$25,345,000 RIO ELEMENTARY SCHOOL DISTRICT COMMUNITY FACILITIES DISTRICT NO. 1 2019 Special Tax Refunding Bonds (Federally Taxab
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NEW ISSUE INSURED RATING: S&P: “AA” UNDERLYING RATING: S&P: “A-” See “RATINGS” herein In the opinion of Parker & Covert LLP, Sacramento, California, Bond Counsel, under existing statutes, regulations and court decisions, interest on the Bonds is not excluded from gross income for federal income tax purposes. In the further opinion of Bond Counsel, under existing law, such interest is exempt from State of California personal income taxes. See “LEGAL MATTERS – No Federal Tax Exemption. $25,345,000 RIO ELEMENTARY SCHOOL DISTRICT COMMUNITY FACILITIES DISTRICT NO. 1 2019 Special Tax Refunding Bonds (Federally Taxable) Dated: Date of Delivery Due: September 1, as shown on inside cover Authority for Issuance. The bonds captioned above (the “2019 Refunding Bonds”) are being issued under the Mello-Roos Community Facilities Act of 1982 (the “Act”) and a Fiscal Agent Agreement dated as of November 1, 2005, as supplemented by a First Supplemental Fiscal Agent Agreement dated as of November 1, 2013, a Second Supplemental Fiscal Agent Agreement dated as of December 1, 2014, a Third Supplemental Fiscal Agent Agreement dated as of June 1, 2016, and a Fourth Supplemental Fiscal Agent Agreement dated as of September 1, 2019 (collectively, the “Fiscal Agent Agreement”), between the Rio Elementary School District (the “School District”), on behalf of the Rio Elementary School District Community Facilities District No. 1 (the “Community Facilities District”) and Zions Bancorporation, National Association, as fiscal agent (the “Fiscal Agent”). See “THE 2019 REFUNDING BONDS – Authority for Issuance.” Security and Sources of Payment. The 2019 Refunding Bonds are payable from the net proceeds of Special Taxes (as defined herein) levied on property within the Community Facilities District according to the rate and method of apportionment of special tax approved by the qualified electors of the Community Facilities District and by the Board of the School District. The 2019 Refunding Bonds are secured by a pledge of the proceeds of the Special Taxes, together with certain funds and accounts established under the Fiscal Agent Agreement, on a parity with the Series 2014 Refunding Bonds and the Series 2016 Bonds (defined below). See “SECURITY FOR THE BONDS.” Parity Bonds. Pursuant to the proceedings under which the Community Facilities District was formed, the School District is authorized to issue bonds for the Community Facilities District in an aggregate principal amount not to exceed $75,000,000. Following the issuance of the 2019 Refunding Bonds, the School District will have two other series of bonds outstanding under this authorization: its bonds captioned “$27,345,000 Rio Elementary School District Community Facilities District No. 1 2014 Special Tax Refunding Bonds” (the “2014 Refunding Bonds"), and its bonds captioned “$16,275,000 Rio Elementary School District Community Facilities District No. 1 2016 Special Tax Bonds” (the “Series 2016 Bonds"). The School District may in the future issue additional bonds, for the purpose of refunding outstanding Bonds, on a parity with the 2014 Refunding Bonds, the Series 2016 Bonds, and the 2019 Refunding Bonds provided that the conditions set forth in the Fiscal Agent Agreement are met. See “SECURITY FOR THE BONDS – Bonding Capacity” and “SECURITY FOR THE BONDS – Issuance of Additional Bonds for Refunding Purposes Only.” Use of Proceeds. The 2019 Refunding Bonds are being issued to (i) defease and refund in full the outstanding maturites of its Rio Elementary School District Community Facilities District No. 1 Special Tax Bonds, Series 2013” (the “Series 2013 Bonds”), (ii) provide a debt service reserve for the 2019 Refunding Bonds through the purchase of a debt service reserve insurance policy, and (iii) pay the costs of issuing the 2019 Refunding Bonds. See “FINANCING PLAN.” Series 2019 Bond Terms. Interest on the 2019 Refunding Bonds is payable on March 1, 2020, and semiannually thereafter on each September 1 and March 1. The 2019 Refunding Bonds will be issued in denominations of $5,000 or integral multiples of $5,000. The 2019 Refunding Bonds, when delivered, will be initially registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the 2019 Refunding Bonds. See “THE 2019 REFUNDING BONDS – General Provisions” and “APPENDIX D – DTC and the Book-Entry Only System.” Redemption. The 2019 Refunding Bonds are subject to optional redemption, mandatory redemption from Special Tax prepayments, and mandatory sinking fund redemption before maturity. See “THE 2019 REFUNDING BONDS - Redemption.” THE 2019 REFUNDING BONDS, THE INTEREST THEREON, AND ANY PREMIUMS PAYABLE ON THE REDEMPTION OF ANY OF THE 2019 REFUNDING BONDS, ARE NOT AN INDEBTEDNESS OF THE SCHOOL DISTRICT, THE COMMUNITY FACILITIES DISTRICT, THE STATE OF CALIFORNIA (THE “STATE”) OR ANY OF ITS POLITICAL SUBDIVISIONS, AND NEITHER THE SCHOOL DISTRICT, THE COMMUNITY FACILITIES DISTRICT (EXCEPT TO THE LIMITED EXTENT DESCRIBED HEREIN), THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE ON THE 2019 REFUNDING BONDS. