August 24, 2026 - Finance Committee Agenda & Packet

CITY OF VERONA 111 Lincoln Street Verona, WI 53593 (608) 845-6495 veronawi.gov FINANCE COMMITTEE DATE: MONDAY , AUGUST 24, 2026 TIME: 5:45 PM LOCATION: CONFERENCE ROOM D110 CITY HALL 111 LINCOLN STREET VERONA, WI 53593 1. Call to Order 2. Roll Call 3. Public Comment 4. Discussion and Possible Action re: Recommended Approval of the August 17, 2026, Finance Committee Minutes 5. Discussion and Possible Action re: Resolution 26-031 Authorizing the Issuance and Establishing Parameters for the Sale of Not to Exceed $2,515,000 General Obligation Promissory Notes, Series 2026A 6. Discussion and Possible Action re: 2027 Budget Updates and Presentations (Police Department and Emergency Preparedness) 7. Discussion and Possible Action re: Quote for BS&A Cloud Upgrade 8. Discussion and Possible Action re: Payment of Bills 9. Adjournment. Mara Helmke - Chairperson POSTED: August 21, 2026 Verona City Hall Verona Public Library Miller’s Market All agendas are posted on the City website at: veronawi.gov Notice: If you need an interpreter, materials in alternative formats, or other accommodation to access the meeting, please contact the City Clerk at (608) 845-6495 at least 48 hours preceding the meeting. Every reasonable effort will be made to accommodate your request. Notice is hereby given that a quorum of the members of the City Council or other standing committees of the City Council may be present at the meeting of the Finance Committee to gather information about a subject over which they have decision-making responsibility. The City Council and any other standing committees will not take formal action at this meeting. www.veronawi.gov City of Verona Finance Committee City Hall – 111 Lincoln Street Verona, WI 53593-1520 MINUTES FINANCE COMMITTEE AUGUST 17, 2026 The meeting was called to order by Chairperson Mara Helmke at 5:00 p.m. Roll Call: Chairperson Mara Helmke, Alder Patrick Lytle and Alder Spencer Harrison were present. Also present: Mayor Luke Diaz, Finance Director Brian Lamers, Fire Chief David Hensley, EMS Chief Partick Anderson and Senior Center Director Stephanie Ehle Public Comment: None Discussion and Possible Action regarding approval of August 10, 2026 Finance Committee minutes: Motion was made by Lytle, seconded by Harrison to approve the August 10, 2026 Finance Committee minutes with no changes noted. Motion carried 3-0. Discussion and Possible Action regarding the 2027 Budget Updates and Presentations for Fire, FitchRona EMS, Senior Center: EMS Chief Patrick Anderson went through the budget presentation for EMS. He went through the changes in staffing which was the main increase in the EMS budget. He stated the increase to the City of Verona is $33,716 or 4.61%. He stated there is a request for the replacement of an ambulance in 2027 budget with an estimated cost for the City of Verona at $172,958. Senior Center Director Stephanie Ehle did a presentation for the Committee showing the operation and the increase in participation and programs. She went over the additional staffing request including a Volunteer Coordinator, Programs Coordinator and adding Van Drivers, Exercise Class Instructors and Interns as employees. She talked about the capital request of furniture upgrades, fire panel and projector replacement. She stated that she applied for an Epic grant for a portion of the furniture and has not heard back yet. Lamers stated that instead of purchasing the furniture over two years, fund balance may be able to be utilized for the purchase all in 2027. Fire Chief David Hensley went through the budget presentation for the Fire Department. He went over the amounts of calls, inspections and citations for comparisons. He stated he increased the budget for equipment repairs by $20,000 and building and ground repairs by $25,000. He talked about the staffing and the request for one position in 2028. He discussed the capital request and the need for two replacement vehicles in the amount of $80,000 each. Discussion took place regarding the possibility of electric vehicles and if they would be an option. www.veronawi.gov Lamers updated