2008 Official Statement
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NEW ISSUE — BOOK-ENTRY ONLY RATINGS: Fitch: AAA Moody’s: Aaa Standard & Poor’s: AAA In the opinion of Gibbons P.C., Bond Counsel to the County, assuming continuing compliance by the County with certain tax covenants described herein, under existing law, interest on the Series 2008 Bonds is excluded from the gross income of the owners of the Series 2008 Bonds for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”) and interest on the Series 2008 Bonds is not an item of tax preference under Section 57 of the Code for purposes of computing alternative minimum tax. Under existing law, interest on the Series 2008 Bonds and net gains from the sale of the Series 2008 Bonds are exempt from the tax imposed by the New Jersey Gross Income Tax. In the case of certain corporate holders of the Series 2008 Bonds, interest on the Series 2008 Bonds will be included in the calculation of the alternative minimum tax as a result of the inclusion of interest on the Series 2008 Bonds in “adjusted current earnings” of certain corporations. See “TAX MATTERS” herein. $29,180,000 COUNTY OF MONMOUTH New Jersey Refunding Bonds, Series 2008 Dated: Date of Delivery Due: January 15, as shown below The $29,180,000 Refunding Bonds, Series 2008 (the “Series 2008 Bonds”) will be issued by the County of Monmouth, New Jersey (the “County”) in fully registered form and, when issued, the Series 2008 Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), an automated depository for securities and clearing house transactions, which will act as securities depository for the Series 2008 Bonds. Individual purchases will be made in book-entry form (without certificates) through DTC Participants, as hereinafter defined, in the principal amount of $5,000 each or integral multiples of $1,000 in excess thereof. Provided DTC or its nominee Cede is the registered owner of the Series 2008 Bonds, principal of, redemption premium, if any, and interest (payable semi-annually on July 15, 2008 and on each January 15 and July 15 thereafter until maturity), on the Series 2008 Bonds will be paid to DTC or its nominee which is obligated to remit such principal, redemption premium, if any, and interest to DTC Participants, as defined herein. DTC Participants and Indirect Participants, as defined herein, will be responsible for remitting such payments to the Beneficial Owners of the Series 2008 Bonds. See “OTHER INFORMATION — The DTC Book-Entry- Only System.” The Series 2008 Bonds are being issued pursuant to the Local Bond Law of New Jersey, constituting Chapter 2 of Title 40A of the New Jersey Statutes, as amended (the “Local Bond Law”), and an ordinance and resolution of the County, to finance the refunding of certain general obligation bonds of the County and to pay the costs of issuance with respect to the Series 2008 Bonds. The Series 2008 Bonds are not subject to redemption prior to their stated maturities. The full faith and credit of the County are irrevocably pledged for the payment of the principal of, redemption premium, if any, and interest on the Series 2008 Bonds. The Series 2008 Bonds will be valid and binding general obligations of the County, payable as to principal, redemption premium, if any, and interest from the levy of ad valorem taxes upon all taxable property within the County, without limitation as to rate or amount. Principal Interest Principal Interest Year Amount Rate Yield Year Amount Rate Yield 2011 $4,395,000 4.500% 2.430% 2014 $6,145,000 4.500% 2.960% 2012 6,345,000 3.000 2.640 2015 4,135,000 5.000 3.110 2013 6,215,000 3.125 2.800 2016 1,945,000 3.500 3.270 The issuance of the Series 2008 Bonds is subject to the approving legal opinion of Gibbons P.C., Newark, New Jersey, Bond Counsel to the County, and certain other conditions described herein. It is anticipated that the Series 2008 Bonds will be available for delivery to DTC on or about March 6, 2008, in New York, New York, or at such other place and time as may be agreed to by the County. Dated: February 21, 2008 COUNTY OF MONMOUTH STATE OF NEW JERSEY BOARD OF CHOSEN FREEHOLDERS Lillian G. Burry Director of the Board Robert D. Clifton Deputy Director William C. Barham Freeholder Barbara J. McMorrow Freeholder John D’Amico, Jr. Freeholder COUNTY OFFICIALS Robert M. Czech County Administrator James S. Gray Clerk of the Board of Chosen Freeholders Mark E. Acker Director of Finance and County Treasurer PROFESSIONALS Gibbons P.C. Bond Counsel Hutchins, Farrell, Meyer & Independent Auditor Allison, P.A. Public Resources Financial Advisor Advisory Group No dealer, broker, salesman or other person has been authorized by the County to give any information or to make any representations with respect to the Series 2008 Bonds, other than those contained in this Official Statement, in connection with the offering of the Series 2008 Bonds. If given or made, such information or representation must not be relied upon as having been authorized by the County. This Official Statement does not constitute an offer to sell nor the solicitation of any offer to buy, nor shall there be any sale of the Series 2008 Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. This Official Statement is submitted in connection with the sale of the Series 2008 Bonds referred to herein and may not be used, in whole or in part, for any other purpose. This Official Statement is not to be construed as a contract or agreement between the County and the purchasers or the holders of any of the Series 2008 Bonds. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale hereunder shall under any circumstances create any implication that there has been no change in the affairs of the County since the date hereof or any earlier date as of which any information contained herein is given. Certain information set forth herein has been obtained from sources other than the County that are believed to be reliable. Such information is not guaranteed as to accuracy or completeness by the County, and the provision of such information herein is not to be construed as a representation of the County. [ THIS PAGE INTENTIONALLY LEFT BLANK ] COUNTY OF MONMOUTH, NEW JERSEY TABLE OF CONTENTS Page I. DESCRIPTION OF THE SERIES 2008 BONDS Introduction........................................................................................................................ 1 Term................................................................................................................................... 1 Denomination and Place of Payment................................................................................. 1 Optional Redemption Provisions ....................................................................................... 2 Authorization ..................................................................................................................... 2 Security for the Series 2008 Bonds.................................................................................... 2 Purpose of the Issue ........................................................................................................... 3 II. COUNTY OF MONMOUTH, NEW JERSEY, GENERAL INFORMATION Description of the County.................................................................................................. 4 County Government........................................................................................................... 4 Board of Chosen Freeholders ............................................................................................ 4 County Officials................................................................................................................. 4 Reclamation Center Utility ................................................................................................ 4 Solid Waste Disposal ......................................................................................................... 5 Transportation.................................................................................................................... 5 III. FINANCIAL INFORMATION County Taxes..................................................................................................................... 6 CAP Limitations ................................................................................................................ 6 The Local Budget Law....................................................................................................... 9 Miscellaneous Revenues....................................................................................................10 Deferral of Current Expenses ............................................................................................10 Budget Transfers................................................................................................................11 Capital Budget...................................................................................................................11 The Local Fiscal Affairs Law ............................................................................................11 Statement of Operations and Changes in Fund Balance – Current Fund (2003-2007) .....12 Five Year Summary of Current Fund Budget and Actual Results (2003-2007) ...............13 Comparative County