE
NSE
AN
D D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES A
ND
DEF
ERR
ED
INFL
OW
S O
F R
ESO
UR
CES
REL
ATE
D T
O O
PEB
A-62
E.
OTH
ERPO
STEM
PLO
YMEN
T B
ENEF
ITS
O
PEB
E XPE
NSE
AN
D D
EFER
RED
OU
TFLO
WS
OF
RES
OU
RC
ES A
ND
DEF
ERR
ED
INFL
OW
S O
F R
ESO
UR
CES
REL
ATE
D T
O O
PEB
LOC
AL
RET
IREE
LIFE
INSU
RA
NC
E FU
ND
(LR
IF)
Plan
des
crip
tion.
Ben
efits
pro
vide
d.
Con
trib
utio
ns.
E.
OTH
ERPO
STEM
PLO
YMEN
T B
ENEF
ITS
L OC
AL
RET
IREE
LIFE
INSU
RA
NC
E FU
ND
(LR
IF
A-63
E.
OTH
ERPO
STEM
PLO
YMEN
T B
ENEF
ITS
L OC
AL
RET
IREE
LIFE
INSU
RA
NC
E FU
ND
(LR
IF
OPE
B L
iabi
litie
s, O
PEB
Exp
ense
, and
Def
erre
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APPENDIX B
FORM OF LEGAL OPINION
(See following pages)
B-1
QB\64732927.1
Quarles & Brady LLP 411 East Wisconsin Avenue
Milwaukee, WI 53202
October 7, 2020 Re: Dane County, Wisconsin ("Issuer")
$9,140,000 General Obligation Conservation Fund Bonds, Series 2020B, dated October 7, 2020 ("Bonds")
We have acted as bond counsel to the Issuer in connection with the issuance of the
Bonds. In such capacity, we have examined such law and such certified proceedings, certifications, and other documents as we have deemed necessary to render this opinion.
Regarding questions of fact material to our opinion, we have relied on the certified
proceedings and other certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation.
The Bonds are numbered from R-1 and upward; bear interest at the rates set forth below;
and mature on June 1 of each year, in the years and principal amounts as follows:
Year Principal Amount Interest Rate
2021 $ 395,000 ___% 2022 415,000 ___ 2023 420,000 ___ 2024 420,000 ___ 2025 425,000 ___ 2026 430,000 ___ 2027 435,000 ___ 2028 440,000 ___ 2029 445,000 ___ 2030 450,000 ___ 2031 455,000 ___ 2032 460,000 ___ 2033 465,000 ___ 2034 475,000 ___ 2035 480,000 ___ 2036 490,000 ___ 2037 495,000 ___ 2038 505,000 ___ 2039 515,000 ___ 2040 525,000 ___
Interest is payable semi-annually on June 1 and December 1 of each year commencing on June 1, 2021.
B-2
QB\64732927.1
The Bonds maturing on June 1, 2031 and thereafter are subject to redemption prior to maturity, at the option of the Issuer, on June 1, 2030 or on any date thereafter. Said Bonds are redeemable as a whole or in part, and if in part, from maturities selected by the Issuer, and within each maturity by lot, at the principal amount thereof, plus accrued interest to the date of redemption.
[The Bonds maturing in the years _______________ are subject to mandatoryredemption by lot as provided in the resolution awarding the Bonds, at the redemption price of
par plus accrued interest to the date of redemption and without premium.]
We further certify that we have examined a sample of the Bonds and find the same to be in proper form.
Based upon and subject to the foregoing, it is our opinion under existing law that:
1. The Bonds have been duly authorized and executed by the Issuer and are validand binding general obligations of the Issuer.
2. All the taxable property in the territory of the Issuer is subject to the levy of advalorem taxes to pay principal of, and interest on, the Bonds, without limitation as to rate or amount. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds except to the extent that necessary funds have been irrevocably deposited into the debt service fund account established for the payment of the principal of and interest on the Bonds.
3. The interest on the Bonds is excludable for federal income tax purposes from thegross income of the owners of the Bonds. The interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed by Section 55 of the Internal Revenue Code of 1986, as amended (the "Code") on individuals. The Code contains requirements that must be satisfied subsequent to the issuance of the Bonds in order for interest on the Bonds to be or continue to be excludable from gross income for federal income tax purposes. Failure to comply with certain of those requirements could cause the interest on the Bonds to be included in gross income retroactively to the date of issuance of the Bonds. The Issuer has agreed to comply with all of those requirements. The opinion set forth in the first sentence of this paragraph is subject to the condition that the Issuer comply with those requirements. We express no opinion regarding other federal tax consequences arising with respect to the Bonds.
