City of Tampa, Florida
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PRELIMINARY OFFICIAL STATEMENT DATED MARCH 26, 2018 NEW ISSUE - FULL BOOK-ENTRY See “RATING” herein In the opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida (“Bond Counsel”), under existing statutes, regulations, rulings and court decisions and subject to the conditions described herein under “TAX EXEMPTION,” interest on the Series 2018 Bonds is (a) excludable from gross income of the owners thereof for federal income tax purposes except as otherwise described herein under the caption “TAX EXEMPTION,” and (b) not an item of tax preference for purposes of the federal alternative minimum tax. However, it should be noted that such interest is included in adjusted current earnings in calculating corporate alternative minimum taxable income for taxable years beginning prior to January 1, 2018. Such interest also may be subject to other federal income tax consequences referred to herein under “TAX EXEMPTION.” See “TAX EXEMPTION” herein for a general discussion of Bond Counsel’s opinion and other tax considerations. $87,615,000* CITY OF TAMPA, FLORIDA SPECIAL ASSESSMENT REVENUE BONDS (CENTRAL AND LOWER BASIN STORMWATER IMPROVEMENTS), SERIES 2018 (GREEN BONDS) Dated: Date of Delivery Due: May 1 in each year as shown on the inside cover The City of Tampa, Florida (the “City”) is issuing its $87,615,000* Special Assessment Revenue Bonds (Central and Lower Basin Stormwater Improvements), Series 2018 (the “Series 2018 Bonds”) as fully registered bonds, which initially will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). The City has administratively designated the Series 2018 Bonds as “Green Bonds.” For more information, see “INTRODUCTION – Green Bonds Administrative Designation” herein. Individual purchases will be made in book-entry form only in denominations as described herein. Purchasers of the Series 2018 Bonds (the “Beneficial Owners”) will not receive physical delivery of the Series 2018 Bonds. Transfer of ownership in the Series 2018 Bonds will be effected through DTC’s book-entry system as described herein. As long as Cede & Co. is the registered owner as nominee of DTC, principal and interest payments will be made directly to such registered owner which will in turn remit such payments to the Participants (as defined herein) for subsequent disbursement to the Beneficial Owners. Interest on the Series 2018 Bonds is payable on May 1 and November 1 of each year, commencing November 1, 2018. Principal of the Series 2018 Bonds is payable on May 1 of the years and in the amounts as shown on the inside cover. U.S. Bank National Association, Jacksonville, Florida is serving as the initial Registrar and Paying Agent. All payments of principal of, redemption premium, if applicable, and interest on the Series 2018 Bonds shall be payable in lawful money of the United States of America. The Series 2018 Bonds are subject to optional and mandatory redemption as described herein. See “DESCRIPTION OF THE SERIES 2018 BONDS – Optional Redemption,” “– Mandatory Redemption” and – No Special Mandatory Redemption; No Prepayment of Assessments” herein. The Series 2018 Bonds are being issued pursuant to the authority of and in full compliance with the Constitution and laws of the State of Florida, particularly Chapter 166, Florida Statutes, the municipal charter of the City, Chapter 21 of the City of Tampa Code (the “Stormwater Code Provisions”) and other applicable provisions of law (collectively, the “Act”), and Resolution No. 2018-176 adopted by the City Council of the City (the “City Council”) on March 1, 2018, as supplemented by Resolution No. 2018-177 adopted by the City Council on March 1, 2018 (collectively, the “Bond Resolution”). All terms used herein in capitalized form and not otherwise defined shall have the meanings ascribed thereto in the Bond Resolution. The Series 2018 Bonds and the interest thereon are payable solely from and secured by a lien upon and a pledge of (1) the Stormwater Improvement Assessment Revenues (as hereinafter defined), and (2) until applied in accordance with the provisions of the Bond Resolution, all moneys, including investments thereof, in the funds and accounts (other than the Rebate Fund) established thereunder, all in the manner and to the extent provided in the Bond Resolution and subject in each case to the application thereof for the purposes and on the conditions permitted by the Bond Resolution (collectively, the “Pledged Funds”). “Stormwater Improvement Assessment Revenues” means the proceeds of the Assessments lawfully received by the City, including Delinquent Assessments and the interest and penalties on such Assessments. “Assessments” or “Stormwater Improvement Assessments” means the stormwater capital improvement special assessments lawfully levied by the City in accordance with the Stormwater