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE SCHOOL DISTRICT, THE COMMUNITY FACILITIES DISTRICT (EXCEPT TO THE LIMITED EXTENT DESCRIBED HEREIN) OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE 2019 REFUNDING BONDS. OTHER THAN THE SPECIAL TAXES, NO TAXES ARE PLEDGED TO THE PAYMENT OF THE 2019 REFUNDING BONDS. THE 2019 REFUNDING BONDS ARE NOT A GENERAL OBLIGATION OF THE COMMUNITY FACILITIES DISTRICT, BUT ARE LIMITED OBLIGATIONS OF THE COMMUNITY FACILITIES DISTRICT PAYABLE SOLELY FROM THE SPECIAL TAXES AS MORE FULLY DESCRIBED IN THIS OFFICIAL STATEMENT. Bond Insurance. The scheduled payment of principal of and interest on the 2019 Refunding Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the 2019 Refunding Bonds by Build America Mutual Assurance Company (“BAM””). BAM will also issue a reserve fund insurance policy concurrently with the delivery of the 2019 Refunding Bonds to be credited to the Bond Reserve Fund. See “BOND INSURANCE” and “APPENDIX H.” MATURITY SCHEDULE (see inside cover) This cover page contains certain information for quick reference only. It is not a summary of the issue. Potential investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Investment in the 2019 Refunding Bonds involves risks which may not be appropriate for some investors. See “BOND OWNERS' RISKS” for a discussion of special risk factors that should be considered in evaluating the investment quality of the 2019 Refunding Bonds. The 2019 Refunding Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Parker & Covert LLP, Sacramento, California, Bond Counsel, and subject to certain other conditions. Jones Hall, A Professional Law Corporation, San Francisco, California, has served as disclosure counsel to the School District. Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, has acted as counsel to the Underwriter. It is anticipated that the 2019 Refunding Bonds, in book-entry form, will be available for delivery through the facilities of DTC on or about October 9, 2019. The date of this Official Statement is: September 17, 2019. MATURITY SCHEDULE (Base CUSIP†: 767027) $4,600,000 SeriaL Bonds Maturity Principal Interest (September 1) Amount Rate Yield Price CUSIP† No. 2020 $340,000 2.150% 2.150% 100.000 DH5 2021 260,000 2.200 2.200 100.000 DJ1 2022 290,000 2.200 2.200 100.000 DK8 2023 325,000 2.240 2.240 100.000 DL6 2024 360,000 2.390 2.390 100.000 DM4 2025 395,000 2.560 2.560 100.000 DN2 2026 440,000 2.660 2.660 100.000 DP7 2027 480,000 2.780 2.780 100.000 DQ5 2028 520,000 2.880 2.880 100.000 DR3 2029 570,000 2.980 2.980 100.000 DS1 2030 620,000 3.080 3.080 100.000 DV4 $3,000,000 – 3.250% Term Bond due September 1, 2034; Yield: 3.450%, Price: 97.683%; CUSIP† No. DT9 $3,000,000 – 3.800% Term Bond due September 1, 2039; Yield: 3.800 %, Price: 100.000%; CUSIP† No. DW2 $14,745,000 – 3.500% Term Bond due September 1, 2039; Yield: 3,800%, Price: 95.835%; CUSIP† No. DU6 †CUSIP Global Services, and a registered trademark of American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, which is managed on behalf of American Bankers Association by S&P Capital IQ. Neither the District nor the Underwriter takes any responsibility for the accuracy of the CUSIP data. RIO ELEMENTARY SCHOOL DISTRICT BOARD OF TRUSTEES Joe Esquivel, President Linda Aguilar, Clerk Felix Eisenhauer, Trustee Edith Martinez-Cortes, Trustee Eleanor Torres, Trustee DISTRICT ADMINISTRATION John D. Puglisi, Ph.D., Superintendent Wael Saleh, Assistant Superintendent, Business Services ___________________________________ PROFESSIONAL SERVICES BOND COUNSEL Parker & Covert LLP Sacramento, California DISCLOSURE COUNSEL Jones Hall, A Professional Law Corporation San Francisco, California FINANCIAL ADVISOR Isom Advisors, a Division of Urban Futures, Inc. Walnut Creek, California SPECIAL TAX CONSULTANT DTA, Inc. Newport Beach, California DISTRICT CONSULTANT Sage Realty Group Westlake Village, California VERIFICATION AGENT Causey Demgen & Moore P.C. Denver, Colorado FISCAL AGENT Zions Bancorporation, National Association Los Angeles, California GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT No Offering May Be Made