the Committee on any other budget items. He stated the League membership went from $10,042 to $10,663. He also stated we received the library minimum funding amount. The amount is going from $1,424,453 to $1,328,709 for a decrease of $95,744. Lamers said he received an email from Library Director Stacey Burkart that she would like to still fund the library at the amount of the draft budget of $1,451,776, which is an increase in levy from last year of $27,323. Lamers stated with the addition staffing for Sunday hours requested was approximately $200,000, but some of that will be offset by the increase of Dane County funding of $173,995. Lamers stated he want to make the Committee aware of this because it could impact the budget as a whole. Discussion and Possible Action regarding the Revenue and Expenditure Summary Report-July 2026: Lamers stated nothing new to report. Discussion and Possible Action regarding the City Investment Report-July 2026: Lamers stated nothing significant noted. Adjournment: Motion was made by Helmke, seconded by Harrison to adjourn the Finance Committee Meeting at 8:02 p.m. Motion carried 3-0. Respectfully submitted, Brian Lamers CPA Finance Director QB\104049024.1 RESOLUTION NO. 26-031 RESOLUTION AUTHORIZING THE ISSUANCE AND ESTABLISHING PARAMETERS FOR THE SALE OF NOT TO EXCEED $2,515,000 GENERAL OBLIGATION PROMISSORY NOTES, SERIES 2026A 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 paying the cost of an intersection study, trail improvements and sanitary sewer improvements within the City's Tax Incremental District No. 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 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 general obligation promissory notes (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 the cost 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 FIVE HUNDRED FIFTEEN THOUSAND DOLLARS ($2,515,000) 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 FIVE HUNDRED FIFTEEN THOUSAND DOLLARS ($2,515,000). The purchase price to be paid to the City for the Notes shall not be less than 99.0% nor more than 110.0% of the principal amount of the Notes. QB\104049024.1 -2- Section 2. Terms of the Notes. The Notes shall be designated "General Obligation Promissory Notes, Series 2026A"; shall be issued in the aggregate principal amount of up to $2,515,000; 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 shall 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 $145,000 per maturity or mandatory redemption amount and that the aggregate principal amount of the Notes shall not exceed $2,515,000. The schedule below assumes the Notes are issued in the aggregate principal amount of $2,515,000. Date Principal Amount 04-01-2027 $320,000 04-01-2028 330,000 04-01-2029 340,000 04-01-2030 350,000 04-01-2031 365,000 04-01-2032 150,000 04-01-2033 155,000 04-01-2034 160,000 04-01-2035 170,000 04-01-2036 175,000 Interest shall be payable semi-annually on April 1 and October 1 of each year commencing on April 1, 2027. 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 as set forth in 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 in 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 2026 through 2035 for QB\104049024.1 -3- the payments due in the years 2027 through 2036 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 2026A" (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 QB\104049024.1 -4- 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. QB\104049024.1 -5- (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 third party 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 a third party Fiscal Agent. Such contract may provide, among other things, for the performance by the third party 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. QB\104049024.1 -6- 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 Ehlers. 