City of Hartford, Connecticut ® $36,385,000 General Obligation Refunding Bonds, Series 2014C
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OFFICIAL STATEMENT DATED NOVEMBER 5, 2014 Refunding Issue—Book-Entry-Only Ratings: Moody’s: A2 (Insured Bonds) S&P: AA (Underlying) S&P: AA- In the opinion of Bond Counsel, based on existing statutes and court decisions and assuming continuing compliance with certain covenants and procedures relating to requirements of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Bonds is excluded from gross income for federal income tax purposes and is not treated as an item of tax preference for purposes of computing the federal alternative minimum tax. Interest on the Bonds may be includable in the calculation of certain taxes under the Code, including the federal alternative minimum tax imposed on certain corporations. In the opinion of Bond Counsel, based on existing statutes, interest on the Bonds is excluded from Connecticut taxable income for purposes of the Connecticut income tax on individuals, trusts and estates, and is excluded from amounts on which the net Connecticut minimum tax is based in the case of individuals, trusts and estates required to pay the federal alternative minimum tax. See “Tax Matters” herein. CITY OF HARTFORD, CONNECTICUT ® $36,385,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014C Dated: Date of Delivery Due: As Shown on Inside Cover Page Interest on the General Obligation Refunding Bonds, Series 2014C (the “Bonds”), will be payable on February 15, 2015 and semiannually thereafter on August 15 and February 15 in each year until maturity or earlier redemption. The Bonds are issuable only as fully registered bonds, without coupons, and when issued, will be registered in the name of Cede & Co., as Bondowner and nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book- entry form, in denominations of $5,000 or any multiple thereof. Purchasers will not receive certificates representing their ownership interest in the Bonds. So long as Cede & Co. is the Bondowner, as nominee for DTC, reference herein to the Bondowner or owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (as defined herein) of the Bonds. See “Book-Entry-Only System” herein. The Bonds will be general obligations of the City of Hartford, Connecticut (the “City”), and the City will pledge its full faith and credit to pay the principal of and interest on the Bonds when due. See “Security and Remedies” herein. The Bonds are subject to optional redemption prior to maturity as more fully described herein. See “Optional Redemption” herein. The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Bonds by BUILD AMERICA MUTUAL ASSURANCE COMPANY. The Bonds are offered for delivery when, as and if issued, and received by the Underwriter, subject to the final approving opinion of Robinson & Cole LLP, Bond Counsel, of Hartford, Connecticut. Certain matters will be passed upon for the Underwriter by Shipman & Goodwin LLP, of Hartford, Connecticut. Certain legal matters will be passed upon by the City’s Disclosure Counsel, Murtha Cullina LLP, of Hartford, Connecticut. It is expected that delivery of the Bonds in definitive form will be made on or about November 18, 2014 through the facilities of DTC. The Registrar, Transfer Agent, Paying Agent, Certifying Agent and Escrow Agent for the Bonds will be U.S. Bank National Association, Hartford, Connecticut. 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. WILLIAM BLAIR & COMPANY Piper Jaffray & Co. Siebert Brandford Shank & Co., L.L.C. CITY OF HARTFORD, CONNECTICUT $36,385,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014C Dated: Date of Delivery Due: August 15, as shown below Interest CUSIP Interest CUSIP Due Amount Rate Yield Number1 Due Amount Rate Yield Number1 2015 $2,280,000 2.000% 0.340% 416415GP6 2022 $3,670,000 5.000% 2.600% 416415GJ0 2016 1,230,000 3.000 0.620 416415GQ4 2023 3,670,000 5.000 2.780 416415GK7 2018 3,670,000 5.000 1.240 416415GE1 2024 3,670,000 5.000 2.930 416415GL5 2019 3,665,000 5.000 1.630 416415GF8 2025 3,640,000 3.125 3.340 416415GM3 2020 3,660,000 5.000 1.970 416415GG6 2026 3,565,000 3.125 3.440 416415GN1 2021 3,665,000 5.000 2.290 416415GH4 _________________________________ 1 Copyright, American Bankers Association. CUSIP® is a registered trademark of the American Bankers Association. CUSIP numbers have been assigned by an independent company not affiliated with the City and are included solely for the convenience of the holders of the Bonds. The City is not responsible for the selection or use of these CUSIP numbers, does not undertake any responsibility for their accuracy, and makes no representation as to their correctness on the Bonds or as indicated above. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds. TABLE OF CONTENTS Page # INTRODUCTION .................................................................................................................................... 1 SECTION I – SECURITIES OFFERED Description of the Bonds .......................................................................................................................... 3 Optional Redemption ................................................................................................................................ 3 Authorization and Purpose ...................................................................................................................... 4 Plan of Refunding ...................................................................................................................................... 4 Verification of Mathematical Computations .......................................................................................... 5 Sources and Uses of Proceeds .................................................................................................................. 5 Security and Remedies .............................................................................................................................. 5 Bank Qualification ..................................................................................................................................... 6 Book-Entry-Only System .......................................................................................................................... 6 DTC Practices ............................................................................................................................................. 8 Tax Matters ................................................................................................................................................. 8 Ratings ......................................................................................................................................................... 10 Underwriting .............................................................................................................................................. 10 Bond Insurance .......................................................................................................................................... 11 SECTION II – THE CITY The Municipality ....................................................................................................................................... 13 Government Organization ....................................................................................................................... 14 Financial Powers ........................................................................................................................................ 15 Governmental Responsibilities and Services ......................................................................................... 15 Municipal Work Force .............................................................................................................................. 16 Collective Bargaining Status .................................................................................................................... 17 Organizational Chart ................................................................................................................................ 18 Principal Municipal Officials ................................................................................................................... 19 Educational System ................................................................................................................................... 19 School Enrollment ..................................................................................................................................... 20 School Facilities .......................................................................................................................................... 21 SECTION III – ECONOMIC AND DEMOGRAPHIC DATA Certain Economic Information ...............................................................................................................