We express no opinion regarding the accuracy, adequacy, or completeness of the Official Statement or any other offering material relating to the Bonds. Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein.
The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors' rights and may be subject to the exercise of judicial discretion in accordance with general principles of equity, whether considered at law or in equity.
B-3
QB\64732927.1
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur.
QUARLES & BRADY LLP
B-4
APPENDIX C
BOOK-ENTRY-ONLY SYSTEM
1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for thesecurities (the "Securities"). The Securities will be issued as fully-registered securities registered in the nameof Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorizedrepresentative of DTC. One fully-registered Security certificate will be issued for [each issue of] the Securities,[each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, theaggregate principal amount of [any] issue exceeds $500 million, one certificate will be issued with respect toeach $500 million of principal amount, and an additional certificate will be issued with respect to any remainingprincipal amount of such issue.]
2. DTC, the world's largest securities depository, 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 theFederal Reserve System, a "clearing corporation" within the meaning of the New York Uniform CommercialCode, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities ExchangeAct of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equityissues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC'sparticipants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement amongDirect Participants of sales and other securities transactions in deposited securities, through electroniccomputerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the needfor physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securitiesbrokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is awholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holdingcompany for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all ofwhich are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to theDTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trustcompanies, and clearing corporations that clear through or maintain a custodial relationship with a DirectParticipant, 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. Moreinformation about DTC can be found at www.dtcc.com.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of eachSecurity ("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 periodicstatements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner enteredinto the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries madeon the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners willnot receive certificates representing their ownership interests in Securities, except in the event that use of thebook-entry system for the Securities is discontinued.
4. To facilitate subsequent transfers, all Securities 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 authorizedrepresentative of DTC. The deposit of Securities 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 theactual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants towhose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct andIndirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
C-1
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants toIndirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governedby arrangements among them, subject to any statutory or regulatory requirements as may be in effect from timeto time. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to themof notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, andproposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish toascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices toBeneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to theregistrar and request that copies of notices be provided directly to them.]
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed,
DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to beredeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless
authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTCmails an Omnibus Proxy to 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 Securities are credited on therecord date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities 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 creditDirect Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Countyor Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments byParticipants to Beneficial Owners will be governed by standing instructions and customary practices, as is thecase with securities held for the accounts of customers in bearer form or registered in "street name," and will bethe responsibility of such Participant and not of DTC, Agent, or the County, subject to any statutory or regulatoryrequirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividendpayments 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 theresponsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibilityof Direct and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant,
to [Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participantto transfer the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. Therequirement for physical delivery of Securities in connection with an optional tender or a mandatory purchasewill be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants onDTC's records and followed by a book-entry credit of tendered Securities to [Tender/Remarketing] Agent's DTCaccount.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving
reasonable notice to the County or Agent. Under such circumstances, in the event that a successor depositoryis not obtained, Security certificates are required to be printed and delivered.
11. The County may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12. 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.
C-2
APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
(See following pages)
D-1
QB\64733047.1
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by Dane County, Wisconsin (the "Issuer") in connection with the issuance of $9,140,000 General Obligation Conservation Fund Bonds, Series 2020B, dated October 7, 2020 (the "Securities"). The Securities are being issued pursuant to resolutions adopted on January 23, 2020 and September 17, 2020 (collectively, the "Resolution") and delivered to _________________ (the "Purchaser") on the date hereof. Pursuant to the Resolution, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby specifically covenants and agrees as follows:
Section 1(a). Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the holders of the Securities in order to assist the Participating Underwriters within the meaning of the Rule (defined herein) in complying with SEC Rule 15c2-12(b)(5). References in this Disclosure Certificate to holders of the Securities shall include the beneficial owners of the Securities. This Disclosure Certificate constitutes the written Undertaking required by the Rule.
Section 1(b). Filing Requirements. Any filing under this Disclosure Certificate must be made solely by transmitting such filing to the MSRB (defined herein) through the Electronic Municipal Market Access ("EMMA") System at www.emma.msrb.org in the format prescribed by the MSRB. All documents provided to the MSRB shall be accompanied by the identifying information prescribed by the MSRB.
