Finance Committee

RESOLUTION NO. 25-019 RESOLUTION AUTHORIZING THE ISSUANCE AND ESTABLISHING PARAMETERS FOR THE SALE OF NOT TO EXCEED $2,120,000 GENERAL OBLIGATION PROMISSORY NOTES, SERIES 2025A WHEREAS, the Common Council hereby finds and determines that it is necessary, desirable and in the best interest of the City of Verona, Dane County, Wisconsin (the "City") to raise funds for public purposes, including financing the purchase of fire equipment and the installation of public improvements within Tax Incremental District Nos. 9 and 11 (collectively, the "Project"); WHEREAS, the Common Council hereby finds and determines that the Project is within the City's power to undertake and therefore serves a "public purpose" as that term is defined in Section 67.04(1)(b), Wisconsin Statutes; WHEREAS, the City is authorized by the provisions of Section 67.12(12), Wisconsin Statutes, to borrow money and issue general obligation promissory notes (the "Notes") for such public purposes; WHEREAS, it is the finding of the Common Council that it is in the best interest of the City to direct its financial advisor, Ehlers & Associates, Inc. ("Ehlers"), to take the steps necessary for the City to offer and sell the Notes at public sale and to obtain bids for the purchase of the Notes; and WHEREAS, in order to facilitate the sale of the Notes in a timely manner, the Common Council hereby finds and determines that it is necessary, desirable and in the best interest of the City to delegate to either the City Administrator or the Finance Director/Treasurer (each, an "Authorized Officer") the authority to accept on behalf of the City the bid for the Notes that results in the lowest true interest cost for the Notes (the "Proposal") and meets the terms and conditions provided for in this Resolution by executing a certificate in substantially the form attached hereto as Exhibit A and incorporated herein by reference (the "Approving Certificate"). NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City that: Section 1. Authorization and Sale of the Notes; Parameters. For the purpose of paying costs of the Project, the City is authorized to borrow pursuant to Section 67.12(12), Wisconsin Statutes, the principal sum of not to exceed TWO MILLION ONE HUNDRED TWENTY THOUSAND DOLLARS ($2,120,000) upon the terms and subject to the conditions set forth in this Resolution. Subject to satisfaction of the condition set forth in Section 17 of this Resolution, the Mayor and City Clerk are hereby authorized, empowered and directed to make, execute, issue and sell to the financial institution that submitted the Proposal (the "Purchaser") for, on behalf of and in the name of the City, Notes aggregating the principal amount of not to exceed TWO MILLION ONE HUNDRED TWENTY THOUSAND DOLLARS ($2,120,000). The purchase price to be paid to the City for the Notes shall not be less than 99.00% nor more than 107.00% of the principal amount of the Notes. QB\96879846.1  Section 2. Terms of the Notes. The Notes shall be designated "General Obligation Promissory Notes, Series 2025A"; shall be issued in the aggregate principal amount of up to $2,120,000; shall be dated as of their date of issuance; shall be in the denomination of $5,000 or any integral multiple thereof; shall be numbered R-1 and upward; and mature or be subject to mandatory redemption on the dates and in the principal amounts set forth below, provided that the principal amount of each maturity or mandatory redemption amount may be increased or decreased by up to $100,000 per maturity or mandatory redemption amount and that the aggregate principal amount of the Notes shall not exceed $2,120,000. The schedule below assumes the Notes are issued in the aggregate principal amount of $2,120,000. Date Principal Amount 04-01-2026 $225,000 04-01-2027 245,000 04-01-2028 255,000 04-01-2029 265,000 04-01-2030 275,000 04-01-2031 160,000 04-01-2032 165,000 04-01-2033 170,000 04-01-2034 180,000 04-01-2035 180,000 Interest shall be payable semi-annually on April 1 and October 1 of each year commencing on April 1, 2026. The true interest cost on the Notes (computed taking the Purchaser's compensation into account) shall not exceed 4.50%. Interest shall be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to the rules of the Municipal Securities Rulemaking Board. Section 3. Redemption Provisions. The Notes shall be subject to optional redemption or not as set forth on the Approving Certificate. If the Proposal specifies that certain of the Notes shall be subject to mandatory redemption, the terms of such mandatory redemption shall be set forth on an attachment to the Approving Certificate labeled as Schedule MRP. Upon the optional redemption of any of the Notes subject to mandatory redemption, the principal amount of such Notes so redeemed shall be credited against the mandatory redemption payments established in the Approving Certificate in such manner as the City shall direct. Section 4. Form of the Notes. The Notes shall be issued in registered form and shall be executed and delivered in substantially the form attached hereto as Exhibit B and incorporated herein by this reference. Section 5. Tax Provisions. (A) Direct Annual Irrepealable Tax Levy. For the purpose of paying the principal of and interest on the Notes as the same becomes due, the full faith, credit and resources of the City are hereby irrevocably pledged, and there is hereby levied upon all of the taxable property of the City a direct annual irrepealable tax in the years 2025 through 2034 for -2- QB\96879846.1 the payments due in the years 2026 through 2035 in the amounts as are sufficient to meet the principal and interest payments when due. (B) Tax Collection. So long as any part of the principal of or interest on the Notes remains unpaid, the City shall be and continue without power to repeal such levy or obstruct the collection of said tax until all such payments have been made or provided for. After the issuance of the Notes, said tax shall be, from year to year, carried onto the tax roll of the City and collected in addition to all other taxes and in the same manner and at the same time as other taxes of the City for said years are collected, except that the amount of tax carried onto the tax roll may be reduced in any year by the amount of any surplus money in the Debt Service Fund Account created below. (C) Additional Funds. If at any time there shall be on hand insufficient funds from the aforesaid tax levy to meet principal and/or interest payments on said Notes when due, the requisite amounts shall be paid from other funds of the City then available, which sums shall be replaced upon the collection of the taxes herein levied. Section 6. Segregated Debt Service Fund Account. (A) Creation and Deposits. There shall be and there hereby is established in the treasury of the City, if one has not already been created, a debt service fund, separate and distinct from every other fund, which shall be maintained in accordance with generally accepted accounting principles. Debt service or sinking funds established for obligations previously