Code Provisions and Resolution No. 2016-567 adopted by the City on July 14, 2016, as it may be amended and supplemented from time to time, as amended and confirmed by Resolution No. 2016-706 adopted by the City on September 1, 2016, as further amended by Resolution No. 2018-94 adopted by the City on February 1, 2018, as it may be amended and supplemented from time to time, against properties within the Central and Lower Basin Improvement Area specially benefited by the acquisition and construction of the Series 2018 Project (as defined herein). Assessments do not include any of the City’s stormwater service special assessments. Such stormwater service special assessments are not pledged nor legally available to pay debt service on the Bonds, including the Series 2018 Bonds. “Delinquent Assessments” means, collectively, any and all installments of any Assessments which are not paid on or before they are due. See “SECURITY FOR THE BONDS” herein and “APPENDIX C – Form of Bond Resolution” attached hereto. The Series 2018 Bonds are being issued to provide funds to (i) refinance amounts outstanding under the City’s existing non-revolving line of credit which the City has used, on an interim basis, to pay for certain costs of the Series 2018 Project, as more particularly described herein, (ii) finance a portion of the costs of the Series 2018 Project within the Central and Lower Basin Improvement Area of the City (as more particularly described in “THE SERIES 2018 PROJECT” herein) and (iii) pay the costs associated with the issuance of the Series 2018 Bonds. THE SERIES 2018 BONDS SHALL NOT BE OR CONSTITUTE GENERAL OBLIGATIONS OR INDEBTEDNESS OF THE CITY AS “BONDS” WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE CITY, PAYABLE SOLELY FROM AND SECURED BY A LIEN UPON AND PLEDGE OF THE PLEDGED FUNDS, IN THE MANNER AND TO THE EXTENT PROVIDED IN THE BOND RESOLUTION. NO HOLDER OF ANY SERIES 2018 BOND SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER TO PAY SUCH SERIES 2018 BOND, OR BE ENTITLED TO PAYMENT OF SUCH SERIES 2018 BOND FROM ANY MONEYS OF THE CITY EXCEPT FROM THE PLEDGED FUNDS IN THE MANNER AND TO THE EXTENT PROVIDED IN THE BOND RESOLUTION. THE SERIES 2018 BONDS AND THE OBLIGATIONS EVIDENCED THEREBY SHALL NOT CONSTITUTE A LIEN UPON THE SYSTEM OR ANY OTHER PROPERTY OF THE CITY, BUT SHALL CONSTITUTE A LIEN ONLY ON, AND SHALL BE PAYABLE SOLELY FROM, THE PLEDGED FUNDS. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. The Series 2018 Bonds are offered for delivery when, as and if issued and received by the Underwriters, subject to the approval of legality by Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel. Certain other legal matters will be passed upon for the City by Bryant Miller Olive, P.A., Tampa, Florida, as Disclosure Counsel. Certain other legal matters will be passed upon for the City by Salvatore Territo, Esq., City Attorney. Squire Patton Boggs (US) LLP, Tampa, Florida, will be representing the Underwriters. Public Resources Advisory Group, Inc., St. Petersburg, Florida, is serving as Financial Advisor to the City in connection with the issuance of the Series 2018 Bonds. It is expected that the Series 2018 Bonds in definitive form will be available for delivery through the facilities of DTC in New York, New York on or about April 26, 2018. Citigroup BofA Merrill Lynch J.P. Morgan Dated: _________, 2018 This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to Under no circumstances shall this Preliminary to sell or the solicitation of an offer This Preliminary Official Statement constitute an offer contained herein are subject to completion or amendment. Official Statement and the information The City has of such jurisdiction. under the securities laws exemption prior qualification or to registration, be unlawful solicitation or sale would sale of the Series jurisdiction nor shall there be any 2018 Bonds in any in which such offer, buy, for certain by the Securities except permittedand Exchange Commission. within the contemplation of Rule 15c2‑12 promulgated omissions, deemed this Preliminary “final,” Official Statement * Preliminary, subject to change. $87,615,000* CITY OF TAMPA, FLORIDA Special Assessment Revenue Bonds (Central and Lower Basin Stormwater Improvements), Series 2018 (Green Bonds) MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, YIELDS, PRICES AND INITIAL CUSIP NUMBERS $49,445,000* Serial Bonds Maturity Principal Interest Initial CUSIP (May 1)* Amount* Rate Yield Price Number** 2019 $1,135,000 2020 1,580,000 2021 1,660,000 2022 1,745,000 2023 1,830,000 2024 1,925,000 2025 2,020,000 2026 2,120,000 2027 2,225,000 2028 2,340,000 2029 2,455,000 2030 2,575,000 2031 2,705,000 2032 2,840,000 2033 2,985,000 2034 3,130,000 2035 3,290,000 2036 3,455,000 2037 3,625,000 2038 3,805,000 $22,090,000* _____% Term Bonds due May 1, 2043*; Yield _____%; Price _____, Initial CUSIP No.