General Obligation Bonds, Election of 2016, Series 2017A

The Bonds were upgraded to AA- from A+ by S&P in coincident with the issuance.  The Bonds were issued to finance a capital improvement project, and are payable from unlimited ad valorem property taxes levied and collected by Contra Costa County.  The project includes financing the acquisition and construction of educational facilities, adding classrooms to prevent overcrowding, and providing classroom instructional technology. In accordance with section 53515(a) of the California Government Code, the Bonds shall be secured by a statutory lien on all revenues received pursuant to the levy and collection of the tax for general obligation bonds issued under the 2016 Authorization. The lien shall automatically attach without further action or authorization by the District or the County.*

The District is located in the City of Oakley in Contra Costa County, northeast of San Francisco.  Enrollment has seen growth of 8% since Fiscal Year (FY) 2011, totaling 5,015 students.  Since FY2011 assessed valuation has grown 48% to just over $3.5 billion in FY2016, equating to $85,127 per capita.   The District tax base is diverse with the top 10 taxpayers accounting for 4.87% of FY2016 assessed valuation.  The City of Oakley’s wealth indices far outpace both the state and national averages, with median household effective buying income at 120% and 139% respectively in 2016.

As of 8/23/2017, direct debt of the District (including the 2017A issuance) totals $41.3 million, 1.1% of FY2016 assessed valuation.  The Districts unfunded OPEB liability totaled $6.04 million as of 9/1/2015.  The District participates in both the CalSTRS and CalPERS pension systems.  As of 6/30/2016, the District’s net pension liability for CalSTRS was $30.2 million (77% funded), while the District’s net pension liability for CalPERS was $7.7 million (83% funded).

The District’s finances likewise appear solid. The District’s 6/30/2016 balance sheet reports a General Fund Cash balance of $12.9m, or 28% of General Fund expenditures.  The District’s 6/30/2016 General Fund balance of $13.3m is a robust 28% of General Fund revenues.  Under the provisions of the state’s Assembly Bill 1200, each school district is required to file interim certifications with the county office of education as to its ability to meet its financial obligations for the remainder of the then-current fiscal year and, based on current forecasts, for the subsequent two fiscal years. The county office of education reviews the certification and issues either a positive, negative or qualified certification. A positive certification is assigned to any school district that will meet its financial obligations for the current fiscal year and subsequent two fiscal years. The District’s 2nd Interim Report for fiscal year 2016-17 was adopted on 3/15/17 and certified as “Positive.” The District has not received a qualified or negative certification in any of the last five years.**

*See pg. 4 of the OS
**See Appendix B, pg. 4 of the OS



City of Worchester successfully issued $41.492 Million of Series 2015A General Obligation Municipal Purpose Bonds.

The Bonds are rated AA-minus by S&P, Aa3 by Moody’s, and AA-minus by Fitch.

The Bonds are being issued for the purpose of financing capital projects. The Series A Bonds are valid general obligations of the City of Worcester, Massachusetts and the principal of and interest on the Series A Bonds are payable from taxes which may be levied upon all property within the territorial limits of the City and taxable by it, subject to the limit imposed by Chapter 59, Section 21C of the General Laws. Chapter 59, Section 21C of the General Laws is frequently referred to as “Proposition 2 ½ “, and it imposes two separate limits on the annual tax levy of a city or town.

The primary limitation is that the tax levy cannot exceed 2 ½ percent of the full and fair cash value.

For cities and towns at or below the primary limit, a secondary limitation is imposed. This limitation stipulates that the tax levy cannot exceed the maximum levy limit from the prior fiscal year by more than 2 ½ percent subject to certain exceptions for new construction and revaluations.

Worchester maintains its tax levy below the primary limitation. The City currently has roughly $10 million in unused levy capacity and could raise its tax levy by that amount without the need to obtain a voter-approved override of the “Proposition 2 ½” limitation.

Below is a summary of the City’s tax levy history.


A more in-depth discussion of Massachusetts tax levies can be found on page A-30 to A-35 in the offical statement of the City’s Series 2015A Bonds.





City of Brillion successfully issued $2.645 Million of Series 2015B General Obligation Corporate Purpose Bonds

The Bonds are Non-Rated

The Bonds are being issued for the public purposes of financing street improvement projects; water system projects; storm water improvement projects; and to refund certain obligations of the City. The Bonds are valid and binding general obligations of the City, and all the taxable property in the City is subject to the levy of a tax to pay the principal of and interest on the Bonds as they become due which tax may, under current law, be levied without limitation as to rate or amount.

The City of Brillion, with a current estimated population of 3,191, comprises an area of 1,135 acres and is located approximately 25 miles south of the City of Green Bay.  The City’s 2014 estimated equalized value totaled $191.98 million.  The top ten taxpayers in the City accounted for 21.48% of estimated equalized value, the largest of which was Ariens Company (commercial lawn mower manufacturer, corporate headquarters) representing 5.18%.  Following this issuance the City will have approximately $8.1 million in general obligation debt outstanding.  This translates to a debt to equalized value ratio of 4.22% and a debt per capita ratio of $2,539.

Bernardi Credit Overview

Purpose:  The Bonds are being issued for essential service improvements, specifically street, water, and sewer.  Additionally, a portion of the issue, approximately $750,000 will advance refund the City’s Series 2006 General Obligation Corporate Purpose Bonds.  The refunding will provide the City with interest cost savings.

Security: The Bonds have been duly authorized and executed by the City and are valid and binding general obligations.  All the taxable property in the City is subject to the levy of ad valorem 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.  See Article XI, Section 3 of the Wisconsin Constitution.