issued by the City may be considered as separate and distinct accounts within the debt service fund. Within the debt service fund, there hereby is established a separate and distinct account designated as the "Debt Service Fund Account for General Obligation Promissory Notes, Series 2025A" (the "Debt Service Fund Account") and such account shall be maintained until the indebtedness evidenced by the Notes is fully paid or otherwise extinguished. There shall be deposited into the Debt Service Fund Account (i) all accrued interest received by the City at the time of delivery of and payment for the Notes; (ii) any premium which may be received by the City above the par value of the Notes and accrued interest thereon; (iii) all money raised by the taxes herein levied and any amounts appropriated for the specific purpose of meeting principal of and interest on the Notes when due; (iv) such other sums as may be necessary at any time to pay principal of and interest on the Notes when due; (v) surplus monies in the Borrowed Money Fund as specified below; and (vi) such further deposits as may be required by Section 67.11, Wisconsin Statutes. (B) Use and Investment. No money shall be withdrawn from the Debt Service Fund Account and appropriated for any purpose other than the payment of principal of and interest on the Notes until all such principal and interest has been paid in full and the Notes canceled; provided (i) the funds to provide for each payment of principal of and interest on the Notes prior to the scheduled receipt of taxes from the next succeeding tax collection may be invested in direct obligations of the United States of America maturing in time to make such payments when they are due or in other investments permitted by law; and (ii) any funds over and above the amount of such principal and interest payments on the Notes may be used to -3- QB\96879846.1 reduce the next succeeding tax levy, or may, at the option of the City, be invested by purchasing the Notes as permitted by and subject to Section 67.11(2)(a), Wisconsin Statutes, or in permitted municipal investments under the pertinent provisions of the Wisconsin Statutes ("Permitted Investments"), which investments shall continue to be a part of the Debt Service Fund Account. Any investment of the Debt Service Fund Account shall at all times conform with the provisions of the Internal Revenue Code of 1986, as amended (the "Code") and any applicable Treasury Regulations (the "Regulations"). (C) Remaining Monies. When all of the Notes have been paid in full and canceled, and all Permitted Investments disposed of, any money remaining in the Debt Service Fund Account shall be transferred and deposited in the general fund of the City, unless the Common Council directs otherwise. Section 7. Proceeds of the Notes; Segregated Borrowed Money Fund. The proceeds of the Notes (the "Note Proceeds") (other than any premium and accrued interest which must be paid at the time of the delivery of the Notes into the Debt Service Fund Account created above) shall be deposited into a special fund (the "Borrowed Money Fund") separate and distinct from all other funds of the City and disbursed solely for the purpose or purposes for which borrowed. Monies in the Borrowed Money Fund may be temporarily invested in Permitted Investments. Any monies, including any income from Permitted Investments, remaining in the Borrowed Money Fund after the purpose or purposes for which the Notes have been issued have been accomplished, and, at any time, any monies as are not needed and which obviously thereafter cannot be needed for such purpose(s) shall be deposited in the Debt Service Fund Account. Section 8. No Arbitrage. All investments made pursuant to this Resolution shall be Permitted Investments, but no such investment shall be made in such a manner as would cause the Notes to be "arbitrage bonds" within the meaning of Section 148 of the Code or the Regulations and an officer of the City, charged with the responsibility for issuing the Notes, shall certify as to facts, estimates, circumstances and reasonable expectations in existence on the date of delivery of the Notes to the Purchaser which will permit the conclusion that the Notes are not "arbitrage bonds," within the meaning of the Code or Regulations. Section 9. Compliance with Federal Tax Laws. (a) The City represents and covenants that the projects financed by the Notes and the ownership, management and use of the projects will not cause the Notes to be "private activity bonds" within the meaning of Section 141 of the Code. The City further covenants that it shall comply with the provisions of the Code to the extent necessary to maintain the tax-exempt status of the interest on the Notes including, if applicable, the rebate requirements of Section 148(f) of the Code. The City further covenants that it will not take any action, omit to take any action or permit the taking or omission of any action within its control (including, without limitation, making or permitting any use of the proceeds of the Notes) if taking, permitting or omitting to take such action would cause any of the Notes to be an arbitrage bond or a private activity bond within the meaning of the Code or would otherwise cause interest on the Notes to be included in the gross income of the recipients thereof for federal income tax purposes. The City Clerk or other officer of the City charged with the responsibility of issuing the Notes shall provide an appropriate certificate of the City certifying that the City can and covenanting that it will comply with the provisions of the Code and Regulations. -4- QB\96879846.1  (b) The City also covenants to use its best efforts to meet the requirements and restrictions of any different or additional federal legislation which may be made applicable to the Notes provided that in meeting such requirements the City will do so only to the extent consistent with the proceedings authorizing the Notes and the laws of the State of Wisconsin and to the extent that there is a reasonable period of time in which to comply. Section 10. Designation as Qualified Tax-Exempt Obligations. The Notes are hereby designated as "qualified tax-exempt obligations" for purposes of Section 265 of the Code, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. Section 11. Execution of the Notes; Closing; Professional Services. The Notes shall be issued in printed form, executed on behalf of the City by the manual or facsimile signatures of the Mayor and City Clerk, authenticated, if required, by the Fiscal Agent (defined below), sealed with its official or corporate seal, if any, or a facsimile thereof, and delivered to the Purchaser upon payment to the City of the purchase price thereof, plus accrued interest to the date of delivery (the "Closing"). The facsimile signature of either of the officers executing the Notes may be imprinted on the Notes in lieu of the manual signature of the officer but, unless the City has contracted with a fiscal agent to authenticate the Notes, at least one of the signatures appearing on each Note shall be a manual