Town of Ellington, Connecticut
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OFFICIAL STATEMENT DATED SEPTEMBER 17, 2013 NEW ISSUE MOODY’S RATING: Aa3 In the opinion of Bond Counsel, assuming the accuracy of and compliance by the Town with its representations and covenants relating to certain requirements contained in the Internal Revenue Code of 1986, as amended (the “Code”), under existing statutes, interest on the Bonds is excluded from gross income for Federal income tax purposes pursuant to Section 103 of the Code; the Bonds are not “private activity bonds” and interest on the Bonds is not treated as a preference item for purposes of calculating the Federal alternative minimum tax, but in the case of corporations a portion of such interest may be included in alternative minimum taxable income for purposes of computing any Federal alternative minimum tax; the Bonds are “qualified tax-exempt obligations”; interest on the Bonds is excluded from Connecticut taxable income for purposes of the Connecticut income tax on individuals, trusts and estates; and interest on the Bonds 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 Appendix B “Form of Opinion of Bond Counsel and Tax Exemption” herein.) TOWN OF ELLINGTON, CONNECTICUT $4,205,000 GENERAL OBLIGATION BONDS, ISSUE OF 2013 DATED DUE September 15, 2013 MATURITY SCHEDULE September 15, as shown below Due Principal Due Principal September 15 Amount Coupon Yield CUSIP1 September 15 Amount Coupon Yield CUSIP1 2014 $220,000 2.000% 0.300% 288515NL9 2024 $205,000 3.000% 2.850% 288515NW5 2015 220,000 3.000% 0.500% 288515NM7 2025 205,000 3.250% 3.050% 288515NX3 2016 220,000 3.000% 0.800% 288515NN5 2026 205,000 3.250% 3.200% 288515NY1 2017 220,000 3.000% 1.000% 288515NP0 2027 205,000 3.375% 3.350% 288515NZ8 2018 220,000 4.000% 1.450% 288515NQ8 2028 205,000 3.500% 3.500% 288515PA1 2019 220,000 4.000% 1.750% 288515NR6 2029 205,000 4.000% 3.650% 288515PB9 2020 215,000 4.000% 2.000% 288515NS4 2030 205,000 4.000% 3.750% 288515PC7 2021 215,000 4.000% 2.250% 288515NT2 2031 205,000 4.000% 3.850% 288515PD5 2022 210,000 3.000% 2.450% 288515NU9 2032 200,000 4.000% 3.950% 288515PE3 2023 205,000 3.000% 2.650% 288515NV7 2033 200,000 4.000% 4.000% 288515PF0 Underwriter JANNEY MONTGOMERY SCOTT LLC Interest on the Bonds will be payable on March 15, 2014 and semiannually thereafter on September 15 and March 15 in each year until maturity. The Bonds are subject to redemption prior to maturity as more fully described herein. The Bonds will bear interest payable at maturity, will be issued by means of a book-entry-only system and registered in the name of Cede & Co., as nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Principal of, redemption premium, if any, and interest on the Bonds will be payable by the Town or its agent to DTC or its nominee as registered owner of the Bonds. Purchases of the Bonds will be made in book- entry form, in denominations of $5,000 or integral multiples thereof. Purchasers of the Bonds will not receive certificates representing their ownership interest in the Bonds. So long as Cede & Co. is the Bond Owner, as nominee of DTC, reference herein to the Bond Owner or owners shall mean Cede & Co. as aforesaid, and shall not mean the Beneficial Owners (as described herein) of the Bonds. See “Book-Entry-Only Transfer System” herein. The Bonds will be general obligations of the Town of Ellington, Connecticut (the “Town”), and the Town will pledge its full faith and credit to pay the principal of and interest on the Bonds when due. See “Security and Remedies” herein. U.S. Bank National Association, Corporate Trust Services, 225 Asylum Street, 23rd Floor, Hartford, Connecticut will certify the Bonds and act as Registrar, Transfer Agent and Paying Agent for the Bonds. The Bonds are offered for delivery when, as and if issued, subject to the approving opinion of Day Pitney LLP, Bond Counsel, of Hartford, Connecticut. It is expected that delivery of the Bonds in book-entry-only form will be made to the Depository Trust Company (‘DTC”) in New York, New York on or about September 25, 2013. 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. ______________ 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 Town and are included solely for the convenience of the holders of the Bonds. The Town 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. The Financial Advisor to the Town has provided the following sentence for inclusion in this Official Statement. The Financial Advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the Town and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Financial Advisor does not guarantee the accuracy or completeness of such information. TABLE OF CONTENTS Page Page Bond Issue Summary I. Bond Information Introduction ................................................................ 1 Comparative Assessed Valuations ............................. 24 Description of the Bonds............................................ 1 Property Tax Levies and Collections ......................... 24 Redemption ................................................................. 2 Ten Largest Taxpayers ............................................... 24 Book-Entry-Only Transfer System ............................ 2 Equalized Net Grand List ........................................... 25 DTC Practices ............................................................. 4 V. Financial Information Security and Remedies ............................................... 4 Fiscal Year .................................................................. 26 Qualification for Financial Institutions ...................... 5 Accounting Policies.................................................... 26 Availability of Continuing Disclosure ....................... 5 Budgetary Procedures ................................................ 26 Authorization and Purpose ......................................... 5 Annual Audit ............................................................. 27 Use of Bond Proceeds ................................................ 6 Pension Plans .............................................................. 27 Rating .......................................................................... 6 Other Post Employment Benefits ............................... 28 II. The Issuer Investment Policies and Practices .............................. 28 Description of the Town ............................................. 7 General Fund Revenues and Expenditures ................ 29 Economic Development ............................................. 8 Analysis of General Fund Equity ............................... 29 Form of Government .................................................. 9 VI. Debt Summary Principal Town Officials ............................................ 10 Principal Amount of Indebtedness............................. 30 Summary of Municipal Services ................................ 10 Annual Bonded Debt Maturity Schedule .................. 31 Town Employees ........................................................ 14 Overlapping/Underlying Debt .................................... 31 Municipal Employees Bargaining Units .................... 15 Debt Statement ........................................................... 31 Education System ....................................................... 15 Current Debt Ratios ................................................... 32 School Facilities ......................................................... 16 Bond Authorization.................................................... 32 School Enrollment ...................................................... 16 Temporary Financing ................................................ 32 III. Economic and Demographic Information Limitation of Indebtedness ......................................... 33 Population Trends ....................................................... 17 Statement of Statutory Debt Limitation .................... 33 Age Distribution of the Population ............................ 17 Authorized But Unissued Debt .................................. 34 Income Distribution .................................................... 17 Principal Amount of Outstanding Debt ..................... 34 Income Levels ............................................................ 18 Ratio of Direct Debt to Valuation, Educational Attainment ............................................