2016-1652 Los Angeles County
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COUNTY OF LOS ANGELES 2016-17 TAX AND REVENUE ANTICIPATION NOTES BOARD OF SUPERVISORS Hilda L. Solis First District, Chair Mark Ridley-Thomas Second District Sheila Kuehl Third District Don Knabe Fourth District Michael D. Antonovich Fifth District Lori Glasgow Executive Officer-Clerk Board of Supervisors COUNTY OFFICIALS Sachi A. Hamai Chief Executive Officer Mary C. Wickham County Counsel Joseph Kelly Treasurer and Tax Collector John Naimo Auditor-Controller No dealer, broker, salesperson or other person has been authorized by the County or the Underwriters to give any information or to make any representations other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the County or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, by any person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers of the Notes. Statements contained in this Official Statement which involve estimates, projections, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of facts. The information set forth herein has been obtained from official sources which are believed to be reliable but it is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the Underwriters. The Underwriters have provided the following sentence for inclusion in this Official Statement. The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the County since the date hereof. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COUNTY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE U.S. SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE U.S. SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE NOTES OFFERED HEREIN AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITERS MAY OFFER AND SELL THE NOTES TO CERTAIN DEALERS, INSTITUTIONAL INVESTORS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITERS. CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by the CUSIP Service Bureau, managed on behalf of the American Bankers Association by Standard & Poors. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services Bureau. CUSIP numbers have been assigned by an independent company not affiliated with the County and are included solely for the convenience of the registered owners of the applicable Notes. Neither the County nor the Underwriters are responsible for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the applicable Notes or as included herein. The CUSIP number for the Notes is subject to being changed after the issuance of the Notes as a result of various subsequent actions. TABLE OF CONTENTS PAGE INTRODUCTION .............................................................................................................................................. 1 GENERAL .................................................................................................................................................... 1 THE COUNTY .............................................................................................................................................. 1 COUNTY OF LOS ANGELES CASH MANAGEMENT PROGRAM ........................................................ 2 THE NOTES ....................................................................................................................................................... 2 GENERAL .................................................................................................................................................... 2 AUTHORITY FOR ISSUANCE ........................................................................................................................ 2 PURPOSE OF ISSUE ...................................................................................................................................... 2 SECURITY FOR THE NOTES ......................................................................................................................... 3 AVAILABLE SOURCES OF PAYMENT FOR THE NOTES ................................................................................. 4 STATE OF CALIFORNIA FINANCES .............................................................................................................. 5 INTERFUND BORROWING, INTRAFUND BORROWING AND CASH FLOW ..................................................... 7 SUMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION AND THE FINANCING CERTIFICATE ................................................................................................................................................. 14 RESOLUTION TO CONSTITUTE CONTRACT ............................................................................................... 14 COVENANTS OF THE COUNTY ................................................................................................................... 14 NEGOTIABILITY,TRANSFER AND EXCHANGE OF THE NOTES .................................................................. 14 PERMITTED INVESTMENTS ....................................................................................................................... 15 REPAYMENT FUND HELD BY THE TREASURER......................................................................................... 16 SUPPLEMENTAL FINANCING CERTIFICATE AND SUPPLEMENTAL RESOLUTION ....................................... 16 EVENTS OF DEFAULT ................................................................................................................................ 17 PAYMENT OF UNCLAIMED MONEYS TO COUNTY..................................................................................... 17 ENFORCEABILITY OF REMEDIES ........................................................................................................... 18 TAX MATTERS ............................................................................................................................................... 18 APPROVAL OF LEGAL PROCEEDINGS ................................................................................................... 20 LEGALITY FOR INVESTMENT IN CALIFORNIA .................................................................................. 21 FINANCIAL STATEMENTS .......................................................................................................................... 21 RATINGS .......................................................................................................................................................... 21 LITIGATION .................................................................................................................................................... 21 FINANCIAL ADVISOR .................................................................................................................................. 21 UNDERWRITING ............................................................................................................................................ 22 ADDITIONAL INFORMATION .................................................................................................................... 23 CONTINUING DISCLOSURE ....................................................................................................................... 23 APPENDIX A - COUNTY OF LOS ANGELES INFORMATION