signature. In the event that either of the officers whose signatures appear on the Notes shall cease to be such officers before the Closing, such signatures shall, nevertheless, be valid and sufficient for all purposes to the same extent as if they had remained in office until the Closing. The aforesaid officers are hereby authorized and directed to do all acts and execute and deliver the Notes and all such documents, certificates and acknowledgements as may be necessary and convenient to effectuate the Closing. The City hereby authorizes the officers and agents of the City to enter into, on its behalf, agreements and contracts in conjunction with the Notes, including but not limited to agreements and contracts for legal, trust, fiscal agency, disclosure and continuing disclosure, and rebate calculation services. Any such contract heretofore entered into in conjunction with the issuance of the Notes is hereby ratified and approved in all respects. Section 12. Payment of the Notes; Fiscal Agent. The principal of and interest on the Notes shall be paid by the City Clerk or City Treasurer (the "Fiscal Agent") unless a fiscal agent is specified in the Approving Certificate. The City hereby authorizes the Mayor and City Clerk or other appropriate officers of the City to enter into a Fiscal Agency Agreement between the City and the Fiscal Agent. Such contract may provide, among other things, for the performance by the Fiscal Agent of the functions listed in Wis. Stats. Sec. 67.10(2)(a) to (j), where applicable, with respect to the Notes. Section 13. Persons Treated as Owners; Transfer of Notes. The City shall cause books for the registration and for the transfer of the Notes to be kept by the Fiscal Agent. The person in whose name any Note shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes and payment of either principal or interest on any Note shall be made only to the registered owner thereof. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Note to the extent of the sum or sums so paid. -5- QB\96879846.1  Any Note may be transferred by the registered owner thereof by surrender of the Note at the office of the Fiscal Agent, duly endorsed for the transfer or accompanied by an assignment duly executed by the registered owner or his attorney duly authorized in writing. Upon such transfer, the Mayor and City Clerk shall execute and deliver in the name of the transferee or transferees a new Note or Notes of a like aggregate principal amount, series and maturity and the Fiscal Agent shall record the name of each transferee in the registration book. No registration shall be made to bearer. The Fiscal Agent shall cancel any Note surrendered for transfer. The City shall cooperate in any such transfer, and the Mayor and City Clerk are authorized to execute any new Note or Notes necessary to effect any such transfer. Section 14. Record Date. The 15th day of the calendar month next preceding each interest payment date shall be the record date for the Notes (the "Record Date"). Payment of interest on the Notes on any interest payment date shall be made to the registered owners of the Notes as they appear on the registration book of the City at the close of business on the Record Date. Section 15. Utilization of The Depository Trust Company Book-Entry-Only System. In order to make the Notes eligible for the services provided by The Depository Trust Company, New York, New York ("DTC"), the City agrees to the applicable provisions set forth in the Blanket Issuer Letter of Representations, which the City Clerk or other authorized representative of the City is authorized and directed to execute and deliver to DTC on behalf of the City to the extent an effective Blanket Issuer Letter of Representations is not presently on file in the City Clerk's office. Section 16. Payment of Issuance Expenses. The City authorizes the Purchaser to forward the amount of the proceeds of the Notes allocable to the payment of issuance expenses to a financial institution selected by Ehlers at Closing for further distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. Section 17. Condition on Issuance and Sale of the Notes. The issuance of the Notes and the sale of the Notes to the Purchaser are subject to approval by an Authorized Officer of the principal amount, definitive maturities, redemption provisions, interest rates and purchase price for the Notes, which approval shall be evidenced by execution by an Authorized Officer of the Approving Certificate. The Notes shall not be issued, sold or delivered until this condition is satisfied. Upon satisfaction of this condition, an Authorized Officer is authorized to execute a Proposal with the Purchaser providing for the sale of the Notes to the Purchaser. Section 18. Official Statement. The Common Council hereby directs an Authorized Officer to approve the Preliminary Official Statement with respect to the Notes and deem the Preliminary Official Statement as "final" as of its date for purposes of SEC Rule 15c2-12 promulgated by the Securities and Exchange Commission pursuant to the Securities and Exchange Act of 1934 (the "Rule"). All actions taken by an Authorized Officer or other officers of the City in connection with the preparation of such Preliminary Official Statement and any addenda to it or final Official Statement are hereby ratified and approved. In connection with the -6- QB\96879846.1 Closing, the appropriate City official shall certify the Preliminary Official Statement and any addenda or final Official Statement. The City Clerk shall cause copies of the Preliminary Official Statement and any addenda or final Official Statement to be distributed to the Purchaser. Section 19. Undertaking to Provide Continuing Disclosure. The City hereby covenants and agrees, for the benefit of the owners of the Notes, to enter into a written undertaking (the "Undertaking") if required by the Rule to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events in accordance with the Rule. The Undertaking shall be enforceable by the owners of the Notes or by the Purchaser on behalf of such owners (provided that the rights of the owners and the Purchaser to enforce the Undertaking shall be limited to a right to obtain specific performance of the obligations thereunder and any failure by the City to comply with the provisions of the Undertaking shall not be an event of default with respect to the Notes). To the extent required under the Rule, the Mayor and City Clerk, or other officer of the City charged with the responsibility for issuing the Notes, shall provide a Continuing Disclosure Certificate for inclusion in the transcript of proceedings, setting forth the details and terms of the City's Undertaking. Section 20. Record Book. The City Clerk shall provide and keep the transcript of proceedings as a separate record book (the "Record Book") and shall record a full and correct statement of every step or proceeding had or taken in the course of authorizing and issuing the Notes in the Record Book. Section 21. Bond Insurance. If the Purchaser determines to obtain municipal bond insurance with respect to