County of Onondaga, New York
Total Page:16
File Type:pdf, Size:1020Kb
OFFICIAL STATEMENT RATINGS: (See ‘RATINGS’ herein) Fitch: “AAA (negative outlook)” Moody's Investors Service, Inc.: “Aa1” Standard & Poor's: “AA+ (stable outlook)” NEW ISSUE SERIAL BONDS In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the County, based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Series A Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986. In the further opinion of Bond Counsel, interest on the Series A Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, nor is it included in adjusted current earnings when calculating corporate alternative minimum taxable income. Bond Counsel is of the opinion that interest on the Series B Bonds and the Recovery Zone Bonds is not excluded from gross income for federal income tax purposes. Bond Counsel is also of the opinion that interest on the Bonds is exempt from personal income taxes imposed by the State of New York and any political subdivision thereof (including The City of New York). Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the accrual or receipt of interest on, the Bonds. See "TAX MATTERS" herein. The Bonds will NOT be designated "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code. COUNTY OF ONONDAGA, NEW YORK $31,150,000 General Obligation (Serial) Bonds, 2010 Series A (Tax-Exempt) CUSIP BASE†: 682745 Dated: Date of Delivery Due: June 15, 2012-2019 (hereinafter referred to as the "Series A Bonds") MATURITIES Interest Interest Interest Year Amount Yield CSP† Year Amount Yield CSP† Year Amount Yield CSP† Rate Rate Rate 2012 $4,425,000 4.00% 0.64% T79 2015 $5,100,000 5.00% 1.73% U28 2018 $3,050,000 5.00% 2.71% U51 2013 4,950,000 4.00 1.05 T87 2016 3,000,000 5.00 2.14 U36 2019 3,000,000 5.00 2.93 U69 2014 4,625,000 5.00 1.38 T95 2017 3,000,000 5.00 2.46 U44 $17,570,000 General Obligation (Serial) Bonds, 2010 Series B (Federally Taxable Build America Bonds) CUSIP BASE†: 682745 Dated: Date of Delivery Due: June 15, 2020-2026 (hereinafter referred to as the "Series B Bonds") MATURITIES Interest Interest Interest Year Amount Yield CSP† Year Amount Yield CSP† Year Amount Yield CSP† Rate Rate Rate 2020 $3,000,000* 4.25% 4.25% U77 2022 $2,800,000* 4.65% 4.65% U93 2025 $2,450,000* 5.05% 5.05% V43 2021 2,800,000* 4.50 4.50 U85 2023 2,800,000* 4.80 4.80 V27 2026 1,220,000* 5.15 5.15 V50 2024 2,500,000* 4.95 4.95 V35 * The Bonds maturing in the years 2020-2026 are subject to redemption prior to maturity as described herein under the heading “Optional Redemption – Series A Bonds”. PIPER JAFFRAY & CO. $4,905,000 General Obligation (Serial) Bonds, 2010 (Federally Taxable – Recovery Zone Bonds) CUSIP BASE†: 682745 Dated: Date of Delivery Due: June 15, 2027-2030 (hereinafter referred to as the "Recovery Zone Bonds") MATURITIES Interest Interest Interest Year Amount Yield CSP† Year Amount Yield CSP† Year Amount Yield CSP† Rate Rate Rate 2027 $1,225,000* 5.50% 5.35% V68 2028 $1,225,000* 5.75% 5.50% V76 2030 $1,230,000* 5.90% 5.70% V92 2029 1,225,000* 5.875 5.60 V84 * The Bonds maturing in the years 2027-2030 are subject to redemption prior to maturity as described herein under the heading “Optional Redemption – Recovery Zone Bonds”. (collectively hereinafter referred to as the "Recovery Zone Bonds") MORGAN KEEGAN & CO., INC. The Bonds are general obligations of the County of Onondaga, New York, all the taxable real property within which is subject to the levy of ad valorem taxes to pay the Bonds and interest thereon, without limitation as to rate or amount. The County intends to make irrevocable elections to treat the Series B Bonds as "Federally Taxable Build America Bonds" under the Internal Revenue Code of 1986, as amended (the "Code") for which it will receive, a cash subsidy payment from the United States Treasury equal to thirty-five percent (35%) of the interest payable by the County on the Series B Bonds. The County will elect to receive the tax credit payment pursuant to the Code. It is expected that any cash subsidy payments received will be deposited, upon receipt, to the credit of the County. The County intends to make irrevocable elections to treat the Recovery Zone Bonds as "Recovery Zone Economic Development Bonds" under the Internal Revenue Code of 