Section 2. Definitions. In addition to the defined terms set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
"Annual Report" means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Audited Financial Statements" means the Issuer's annual financial statements, which are currently prepared in accordance with generally accepted accounting principles (GAAP) for governmental units as prescribed by the Governmental Accounting Standards Board (GASB) and which the Issuer intends to continue to prepare in substantially the same form.
"Final Official Statement" means the Final Official Statement dated September 18, 2020 delivered in connection with the Securities, which is available from the MSRB.
"Financial Obligation" means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.
D-2
"Fiscal Year" means the fiscal year of the Issuer.
"Governing Body" means the County Board of Supervisors of the Issuer or such other body as may hereafter be the chief legislative body of the Issuer.
"Issuer" means Dane County, Wisconsin, which is the obligated person with respect to
the Securities. "Issuer Contact" means the Controller of the Issuer who can be contacted at 210 Martin
Luther King, Jr. Boulevard, Room 426, Madison, Wisconsin 53703, phone (608) 266-4109, fax (608) 266-4425.
"Listed Event" means any of the events listed in Section 5(a) of this Disclosure
Certificate. "MSRB" means the Municipal Securities Rulemaking Board. "Participating Underwriter" means any of the original underwriter(s) of the Securities
(including the Purchaser) required to comply with the Rule in connection with the offering of the Securities.
"Rule" means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities
Exchange Act of 1934, as the same may be amended from time to time, and official interpretations thereof.
"SEC" means the Securities and Exchange Commission.
Section 3. Provision of Annual Report and Audited Financial Statements. (a) The Issuer shall, not later than 365 days after the end of the Fiscal Year,
commencing with the year ending December 31, 2020, provide the MSRB with an Annual Report filed in accordance with Section 1(b) of this Disclosure Certificate and which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report and that, if Audited Financial Statements are not available within 365 days after the end of the Fiscal Year, unaudited financial information will be provided, and Audited Financial Statements will be submitted to the MSRB when and if available.
(b) If the Issuer is unable or fails to provide to the MSRB an Annual Report by the
date required in subsection (a), the Issuer shall send in a timely manner a notice of that fact to the MSRB in the format prescribed by the MSRB, as described in Section 1(b) of this Disclosure Certificate.
D-3
Section 4. Content of Annual Report. The Issuer's Annual Report shall contain or incorporate by reference the Audited Financial Statements and updates of the following sections of the Final Official Statement to the extent such financial information and operating data are not included in the Audited Financial Statements:
1. DEBT - DIRECT DEBT 2. DEBT - DEBT LIMIT 3. VALUATIONS - CURRENT PROPERTY VALUATIONS 4. TAX LEVIES AND COLLECTIONS - TAX LEVIES AND COLLECTIONS Any or all of the items listed above may be incorporated by reference from other
documents, including official statements of debt issues of the Issuer or related public entities, which are available to the public on the MSRB’s Internet website or filed with the SEC. The Issuer shall clearly identify each such other document so incorporated by reference.
Section 5. Reporting of Listed Events. (a) This Section 5 shall govern the giving of notices of the occurrence of any of the
following events with respect to the Securities: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Securities, or other material events affecting the tax status of the Securities;
7. Modification to rights of holders of the Securities, if material; 8. Securities calls, if material, and tender offers; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the Securities, if
material; 11. Rating changes;
D-4
12. Bankruptcy, insolvency, receivership or similar event of the Issuer; 13. The consummation of a merger, consolidation, or acquisition involving the Issuer
or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of a
trustee, if material; 15. Incurrence of a Financial Obligation of the Issuer, if material, or agreement to
covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Issuer, any of which affect holders of the Securities, if material; and
16. Default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of a Financial Obligation of the Issuer, any of which reflect financial difficulties.
For the purposes of the event identified in subsection (a)12. above, the event is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Issuer in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Issuer, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Issuer.
(b) When a Listed Event occurs, the Issuer shall, in a timely manner not in excess of
ten business days after the occurrence of the Listed Event, file a notice of such occurrence with the MSRB. Notwithstanding the foregoing, notice of Listed Events described in subsections (a) (8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Securities pursuant to the Resolution.
(c) Unless otherwise required by law, the Issuer shall submit the information in the
format prescribed by the MSRB, as described in Section 1(b) of this Disclosure Certificate.
Section 6. Termination of Reporting Obligation. The Issuer's obligations under the Resolution and this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all the Securities.