the Notes, the officers of the City are authorized to take all actions necessary to obtain such municipal bond insurance. The Mayor and City Clerk are authorized to agree to such additional provisions as the bond insurer may reasonably request and which are acceptable to the Mayor and City Clerk including provisions regarding restrictions on investment of Note proceeds, the payment procedure under the municipal bond insurance policy, the rights of the bond insurer in the event of default and payment of the Notes by the bond insurer and notices to be given to the bond insurer. In addition, any reference required by the bond insurer to the municipal bond insurance policy shall be made in the form of Note provided herein. -7- QB\96879846.1  Section 22. Conflicting Resolutions; Severability; Effective Date. All prior resolutions, rules or other actions of the Common Council or any parts thereof in conflict with the provisions hereof shall be, and the same are, hereby rescinded insofar as the same may so conflict. In the event that any one or more provisions hereof shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provisions hereof. The foregoing shall take effect immediately upon adoption and approval in the manner provided by law. Adopted, approved and recorded June 23, 2025. _____________________________ Luke Diaz Mayor ATTEST: ____________________________ Holly Licht City Clerk (SEAL) -8- QB\96879846.1  EXHIBIT A APPROVING CERTIFICATE The undersigned [Finance Director/Treasurer] [City Administrator] of the City of Verona, Dane County, Wisconsin (the "City"), hereby certifies that: 1. Resolution. On June 23, 2025, the Common Council of the City adopted a resolution (the "Resolution") authorizing the issuance and establishing parameters for the sale of not to exceed $2,120,000 General Obligation Promissory Notes, Series 2025A of the City (the "Notes") after a public sale and delegating to me the authority to approve the Preliminary Official Statement, to approve the purchase proposal for the Notes, and to determine the details for the Notes within the parameters established by the Resolution. 2. Proposal; Terms of the Notes. On the date hereof, the Notes were offered for public sale and the bids set forth on the Bid Tabulation attached hereto as Schedule I and incorporated herein by this reference were received. The institution listed first on the Bid Tabulation, ____________________ (the "Purchaser") offered to purchase the Notes in accordance with the terms set forth in the Proposal attached hereto as Schedule II and incorporated herein by this reference (the "Proposal"). Ehlers & Associates, Inc. recommends the City accept the Proposal. The Proposal meets the parameters and conditions established by the Resolution and is hereby approved and accepted. The Notes shall be issued in the aggregate principal amount of $__________, which is not more than the $2,120,000 approved by the Resolution, and shall mature on April 1 of each of the years and in the amounts and shall bear interest at the rates per annum as set forth in the Pricing Summary attached hereto as Schedule III and incorporated herein by this reference. The amount of each annual principal or mandatory redemption payment due on the Notes is not more than $100,000 more or less per maturity or mandatory redemption amount than the schedule included in the Resolution as set forth below: Date Resolution Schedule Actual Amount 04-01-2026 $225,000 $___________ 04-01-2027 245,000 ___________ 04-01-2028 255,000 ___________ 04-01-2029 265,000 ___________ 04-01-2030 275,000 ___________ 04-01-2031 160,000 ___________ 04-01-2032 165,000 ___________ 04-01-2033 170,000 ___________ 04-01-2034 180,000 ___________ 04-01-2035 180,000 ___________ The true interest cost on the Notes (computed taking the Purchaser's compensation into account) is _________%, which is not in excess of 4.50%, as required by the Resolution. QB\96879846.1  3. Purchase Price of the Notes. The Notes shall be sold to the Purchaser in accordance with the terms of the Proposal at a price of $_________, plus accrued interest, if any, to the date of delivery of the Notes, which is not less than 99.00% nor more than 107.00% of the principal amount of the Notes, as required by the Resolution. 4. Redemption Provisions of the Notes. The Notes maturing on April 1, ______ and thereafter are subject to redemption prior to maturity, at the option of the City, on April 1, ______ or on any date thereafter. Said Notes are redeemable as a whole or in part, and if in part, from maturities selected by the City and within each maturity by lot, at the principal amount thereof, plus accrued interest to the date of redemption. [The Proposal specifies that [some of] the Notes are subject to mandatory redemption. The terms of such mandatory redemption are set forth on an attachment hereto as Schedule MRP and incorporated herein by this reference.] 5. [Payment of the Notes; Fiscal Agent. Pursuant to the Resolution, Bond Trust Services Corporation, Roseville, Minnesota, is named fiscal agent for the Notes.] 6. Direct Annual Irrepealable Tax Levy. For the purpose of paying the principal of and interest on the Notes as the same respectively falls due, the full faith, credit and taxing powers of the City have been irrevocably pledged and there has been levied on all of the taxable property in the City, pursuant to the Resolution, a direct, annual irrepealable tax in an amount and at the times sufficient for said purpose. Such tax shall be for the years and in the amounts set forth on the debt service schedule attached hereto as Schedule IV. 7. Preliminary Official Statement. The Preliminary Official Statement with respect to the Notes is hereby approved and deemed "final" as of its date for purposes of SEC Rule 15c2- 12 promulgated by the Securities and Exchange Commission pursuant to the Securities and Exchange Act of 1934. -2- QB\96879846.1  8. Approval. This Certificate constitutes my approval of the Proposal, and the principal amount, definitive maturities, interest rates, purchase price and redemption provisions for the Notes and the direct annual irrepealable tax levy to repay the Notes, in satisfaction of the parameters set forth in the Resolution. IN WITNESS WHEREOF, I have executed this Certificate on ________________, 2025 pursuant to the authority delegated to me in the Resolution. [ Brian Lamers Finance Director/Treasurer] [ Jamie Aulik City Administrator] -3- QB\96879846.1  SCHEDULE I TO APPROVING CERTIFICATE Bid Tabulation To be provided by Ehlers & Associates, Inc. and incorporated into the Certificate. (See Attached) QB\96879846.1  SCHEDULE II TO APPROVING CERTIFICATE Proposal To be provided by Ehlers & Associates, Inc. and incorporated into the Certificate. (See Attached) QB\96879846.1  SCHEDULE III TO APPROVING CERTIFICATE Pricing Summary To be provided by Ehlers & Associates, Inc. and incorporated into the Certificate. (See Attached) QB\96879846.1  SCHEDULE IV TO APPROVING CERTIFICATE Debt Service Schedule and Irrepealable Tax Levies To be provided by Ehlers & Associates, Inc. and incorporated into the