Mukilteo School District No. 6 Snohomish County, Washington Unlimited Tax General Obligation Bonds, 2016
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SUPPLEMENT DATED OCTOBER 4, 2016 TO PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 29, 2016 $52,185,000* Mukilteo School District No. 6 Snohomish County, Washington Unlimited Tax General Obligation Bonds, 2016 This supplement is made a part of the Preliminary Official Statement dated September 29, 2016. The following paragraph is added as a new section under the heading “THE DISTRICT.” Capital Facilities Information The District staff provided the Board with the annual Building Condition Assessment Scores (“BCA Scores”) as and in the form required by the Office of the Superintendent of Public Instruction at its Board meeting on March 14, 2016. The BCA Scores report is available on EMMA. The District approved a six-year Capital Facilities Plan, 2016-2021 (the “Plan”) at its Board meeting on August 22, 2016 in accordance with District policies. The Plan is available on EMMA. The BCA Scores and Plan are available for convenience of investors and potential investors but is not incorporated by reference or otherwise made a part of this Official Statement. The District disclaims any obligation to update the BCA Scores and Plan other than as required by District policies. * Preliminary; subject to change. COMPETITIVE SALE—The Bonds will be sold pursuant to a competitive sale held at 8:30 a.m.* Pacific Time on October 6, 2016* as further described in the Official Notice of Sale attached hereto. PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 29, 2016 NEW ISSUE MOODY’S RATING: Aa2 BOOK-ENTRY RATING WITH STATE GUARANTEE: Aa1 NOT BANK QUALIFIED See “Ratings” and Appendix D, “WASHINGTON STATE SCHOOL DISTRICT CREDIT ENHANCEMENT PROGRAM” In the opinion of Pacifica Law Group LLP, Bond Counsel, assuming compliance with certain covenants of the District, interest on the Bonds is excludable from gross income for federal income tax purposes under existing law. Interest on the Bonds is not an item of tax preference for purposes of either individual or corporate alternative minimum tax. Interest on the Bonds may be indirectly subject to corporate alternative minimum tax and certain other taxes imposed on certain corporations. See “TAX MATTERS” herein for a discussion of the opinion of Bond Counsel. $52,185,000* MUKILTEO SCHOOL DISTRICT NO. 6 Snohomish County, Washington Unlimited Tax General Obligation Bonds, 2016 DATED: Date of Delivery (Estimated to be October 18, 2016) DUE: December 1, as shown on inside cover Mukilteo School District No. 6, Snohomish County, Washington (the “District”) will issue its Unlimited Tax General Obligation Bonds, 2016 (the “Bonds”) in fully registered form under a book-entry system in denominations of $5,000, or integral multiples thereof within a maturity. The Bonds will be registered in the name of Cede & Co. (the “Registered Owner”), as nominee for The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. Owners of any beneficial interest in the Bonds (the “Beneficial Owners”) will not receive certificates representing their interests in the Bonds. See “THE BONDS – Bond Registrar and Registration Features” and Appendix C, “BOOK-ENTRY SYSTEM” herein. Interest on the Bonds will be payable semiannually on June 1 and December 1 of each year, commencing June 1, 2017, to maturity or prior redemption of the Bonds, at the interest rates in the maturity schedule set forth on the inside cover. Principal of the Bonds is payable upon their stated maturity dates as set forth in the maturity schedule on the inside cover. Principal of and interest on the Bonds will be payable by the fiscal agent of the State of Washington (the “State”), currently U.S. Bank National Association (the “Bond Registrar”). For so long as the Bonds remain in a “book-entry only” transfer system, the Bond Registrar will make such payments only to DTC, which in turn will remit such principal and interest to its participants for subsequent disbursement to the Beneficial Owners of the Bonds. See “THE BONDS – Bond Registrar and Registration Features” and Appendix C, “BOOK-ENTRY SYSTEM” herein. MATURITY SCHEDULE – See Inside Cover Proceeds of the Bonds will be used to: (i) finance the costs of capital construction and capital improvements to the District’s educational facilities, and (ii) pay the costs of issuing, selling and delivering the Bonds. See “PURPOSE AND APPLICATION OF BOND PROCEEDS” herein. The Bonds are subject to redemption prior to their stated maturity dates as further described herein. See “THE BONDS – Redemption Provisions.” The Bonds are general obligations of the District. For so long as the Bonds are outstanding, the District has irrevocably pledged to levy taxes annually without limitation as to rate or amount upon all of the taxable property in the District in an amount sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on the Bonds, and the full faith, credit and resources of the District have been pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. The Bonds do not constitute a debt or indebtedness of Snohomish County, Washington (the “County”), the State, or any political subdivision thereof other than the District. See “SECURITY FOR THE BONDS” herein. Payment of principal of and interest on the Bonds when due is guaranteed by the full faith, credit, and taxing power of the STATE OF WASHINGTON under the provisions of the Washington State School District Credit Enhancement Program. See Appendix D attached hereto and titled “WASHINGTON STATE SCHOOL DISTRICT CREDIT ENHANCEMENT PROGRAM.” The District has not designated the Bonds as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3)(B) of the Internal Revenue Code of 1986, as amended. See “TAX MATTERS” herein. 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. The Bonds are offered for delivery when, as and if issued, subject in the approving legal opinion of Bond Counsel. The form of Bond Counsel’s opinion is attached hereto as Appendix A. It is expected that the Bonds will be available for delivery to the Bond Registrar on behalf of DTC by Fast Automated Securities Transfer on or about October 18, 2016 (the “Date of Delivery”). This Preliminary Official Statement and the information contained herein are subject to completion, revision and amendment without notice. Under no circumstances shall this Preliminary to sell or the Official Statement constitute an offer and amendment without notice. This Preliminary contained herein are subject to completion, revision Official Statement and the information such jurisdiction. prior of any or qualification under the securities to registration be unlawful laws solicitation or sale would jurisdiction sale of these Bonds in any in which such offer, nor shall there be any to buy solicitation of an offer * Preliminary; subject to change. MUKILTEO SCHOOL DISTRICT NO. 6 SNOHOMISH COUNTY, WASHINGTON $52,185,000* UNLIMITED TAX GENERAL OBLIGATION BONDS, 2016 MATURITY SCHEDULE, INTEREST RATES, YIELDS, PRICES AND CUSIP NUMBERS Due Dec. 1* Amount* Interest Rate Yield Price CUSIP No.(1) 2017 $3,395,000 % % % 833136___ 2018 5,325,000 833136___ 2019 2,235,000 833136___ 2020 8,920,000 833136___ 2021 4,000,000 833136___ 2022 4,700,000 833136___ 2023 5,000,000 833136___ 2024 3,480,000 833136___ 2025 4,670,000 833136___ 2026 1,490,000 833136___ 2027 1,615,000 833136___ 2028 1,750,000 833136___ 2029 1,705,000 833136___ 2030 1,700,000 833136___ 2031 2,200,000 833136___ * Preliminary; subject to change. (1) The CUSIP numbers are provided by Standard and Poor’s, CUSIP Service Bureau, a division of The McGraw- Hill Companies, Inc. These numbers are not intended to create a database and do not service in any way as a substitute for the CUSIP Service. CUSIP numbers are provided for the convenience of reference only. CUSIP numbers are subject to change. The District takes no responsibility for the accuracy of such CUSIP numbers. MUKILTEO SCHOOL DISTRICT NO. 6 9401 Sharon Drive Everett, Washington 98204 (425) 356-1274 www.mukilteo.wednet.edu* Board of Directors Judy Schwab President John Gahagan Vice President Kyle Kennedy Member Michael L. Simmons Member Geoff Thorp Member Administration Dr. Marci L. Larsen Superintendent Alison Brynelson Deputy Superintendent Patty Dowd Executive Director of Business Services Snohomish County Officials Linda Hjelle Assessor Kirke Sievers Treasurer and ex officio Treasurer of the District Bond Counsel Pacifica Law Group LLP Seattle, Washington Financial Advisor Northwest Municipal Advisors Bellevue, Washington Bond Registrar U.S. Bank National Association (current State fiscal agent) Seattle, Washington ____________________ * The District’s website is not part of this official statement and investors should not rely on information that is presented in the District’s website in determining whether to purchase the Bonds. This inactive textual reference to the District’s website is not a hyperlink and does not incorporate the District’s website by reference. i No quotations from or summaries or explanations of the provisions of laws or documents herein purport to be complete, and reference is made to such laws and documents for full and complete statements of their provisions. This Official Statement is not to be construed as a contract or agreement between the District and the purchasers or owners of any of the Bonds. The cover page and inside cover page hereof and appendices attached hereto are part of this Official Statement. No dealer, broker, sales representative, or other person has been authorized by the District or its financial advisor, Northwest Municipal Advisors (the “Financial Advisor”), to give any information or to make any representations other than as contained in this Official Statement in connection with the offering made hereby and, if given or made, such information or representations must not be relied upon.