D-5
Section 7. Issuer Contact; Agent. Information may be obtained from the Issuer Contact. Additionally, the Issuer may, from time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolution and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent.
Section 8. Amendment; Waiver. Notwithstanding any other provision of the Resolution
or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if the following conditions are met:
(a)(i) The amendment or waiver is made in connection with a change in circumstances
that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of the Issuer, or the type of business conducted; or
(ii) This Disclosure Certificate, as amended or waived, would have complied with the
requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and
(b) The amendment or waiver does not materially impair the interests of beneficial
owners of the Securities, as determined and certified to the Issuer by an underwriter, financial advisor, bond counsel or trustee.
In the event this Disclosure Certificate is amended for any reason other than to cure any
ambiguities, inconsistencies, or typographical errors that may be contained herein, the Issuer agrees the next Annual Report it submits after such amendment shall include an explanation of the reasons for the amendment and the impact of the change, if any, on the type of financial statements or operating data being provided.
If the amendment concerns the accounting principles to be followed in preparing
financial statements, then the Issuer agrees that it will give an event notice and that the next Annual Report it submits after such amendment will include a comparison between financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be
deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 10. Default. (a) Except as described in the Final Official Statement, in the
previous five years, the Issuer has not failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of events.
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(b) In the event of a failure of the Issuer to comply with any provision of this
Disclosure Certificate any holder of the Securities may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under the Resolution and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the Issuer, the Participating Underwriters and holders from time to time of the Securities, and shall create no rights in any other person or entity.
IN WITNESS WHEREOF, we have executed this Certificate in our official capacities
effective the 7th day of October, 2020. _____________________________
Analiese Eicher Chairperson
(SEAL) _____________________________ Scott A. McDonell County Clerk
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APPENDIX E
NOTICE OF SALE
$9,140,000* GENERAL OBLIGATION CONSERVATION FUND BONDS, SERIES 2020BDANE COUNTY, WISCONSIN
Bids for the purchase of $9,140,000* General Obligation Conservation Fund Bonds, Series 2020B (the "Bonds")of the Dane County, Wisconsin (the "County") will be received at the offices of Ehlers and Associates, Inc.("Ehlers"), 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, municipal advisors to the County, until10:00 A.M., Central Time, and ELECTRONIC PROPOSALS will be received via PARITY, in the mannerdescribed below, until 10:00 A.M. Central Time, on September 17, 2020, at which time they will be opened, readand tabulated. The bids will be presented to the Board of Supervisors for consideration for award by resolutionat a meeting to be held at 7:00 P.M., Central Time, on the same date. The bid offering to purchase the Bonds uponthe terms specified herein and most favorable to the County will be accepted unless all bids are rejected.
PURPOSE
The Bonds are being issued pursuant to Section 67.04, Wisconsin Statutes, for the public purpose of paying thecost of acquiring property in connection with the Dane County Conservation Fund. The Bonds are generalobligations of the County, and all the taxable property in the County is subject to the levy of a tax to pay theprincipal of and interest on the Bonds as they become due which tax may, under current law, be levied withoutlimitation as to rate or amount.
DATES AND MATURITIES
The Bonds will be dated October 7, 2020, will be issued as fully registered Bonds in the denomination of $5,000each, or any integral multiple thereof, and will mature on June 1 as follows:
Year Amount* Year Amount* Year Amount*
2021 $395,000 2028 $440,000 2035 $480,000
2022 415,000 2029 445,000 2036 490,000
2023 420,000 2030 450,000 2037 495,000
2024 420,000 2031 455,000 2038 505,000
2025 425,000 2032 460,000 2039 515,000
2026 430,000 2033 465,000 2040 525,000
2027 435,000 2034 475,000
ADJUSTMENT OPTION
* The County reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, inincrements of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts areadjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000.
TERM BOND OPTION
Bids for the Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds,subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemptionin each year conforms to the maturity schedule set forth above. All dates are inclusive.
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INTEREST PAYMENT DATES AND RATES
Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2021, to the registered ownersof the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or nota business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day yearof twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board. AllBonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate. Each ratemust be expressed in an integral multiple of 5/100 or 1/8 of 1%.