Certificate. (See Attached) QB\96879846.1  [SCHEDULE MRP Mandatory Redemption Provision The Notes due on April 1, ____, ____ and ____ (the "Term Bonds") are subject to mandatory redemption prior to maturity by lot (as selected by the Depository) at a redemption price equal to One Hundred Percent (100%) of the principal amount to be redeemed plus accrued interest to the date of redemption, from debt service fund deposits which are required to be made in amounts sufficient to redeem on April 1 of each year the respective amount of Term Bonds specified below: For the Term Bonds Maturing on April 1, 20 Redemption Date Amount ____ $______ ____ ______ ____ ______ (maturity) For the Term Bonds Maturing on April 1, 20 Redemption Date Amount ____ $______ ____ ______ ____ ______ (maturity) For the Term Bonds Maturing on April 1, 20 Redemption Date Amount ____ $______ ____ ______ ____ ______ (maturity) For the Term Bonds Maturing on April 1, 20 Redemption Date Amount ____ $______ ____ ______ ____ ______ (maturity)] QB\96879846.1  EXHIBIT B (Form of Note) UNITED STATES OF AMERICA REGISTERED STATE OF WISCONSIN DOLLARS DANE COUNTY NO. R-___ CITY OF VERONA $_______ GENERAL OBLIGATION PROMISSORY NOTE, SERIES 2025A MATURITY DATE: ORIGINAL DATE OF ISSUE: INTEREST RATE: CUSIP: April 1, _____ __________, 2025 ____% ______ DEPOSITORY OR ITS NOMINEE NAME: CEDE & CO. PRINCIPAL AMOUNT: _______________________ THOUSAND DOLLARS ($__________) FOR VALUE RECEIVED, the City of Verona, Dane County, Wisconsin (the "City"), hereby acknowledges itself to owe and promises to pay to the Depository or its Nominee Name (the "Depository") identified above (or to registered assigns), on the maturity date identified above, the principal amount identified above, and to pay interest thereon at the rate of interest per annum identified above, all subject to the provisions set forth herein regarding redemption prior to maturity. Interest shall be payable semi-annually on April 1 and October 1 of each year commencing on April 1, 2026 until the aforesaid principal amount is paid in full. Both the principal of and interest on this Note are payable to the registered owner in lawful money of the United States. Interest payable on any interest payment date shall be paid by wire transfer to the Depository in whose name this Note is registered on the Bond Register maintained by [Bond Trust Services Corporation, Roseville, Minnesota] OR [the City Clerk or City Treasurer] (the "Fiscal Agent") or any successor thereto at the close of business on the 15th day of the calendar month next preceding each interest payment date (the "Record Date"). This Note is payable as to principal upon presentation and surrender hereof at the office of the Fiscal Agent. For the prompt payment of this Note together with interest hereon as aforesaid and for the levy of taxes sufficient for that purpose, the full faith, credit and resources of the City are hereby irrevocably pledged. This Note is one of an issue of Notes aggregating the principal amount of $________, all of which are of like tenor, except as to denomination, interest rate, maturity date and redemption provision, issued by the City pursuant to the provisions of Section 67.12(12), Wisconsin Statutes, for public purposes, including financing the purchase of fire equipment and the installation of public improvements within Tax Incremental District Nos. 9 and 11, as authorized by a resolution adopted on June 23, 2025 as supplemented by an Approving Certificate, dated QB\96879846.1 ______________, 2025 (the "Approving Certificate") (collectively, the "Resolution"). Said Resolution is recorded in the official minutes of the Common Council for said date. The Notes maturing on April 1, _________________ and thereafter are subject to redemption prior to maturity, at the option of the City, on April 1, ____ or on any date thereafter. Said Notes are redeemable as a whole or in part, and if in part, from maturities selected by the City, and within each maturity by lot (as selected by the Depository), at the principal amount thereof, plus accrued interest to the date of redemption. [The Notes maturing in the years ________ are subject to mandatory redemption by lot as provided in the Resolution, at the redemption price of par plus accrued interest to the date of redemption and without premium.] In the event the Notes are redeemed prior to maturity, as long as the Notes are in book-entry-only form, official notice of the redemption will be given by mailing a notice by registered or certified mail, overnight express delivery, facsimile transmission, electronic transmission or in any other manner required by the Depository, to the Depository not less than thirty (30) days nor more than sixty (60) days prior to the redemption date. If less than all of the Notes of a maturity are to be called for redemption, the Notes of such maturity to be redeemed will be selected by lot. Such notice will include but not be limited to the following: the designation, date and maturities of the Notes called for redemption, CUSIP numbers, and the date of redemption. Any notice provided as described herein shall be conclusively presumed to have been duly given, whether or not the registered owner receives the notice. The Notes shall cease to bear interest on the specified redemption date provided that federal or other immediately available funds sufficient for such redemption are on deposit at the office of the Depository at that time. Upon such deposit of funds for redemption the Notes shall no longer be deemed to be outstanding. It is hereby certified and recited that all conditions, things and acts required by law to exist or to be done prior to and in connection with the issuance of this Note have been done, have existed and have been performed in due form and time; that the aggregate indebtedness of the City, including this Note and others issued simultaneously herewith, does not exceed any limitation imposed by law or the Constitution of the State of Wisconsin; and that a direct annual irrepealable tax has been levied sufficient to pay this Note, together with the interest thereon, when and as payable. This Note has been designated by the Common Council as a "qualified tax-exempt obligation" pursuant to the provisions of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. This Note is transferable only upon the books of the City kept for that purpose at the office of the Fiscal Agent, only in the event that the Depository does not continue to act as depository for the Notes, and the City appoints another depository, upon surrender of the Note to the Fiscal Agent, by the registered owner in person or his duly authorized attorney, together with a written instrument of transfer (which may be endorsed hereon) satisfactory to the Fiscal Agent duly executed by the registered owner or his duly authorized attorney. Thereupon a new fully -2- QB\96879846.1 registered Note in the same aggregate principal amount shall be issued to the new depository in exchange therefor and upon the payment of a charge sufficient to reimburse the City for any tax, fee or other