Structure: The Bonds are structured to mature serially, May 1st, 2016 to May 1st, 2035.  Property tax statements are distributed to taxpayers by the town, village, and city clerks in December of the levy year.   Personal property taxes, special assessments, special charges and special taxes must be paid to the town, city or village treasurer in full by January 31, unless the municipality, by ordinance, permits special assessments to be paid in installments.  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.

Wicomico County, Maryland successfully issued $1.605 Million of Series 2014B Taxable General Obligation Public Improvement Bonds.

The bonds are rated Aa2 by Moody’s and AA+ by Standard & Poor’s.

The Bonds are being issued for the purpose of financing the A.W. Perdue Stadium restoration/modernization project, funding a contingency, and paying the costs of issuance.  The Series 2014B Bonds are valid and legally binding general obligations of the County to the payment of which the faith and credit and taxing power of the County are pledged.  The County is empowered to levy ad valorem taxes, subject to the limitations on the County’s taxing power set forth in its Charter.  Article VII, Section 706.B of the County’s Charter provides that revenues derived from taxes on properties existing on the County real property tax rolls at the commencement of the fiscal year shall not increase, compared with the previous year, by more than two percent, or by the Consumer Price Index for all urban consumers (CPI-U), whichever is the lesser.

Wicomico County, with a population of approximately 100,000, is centrally located on the Delmarva Peninsula at the intersection of U.S. Route 13 and U.S. Route 50, the two major trans-peninsular highways.  The County is 115 miles from Washington, D.C., 115 miles from Baltimore, Maryland, 100 miles from Wilmington, Delaware, and 110 miles from Norfolk, Virginia.


The Village of Gilberts, Illinois successfully issued $11.72 million of Special Tax Refunding Bonds on June 24th, 2014. The Bonds were issued for the purpose of advance refunding a portion of the Village’s Series 2005 Special Service Area #15 Special Tax Bonds.

The Series 2014 Bonds are secured and payable from the special service area taxes levied on Special Service Area #15. The tax is to be levied on all taxable parcels within the Special Service Area on a pro-rata basis. Furthermore, there are additional credit enhancements included in the issue’s structure for the benefit of holders. The first is a debt service reserve account equal to the maximum annual debt service over the life of the bonds. Second, the bonds carry municipal bond insurance from Assured Guaranty Municipal Corporation, currently rated double-A by Standard & Poor’s.

The Area is located near Interstate 90 and Randall Road and generally located north of Higgins Road and East of Galligan Road. The Area was developed by The Ryland Group, Inc., a Maryland corporation and PAR Development, Inc., an Illinois corporation. The Area includes finished lots for two hundred thirty-six (236) large lot single-family homes, sixty (60) small lot single-family homes, seventy-four (74) duplex units, three hundred fourteen (314) townhome units, and 1.70 acres of commercial property. Currently there is buildable space in the Area for an additional 71 townhome units, 40 duplex units and 56.06 commercial acres that can be developed. Total equalized assessed value has grown from $26.7 million in 2008 to $39.2 million in 2013. Tax collections for the special service area taxes have been made in full each year through 2013. Annual debt service coverage is expected to be roughly 1.13x over the life of the bonds.


$5.225 Million Electric System Revenue Refunding Bonds, Series 2014

The Bonds are being issued for the purpose of refunding, on a current basis, the 2014 through 2030 maturities of the City’s Series 2010A Taxable Electric System Revenue Bonds (Build America Bonds-Direct Pay).  The City joins a number of other Wisconsin municipalities taking advantage of extraordinary redemption provisions to refund their direct-pay Build America Bonds (BABs).  The BAB program originally offered a federal interest rate subsidy of 35%; however, those subsidy payments were reduced during last year’s federal sequestration budget cuts.  A lesser reduction of 7.2% has been implemented for fiscal 2014.  With sequestration cuts in place and a relatively low interest rate environment, the city could realize considerable savings refunding the BABs with tax-exempt debt.

The Series 2014 Bonds are payable only from and secured by a pledge of Net Revenues derived from the operation of the City’s Electric System. Furthermore, the City covenants to maintain Net Revenues sufficient to cover annual debt service at least 1.25x and show at least 1.25x coverage on any existing and proposed bond issues.  The Bonds are also secured by a debt service reserve account, which shall be funded at the lesser of: (a) 10% of the proceeds of the Bonds, (b) maximum annual debt service on the Bonds in any future Bond Year; and (c) 125% of average annual debt service on the Bonds.   Total revenue bond debt service coverage after tax equivalent transfers was 1.40x in fiscal year 2013. The Bonds are non-rated.

The City of Black River Falls, with a 2010 U.S. Census population of 3,618 and a current estimated population of 3,600, comprises an area of 1,699 acres and is located approximately 130 miles southeast of the Minneapolis-St. Paul metropolitan area.


$2.735 Million General Obligation Waterworks & Sewerage Alternate Revenue Source Bonds, Series 2013

The Bonds are being issued to finance capital improvements to the City’s waterworks and sewerage systems and to pay costs associated with the issuance.  The Series 2013 Bonds are general obligations of the City payable from net revenues of the waterworks and sewerage system, as well as the City’s share of state income tax revenues. To the extent that the above referenced pledged revenues are insufficient, the Bonds are also secured by the City’s ad valorem property taxes levied against all of the taxable property in the City without limitation as to rate or amount. Furthermore, the City covenanted in the bond ordinance, to only abate the annual tax levy to the extent that pledged revenues are on deposit to pay debt service.  The Bonds are rated A-plus by Standard & Poor’s.

The City of Colona, with an estimated population of 5,099, is located near the Quad City area in a northwest corner of Henry County, approximately 175 miles west of the City of Chicago.