2005-1167.Pdf
Total Page:16
File Type:pdf, Size:1020Kb
NEW ISSUE BOOK-ENTRY ONLY NOT RATED In the opinion of Orrick, Herrington & Sutcliffe LLP, San Francisco, California, Bond Counsel, based !lpon an analysis of existing laws, regulations, rulings and court decisions and assuming, among other matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, and is exempt from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that it is included in adjusted current earnings in calculating corporate alternative mmimum taxable income. Bond Counsel expresses no opinion regarding other federal or state tax consequences caused by the ownership or disposition of, or accrual or receipt of interest on, the Bonds. See "CONCLUDING INFORMATION~ Tax Matters" herein. ~ IIE'ft~ $6,550,345 CITY OF HERCULES !~u ......... .,!~ {It ASSESSMENT DISTRICT NO. 2005-1 . (JOHN MUIR PARKWAY) ~~ ..~ LIMITED OBLIGATION IMPROVEMENT BONDS "-11:oll~ Dated: Date of Delivery Due: September 2, as shown below The City of Hercules Assessment District No. 2005-1 (John Muir Parkway) Limited Obligation Improvement Bonds (the "Bonds") are being issued by the City of Hercules (the "City") pursuant to the provisions of the Improvement Bond Act of 1915 (Division 10 of the California Streets and Highways Code) and a Fiscal Agent Agreement, dated as of July 1, 2005 (the "Fiscal Agent Agreement"), by and between the City and The Bank of New York Trust Company, N.A., as fiscal agent (the "Fiscal Agent") to: (i) finance a portion of the costs of certain road, bridge, storm drain, sewer, water and miscellaneous improvements to John Muir Parkway of special benefit to property within the City's Assessment District No. 2005- 1 (John Muir Parkway) (the "District"), (ii) pay costs related to the issuance of the Bonds, (iii) make a deposit to a Reserve Fund for the Bonds, and (iv) prepay certain unpaid assessments levied in the City's Alfred Nobel Reassessment District No. 01-1. The Bonds are issued upon and secured by the unpaid special assessments levied on parcels within the District. The Bonds are limited obligations of the City. Assessment installments of principal and interest sufficient to meet annual debt service on the Bonds are to be included on the regular Contra Costa County tax bills sent to owners of property against which there are unpaid assessments. These annual assessment installments are to be used to pay debt service on the Bonds as it becomes due. To provide funds for payment of the Bonds and the interest thereon as a result of any delinquent installments, the City will establish a Reserve Fund as described herein. See "SECURITY FOR THE BONDS." Interest on the Bonds will be payable March 2 and September 2 of each year commencing March 2, 2006. The Bonds will be delivered as full book-entry bonds and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York. The Depository Trust Company will act as securities depository (the "Securities Depository'') of the Bonds. Individual purchases of Bonds will be made in book-entry form only, in authorized denominations of $5,000 and any integral multiple thereof. Beneficial Owners (as defined herein) of Bonds will not receive physical certificates representing the Bonds purchased. Principal of and interest on the Bonds will be paid by the Fiscal Agent to the Securities Depository, which will in tum remit such principal and interest to its participants for subsequent disbursement to the Beneficial owners of the Bonds as described herein. See "THE BONDS--Ceneral" and APPENDIX E---IHE BOOK ENTRY SYSTEM. The Bonds are subject to optional and mandatory redemption, including redemption on any Interest Payment Date from prepayments of assessments, as described herein. See "THE BONDS---Redemption Provisions." THE BONDS ARE NOT A GENERAL OBLIGATION OF THE CITY OF HERCULES, THE STA TE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF AND NEITHER THE FAITH AND CREDIT NOR THE TAXINC POWER OF THE CITY OF HERCULES, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. This cover page contains certain information for general reference only. Prospective investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision with respect to the Bonds. See the section of this Official Statement entitled "BONDOWNERS' RISKS" for a discussion of special risk factors that should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the Bonds. MATURITY SCHEDULE $2,160,345 Serial Bonds CUSIP Prefix: 427034,.. Maturity Date Principal Interest Price or CUSIP Maturity Date Principal Interest CUSIP (Se~tember 2) Amount Rate Yield Suffix* (Se~tember 2) Amount Rate Yield Suffix* 2006 $ 75,345 3.00'X, 100% 059 2014 $150,000 4.30'X, 4.40% EA7 2007 115,000 3.15 3.25 DT7 2015 155,000 4.40 4.50 EB5 2008 120,000 3.40 355 DU4 2016 160,000 450 4.60 EC3 2009 125,000 3.60 3.75 DV2 2017 170,000 4.60 4.70 EDl 2010 125,000 3.75 3.90 DWO 2018 175,000 4.70 4.80 EE9 2011 130,000 3.90 4.00 DX8 2019 185,000 4.80 4.90 EF6 2012 135,000 4.05 4.15 DY6 2020 195,000 4.85 4.95 EG4 2013 145,000 4.20 4.30 023 $1,125,000 5.00% Tenn Bonds due September 2, 2025; Price 99.000%, to Yield 5.08%; CUSIP No. 427034 EH2* $1,430,000 5.00% Tenn Bonds due September 2, 2030; Price 98.375%, to Yield 5.115%; CUSIP No. 427034 EJ8* $1,835,000 5.10% Tenn Bonds due September 2, 2035; Price 98.481%, to Yield 5.20%; CUSIP No. 427034 EK5* The Bonds are offered when, as and if issued, subject to the approval as to their legality by Orrick, Herrington & Sutcliffe LLP, San Francisco, California, Bond Counsel, and certain other conditions. Certain legal matters will be passed on for the City by the Law Offices of Pelletreau, AJderson & Cabral, Richmond, California, in its capacity as City Attorney for the City and by Quint & Thimmig LLP, San Francisco, California, :Jisclosure Counsel to the City for the Bonds. It is anticipated that the Bonds in book-entry form will be available for delivery in New York, New York, on or about July 27, 2005. Dated: July 12, 2005 '' Copyright 2005, American Bankers Association. CUSIP data herein is provided by Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. This Official Statement is submitted in connection with the offer and sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not to be construed as a contract with the purchasers of the Bonds. No dealer, broker, salesman or other person has been authorized by the City or the Underwriter to give any information or to make any representations other than those contained in this Official Statement in connection with the offering made hereby, and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of facts. The information set forth herein has been obtained sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness and is not to be construed as a representation by the City. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder, under any circumstances, shall create any implication that there has been no change in the affairs of any party described herein subsequent to the date as of which such information is presented. All summaries of the documents referred to in this Official Statement are made subject to the provisions of such documents, respectively, and do not purport to be complete statements of any or all of such provisions. The Underwriter has submitted the following statement for inclusion in this Official Statement: the Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. IN CONNECTION WITH THIS OFFICIAL STATEMENT, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENTS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.