City of Portland, Oregon $16,220,000 Limited Tax Revenue Bonds 2016 Series a (Green Bonds —Lighting Efficiency Project)
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NEW ISSUE –COMPETITIVE BOOK-ENTRY ONLY City of Portland, Oregon $16,220,000 Limited Tax Revenue Bonds 2016 Series A (Green Bonds —Lighting Efficiency Project) BASE CUSIP: 736740 DATED: Date of Delivery DUE: April 1, as shown on inside cover This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire Official Statement to obtain information essential to making an informed investment decision. Ratings Moody’s Aa1 Tax Status In the opinion of Hawkins Delafield & Wood LLP, Bond Counsel, under existing statutes and court decisions and assuming continuing compliance with certain tax covenants described herein, (i) interest on the 2016 Series A Bonds is excluded from gross income for Federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) interest on the 2016 Series A Bonds is not treated as a preference item in calculating the alternative minimum tax imposed on individuals and corporations under the Code; such interest, however, is included in the adjusted current earnings of certain corporations for purposes of calculating the alternative minimum tax imposed on such corporations. In the opinion of Bond Counsel, interest on the 2016 Series A Bonds is exempt from Oregon personal income tax under existing law. See “TAX MATTERS” herein for a discussion of the opinion of Bond Counsel. Security The 2016 Series A Bonds are payable from all legally available funds of the City. The City has pledged its full faith and credit and taxing power to pay the 2016 Series A Bonds. See “SECURITY” herein. Purpose Proceeds of the 2016 Series A Bonds will be used to pay for a portion of the costs of and to repay the balance on a line of credit established for the Lighting Efficiency Project as more fully described herein. Proceeds also will be used to pay costs of issuance. Interest Payment Dates April 1 and October 1, commencing April 1, 2017. Principal Payment Dates April 1, as shown on inside cover. Denominations $5,000 and any integral multiple thereof. Redemption The 2016 Series A Bonds are not subject to optional redemption prior to maturity. Closing/Settlement On or about November 29, 2016. Book Entry System The Depository Trust Company. Bond Counsel Hawkins Delafield & Wood LLP, Portland, Oregon. Paying Agent U.S. Bank National Association. Official Statement Dated November 17, 2016 MATURITY SCHEDULE $16,220,000 CITY OF PORTLAND, OREGON LIMITED TAX REVENUE BONDS 2016 SERIES A (GREEN BONDS — LIGHTING EFFICIENCY PROJECT) Due Principal Interest Price or CUSIP No. (1) April 1 Amount Rate Yield 736740 2017 $1,760,000 5.00% 0.83% PX3 2018 1,310,000 5.00 1.03 PY1 2019 1,375,000 5.00 1.20 PZ8 2020 1,445,000 5.00 1.38 QA2 2021 1,520,000 5.00 1.55 QB0 2022 1,595,000 5.00 1.67 QC8 2023 1,675,000 5.00 1.83 QD6 2024 1,755,000 5.00 2.02 QE4 2025 1,845,000 5.00 2.18 QF1 2026 1,940,000 5.00 2.30 QG9 (1) Registered Trademark 2016, American Bankers Association. CUSIP data is provided by Standard & Poor’s CUSIP Service Bureau, a division of McGraw Hill Companies. OFFICIAL STATEMENT OF THE CITY OF PORTLAND, OREGON $16,220,000 LIMITED TAX REVENUE BONDS 2016 SERIES A (GREEN BONDS — LIGHTING EFFICIENCY PROJECT) CITY COUNCIL Charlie Hales(1), Mayor and Commissioner of Finance and Administration Amanda Fritz(1), Commissioner No. 1 Nick Fish, Commissioner No. 2 Dan Saltzman, Commissioner No. 3 Steve Novick(1), Commissioner No. 4 CITY OFFICIALS Mary Hull Caballero, City Auditor Jennifer Cooperman, City Treasurer Tracy Reeve, City Attorney Fred Miller(2), Chief Administrative Officer Kenneth L. Rust, Chief Financial Officer DEBT MANAGEMENT Eric H. Johansen, Debt Manager City of Portland 1120 SW Fifth Avenue, Room 1250 Portland, Oregon 97204 Phone: (503) 823-4222 Fax: (503) 823-4209 [email protected] BOND COUNSEL Hawkins Delafield & Wood LLP Portland, Oregon (1) According to the abstract of votes received by Multnomah County Elections, Ted Wheeler was elected outright to the position of Mayor after receiving the majority of votes in the May 17, 2016, Primary Election. His term begins January 1, 2017. Amanda Fritz was also elected outright to the position of Commissioner No 1. In the Commissioner Position No. 4 race, there was not a candidate that received a majority of votes; as a result, Steve Novick and Chloe Eudaly, who were the top two vote getters, will appear on the ballot in the November 8, 2016, General Election.. (2) Fred Miller announced his retirement and, effective January 3, 2017, Tom Rinehart will become the Chief Administrative Officer. No dealer, broker, salesperson or other person has been authorized by the City of Portland (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. Bond Counsel’s review of this document is limited; see “Legal Matters” herein. This Official Statement speaks only as of its date, and the information contained herein is subject to change without notice. Certain statements contained in this Official Statement are projections, forecasts and other statements about future events. These statements (“Forward Looking Statements”) are not statements of historical facts and no assurance can be given that the results shown in these Forward Looking Statements will be achieved. See “FORWARD LOOKING STATEMENTS.” All estimates set forth herein have been made on the best information available and are believed to be reliable, but no representations whatsoever are made that such estimates are correct. So far as any statements herein involve any matters of opinion, whether or not expressly so stated, they are intended merely as such and are not representations of fact. This Official Statement does not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of, the 2016 Series A Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The 2016 Series A 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 the 2016 Series A Bonds been registered under the securities laws of any state. In making an investment decision, potential investors must rely on their own examination of the City and the terms of the offering, including the merits and risks involved. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this Official Statement. Any representation to the contrary is a criminal offense. In connection with this offering, the successful bidder may over allot or effect transactions which stabilize or maintain the market price of the 2016 Series A Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued, and if discontinued, then recommenced, at any time. TABLE OF CONTENTS INTRODUCTION .................................................................................................................................................................. 1 THE 2016 SERIES A BONDS ............................................................................................................................................... 1 AUTHORIZATION AND PURPOSE .................................................................................................................................. 1 SECURITY ........................................................................................................................................................................... 1 DESCRIPTION .................................................................................................................................................................... 2 PAYMENT OF THE 2016 SERIES A BONDS WHILE IN BOOK-ENTRY SYSTEM ...................................................... 2 REDEMPTION OF THE 2016 SERIES A BONDS ............................................................................................................. 2 THE LIGHTING EFFICIENCY PROJECT ......................................................................................................................... 2 ESTIMATED SOURCES AND USES OF FUNDS ............................................................................................................. 4 DEBT SERVICE SCHEDULE FOR 2016 SERIES A BONDS ............................................................................................ 5 ANNUAL DISCLOSURE INFORMATION ....................................................................................................................... 6 FISCAL YEAR ..................................................................................................................................................................... 6 BASIS OF ACCOUNTING .................................................................................................................................................. 6 AUDITS ................................................................................................................................................................................ 6 ENERGY SAVINGS FROM LED INSTALLATIONS .......................................................................................................