governmental charge required to be paid with respect to such registration. The Fiscal Agent shall not be obliged to make any transfer of the Notes (i) after the Record Date, (ii) during the fifteen (15) calendar days preceding the date of any publication of notice of any proposed redemption of the Notes, or (iii) with respect to any particular Note, after such Note has been called for redemption. The Fiscal Agent and City may treat and consider the Depository in whose name this Note is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price hereof and interest due hereon and for all other purposes whatsoever. The Notes are issuable solely as negotiable, fully- registered Notes without coupons in the denomination of $5,000 or any integral multiple thereof. [This Note shall not be valid or obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Fiscal Agent.] No delay or omission on the part of the owner hereof to exercise any right hereunder shall impair such right or be considered as a waiver thereof or as a waiver of or acquiescence in any default hereunder. -3- QB\96879846.1  IN WITNESS WHEREOF, the City of Verona, Dane County, Wisconsin, by its governing body, has caused this Note to be executed for it and in its name by the manual or facsimile signatures of its duly qualified Mayor and City Clerk; and to be sealed with its official or corporate seal, if any, all as of the original date of issue specified above. CITY OF VERONA DANE COUNTY, WISCONSIN By: ______________________________ Luke Diaz Mayor (SEAL) By: ______________________________ Holly Licht City Clerk -4- QB\96879846.1 [Date of Authentication: _______________, ______ CERTIFICATE OF AUTHENTICATION This Note is one of the Notes of the issue authorized by the within-mentioned Resolution of the City of Verona, Dane County, Wisconsin. BOND TRUST SERVICES CORPORATION, ROSEVILLE, MINNESOTA By____________________________ Authorized Signatory] -5- QB\96879846.1  ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto ____________________________________________________________________________ (Name and Address of Assignee) ____________________________________________________________________________ (Social Security or other Identifying Number of Assignee) the within Note and all rights thereunder and hereby irrevocably constitutes and appoints ______________________________________, Legal Representative, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. Dated: _____________________ Signature Guaranteed: _____________________________ ________________________________ (e.g. Bank, Trust Company (Depository or Nominee Name) or Securities Firm) NOTICE: This signature must correspond with the name of the Depository or Nominee Name as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever. ____________________________ (Authorized Officer) -6- QB\96879846.1 June 23, 2025 PRE-SALE REPORT FOR City of Verona, Wisconsin $2,120,000 General Obligation Promissory Notes, Series 2025A Prepared by: Advisors: Ehlers Todd Taves, Senior Municipal Advisor N19W24400 Riverwood Drive, Joe Murray, Municipal Advisor Suite 100 Waukesha, WI 53188 BUILDING COMMUNITIES. IT’S WHAT WE DO.  EXECUTIVE SUMMARY OF PROPOSED DEBT Proposed Issue: $2,120,000 General Obligation Promissory Notes, Series 2025A (“Notes”) Purposes: The proposed issue includes financing for the purchase of fire equipment, and for installation of public improvements within Tax Incremental District Nos. 9 and 11. Debt service will be paid from ad valorem property taxes. The City expects to abate the TID No. 9 and 11 portions of the debt service payment with revenues generated by those Districts. Authority: The Notes are being issued pursuant to Wisconsin Statute 67.12(12) and will be general obligations of the City for which its full faith, credit and taxing powers are pledged. The Notes count against the City’s General Obligation Debt Capacity Limit of 5% of total City Equalized Valuation. Following issuance of the Notes, the City’s total General Obligation debt principal outstanding will be $33,250,000, which is 16% of its limit. Remaining General Obligation Borrowing Capacity will be approximately $179.8 million. Term/Call Feature: The Notes are being issued for a term of 10 years. Principal on the Notes will be due on April 1 in the years 2026 through 2035. Interest will be due every six months beginning April 1, 2026. The Notes will be subject to prepayment at the discretion of the City on April 1, 2032, or any date thereafter. Bank Qualification: Because the City is expecting to issue no more than $10,000,000 in tax exempt debt during the calendar year, the City will be able to designate the Notes as “bank qualified” obligations. Bank qualified status broadens the market for the Notes, which can result in lower interest rates. Rating: The City’s most recent bond issues were rated by Moody’s Investors Service. The current rating on those bonds is “Aa1”. The City will request a new rating for the Notes. Presale Report June 23, 2025 City of Verona, Wisconsin Page 1  Basis for Recommendation: Based on your objectives, financial situation and need, risk tolerance, liquidity needs, experience with the issuance of Notes and long-term financial capacity, as well as the tax status considerations related to the Notes and the structure, timing and other similar matters related to the Notes, we are recommending the issuance of Notes as a suitable option. Method of Sale/Placement: We are recommending the Notes be issued as municipal securities and offered through a competitive underwriting process. You will solicit competitive bids, which we will compile on your behalf, for the purchase of the Notes from underwriters and banks. An allowance for discount bidding will be incorporated in the terms of the issue. The discount is treated as an interest item and provides the underwriter with all or a portion of their compensation in the transaction. If the Notes are purchased at a price greater than the minimum bid amount (maximum discount), the unused allowance may be used to reduce your borrowing amount. Premium Pricing: In some cases, investors in municipal bonds prefer “premium” pricing structures. A premium is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds the yield to the investor, resulting in a price paid that is greater than the face value of the bonds. The sum of the amounts paid more than face value is considered “reoffering premium.” For this issue of Notes, any premium amount received that is more than the underwriting discount and any capitalized interest amounts must be placed in the debt service fund and used to pay a portion of the interest payments due on the Notes. We anticipate using any premium amounts received to reduce the issue size to the extent permitted. The amount of premium allowed can be restricted in the bid specifications. Restrictions on premium may result in fewer bids but may also eliminate large adjustments on the day of sale and unintended results with respect to debt service payment impacts. Ehlers will identify appropriate premium restrictions for the Notes intended to achieve