BOOK-ENTRY-ONLY FORMAT
Unless otherwise specified by the purchaser, the Bonds will be designated in the name of Cede & Co., as nomineefor The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for theBonds, and will be responsible for maintaining a book-entry system for recording the interests of its participantsand the transfers of interests between its participants. The participants will be responsible for maintaining recordsregarding the beneficial interests of the individual purchasers of the Bonds. So long as Cede & Co. is the registeredowner of the Bonds, all payments of principal and interest will be made to the depository which, in turn, will beobligated to remit such payments to its participants for subsequent disbursement to the beneficial owners of theBonds.
OPTIONAL REDEMPTION
At the option of the County, the Bonds maturing on or after June 1, 2031 shall be subject to optional redemptionprior to maturity on June 1, 2030 or any date thereafter, at a price of par plus accrued interest.
Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selectionof the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the County. If only partof the Bonds having a common maturity date are called for redemption, then the County or Paying Agent, if any,will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amountof each participant's interest in such maturity to be redeemed and each participant will then select by lot thebeneficial ownership interest in such maturity to be redeemed.
Notice of such call shall be given by sending a notice by registered or certified mail, facsimile or electronictransmission, overnight delivery service or in any other manner required by DTC, not less than 30 days nor morethan 60 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at theaddress shown on the registration books.
DELIVERY
On or about October 7, 2020, the Bonds will be delivered without cost to the winning bidder at DTC. On the dayof closing, the County will furnish to the winning bidder the opinion of bond counsel hereinafter described, anarbitrage certification, and certificates verifying that no litigation in any manner questioning the validity of theBonds is then pending or, to the best knowledge of officers of the County, threatened. Payment for the Bonds mustbe received by the County at its designated depository on the date of closing in immediately available funds.
LEGAL OPINION
An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will befurnished by Quarles & Brady LLP, Bond Counsel to the County, and will be available at the time of delivery ofthe Bonds. The legal opinion will be issued on the basis of existing law and will state that the Bonds are valid andbinding general obligations of the County; provided that the rights of the owners of the Bonds and theenforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other
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similar laws affecting creditors' rights and by equitable principles (which may be applied in either a legal orequitable proceeding).
STATEMENT REGARDING COUNSEL PARTICIPATION
Bond Counsel has not assumed responsibility for this Official Statement or participated in its preparation (exceptwith respect to the section entitled ?TAX EXEMPTION" in the Official Statement and the ?FORM OF LEGALOPINION" found in Appendix B of the Official Statement).
SUBMISSION OF BIDS
Bids must not be for less than $9,025,750 nor more than $9,505,600, plus accrued interest on the principal sum of$9,140,000 from date of original issue of the Bonds to date of delivery. Prior to the time established above for theopening of bids, interested parties may submit a bid as follows:
1) Electronically to [email protected]; or
2) Electronically via PARITY in accordance with this Notice of Sale until 10:00 A.M. Central Time, but nobid will be received after the time for receiving bids specified above. To the extent any instructions ordirections set forth in PARITY conflict with this Notice of Sale, the terms of this Notice of Sale shallcontrol. For further information about PARITY, potential bidders may contact Ehlers or i-Deal LLC at1359 Broadway, 2nd Floor, New York, New York 10018, Telephone (212) 849-5021.
Bids must be submitted to Ehlers via one of the methods described above and must be received prior to the timeestablished above for the opening of bids. Each bid must be unconditional except as to legality. Neither the Countynor Ehlers shall be responsible for any failure to receive a facsimile submission.
A good faith deposit (“Deposit”) in the amount of $182,800 shall be made by the winning bidder by wire transferof funds to the County. Such Deposit shall be received by the County no later than two hours after the Bid openingtime. The County reserves the right to award the Bonds to a winning bidder whose wire transfer is initiated butnot received by such time provided that such winning bidder’s federal wire reference number has been receivedby such time. In the event the Deposit is not received as provided above, the County may award the Bonds to thebidder submitting the next best Bid provided such bidder agrees to such award. The Deposit will be retained bythe County as liquidated damages if the Bid is accepted and the Purchaser fails to comply therewith. The Depositwill be deducted from the purchase price at the closing for the Bonds.
PLEASE NOTE THE WIRE TRANSFER IS TO BE RECEIVED BY THE COUNTY AND NOT BY THECOUNTY'S MUNICIPAL ADVISOR, EHLERS & ASSOCIATES, INC.