1986, as amended (the "Code") for which it will receive, a cash subsidy payment from the United States Treasury equal to forty-five percent (45%) of the interest payable by the County on the Recovery Zone Bonds. The County will elect to receive the tax credit payment pursuant to the Code. It is expected that any cash subsidy payments received will be deposited, upon receipt, to the credit of the County. The Bonds will be issued as registered bonds and 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 securities depository for the Bonds. Individual purchases will be made in book-entry form only, in the principal amount of $5,000 or integral multiples thereof. Purchasers will not receive certificates representing their ownership interest in the Bonds. Interest on the Bonds will be payable on June 15, 2011, December 15, 2011 and semi-annually thereafter on June 15 and December 15 in each year until maturity. Principal and interest will be paid by the County to DTC, which will in turn remit such principal and interest to its Participants, for subsequent distribution to the Beneficial Owners of the Bonds, as described herein. The Bonds are offered when, as and if issued and received by the purchaser and subject to the receipt of the unqualified legal opinion as to the validity of the Bonds of Orrick, Herrington & Sutcliffe LLP, New York, New York, Bond Counsel. It is anticipated that the Bonds will be available for delivery in New York, New York or as may be agreed upon on or about June 29, 2010. June 15, 2010 THIS REVISED COVER SUPPLEMENTS THE OFFICIAL STATEMENT OF THE COUNTY DATED JUNE 9, 2010 RELATING TO THE OBLIGATIONS THEREOF DESCRIBED THEREIN AND HEREIN BY INCLUDING CERTAIN INFORMATION OMITTED FROM SUCH OFFICIAL STATEMENT IN ACCORDANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12. OTHER THAN AS SET FORTH ON THE REVISED COVER, THE REVISION OF THE “OPTIONAL REDEMPTION” SECTION AND THE REVISIONS OF TWO “FORM OF BOND COUNSEL’S OPINION” AS WELL AS THE ADDITION OF ANOTHER “FORM OF BOND COUNSEL’S OPINION”, THERE HAVE BEEN NO REVISIONS TO SAID OFFICIAL STATEMENT. † Copyright 2009, American Bankers Association. CUSIP data herein is provided by Standard & Poor’s, CUSIP Service Bureau, a division of The McGraw- Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Service. The CUSIP number is provided for convenience of reference only. Neither the County, nor the Financial Advisor take any responsibility for the accuracy of such CUSIP. COUNTY OFFICIALS JOANNE M. MAHONEY JAMES M. RHINEHART County Executive Chairman, County Legislature WILLIAM FISHER ROBERT E. ANTONACCI, II, CPA, ESQ. Deputy County Executive County Comptroller JAMES ROWLEY M. ANN CIARPELLI Chief Fiscal Officer County Clerk KEVIN E. WALSH GORDON CUFFY, ESQ. Sheriff County Attorney WILLIAM J. FITZPATRICK, ESQ. District Attorney FINANCIAL ADVISORS Fiscal Advisors & Marketing, Inc. Government Finance Associates, Inc. 120 Walton Street, Suite 600 590 Madison Avenue, 21st Floor Syracuse, New York 13202 New York, New York 10022 (315) 752-0051 (212) 521-4090 BOND COUNSEL Orrick, Herrington & Sutcliffe LLP 51 West 52nd Street New York, New York 10019 (212) 506-5151 No person has been authorized by the County of Onondaga 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 Bonds 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 County of Onondaga. TABLE OF CONTENTS Page Page DESCRIPTION OF THE BONDS.......................................... 4 COUNTY INDEBTEDNESS.................................................. 34 Optional Redemption ............................................................. 4 Constitutional Requirements ................................................. 34 Book-Entry-Only System....................................................... 6 Statutory Procedure............................................................... 34 Certificated Bonds.................................................................. 8 Debt Outstanding End of Fiscal Year.................................... 35 Purposes of Issue.................................................................... 8 Debt Management ................................................................. 35 THE COUNTY........................................................................