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 QB\104049024.1 -7- 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. QB\104049024.1 -8- 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 August 24, 2026. _____________________________ Luke Diaz Mayor ATTEST: ____________________________ Holly Licht City Clerk (SEAL) QB\104049024.1 EXHIBIT A APPROVING CERTIFICATE The undersigned [City Administrator] [Finance Director/Treasurer] of the City of Verona, Dane County, Wisconsin (the "City"), hereby certifies that: 1. Resolution. On August 24, 2026, the Common Council of the City adopted a resolution (the "Resolution") authorizing the issuance and establishing parameters for the sale of not to exceed $2,515,000 General Obligation Promissory Notes, Series 2026A 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 $2,515,000 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 $145,000 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 04-01-2027 $320,000 $___________ 04-01-2028 330,000 ___________ 04-01-2029 340,000 ___________ 04-01-2030 350,000 ___________ 04-01-2031 365,000 ___________ 04-01-2032 150,000 ___________ 04-01-2033 155,000 ___________ 04-01-2034 160,000 ___________ 04-01-2035 170,000 ___________ 04-01-2036 175,000 ___________ 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\104049024.1 -2- 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 99.0% nor more than 110.0% of the principal amount of the Notes, as required by the Resolution. 4. Redemption Provisions of the Notes. The Notes maturing on April 1, 20__ and thereafter shall be subject to redemption prior to maturity, at the option of the City, on April 1, 20__ or on any date thereafter. Said Notes shall be 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 in an attachment hereto as Schedule MRP and incorporated herein by this reference.] 5. [Payment of the Notes; Fiscal Agent. Pursuant to the Resolution, ______________________________ 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. 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. QB\104049024.1 -3- IN WITNESS WHEREOF, I have executed this Certificate on ______________, 2026 pursuant to the authority delegated to me in the Resolution. [ Jamie J. Aulik City Administrator] OR [ Brian Lamers Finance Director/Treasurer] QB\104049024.1 SCHEDULE I TO APPROVING CERTIFICATE Bid Tabulation To be provided by Ehlers & Associates, Inc. and incorporated into the Certificate. (See Attached) QB\104049024.1 SCHEDULE II TO APPROVING CERTIFICATE Proposal To be provided by Ehlers & Associates, Inc. and incorporated into the Certificate. (See Attached) QB\104049024.1 SCHEDULE III TO APPROVING CERTIFICATE Pricing Summary To be provided by Ehlers & Associates, Inc. and incorporated into the Certificate. (See Attached) QB\104049024.1 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\104049024.1 [SCHEDULE MRP TO APPROVING CERTIFICATE 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\104049024.1 EXHIBIT B (Form of Note) UNITED STATES OF AMERICA REGISTERED STATE OF WISCONSIN DOLLARS DANE COUNTY NO. R-___ CITY OF VERONA $_______ GENERAL OBLIGATION PROMISSORY NOTE, SERIES 2026A MATURITY DATE: ORIGINAL DATE OF ISSUE: INTEREST RATE: CUSIP: April 1, _____ __________, 2026 ____% ______ DEPOSITORY OR ITS NOMINEE NAME: CEDE & CO. PRINCIPAL AMOUNT: _______________________ THOUSAND DOLLARS ($__________) 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, 2027 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 [________________] 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 paying the cost of an intersection study, trail improvements and sanitary sewer improvements within the City's Tax Incremental District No. 11, as authorized by a resolution adopted on August 24, 2026, as supplemented by an QB\104049024.1 -2- Approving Certificate, dated __________, 20__ (collectively, the "Resolution"). Said Resolution is recorded in the official minutes of the Common Council for said date. The Notes maturing on April 1, 20__ and thereafter are subject to redemption prior to maturity, at the option of the City, on April 1, 20__ 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 QB\104049024.1 -3- 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. QB\104049024.1 -4- 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 QB\104049024.1 -5- [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. _______________________ By____________________________ Authorized