Preliminary Official Statement Dated
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SALE DATE: MARCH 11, 2010 SALE TIME: 2010A BONDS, 7:30 A.M., PACIFIC TIME 2010B BONDS, 8:30 A.M., PACIFIC TIME PRELIMINARY OFFICIAL STATEMENT DATED MARCH 2, 2010 RATINGS: (Applied for) Fitch: ___ Moody’s: ___ New Issue Standard & Poor’s: ___ Book-Entry Only (See “Other Bond Information—Ratings” herein.) In the opinion of Bond Counsel, interest on the 2010A Bonds is not excludable from gross income for federal income tax purposes. In the opinion of Bond Counsel, under existing federal law and assuming compliance with applicable requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issue date of the Bonds, interest on the 2010B Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. However, while interest on the 2010B Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the 2010B Bonds received by corporations is taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporations, interest on the 2010B Bonds received by certain S corporations may be subject to tax, and interest on the 2010B Bonds received by foreign corporations with United States branches may be subject to a foreign branch profits tax. Receipt of interest on the 2010B Bonds may have other federal tax consequences for certain taxpayers. See “Legal and Tax Information” herein. ntiallyin this form. THE CITY OF SEATTLE, WASHINGTON bsta eliminary Official Statementto $58,235,000* Limited Tax General Obligation Improvement Bonds, 2010A the Pr (Taxable Build America Bonds-Direct Payment) $143,190,000* Limited Tax General Obligation Improvement and Refunding Bonds, 2010B DATED: DATE OF INITIAL DELIVERY DUE: AUGUST 1, AS SHOWN ON PAGES i AND ii The City of Seattle Limited Tax General Obligation Improvement Bonds, 2010A (Taxable Build America Bonds-Direct Payment) (the “2010A Bonds’), and Limited Tax General Obligation Improvement and Refunding Bonds, 2010B (the “2010B Bonds”), will be issued as fully registered bonds under a book-entry only system, registered in the name of Cede & Co. as bondowner and nominee for DTC. The 2010A Bonds and the 2010B Bonds collectively are referred to in this Official Statement as the “Bonds.” DTC will act as initial securities depository for the Bonds. Individual purchases of the Bonds will be made in book-entry form in the denomination of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interest in the Bonds purchased. Interest on the Bonds will be paid semiannually on each February 1 and August 1, beginning August 1, 2010. The principal of and interest on the Bonds are payable by the City’s Bond Registrar, currently the fiscal agent of the State of Washington (currently The Bank of New York Mellon in New York, New York), to DTC, which is obligated in turn to remit such payments to its participants for subsequent disbursement to beneficial owners of the Bonds, as described in “Description of e City will completee City will and deliveran Official Statementsu the Bonds—Book-Entry Transfer System” and in Appendix C. The Bonds are being issued to (i) pay for part of the costs of various projects, (ii) refund certain outstanding bonds of the City (the “Refunded Bonds”) as described under “Use of Proceeds,” and (iii) pay the costs of issuing the Bonds and refunding the and change. The City has authorized the distribution of Refunded Bonds. See “Use of Proceeds.” ction The Bonds are subject to redemption prior to maturity as described herein. See “Description of the Bonds—Redemption of Bonds.” ale of the Bonds, th The Bonds are general obligations of The City of Seattle, Washington (the “City”). The Bonds are secured by the City’s irrevocable pledge to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City on all of the taxable property within the City in an amount sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on the Bonds. The full faith, credit and resources of the City are pledged irrevocably for the annual levy and collection of the taxes pledged to the Bonds and the prompt payment of the principal of and interest on the Bonds. The Bonds do not constitute a debt of the State of Washington or any political subdivision thereof other than the City. MATURITY SCHEDULES LOCATED ON PAGES i AND ii Each series of the Bonds is offered for delivery by the purchaser of such series when, as and if issued, subject to the approving legal opinion of Foster Pepper PLLC, Seattle, Washington, Bond Counsel. The form of Bond Counsel’s opinion is attached hereto as Appendix B. It is anticipated that the Bonds will be available for delivery at DTC’s facilities in New York, New York, or delivered to the Bond Registrar on behalf of DTC by Fast Automated Securities Transfer on or about March 31, 2010. 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. prospective purchasers and others. Upon the s Dated: This is a Preliminary Official Statement, subject to corre * Preliminary, subject to change. No dealer, broker, salesperson, or other person has been authorized by the City to give any information or to make any representations other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds, nor will there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been furnished by the City, DTC and certain other sources that the City believes to be reliable. The information and expressions of opinion contained herein are subject to change without notice. Any statements made in this Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact or representations that the estimates will be realized. Neither the City’s independent auditors, nor any other independent accountants, have compiled, examined or performed any procedures with respect to the projected financial information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, the prospective financial information. Neither the 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 City since the date hereof. This Official Statement is not to be construed as a contract with the purchasers of the Bonds. The Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon a specific exemption contained in such act, nor have they been registered under the securities laws of any state. MATURITY SCHEDULE THE CITY OF SEATTLE, WASHINGTON $58,235,000(1) Limited Tax General Obligation Improvement Bonds, 2010A (Taxable Build America Bonds-Direct Payment) Due Interest August 1 Amounts(2) Rates Yields CUSIP Numbers(3) 2020 $ 5,210,000 % % 2021 5,180,000 2022 6,860,000 2023 11,890,000 2024 12,600,000 2025 13,210,000 2026 610,000 2027 635,000 2028 655,000 2029 680,000 2030 705,000 (1) Preliminary, subject to change. (2) Preliminary, subject to change. These amounts will constitute principal maturities of the 2010A Bonds unless 2010A Term Bonds are specified by the successful bidder, in which case these amounts may constitute mandatory sinking fund redemptions of 2010A Term Bonds. (3) CUSIP is a registered trademark of the American Bankers Association. The CUSIP numbers herein are provided by Standard and Poor’s CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. CUSIP numbers are provided for convenience of reference only. CUSIP numbers are subject to change. The City takes no responsibility for the accuracy of such CUSIP numbers. i MATURITY SCHEDULE THE CITY OF SEATTLE, WASHINGTON $143,190,000(1) Limited Tax General Obligation Improvement and Refunding Bonds, 2010B Due Interest August 1 Amounts(1) Rates Yields CUSIP Numbers(3) 2010 $ 730,000 % % 2011 2,990,000 2012 6,730,000 2013 9,790,000 2014 9,690,000 2015 10,440,000 2016 11,235,000 2017 11,365,000 2018 11,275,000 2019 11,610,000 2020 7,600,000 2021 7,950,000(2) 2022 5,575,000(2) 2023 4,545,000(2) 2024 3,230,000(2) 2025 3,415,000(2) 2026 3,615,000(2) 2027 3,820,000(2) 2028 4,040,000(2) 2029 4,270,000(2) 2030 4,510,000(2) 2031 4,765,000(2) (1) Preliminary, subject to change. (2) These amounts will constitute principal maturities of the Bonds unless Term Bonds are specified by the successful bidder, in which case these amounts may constitute mandatory sinking fund redemptions of Term Bonds. (3) CUSIP is a registered trademark of the American Bankers Association.