Official Statement New Issue Bond Anticipation Notes
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PRELIMINARY OFFICIAL STATEMENT NEW ISSUE BOND ANTICIPATION NOTES In the opinion of Bond, Schoeneck & King, PLLC, Syracuse, New York, Bond Counsel, assuming continuing compliance by the City with its covenants relating to certain requirements contained in the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Notes is not includable in the gross income of the owners thereof for Federal income tax purposes under existing statutes and court decisions. Moreover, interest on the Notes is not an “item of tax preference” for purposes of the individual alternative minimum tax imposed by the Code. Interest on the Notes is exempt from personal income taxes imposed by the State of New York or any political subdivision therein (including The City of New York). See “TAX MATTERS” herein for discussion of certain Federal taxes applicable to corporate owners of the Notes. The Notes will not be designated as “qualified tax-exempt obligations” under Section 265(b)(3) of the Code. $1,600,000 CITY OF TROY RENSSELAER COUNTY, NEW YORK CUSIP BASE: 897574 $1,600,000 Bond Anticipation Notes, 2020 (the “Notes”) Dated: September 24, 2020 Due: July 30, 2021 The Notes are general obligations of the City of Troy, Rensselaer County, New York (the “City”), all the taxable real property within which is subject to the levy of ad valorem taxes to pay the Notes and interest thereon, subject to applicable statutory limits imposed by Chapter 97 of the Laws of 2011 of the State of New York. See “TAX INFORMATION – Tax Cap Law” herein. The Notes are not subject to redemption prior to maturity. At the option of the successful bidder(s), the Notes will be issued registered in the name of the purchaser in the denominations of $5,000 or multiples thereof. If the Notes are issued registered in the name of the purchaser(s), a single note certificate will be issued for those Notes of an issue bearing the same rate of interest in the aggregate principal amount awarded to such purchaser at such interest rate. Principal of and interest on such Notes will be payable in Federal Funds by the City. Alternatively, at the option of the successful bidder(s), the Notes will be registered in the name of Cede & Co. as nominee of The Depository Trust Company (DTC), New York, New York, which will act as the securities depository for the Notes. In such case, Noteholders will not receive certificates representing their ownership interest in the Notes purchased. In such case, under this option, payment of the principal of and interest on the Notes to the Beneficial Owner of the Notes will be made by DTC Participants and Indirect Participants in accordance with standing instructions and customary practices. Payment will be the responsibility of the DTC, subject to any statutory and regulatory requirements as may be in effect from time to time. See "BOOK-ENTRY-ONLY SYSTEM" herein. The Notes are offered when, as and if issued and received by the purchaser(s) and subject to the receipt of the respective approving legal opinions as to the validity of the Notes of Bond, Schoeneck & King, PLLC, Syracuse, New York, Bond Counsel. It is anticipated that the Notes will be available for delivery in New York, New York, or as may be agreed upon, on or about September 24, 2020. ELECTRONIC BIDS for the Notes must be submitted on Fiscal Advisors Auction website ("Fiscal Advisors Auction") accessible via www.FiscalAdvisorsAuction.com, on September 10, 2020 by no later than 11:15 A.M. ET. Bids may also be submitted by facsimile at (315) 930-2354. No other form of electronic bidding services will be accepted. No phone bids will be accepted. Once the bids are communicated electronically via Fiscal Advisors Auction or via facsimile to the City, each bid will constitute an irrevocable offer to purchase the Notes pursuant to the terms provided in the Notice of Sale. September 4, 2020 THE CITY DEEMS THIS OFFICIAL STATEMENT TO BE FINAL FOR PURPOSES OF SECURITIES AND EXCHANGE COMMISSION RULE 15C2-12 ("THE RULE"), EXCEPT FOR CERTAIN INFORMATION THAT HAS BEEN OMITTED HEREFROM IN ACCORDANCE WITH SAID RULE AND THAT WILL BE SUPPLIED WHEN THIS OFFICIAL STATEMENT IS UPDATED FOLLOWING THE SALE OF THE OBLIGATIONS HEREIN DESCRIBED. THIS OFFICIAL STATEMENT WILL BE SO UPDATED UPON REQUEST OF THE SUCCESSFUL BIDDER(S), AS MORE FULLY DESCRIBED IN THE NOTICE OF SALE WITH RESPECT TO THE OBLIGATIONS HEREIN DESCRIBED. THE CITY WILL COVENANT IN AN UNDERTAKING TO PROVIDE NOTICE OF CERTAIN MATERIAL EVENTS AS DEFINED IN THE RULE WITH RESPECT TO THE NOTES. SEE “APPENDIX C-MATERIAL EVENT NOTICES" HEREIN. CITY OF TROY RENSSELAER COUNTY, NEW YORK CITY OFFICIALS