City of Greensboro, North Carolina
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Ratings: Fitch: AAA Moody’s: Aaa S&P: AAA (See “RATINGS” herein) PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 19, 2018 New Issue – Book-Entry Only the Official Statement is delivered in final hich such offer, solicitation or sale would be This Official Statement has been prepared by the Local Government Commission of North Carolina and the City of Greensboro, North Carolina (the “City”) to provide information in connection with the sale and issuance of the bonds described herein (the “2018A Bonds” and the “2018B Bonds,” respectively, and collectively, the “Bonds”). Selected information is presented on this cover page for the convenience of the user. To make an informed decision regarding the Bonds, a prospective investor should read this Official Statement in its entirety. Unless otherwise indicated, capitalized terms used on this cover page have the meanings given in this Official Statement. City of Greensboro, North Carolina $10,400,000 $135,360,000* Taxable General Obligation General Obligation Public Improvement Bonds Public Improvement Bonds Series 2018A Series 2018B Dated: Date of Delivery Due: October 1, as shown on the inside cover page Tax Treatment: In the opinion of Bond Counsel, based on existing law, interest on the 2018A Bonds will not be excluded from gross income for purposes of ities may not be sold nor may offers to buy be accepted prior to the time federal income taxation imposed by the Code. In the opinion of Bond Counsel, which is based on existing law and assumes continuing compliance by the City with certain covenants to comply with the offer to buy nor shall there be any sale of these securities in any jurisdiction in w provisions of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the 2018B Bonds will not be includable in the gross income of the owners thereof for purposes of federal income taxation and will not be a specific preference item for purposes of the alternative minimum tax imposed by the Code. In the opinion of Bond Counsel, based on existing law, interest on the Bonds will be exempt from all State of North Carolina income taxes. See “TAX TREATMENT” herein Redemption: The 2018A Bonds will not be subject to redemption prior to their stated maturities. The 2018B Bonds will be subject to optional redemption prior to maturity at the times and price described herein. Security: The Bonds constitute general obligations of the City, secured by a pledge of the faith and credit and taxing power of the City. Interest Payment Dates: April 1 and October 1, beginning April 1, 2019 Denominations: $5,000 or any integral multiple thereof Expected Closing/Settlement: October 17, 2018 Bond Counsel: Womble Bond Dickinson (US) LLP, Raleigh, North Carolina Financial Advisor: DEC Associates, Inc., Charlotte, North Carolina Sale Date: September 25, 2018 Sale of Bonds: Pursuant to sealed and electronic bids in accordance with the respective Notices of Sale. The date of this Official Statement is September __, 2018 _____________ This This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These form. secur Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an unlawful prior to registration or qualification under the securities laws of such jurisdiction. * Preliminary; subject to change. MATURITY SCHEDULES $10,400,000 Taxable General Obligation Public Improvement Bonds Series 2018A Due Principal Interest October 1 Amount Rate Yield1 2019 $7,750,000 2020 2,650,000 ____________ 1 Information obtained from underwriters of the 2018A Bonds. $135,360,000* General Obligation Public Improvement Bonds Series 2018B Due Principal Interest Due Principal Interest October 1 Amount* Rate Yield2 October 1 Amount* Rate Yield2 2020 $4,140,000 2030 $7,290,000 2021 7,290,000 2031 7,290,000 2022 7,290,000 2032 7,290,000 2023 7,290,000 2033 7,290,000 2024 7,290,000 2034 7,290,000 2025 7,290,000 2035 7,290,000 2026 7,290,000 2036 7,290,000 2027 7,290,000 2037 7,290,000 2028 7,290,000 2038 7,290,000 2029 7,290,000 ____________ 2 Information obtained from underwriters of the 2018B Bonds. * Preliminary; subject to change. CITY OF GREENSBORO, NORTH CAROLINA _______________ CITY COUNCIL Nancy Vaughan .................................................................................................................................. Mayor Yvonne Johnson ................................................................................................................... Mayor Pro Tem Marikay Abuzuaiter Sharon Hightower Nancy Hoffman Michelle Kennedy Justin Outling Tammi Thurm Goldie Wells _______________ CITY STAFF David Parrish .......................................................................................................................... City Manager Richard Lusk ...................................................................................................................... Finance Director Marlene Druga ...................................................................................................... Deputy Finance Director Tom Carruthers, Esq. ............................................................................................................. City Attorney _______________ BOND COUNSEL Womble Bond Dickinson (US) LLP Raleigh, North Carolina _______________ FINANCIAL ADVISOR DEC Associates, Inc. Charlotte, North Carolina i TABLE OF CONTENTS Page INTRODUCTION ........................................................................................................................................ 1 THE NORTH CAROLINA LOCAL GOVERNMENT COMMISSION ..................................................... 1 THE BONDS ................................................................................................................................................ 1 Description ............................................................................................................................................. 1 Redemption Provisions ......................................................................................................................... 2 Authorizations and Purposes ............................................................................................................... 3 Security .................................................................................................................................................. 4 CONTINUING DISCLOSURE ................................................................................................................... 4 APPROVAL OF LEGAL PROCEEDINGS ................................................................................................. 6 TAX TREATMENT ...................................................................................................................................... 6 2018A Bonds .......................................................................................................................................... 6 2018B Bonds .......................................................................................................................................... 7 RATINGS ..................................................................................................................................................... 9 UNDERWRITING ..................................................................................................................................... 10 MISCELLANEOUS ................................................................................................................................... 10 APPENDICES A - Certain Information Concerning the City of Greensboro, North Carolina .............................. A-1 B - The North Carolina Local Government Commission ................................................................ B-1 C - Certain Constitutional, Statutory, and Administrative Provisions Governing or Relevant to the Incurrence of General Obligation Bonded Indebtedness by Units of Local Government of the State of North Carolina ......................... C-1 D - Management Discussion and Analysis ...................................................................................... D-1 E - Financial Information ................................................................................................................. E-1 F - Proposed Forms of Opinions of Bond Counsel ............................................................................F-1 G - DTC’s Book-Entry Only System ................................................................................................. G-1 ii INTRODUCTION This Official Statement, including the cover page and the appendices, is intended to furnish information in connection with the sale and issuance by the City of Greensboro, North Carolina (the “City”) of its $10,400,000 Taxable General Obligation Public Improvement Bonds, Series 2018A (the “2018A Bonds”) and $135,360,000* General Obligation Public Improvement Bonds, Series 2018B (the “2018B Bonds” and, together with the 2018A Bonds, the “Bonds”). The information furnished herein includes a brief description of the City and its economic condition, government, debt management, tax structure, financial operations, budget, pension plans and contingent liabilities. The City has assisted the North Carolina Local Government Commission (the “Commission”) in gathering and assembling the information contained herein. This Official Statement does not constitute an offer