Signatory] QB\104049024.1 -6- 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) PRE-SALE REPORT FOR City of Verona, Wisconsin $2,515,000 General Obligation Promissory Notes, Series 2026A Prepared by: Ehlers N19W24400 Riverwood Drive, Suite 100 Waukesha, WI 53188 Advisors: Todd Taves, Senior Municipal Advisor Joe Murray, Municipal Advisor BUILDING COMMUNITIES. IT’S WHAT WE DO. Presale Report City of Verona, Wisconsin Page 1 Proposed Issue: $2,515,000 General Obligation Promissory Notes, Series 2026A (“Notes”) Purposes: The proposed issue includes financing for and i ntersection study (Main Street and Verona Avenue), trail construction, and sanitary sewer improvements within Tax Incremental District No. 11. Debt service will be paid from ad valorem property taxes. The City expects to abate the TID No. 11 portion of the debt service payment with revenues generated by that District. 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 d ebt capacity limit of 5% of total City e qualized valuation. Following issuance of the Notes, the City’s total General Obligation debt principal outstanding will be $ 30,285,000, which is 12 % of its limit. Remaining General Obligation borrowing capacity will be approximately $219.4 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 2027 through 2036. Interest will be due every six months beginning April 1, 2027. The Notes will be subject to prepayment at the discretion of the City on April 1, 2034 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. EXECUTIVE SUMMARY OF PROPOSED DEBT Presale Report City of Verona, Wisconsin Page 2 Basis for Recommendation: Based on your objectives, financial situation and need, risk tolerance, liquidity needs, experience with the issuance of Note s 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 above 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. T he 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 August 24, 2026, 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 p arameters are: * Issue size not to exceed $2,515,000 * Maximum Bid of 110% * Minimum Bid of 99% * Maximum True Interest Cost (TIC) of 4.5% (estimated TIC based on presale estimate is 4.15%) * Maturity Schedule Adjustments may increase or decrease by up to $145,000 per maturity. Presale Report City of Verona, Wisconsin Page 3 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 updat ed 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 limitations, 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 City of Verona, Wisconsin Page 4 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. City Council adopts Parameters Resolution: August 24, 2026 Due Diligence Call to Review Official Statement: Week of September 14, 2026 Conference with Rating Agency: Week of September 14, 2026 Distribute Official Statement: September 23, 2026 Designated Officials Award Sale of the Notes: September 30, 2026 Estimated Closing Date: October 21, 20206 PROPOSED DEBT ISSUANCE SCHEDULE Presale Report City of Verona, Wisconsin Page 5 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 HLERS’ CONTACTS Todd Taves, Senior Municipal Advisor (262) 796-6173 Joe Murray, Municipal Advisor (262) 796-6196 Dan Pagac, Public Finance Analyst (262) 796-6163 Beth Mueller, Senior Financial Analyst (651) 697-8553 EHLERS’ CONTACTS Table 1 Existing G.O. Debt Base Case City of Verona, WI Annual Taxes Year Less: Less: Less: Less: Less: Less: Less: Plus: Tax Rate $527,000 Year Ending Water Sewer Storm TID 9 TID 11 Impact Fees FB Applied Debt Fees Per $1,000 Home Ending 2025 0 4,049,963,900 $0.00 $0.00 2025 2026 6,006,837 (283,856) (520,590) (260,740) (483,256) (143,358) (512,813) (22,538) 1,887 3,781,573 4,367,658,000 $0.87 $456.28 2026 2027 4,730,144 (198,546) (443,878) (259,396) (443,941) (119,000) 3,265,382 4,555,253,862 $0.72 $377.77 2027 2028 4,464,425 (129,640) (365,578) (224,153) (443,925) (118,875) 3,182,255 4,750,907,178 $0.67 $353.00 2028 2029 3,857,806 (136,471) (362,853) (210,303) (436,925) (118,500) 2,592,755 4,954,964,026 $0.52 $275.76 2029 2030 3,641,228 (34,635) (365,003) (207,458) (444,050) (117,875) 2,472,208 5,167,785,348 $0.48 $252.11 2030 2031 2,967,936 (14,223) (361,938) (199,506) (441,100) 0 1,951,170 5,389,747,586 $0.36 $190.78 2031 2032 2,778,020 (13,908) (361,313) (27,500) (438,975) 1,936,325 5,621,243,354 $0.34 $181.53 2032 2033 2,768,755 (13,585) (355,650) (26,500) (431,925) 1,941,095 5,862,682,127 $0.33 $174.49 2033 2034 2,359,563 (23,090) (359,628) (25,500) (223,550) 1,727,795 6,114,490,970 $0.28 $148.92 2034 2035 1,271,015 (22,420) (299,383) 0 (96,900) 852,313 6,377,115,287 $0.13 $70.43 2035 2036 956,328 (21,740) (295,005) 0 639,583 6,651,019,617 $0.10 $50.68 2036 2037 951,205 (21,050) (300,275) 629,880 6,936,688,448 $0.09 $47.85 2037 2038 610,273 (20,350) (305,023) 284,900 7,234,627,079 $0.04 $20.75 2038 2039 274,860 0 (274,860) 0 7,545,362,513 $0.00 $0.00 2039 2040 0 0 0 7,869,444,385 $0.00 $0.00 2040 Total 37,638,393 (933,514) (4,970,973) (1,441,055) (3,884,547) (617,608) (512,813) (22,538) 1,887 25,257,233 Total Notes: Legend: Represents +/- 25% Change over previous year Total G.O. Debt Payments Net Tax Levy Equalized Value (TID OUT) Existing Debt Verona, WI 2026 Financing Plan 8-3-2026.xlsx Prepared 8/5/2026 Page 6 Table 2 Note Sizing Worksheet City of Verona, WI 2026 G.O. Notes Levy Portion TID 11 Portion CIP Projects Verona/Main Intersection Study 840,000 840,000 Military Ridge State Trail 600,000 600,000 Upsize West Side Wastewater Pump Station Pumps, Etc. 1,000,000 1,000,000 Subtotal Project Costs 2,440,000 1,440,000 1,000,000 Estimated Issuance Expenses Municipal Advisor (Ehlers) 31,600 18,658 12,942 Bond Counsel 20,000 11,809 8,191 Rating Fee 14,500 8,562 5,938 Paying Agent 850 502 348 Subtotal Issuance Expenses 66,950 39,531 27,419 Underwriting Discount Allowance 25,150 14,850 10,300 TOTAL TO BE FINANCED 2,532,100 1,494,381 1,037,719 Estimated Interest Earnings 3.00% (18,300) (10,800) (7,500) Assumed spend down (months) 3.00 Rounding 1,200 1,419 (219) NET ISSUE SIZE 2,515,000 1,485,000 1,030,000 Verona, WI 2026 Financing Plan 8-3-2026.xlsx Prepared 8/5/2026 Page 7 Table 3 Allocation of Debt Service City of Verona, WI Year Year Ending Principal Est. Rate1 Interest Total Principal Est. Rate Interest Total Ending Principal (4/1) Interest Total 2026 2026 2027 125,000 3.30% 51,308 176,308 195,000 3.30% 30,790 225,790 2027 320,000 82,098 402,098 2028 130,000 3.40% 50,175 180,175 200,000 3.40% 26,173 226,173 2028 330,000 76,348 406,348 2029 135,000 3.45% 45,636 180,636 205,000 3.45% 19,236 224,236 2029 340,000 64,873 404,873 2030 140,000 3.60% 40,788 180,788 210,000 3.60% 11,920 221,920 2030 350,000 52,708 402,708 2031 145,000 3.70% 35,585 180,585 220,000 3.70% 4,070 224,070 2031 365,000 39,655 404,655 2032 150,000 3.80% 30,053 180,053 3.80% 0 0 2032 150,000 30,053 180,053 2033 155,000 3.90% 24,180 179,180 3.90% 0 0 2033 155,000 24,180 179,180 2034 160,000 4.00% 17,958 177,958 4.00% 0 0 2034 160,000 17,958 177,958 2035 170,000 4.10% 11,273 181,273 4.10% 0 0 2035 170,000 11,273 181,273 2036 175,000 4.45% 3,894 178,894 4.45% 0 0 2036 175,000 3,894 178,894 Total 1,485,000 310,848 1,795,848 1,030,000 92,188 1,122,188 Total 2,515,000 403,036 2,918,036 Notes: 1) Estimated Rate assumes current GO BQ "Aa1" market rates + 50 bps Levy Portion TID 11 Portion Totals Verona, WI 2026 Financing Plan 8-3-2026.xlsx Prepared 8/5/2026 Page 8 Table 4 Financing Plan Tax Impact City of Verona, WI 2026 G.O. Notes Net Debt Change Annual Taxes 2,515,000 Total Levy Change Total Tax Annual Taxes Annual Taxes Annual Taxes Year Debt Service Service From Prior Tax Rate $527,000 Dated: 10/21/2026 Less: Net Debt from Prior Rate for $527,000 Difference Difference Year Ending Offsets Levy Year Levy Per $1,000 Home Total P&I TID 11 Service Levy Year Debt Service Home From Prior Year From Existing Ending 2026 6,006,837 (2,225,264) 3,781,573 4,367,658,000 $0.87 $456.28 0 0 3,781,573 $0.87 $456 $0 2026 2027 4,730,144 (1,464,761) 3,265,382 (516,190) 4,555,253,862 $0.72 $377.77 402,098 (225,790) 3,441,691 (339,882) $0.76 $398 ($58) $20 2027 2028 4,464,425 (1,282,170) 3,182,255 (83,127) 4,750,907,178 $0.67 $353.00 406,348 (226,173) 3,362,430 (79,261) $0.71 $373 ($25) $20 2028 2029 3,857,806 (1,265,051) 2,592,755 (589,500) 4,954,964,026 $0.52 $275.76 404,873 (224,236) 