the City’s objectives for this financing. Parameters: The City Council will consider adoption of a Parameters Resolution on June 23, 2025, which delegates authority to the Finance Director/Treasurer or City Administrator to accept and approve a bid for the Notes so long as the bid meets certain parameters. These parameters are: * Issue size not to exceed $2,120,000 * Maximum Bid of 107% * Minimum Bid of 99% * Maximum True Interest Cost (TIC) of 4.5% (estimated TIC based on presale estimate is 3.78%) * Maturity Schedule Adjustments not to exceed $100,000 per maturity Presale Report June 23, 2025 City of Verona, Wisconsin Page 2  Other Considerations: The Notes will be offered with the option of the successful bidder utilizing a term bond structure. By offering underwriters the option to “term up” some of the maturities at the time of the sale, it gives them more flexibility in finding a market for your Notes. This makes your issue more marketable, which can result in lower borrowing costs. If the successful bidder utilizes a term bond structure, we recommend the City retain a paying agent to handle responsibility for processing mandatory redemption/call notices associated with term bonds. Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that there are no refunding opportunities currently. We will continue to monitor the market and the call dates for the City’s outstanding debt and will alert you to any future refunding opportunities. Continuing Disclosure: Because the City has more than $10,000,000 in outstanding debt subject to a continuing disclosure undertaking (including this issue) and this issue does not meet an available exemption from continuing disclosure, the City will be agreeing to provide certain updated Annual Financial Information and its Audited Financial Statement annually, as well as providing notices of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board (the “MSRB”), as required by rules of the Securities and Exchange Commission (SEC). The City is already obligated to provide such reports for its existing bonds and has contracted with Ehlers to prepare and file the reports. Arbitrage Monitoring: The City must ensure compliance with certain sections of the Internal Revenue Code and Treasury Regulations (“Arbitrage Rules”) throughout the life of the issue to maintain the tax- exempt status of the Notes. These Arbitrage Rules apply to amounts held in construction, escrow, reserve, debt service account(s), etc., along with related investment income on each fund/account. IRS audits will verify compliance with rebate, yield restriction and records retention requirements within the Arbitrage Rules. The City’s specific arbitrage responsibilities will be detailed in the Tax Exemption Certificate (the “Tax Compliance Document”) prepared by your Bond Attorney and provided at closing. The Notes may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1) small issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4) reasonable reserve requirements, 5) expenditure within an available period limitation, 6) investments yield restrictions, 7) de minimis rules, or 8) borrower limited requirements. An Ehlers arbitrage expert will contact the City within 30 days after the sale date to review the City’s specific responsibilities for the Notes. The City is currently receiving arbitrage services from Ehlers in relation to the Notes. Presale Report June 23, 2025 City of Verona, Wisconsin Page 3  Investment of Note Proceeds: Ehlers can assist the City in developing a strategy to invest your Note proceeds until the funds are needed to pay project costs. Risk Factors: The City expects to abate a portion of the Note debt service payments for the issue with tax incremental revenues. In the event these revenues are not available, the City is obligated to levy property taxes in an amount sufficient to make all debt payments. Other Service Providers: This debt issuance will require the engagement of other public finance service providers. This section identifies those other service providers, so Ehlers can coordinate their engagement on your behalf. Where you have previously used a particular firm to provide a service, we have assumed that you will continue that relationship. For services you have not previously required, we have identified a service provider. Fees charged by these service providers will be paid from proceeds of the obligation, unless you notify us that you wish to pay them from other sources. Our pre-sale bond sizing includes a good faith estimate of these fees, but the final fees may vary. If you have any questions pertaining to the identified service providers or their role, or if you would like to use a different service provider for any of the listed services, please contact us. Bond Counsel: Quarles & Brady LLP Paying Agent: The City, unless winning bid includes term bonds, in which case Bond Trust Services Corporation will act as paying agent. Rating Agency: Moody's Investors Service, Inc. PROPOSED DEBT ISSUANCE SCHEDULE City Council adopts Parameters Resolution: June 23, 2025 Due Diligence Call to Review Official Statement: Week of June 30, 2025 Conference with Rating Agency: Week of June 30, 2025 Distribute Official Statement: July 9, 2025 Sale and Award by Designated Officials: July 16, 2025 Estimated Closing Date: August 6, 2025 Presale Report June 23, 2025 City of Verona, Wisconsin Page 4 Attachments Table 1 – Existing G.O. Debt Base Case Table 2 – Note Sizing Worksheet Table 3 – Allocation of Note Debt Service Table 4 – Financing Plan Tax Impact Bond Buyer Index ELERS’ CONTACTS EHLERS’ CONTACTS Todd Taves, Senior Municipal Advisor (262) 796-6173 Joe Murray, Municipal Advisor (262) 796-6196 Alicia Gerosa, Public Finance Analyst (262) 796-6193 Kathy Myers, Senior Financial Analyst (262) 796-6177 Presale Report June 23, 2025 City of Verona, Wisconsin Page 5  Table 1 Existing G.O. Debt Base Case City of Verona, WI Existing Debt Total G.O. Less: Less: Less: Less: Less: Less: Less: Less: Less: Less: Annual Taxes Year Debt G.O. Debt Library Police Fire Old Library Debt Service Equalized Value Tax Rate $527,000 Year Ending Payments Expense Park & Rec TID 9 Storm Sewer Water Impact Fees Impact Fees Impact Fees Rental Fund Bal. Net Tax Levy (TID OUT) Per $1,000 Home Ending 2025 6,192,163 1,725 (30,338) (361,063) (266,561) (521,694) (289,580) (310,000) (161,975) (250,000) (30,000) (165,180) 3,807,498 4,049,963,900 $0.94 $495.45 2025 2026 5,605,409 1,725 (349,625) (260,740) (520,590) (283,856) (15,000) (157,325) (252,000) 3,767,998 4,212,507,678 $0.89 $471.39 2026 2027 4,407,694 1,725 (347,125) (259,396) (443,878) (198,546) (15,000) (252,000) 2,893,474 4,381,575,090 $0.66 $348.02 2027 2028 4,158,850 1,725 (344,125) (224,153) (365,578) (129,640) (252,000) 2,845,080 4,557,427,958 $0.62 $328.99 2028 2029 3,554,231 1,725 (340,625) (210,303) (362,853) (136,471) (252,000) 2,253,705 4,740,338,616 $0.48 $250.55 2029 2030 3,335,278 1,725 (346,375) (207,458) (365,003) (34,635) (252,000) 2,131,533 4,930,590,324 $0.43 $227.83 2030 2031 2,782,236 1,725 (342,300) (199,506) (361,938) (14,223) (252,000) 1,613,995 