Wire instructions for the Deposit will be provided on the day of sale to the winning bidder. Contemporaneouslywith such wire transfer, the bidder shall send an email to [email protected], including the followinginformation: (i) indication that a wire transfer has been made, (ii) the amount of the wire transfer and (iii) the issueto which it applies. The County will retain the Deposit of the successful bidder, the amount of which will bededucted at settlement and no interest will accrue to the successful bidder. In the event the successful bidder failsto comply with the accepted bid, the Deposit will be forfeited and said amount will be retained by the County asliquidated damages.
No bid can be withdrawn after the time set for receiving bids unless the meeting of the County scheduled for awardof the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made.
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AWARD
The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a True Interest Cost(TIC) basis. The County’s computation of the interest rate of each bid, in accordance with customary practice, willbe controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The County reserves the rightto reject any and all bids and to waive any informality in any bid.
BOND INSURANCE
If the Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole option andexpense of the winning bidder. Any cost for such insurance policy is to be paid by the winning bidder, except that,if the County requested and received a rating on the Bonds from a rating agency, the County will pay that ratingfee. Any rating agency fees not requested by the County are the responsibility of the winning bidder.
Failure of the municipal bond insurer to issue the policy after the Bonds are awarded to the winning bidder shallnot constitute cause for failure or refusal by the winning bidder to accept delivery of the Bonds.
CUSIP NUMBERS
The County will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for thecorrectness of any numbers printed thereon, but will permit such numbers to be printed at the expense of thewinning bidder, if the winning bidder waives any delay in delivery occasioned thereby.
NON-QUALIFIED TAX-EXEMPT OBLIGATIONS
The County will NOT designate the Bonds as "qualified tax-exempt obligations" pursuant to Section 265 of theInternal Revenue Code of 1986, as amended, which permits financial institutions to deduct interest expensesallocable to the Bonds to the extent permitted under prior law.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with the provisions of Rule 15c2-12 promulgated by the Securitiesand Exchange Commission under the Securities Exchange Act of 1934 the County will enter into an undertakingfor the benefit of the holders of the Bonds. A description of the details and terms of the undertaking is set forthin Appendix D of the Official Statement.
NEW ISSUE PRICING
The winning bidder will be required to provide, in a timely manner, certain information necessary to compute theyield on the Bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended, and to providea certificate which will be provided by Bond Counsel upon request.
(a) The winning bidder shall assist the County in establishing the issue price of the Bonds and shall executeand deliver to the County at closing an “issue price” or similar certificate satisfactory to Bond Counsel setting forththe reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together withthe supporting pricing wires or equivalent communications. All actions to be taken by the County under this Noticeof Sale to establish the issue price of the Bonds may be taken on behalf of the County by the County’s municipaladvisor identified herein and any notice or report to be provided to the County may be provided to the County’smunicipal advisor.
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(b) The County intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining“competitive sale” for purposes of establishing the issue price of the Bonds) will apply to the initial sale of theBonds (the “competitive sale requirements”) because:
(1) The County shall disseminate this Notice of Sale to potential underwriters in a manner that isreasonably designed to reach potential investors;
(2) all bidders shall have an equal opportunity to bid;
(3) the County may receive bids from at least three underwriters of municipal bonds who haveestablished industry reputations for underwriting new issuances of municipal bonds; and
(4) the County anticipates awarding the sale of the Bonds to the bidder who submits a firm offer topurchase the Bonds at the highest price (or lowest interest cost), as set forth in this Notice of Sale.
Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds,as specified in this bid.
(c) If all of the requirements of a “competitive sale” are not satisfied, the County shall advise the winningbidder of such fact prior to the time of award of the sale of the Bonds to the winning bidder. In such event, anybid submitted will not be subject to cancellation or withdrawal and the County agrees to use the rule selected bythe winning bidder on its bid form to determine the issue price for the Bonds. On its bid form, each bidder mustselect one of the following two rules for determining the issue price of the Bonds: (1) the first price at which 10%of a maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity or (2) the initialoffering price to the public as of the sale date as the issue price of each maturity of the Bonds (the “hold-the-offering-price rule”).
(d) If all of the requirements of a “competitive sale” are not satisfied and the winning bidder selects the hold-the-offering-price rule, the winning bidder shall (i) confirm that the underwriters have offered or will offer theBonds to the public on or before the date of award at the offering price or prices (the “initial offering price”), orat the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalfof the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sellunsold Bonds of any maturity to which the hold-the-offering-price rule shall apply to any person at a price that ishigher than the initial offering price to the public during the period starting on the sale date and ending on theearlier of the following:
(1) the close of the fifth (5th) business day after the sale date; or
(2) the date on which the underwriters have sold at least 10% of that maturity of the Bonds to the publicat a price that is no higher than the initial offering price to the public.