2,773,391 (589,039) $0.56 $295 ($78) $19 2029 2030 3,641,228 (1,169,020) 2,472,208 (120,548) 5,167,785,348 $0.48 $252.11 402,708 (221,920) 2,652,995 (120,396) $0.51 $271 ($24) $18 2030 2031 2,967,936 (1,016,766) 1,951,170 (521,038) 5,389,747,586 $0.36 $190.78 404,655 (224,070) 2,131,755 (521,240) $0.40 $208 ($62) $18 2031 2032 2,778,020 (841,695) 1,936,325 (14,845) 5,621,243,354 $0.34 $181.53 180,053 0 2,116,378 (15,378) $0.38 $198 ($10) $17 2032 2033 2,768,755 (827,660) 1,941,095 4,770 5,862,682,127 $0.33 $174.49 179,180 0 2,120,275 3,898 $0.36 $191 ($8) $16 2033 2034 2,359,563 (631,768) 1,727,795 (213,300) 6,114,490,970 $0.28 $148.92 177,958 0 1,905,753 (214,523) $0.31 $164 ($26) $15 2034 2035 1,271,015 (418,703) 852,313 (875,483) 6,377,115,287 $0.13 $70.43 181,273 0 1,033,585 (872,168) $0.16 $85 ($79) $15 2035 2036 956,328 (316,745) 639,583 (212,730) 6,651,019,617 $0.10 $50.68 178,894 0 818,476 (215,109) $0.12 $65 ($21) $14 2036 2037 951,205 (321,325) 629,880 (9,703) 6,936,688,448 $0.09 $47.85 0 0 629,880 (188,596) $0.09 $48 ($17) $0 2037 2038 610,273 (325,373) 284,900 (344,980) 7,234,627,079 $0.04 $20.75 0 0 284,900 (344,980) $0.04 $21 ($27) $0 2038 2039 274,860 (274,860) 0 (284,900) 7,545,362,513 $0.00 $0.00 0 0 0 (284,900) $0.00 $0 ($21) $0 2039 2040 0 0 0 0 7,869,444,385 $0.00 $0.00 0 0 0 0 $0.00 $0 $0 $0 2040 Total 37,638,393 (12,381,161) 25,257,233 2,918,036 (1,122,188) 173 Total Cost of new debt to Sample Taxpayer Notes: Proposed DebtExisting Debt Total Debt Payments Equalized Value (TID OUT) Abatements Debt Service Levy Taxes Verona, WI 2026 Financing Plan 8-3-2026.xlsx Prepared 8/5/2026 Page 9 20 YEAR TREND IN MUNICIPAL BOND INDICES Source: The Bond Buyer 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. Page 10 CITY OF VERONA 111 Lincoln Street Verona, WI 53590-1520 Jamie J. Aulik, City Administrator Phone: (608) 848-9942 Email: jaulik@veronawi.gov MEMORANDUM To: Finance Committee From: Jamie J. Aulik, City Administrator Brian Lamers, Finance Director Date: August 19, 2026 Re: Transition of BS&A Software to Cloud-Based Subscription Background: The City currently operates BS&A, its enterprise financial and accounting system, on an internal server. The existing environment can continue to support BS&A in the short term, however, BS&A is transitioning its customers to a cloud-based platform and has indicated that its on-premise application will eventually be sunset. As a result, continued use of BS&A as the City’s financial system will ultimately require a transition to BS&A Cloud. When consulting the City’s IT service and support provider, they have advised that the City’s planned server replacement could continue to support BS&A. However, they have also identified several reasons for moving BS&A off the City’s internal network, such as cybersecurity considerations, the administrative requirements associated with maintaining the current system, and the fact that the City would otherwise be investing in infrastructure to support an on-premise application that will eventually require migration to the cloud. Further, under the current configuration BS&A users require local administrator rights on their computers because of the frequency and importance of software updates. Local administrator rights provide users with the ability to install software and make other changes to their workstations. To keep our local network secure, the City’s IT provider has identified reducing these administrator rights as a cybersecurity benefit of moving BS&A to a cloud- based environment. BS&A Cloud would also eliminate the City’s need to maintain the server infrastructure supporting the application. BS&A Cloud: BS&A describes its cloud platform as a Software-as-a-Service (SaaS) platform designed for local governments. The cloud environment provides browser-based access, automatic software updates, role-based security, disaster recovery, and eliminates the need for customer- maintained server hardware. BS&A’s cloud platform is hosted in Microsoft Azure and includes automated backups and data-breach monitoring. It also eliminates the need for the municipality to maintain the underlying hardware