Wm. PATRICK MADDEN Mayor MONICA KURZEJESKI Deputy Mayor CITY COUNCIL CARMELLA MANTELLO City Council President JIM GULLI KIM ASHE McPHERSON SUE STEELE ANASHA CUMMINGS KEN ZALEWSKI EILEEN McDERMOTT * * * * * * * * ANDREW PIOTROWSKI Deputy City Comptroller MARA DROGAN City Clerk RICHARD T. MORRISSEY Corporation Counsel FISCAL ADVISORS & MARKETING, INC. Municipal Advisor Bond Counsel No person has been authorized by the City to give any information or to make any representations not contained in this Official Statement, and, if given or made, such information or representations must not be relied upon as having been authorized. This Official Statement does not constitute an offer to sell or solicitation of an offer to buy any of the Notes in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. The information, estimates and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City. TABLE OF CONTENTS Page Page DESCRIPTION OF THE NOTES ........................................... 1 SPECIAL PROVISIONS AFFECTING No Optional Redemption ....................................................... 1 REMEDIES UPON DEFAULT ................................... 27 Purpose of Issue .................................................................... 1 BOOK-ENTRY-ONLY SYSTEM ............................................ 2 MARKET AND RISK FACTORS ......................................... 28 Certificated Notes ................................................................... 3 CONTINUING DISCLOSURE .............................................. 29 THE CITY .................................................................................. 3 General Information................................................................ 3 DISCLOSURE COMPLIANCE HISTORY ......................... 29 Selected Wealth and Income Indicators .................................. 4 STATE AID ............................................................................. 29 Major Employers ................................................................... 4 Unemployment Rate Statistics ................................................ 5 TAX MATTERS ...................................................................... 30 Education and Cultural Facilities ............................................ 5 LEGAL MATTERS ................................................................ 30 Recent Economic Developments ............................................ 5 Form of City Government....................................................... 8 LITIGATION .......................................................................... 31 Financial Organization ............................................................ 8 Budgetary Procedures ............................................................. 8 RATING ................................................................................... 31 Investment Policy ................................................................... 9 MUNICIPAL ADVISOR ........................................................ 31 Employees .............................................................................. 9 Status and Financing of Employee Pension Benefits .............. 9 CUSIP IDENTIFICATION NUMBERS ............................... 31 Other Post-Employment Benefits ......................................... 11 MISCELLANEOUS ................................................................ 31 Financial Statements ............................................................. 12 The State Comptroller’s Fiscal Stress Monitoring System ... 13 APPENDIX - A New York State Comptroller Report of Examination ........... 13 GENERAL FUND - Balance Sheets MUNICIPAL ASSISTANCE CORPORATION FOR THE CITY OF TROY ...................................................................... 16 APPENDIX - A1 TAX INFORMATION ............................................................ 17 GENERAL FUND – Revenues, Expenditures and Valuations ............................................................................. 17 Changes in Fund Balance Tax Rate Per $1,000 (Assessed) ........................................... 17 APPENDIX - A2 Tax Collection Procedure ..................................................... 17 GENERAL FUND – Revenues, Expenditures and Tax Collection Record .......................................................... 17 Changes in Fund Balance - Budget and Actual Sales Tax Revenue ................................................................ 17 Sales and Use Tax Commitment and Contingencies ............ 18 APPENDIX - B Largest Taxpayers – 2019-2020 Assessment Roll ................ 18 BONDED DEBT SERVICE Constitutional Tax Margin ...................................................