The winning bidder will advise the County promptly after the close of the fifth (5th) business day after the salewhether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initialoffering price to the public.
The County acknowledges that in making the representation set forth above, the winning bidder will rely on:
(i) the agreement of each underwriter to comply with requirements for establishing issue price of the Bonds,including, but not limited to, its agreement to comply with the hold-the-price rule, if applicable to the Bonds, asset forth in an agreement among underwriters and the related pricing wires,
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(ii) in the event a selling group has been created in connection with the initial sale of the Bonds to thepublic, the agreement of each dealer who is a member of the selling group to comply with the requirements forestablishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricingwires, and
(iii) in the event that an underwriter or dealer who is a member of the selling group is a party to a third-party distribution agreement that was employed in connection with the initial sale of the Bonds to the public, theagreement of each broker-dealer that is party to such agreement to comply with the requirements for establishingissue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule,if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. TheCounty further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreementregarding the requirements for establishing issue price rule of the Bonds, including, but not limited to, its agreementto comply with the hold-the-offering-price rule, if applicable to the Bonds, and that no underwriter shall be liablefor the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealerthat is a party to a third-party distribution agreement to comply with its corresponding agreement to comply withthe requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to complywith the hold-the-offering-price rule as applicable to the Bonds.
(e) If all of the requirements of a “competitive sale” are not satisfied and the winning bidder selects the 10%test, the winning bidder agrees to promptly report to the County, Bond Counsel and Ehlers the prices at which theBonds have been sold to the public. That reporting obligation shall continue, whether or not the closing date hasoccurred, until either (i) all Bonds of that maturity have been sold or (ii) the 10% test has been satisfied as to eachmaturity of the Bonds, provided that, the winning bidder’s reporting obligation after the Closing Date may be atreasonable periodic intervals or otherwise upon request of the County or bond counsel.
(f) By submitting a bid, each bidder confirms that:
(i) any agreement among underwriters, any selling group agreement and each third-party distributionagreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with therelated pricing wires, contains or will contain language obligating each underwriter, each dealer who is a memberof the selling group, and each broker-dealer that is party to such third-party distribution agreement, as applicable,to:
(A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it,whether or not the Closing Date has occurred until either all securities of that maturity allocated to it have beensold or it is notified by the winning bidder that either the 10% test has been satisfied as to the Bonds of thatmaturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals orotherwise upon request of the County or bond counsel.
(B) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directedby the winning bidder and as set forth in the related pricing wires, and
(ii) any agreement among underwriters or selling group agreement relating to the initial sale of the Bondsto the public, together with the related pricing wires, contains or will contain language obligating each underwriter,each dealer who is a member of the selling group and each broker dealer that is a party to a third-party distributionagreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to:
(A) to promptly notify the winning bidder of any sales of Bonds that, to its knowledge, are made to apurchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (eachsuch term being used as defined below), and
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(B) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker-dealer, the winningbidder shall assume that each order submitted by the underwriter, dealer or broker-dealer is a sale to the public.
(g) Sales of any Bonds to any person that is a related party to an underwriter participating in the initial saleof the Bonds to the public (each term being used as defined below) shall not constitute sales to the public forpurposes of this Notice of Sale. Further, for purposes of this Notice of Sale:
(i) “public” means any person other than an underwriter or a related party,
(ii) “underwriter” means (A) any person that agrees pursuant to a written contract with the County (orwith the lead underwriter to form an underwriting syndicate) to participate in the initial sale of theBonds to the public and (B) any person that agrees pursuant to a written contract directly orindirectly with a person described in clause (A) to participate in the initial sale of the Bonds to thepublic (including a member of a selling group or a party to a third-party distribution agreementparticipating in the initial sale of the Bonds to the public),
(iii) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and thepurchaser are subject, directly or indirectly, to (A) more than 50% common ownership of thevoting power or the total value of their stock, if both entities are corporations (including directownership by one corporation of another), (B) more than 50% common ownership of their capitalinterests or profits interests, if both entities are partnerships (including direct ownership by onepartnership of another), or (C) more than 50% common ownership of the value of the outstandingstock of the corporation or the capital interests or profit interests of the partnership, as applicable,if one entity is a corporation and the other entity is a partnership (including direct ownership ofthe applicable stock or interests by one entity of the other), and
(iv) “sale date” means the date that the Bonds are awarded by the County to the winning bidder.