5,128,477,712 $0.31 $165.85 2031 2032 2,590,070 1,725 (339,300) (27,500) (361,313) (13,908) (252,000) 1,597,775 5,334,307,237 $0.30 $157.85 2032 2033 2,583,930 1,725 (336,500) (26,500) (355,650) (13,585) (252,000) 1,601,420 5,548,397,652 $0.29 $152.11 2033 2034 2,178,113 1,725 (127,500) (25,500) (359,628) (23,090) (252,000) 1,392,120 5,771,080,505 $0.24 $127.12 2034 2035 1,087,415 1,725 0 0 (299,383) (22,420) 767,338 6,002,700,651 $0.13 $67.37 2035 2036 956,328 1,725 (295,005) (21,740) 641,308 6,243,616,784 $0.10 $54.13 2036 2037 951,205 1,725 (300,275) (21,050) 631,605 6,494,201,996 $0.10 $51.25 2037 2038 610,273 1,725 (305,023) (20,350) 286,625 6,754,844,351 $0.04 $22.36 2038 2039 274,860 1,725 (274,860) 0 1,725 7,025,947,489 $0.00 $0.13 2039 2040 0 0 0 7,307,931,250 $0.00 $0.00 2040 2041 0 7,601,232,322 $0.00 $0.00 2041 2042 0 7,906,304,923 $0.00 $0.00 2042 2043 0 8,223,621,498 $0.00 $0.00 2043 2044 0 8,553,673,455 $0.00 $0.00 2044 Total 41,268,053 25,875 (30,338) (3,234,538) (1,707,616) (5,492,667) (1,223,094) (340,000) (319,300) (2,518,000) (30,000) (165,180) 26,233,197 Total Financing Plan Verona 2025 Prepared 6/4/2025 Page 6  Table 2 Note Sizing Worksheet City of Verona, WI 2025 G.O. Notes TID 9 Portion TID 11 Portion Levy Portion CIP Projects Legion/West Verona Ave-Signalized/Intersection Imp 791,600 791,600 Water System Master Plan & Pressure Monitoring/Calibration 75,700 75,700 Wastewater System Master Plan & Flow Monitoring/Calibration 100,000 100,000 Upsize West Side Wastewater Pump Station Pumps, Motors, Controls 234,400 234,400 Water Tower Siting Study - Central Zone 45,000 45,000 Rehabilitate Well 4 80,500 80,500 Squad 5 Replacement - Fire Dept. 720,000 720,000 Subtotal Project Costs 2,047,200 791,600 535,600 720,000 Estimated Issuance Expenses Municipal Advisor (Ehlers) 28,900 11,178 7,566 10,156 Bond Counsel 20,000 7,736 5,236 7,028 Rating Fee 14,500 5,608 3,796 5,096 Maximum Underwriter's Discount 10.00 21,200 8,200 5,550 7,450 Paying Agent 850 329 223 299 Subtotal Issuance Expenses 85,450 33,051 22,370 30,028 TOTAL TO BE FINANCED 2,132,650 824,651 557,970 750,028 Estimated Interest Earnings 3.00% (15,354) (5,937) (4,017) (5,400) Assumed spend down (months) 3.00 Rounding 2,704 1,286 1,047 372 NET BOND SIZE 2,120,000 820,000 555,000 745,000 Financing Plan Verona 2025 Prepared 6/4/2025 Page 7  Table 3 Allocation of Note Debt Service City of Verona, WI Year TID 9 Portion TID 11 Portion Levy Portion Year Totals Ending Principal Est. Rate1 Interest Total Principal Est. Rate Interest Total Principal Est. Rate Interest Total Ending Principal (4/1) Interest Total 2026 65,000 3.35% 32,085 97,085 100,000 3.35% 19,963 119,963 60,000 3.35% 29,123 89,123 2026 225,000 81,171 306,171 2027 70,000 3.35% 25,428 95,428 110,000 3.35% 13,578 123,578 65,000 3.35% 23,036 88,036 2027 245,000 62,041 307,041 2028 75,000 3.35% 22,999 97,999 110,000 3.35% 9,893 119,893 70,000 3.35% 20,775 90,775 2028 255,000 53,666 308,666 2029 80,000 3.40% 20,383 100,383 115,000 3.40% 6,095 121,095 70,000 3.40% 18,413 88,413 2029 265,000 44,890 309,890 2030 80,000 3.45% 17,643 97,643 120,000 3.45% 2,070 122,070 75,000 3.45% 15,929 90,929 2030 275,000 35,641 310,641 2031 85,000 3.50% 14,775 99,775 3.50% 0 0 75,000 3.50% 13,323 88,323 2031 160,000 28,098 188,098 2032 85,000 3.55% 11,779 96,779 3.55% 0 0 80,000 3.55% 10,590 90,590 2032 165,000 22,369 187,369 2033 90,000 3.60% 8,650 98,650 3.60% 0 0 80,000 3.60% 7,730 87,730 2033 170,000 16,380 186,380 2034 95,000 3.65% 5,296 100,296 3.65% 0 0 85,000 3.65% 4,739 89,739 2034 180,000 10,035 190,035 2035 95,000 3.75% 1,781 96,781 3.75% 0 0 85,000 3.75% 1,594 86,594 2035 180,000 3,375 183,375 2036 0 2037 0 2038 0 2039 0 Total 820,000 160,818 980,818 555,000 51,598 606,598 745,000 145,250 890,250 Total 2,120,000 357,666 2,477,666 Notes: 1) Estimated Rate assumes Aa1 sale of 5/15/25 + .25 Financing Plan Verona 2025 Prepared 6/4/2025 Page 8  Table 4 Financing Plan Tax Impact City of Verona, WI Existing Debt Proposed Debt 2025 G.O. Notes Abatements Debt Service Levy Taxes Net Debt Change Annual Taxes 2,120,000 Total Levy Change Total Tax Annual Taxes Annual Taxes Year Total Debt G.O. Debt Less Other Service From Prior Equalized Value Tax Rate $527,000 Dated: 8/6/2025 Less: Less: Net Debt from Prior Rate for $527,000 Difference Year Ending Payments Expense Pmt Sources Levy Year Levy (TID OUT) Per $1,000 Home Total Payment TID 9 TID 11 Service Levy Year Debt Service Home From Existing Ending 2025 6,192,163 1,725 (2,386,391) 3,807,498 4,049,963,900 $0.94 $495.45 3,807,498 $0.94 $495 $0 2025 2026 5,605,409 1,725 (1,839,136) 3,767,998 (39,500) 4,212,507,678 $0.89 $471.39 306,171 (97,085) (119,963) 3,857,120 49,622 $0.92 $483 $11 2026 2027 4,407,694 1,725 (1,515,945) 2,893,474 (874,524) 4,381,575,090 $0.66 $348.02 307,041 (95,428) (123,578) 2,981,510 (875,610) $0.68 $359 $11 2027 2028 4,158,850 1,725 (1,315,495) 2,845,080 (48,394) 4,557,427,958 $0.62 $328.99 308,666 (97,999) (119,893) 2,935,855 (45,655) $0.64 $339 $10 2028 2029 3,554,231 1,725 (1,302,251) 2,253,705 (591,375) 4,740,338,616 $0.48 $250.55 309,890 (100,383) (121,095) 2,342,118 (593,738) $0.49 $260 $10 2029 2030 3,335,278 1,725 (1,205,470) 2,131,533 (122,173) 4,930,590,324 $0.43 $227.83 310,641 (97,643) (122,070) 2,222,461 (119,656) $0.45 $238 $10 2030 2031 2,782,236 1,725 (1,169,966) 1,613,995 (517,538) 5,128,477,712 $0.31 $165.85 188,098 (99,775) 0 1,702,318 (520,144) $0.33 $175 $9 2031 2032 2,590,070 1,725 (994,020) 1,597,775 (16,220) 5,334,307,237 $0.30 $157.85 187,369 (96,779) 0 1,688,365 (13,953) $0.32 $167 $9 2032 2033 2,583,930 1,725 (984,235) 1,601,420 3,645 5,548,397,652 $0.29 $152.11 186,380 (98,650) 0 1,689,150 785 $0.30 $160 $8 2033 2034 2,178,113 1,725 (787,718) 1,392,120 (209,300) 5,771,080,505 $0.24 $127.12 190,035 (100,296) 0 1,481,859 (207,291) $0.26 $135 $8 2034 2035 1,087,415 1,725 (321,803) 767,338 (624,783) 6,002,700,651 $0.13 $67.37 183,375 (96,781) 0 853,931 (627,928) $0.14 $75 $8 2035 2036 956,328 1,725 (316,745) 641,308 (126,030) 6,243,616,784 $0.10 $54.13 641,308 (212,624) $0.10 $54 $0 2036 2037 951,205 1,725 (321,325) 631,605 (9,703) 6,494,201,996 $0.10 $51.25 631,605 (9,703) $0.10 $51 $0 2037 2038 610,273 1,725 (325,373) 286,625 (344,980) 6,754,844,351 $0.04 $22.36 286,625 (344,980) $0.04 $22 $0 2038 2039 274,860 1,725 (274,860) 1,725 (284,900) 7,025,947,489 $0.00 $0.13 1,725 (284,900) $0.00 $0 $0 2039 2040 0 0 0 0 (1,725) 7,307,931,250 $0.00 $0.00 0 (1,725) $0.00 $0 $0 2040 2041 0 0 0 0 0 7,601,232,322 $0.00 $0.00 0 0 $0.00 $0 $0 2041 2042 0 0 0 0 0 7,906,304,923 $0.00 $0.00 0 0 $0.00 $0 $0 2042 2043 0 0 0 0 0 8,223,621,498 $0.00 $0.00 0 0 $0.00 $0 $0 2043 2044 0 0 0 0 0 8,553,673,455 $0.00 $0.00 0 0 $0.00 $0 $0 2044 Total 41,268,053 25,875 (15,060,732) 26,233,197 2,477,666 (980,818) (606,598) 94 Total Notes: Financing Plan Verona 2025 Prepared 6/4/2025 Page 9  10 YEAR TREND IN MUNICIPAL BOND INDICES The Bond Buyer “20 Bond Index” (BBI) shows average yields on a group of municipal bonds that mature in 20 years and have an average rating equivalent to Moody’s Aa2 and S&P’s AA. Source: The Bond Buyer Page 10