and storage infrastructure. More information on the product comparison between their local server-based product and the cloud-based product is included with this memo. Financial Considerations: BS&A’s current proposal, dated April 23, 2026, provides for the City’s financial management, personnel management, community development and utility billing modules to be moved to BS&A Cloud. The current proposal includes: • Annual BS&A Cloud subscription: $54,410 • Cloud implementation/upgrade services: $69,400 • Total first-year cost: $123,810 The $69,400 implementation/upgrade amount is a one-time cost associated with the transition. The $54,410 annual subscription would be an ongoing annual software expense. The current proposal expires August 20, 2026. We have requested an extension of the proposal period to allow sufficient time to consider the quote. For comparison, the City received a proposal in 2022 of approximately $121,180 to transition to BS&A Cloud. At that time, the annual software fee was expected to increase into the $30,000 range. If the City remains on the current system, it will continue to incur costs associated with server infrastructure, IT support, maintenance and software administration. The City’s IT provider has indicated that the planned server replacement could support BS&A, including by using one physical server with three virtual servers in place of the City’s current three- server configuration. Accordingly, the decision before the City is not simply whether to replace or maintain the current server environment, it also involves determining when to transition an application that BS&A has indicated will eventually move away from its on-premise platform. Timing and Budget Considerations: The current BS&A proposal expires August 20, 2026 (again, we requested a two-week extension). Staff is bringing the matter to the Finance Committee at this time for consideration of whether the transition should be initiated during the current budget year rather than deferred to a future budget cycle. There are several factors relevant to that timing: • BS&A’s direction for its on-premise product. The City will eventually need to transition from its current environment if it intends to continue using BS&A. • Current IT infrastructure planning. The City’s planned server replacement can support the existing BS&A environment, but continuing to operate BS&A on- premise would require the City to maintain the associated server infrastructure until a future cloud transition occurs. • Cybersecurity. The City’s IT provider has identified the current requirement for BS&A users to have local administrator rights as a cybersecurity concern. Moving to the cloud would eliminate the need to maintain BS&A’s current server-based update process. • Current proposal. The existing proposal provides a known implementation cost and annual subscription cost. A future proposal would be subject to then-current pricing and contract terms. • Implementation schedule. Staff is also considering the timing of implementation and the feasibility of maintaining the proposed January go-live date. Recommended Funding Source: Because the transition involves the replacement of a server-based application with a cloud- based environment and has a significant cybersecurity and IT infrastructure component, staff recommends that the one-time implementation cost be considered for funding from the City’s IT Infrastructure capital budget. The ongoing BS&A Cloud subscription would be budgeted as an operating expense in subsequent years. Recommendation: Staff recommend that the Finance Committee recommend approval of the quote to the Common Council to begin the transition to BS&A Cloud. This approach would allow the City to address the BS&A transition based on the considerations outlined above. Thank you for your consideration, Jamie J. Aulik, City Administrator Brian Lamers, Finance Director Encl: BS&A Cloud: The Future of ERP BS&A Proposal for City of Verona This document may include content generated with AI assistance. City staff are responsible for the final content and accuracy. 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