PRELIMINARY OFFICIAL STATEMENT
Bidders may obtain a copy of the Preliminary Official Statement relating to the Bonds prior to the bid opening byrequest from Ehlers at www.ehlers-inc.com by connecting to the Bond Sales link. The Syndicate Manager will beprovided with an electronic copy of the Final Official Statement within seven business days of the bid acceptance. Up to 10 printed copies of the Final Official Statement will be provided upon request. Additional copies of theFinal Official Statement will be available at a cost of $10.00 per copy.
Information for bidders and bid forms may be obtained from Ehlers at 3060 Centre Pointe Drive, Roseville,Minnesota 55113-1105, Telephone (651) 697-8500.
By Order of the Board of Supervisors
Charles Hicklin, County ControllerDane County, Wisconsin
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BID FORMThe Board of Supervisors September 17, 2020Dane County, Wisconsin
RE: $9,140,000* General Obligation Corporate Purpose Bonds, Series 2020B (the "Bonds")DATED: October 7, 2020
For all or none of the above Bonds, in accordance with the Notice of Sale and terms of the Global Book-Entry System (unless otherwisespecified by the Purchaser) as stated in this Official Statement, we will pay you $__________________ (not less than $9,025,750, nor morethan $9,505,600) plus accrued interest to date of delivery for fully registered Bonds bearing interest rates and maturing in the stated yearsas follows:
% due 2021 % due 2028 % due 2035
% due 2022 % due 2029 % due 2036
% due 2023 % due 2030 % due 2037
% due 2024 % due 2031 % due 2038
% due 2025 % due 2032 % due 2039
% due 2026 % due 2033 % due 2040
% due 2027 % due 2034
* The County reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are adjusted, the purchase price proposed will be adjusted tomaintain the same gross spread per $1,000.
All Bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate. Each rate must be expressed in anintegral multiple of 5/100 or 1/8 of 1%.
A good faith deposit (“Deposit”) in the amount of $182,800 shall be made by the winning bidder by wire transfer of funds to the County. Such Deposit shall be received by the County no later than two hours after the Bid opening time. The County reserves the right to awardthe Bonds to a winning bidder whose wire transfer is initiated but not received by such time provided that such winning bidder’s federal wirereference number has been received by such time. In the event the Deposit is not received as provided above, the County may award theBonds to the bidder submitting the next best Bid provided such bidder agrees to such award. The Deposit will be retained by the Countyas liquidated damages if the Bid is accepted and the Purchaser fails to comply therewith. The Deposit will be deducted from the purchaseprice at the closing for the Bonds.
PLEASE NOTE THE WIRE TRANSFER IS TO BE RECEIVED BY THE COUNTY AND NOT BY THE COUNTY'S MUNICIPALADVISOR, EHLERS & ASSOCIATES, INC. This bid is for prompt acceptance and is conditional upon delivery of said Notes to TheDepository Trust Company, New York, New York, in accordance with the Notice of Sale. Delivery is anticipated to be on or about October7, 2020.
This bid is subject to the County’s agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c2-12promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Official Statementfor the Bonds.
We have received and reviewed the Official Statement, and any addenda thereto, and have submitted our requests for additional informationor corrections to the Final Official Statement. As Syndicate Manager, we agree to provide the County with the reoffering price of the Bondswithin 24 hours of the bid acceptance.
This bid is a firm offer for the purchase of the Bonds identified in the Notice of Sale, on the terms set forth in this bid form and the Noticeof Sale, and is not subject to any conditions, except as permitted by the Notice of Sale.
By submitting this bid, we confirm that we are an underwriter and have an established industry reputation for underwriting new issuancesof municipal bonds. YES: ____ NO: ____.
If the competitive sale requirements are not met, we elect to use the (circle one): 10% test / hold-the-offering-price rule to determine the issueprice of the Bonds.
Account Manager: By:Account Members:
Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), thetotal dollar interest cost (including any discount or less any premium) computed from October 7, 2020 of the above bid is$_______________and the true interest cost (TIC) is __________%.
The foregoing offer is hereby accepted by and on behalf of the Board of Supervisors of Dane County, Wisconsin, on September 17, 2020.
By: By:
Title: Title: