$81,860,000 City of Gainesville, Florida Utilities System Revenue
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NEW ISSUE – BOOK-ENTRY ONLY In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the City, 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 2012 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 2012 Series A Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings when calculating corporate alternative minimum taxable income. 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 2012 Series A Bonds. See “TAX MATTERS” herein. $81,860,000 City of Gainesville, Florida Utilities System Revenue Bonds, 2012 Series A Dated: Date of Delivery Due: October 1, as shown on the inside cover page The Utilities System Revenue Bonds, 2012 Series A (the “2012 Series A Bonds”) will be issued as fully registered bonds and, when initially issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the 2012 Series A Bonds. Individual purchases of 2012 Series A Bonds will be made in book-entry form only in the principal amount of $5,000 or any integral multiple thereof. See “BOOK-ENTRY ONLY SYSTEM” in APPENDIX A hereto. The 2012 Series A Bonds are being issued by the City of Gainesville, Florida (the “City”) (a) to refund certain of the City’s outstanding Utilities System Revenue Bonds more particularly described herein and (b) to pay costs of issuance of the 2012 Series A Bonds. The 2012 Series A Bonds bear interest from their dated date payable each April 1 and October 1, commencing April 1, 2013. The 2012 Series A Bonds are subject to redemption prior to maturity as described herein. ____________________________________________ ____________________________________________MATURITY SCHEDULE – See Inside Cover Page The 2012 Series A Bonds are direct and special obligations of the City and do not constitute a general indebtedness or a pledge of the full faith and credit or the taxing power of the City within the meaning of any constitutional or statutory provision or limitation of indebtedness, nor constitute a lien on any property of or in the City other than the Trust Estate as provided in the Resolution (as such terms are defined herein). The 2012 Series A Bonds are offered when, as and if issued and received by the Underwriters, subject to approval of legality by Orrick, Herrington & Sutcliffe LLP, New York, New York, Bond Counsel to the City. Certain legal matters will be passed upon for the City by Marion J. Radson, Esq., City Attorney, and for the Underwriters by Nixon Peabody LLP, New York, New York. It is expected that the 2012 Series A Bonds in definitive form will be available for delivery to DTC in New York, New York on or about August 2, 2012. J.P. Morgan BofA Merrill Lynch Citigroup Goldman, Sachs & Co. Jefferies July 13, 2012 MATURITIES, AMOUNTS, INTEREST RATES, YIELDS AND CUSIP NUMBERS† $81,860,000 Utilities System Revenue Bonds, 2012 Series A Maturity Interest (October 1) Amount Rate Yield CUSIP 2021 $ 6,510,000 5.000% 2.03% 362848RH8 2022 9,275,000 5.000 2.17 362848RJ4 2023 11,340,000 2.500 2.45* 362848RK1 2024 9,950,000 5.000 2.50* 362848RL9 2025 10,445,000 5.000 2.61* 362848RM7 2026 10,965,000 5.000 2.72* 362848RN5 2027 11,515,000 3.000 3.13 362848RP0 2028 11,860,000 3.125 3.28 362848RQ8 _________________ † CUSIP numbers have been assigned by an organization not affiliated with the City and are included solely for the convenience of the holders of the 2012 Series A Bonds. The City is not responsible for the selection or uses of these CUSIP numbers, nor is any representation made as to their correctness in the 2012 Series A Bonds or as indicated above. * Yield to October 1, 2022, the first call date. CITY OF GAINESVILLE, FLORIDA CITY OFFICIALS Craig Lowe................................................................................................................................................... Mayor Lauren Poe ...........................................................................................................Mayor Pro-Tem, Commissioner William Thomas Hawkins................................................................................................................Commissioner Yvonne Hinson-Rawls .....................................................................................................................Commissioner Todd Chase.......................................................................................................................................Commissioner Susan Bottcher .................................................................................................................................Commissioner Randolf M. Wells.............................................................................................................................Commissioner ____________________ Russ D. Blackburn ............................................................................................................................City Manager Marion J. Radson, Esq. .....................................................................................................................City Attorney Kurt M. Lannon...............................................................................................................Clerk of the Commission Brent L. Godshalk .............................................................................................................................. City Auditor Cecil E. Howard..........................................................................................................Equal Opportunity Director Utilities System Robert E. Hunzinger.................................................................................................General Manager for Utilities David E. Beaulieu, P.E..................................................................Assistant General Manager – Energy Delivery Jennifer L. Hunt, CPA.........................................................................................Chief Financial Officer, Utilities Shayla L. McNeill .......................................................................................................................Utilities Attorney David M. Richardson, P.E.....................................Assistant General Manager – Water and Wastewater Systems John W. Stanton ...............................................................................Assistant General Manager – Energy Supply Kathy E. Viehe.............................................................Assistant General Manager – Customer Support Services ____________________ CONSULTANTS Orrick, Herrington & Sutcliffe LLP New York, New York Bond Counsel Public Financial Management, Inc. Philadelphia, Pennsylvania Financial Advisor (THIS PAGE INTENTIONALLY LEFT BLANK) This Official Statement does not constitute an offer to sell the 2012 Series A Bonds in any jurisdiction to any person to whom it is unlawful to make such offer in such jurisdiction. No dealer, broker, salesman or other person has been authorized to give any information or to make any representations, other than those contained in this Official Statement, in connection with the offering of the 2012 Series A Bonds, and, if given or made, such information or representation must not be relied upon. The Underwriters have provided the following sentence for inclusion in this Official Statement: The Underwriters have reviewed the information in this Official Statement in accordance with, and as a part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. Certain information set forth herein has been furnished to the City by sources which are believed to be reliable, but is not guaranteed as to its accuracy or completeness. The information contained herein is 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’s utilities system or of the City since the date hereof. THE UNDERWRITERS HAVE ADVISED THE CITY THAT IN CONNECTION WITH THE OFFERING OF THE 2012 SERIES A BONDS, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 2012 SERIES A BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZATION, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. _________________________ TABLE OF CONTENTS _________________________ Page INTRODUCTORY STATEMENT............................................................................................................................. 1 General............................................................................................................................................................... 1 The Utilities System..........................................................................................................................................