2015 Bond Anticipation Note Official Statement
Total Page:16
File Type:pdf, Size:1020Kb
NEW/RENEWAL ISSUE BOND ANTICIPTION NOTES In the opinion of Roemer Wallens Gold & Mineaux LLP, Bond Counsel, under existing laws, regulations, rulings and court decisions, and assuming continuing compliance by the City with certain covenants and the accuracy of certain representations, (i) interest on the Notes is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and (ii) interest on the Notes is exempt from personal income taxes imposed by the State of New York and political subdivisions thereof, including The City of New York. The Notes may be subject to certain federal taxes imposed only on certain corporations, including the corporate alternative minimum tax on a portion of that interest. See "TAX MATTERS" herein for a discussion of certain Federal taxes applicable to corporate owners of the Notes. The City will NOT designate the Notes as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code. $43,425,299 CITY of ALBANY ALBANY COUNTY, NEW YORK $43,425,299 Bond Anticipation Notes, 2015 At an Interest Rate of 2.00% - To Yield 0.38% CUSIP #012428 7F9 Dated: July 1, 2015 Due: July 1, 2016 (the “Notes”) The Notes are general obligations of the City of Albany, Albany County, New York, all the taxable real property within which is subject to the levy of ad valorem taxes to pay the Notes interest thereon, subject to applicable statutory limits. See “Tax Levy Limitation Law” herein. The Notes will be issued as registered notes, and, when issued, 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. 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 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 and subject to the receipt of the respective approving legal opinion as to the validity of the Notes of Roemer Wallens Gold & Mineaux LLP, Bond Counsel, of Albany, New York. It is anticipated that the Notes will be available for delivery through the facilities of DTC in Jersey City, New Jersey on or about July 1, 2015. June 23, 2015 THIS REVISED COVER SUPPLEMENTS THE OFFICIAL STATEMENT OF THE CITY DATED JUNE 16, 2015 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 AND THE REVISION OF THE DATED DATE ON PAGE 35, THERE HAVE BEEN NO REVISIONS TO SAID OFFICIAL STATEMENT. BANK OF AMERICA MERRILL LYNCH CITY of ALBANY ALBANY COUNTY, NEW YORK KATHERINE M. SHEEHAN MAYOR DARIUS SHAHINFAR TREASURER LEIF C. ENGSTROM CHIEF CITY AUDITOR COMMON COUNCIL CAROLYN McLAUGHLIN, PRESIDENT RICHARD CONTI, PRESIDENT PRO TEMPORE Dorcey Applyrs Jack Flynn Kelly Kimbrough Ronald E. Bailey Leah Golby Vivian Kornegay Frank Commisso, Jr. Daniel Herring Judd Krasher Judy Doesschate Joseph Igoe Michael O’Brien Catherine M. Fahey Mark Robinson CITY OFFICIALS MATTHEW PETER ISMAT ALAM NALA R. WOODARD Chief of Staff Budget Director City Clerk JOHN REILLY, ESQ. Corporation Counsel ROEMER WALLENS GOLD & MINEAUX LLP FISCAL ADVISORS & MARKETING, INC. Bond Counsel Financial Advisor No person has been authorized by the City of Albany 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 of Albany. TABLE OF CONTENTS Page Page INTRODUCTION .................................................................................... 1 CITY INDEBTEDNESS .......................................................................... 27 Constitutional Requirements ................................................................. 27 DESCRIPTION OF THE NOTES ......................................................... 1 Debt Limit .............................................................................................. 27 No Optional Redemption ....................................................................... 2 Statutory Procedure ............................................................................... 27 Book-Entry-Only System ...................................................................... 2 Debt Outstanding End of Fiscal Year .................................................... 28 CERTIFICATED NOTES ...................................................................... 3 Details of Outstanding Indebtedness ..................................................... 28 Purposes of Issue .................................................................................. 4 Debt Statement Summary ...................................................................... 29 Estimate of Obligations to be Issued ..................................................... 29 SOURCES OF PAYMENT OF THE NOTES ...................................... 4 Revenue and Tax Anticipation Notes .................................................... 29 THE CITY OF ALBANY ........................................................................ 4 Bonded Debt Service ............................................................................. 29 General Information............................................................................... 4 Authority Indebtedness .......................................................................... 29 City Services .......................................................................................... 6 Estimated Overlapping Indebtedness .................................................... 30 Solid Waste ............................................................................................ 7 Debt Ratios ............................................................................................ 30 Wealth and Income Indicators ............................................................... 7 Population .............................................................................................. 7 MARKET AND RISK FACTORS ......................................................... 30 Real Property Tax Base ......................................................................... 8 Building Permit ...................................................................................... 9 MATERIAL EVENT NOTICES WITH RESPECT TO THE NOTES ......... 31 Employment ......................................................................................... 10 Ten Largest Employers in the City ...................................................... 10 SPECIAL PROVISIONS AFFECTING Unemployment Rates ........................................................................... 11 REMEDIES UPON DEFAULT ......................................................... 32 Government Organization ................................................................... 12 Employees ............................................................................................ 13 TAX MATTERS ....................................................................................... 33 DISCUSSION OF FINANCIAL OPERATIONS ............................... 13 DOCUMENTS ACCOMPANYING DELIVERY OF THE NOTES . 33 Budgetary Procedure ........................................................................... 13 Legal Matters ......................................................................................... 33 2015 Budget Summary ........................................................................ 14 Five-Year Capital Plan ........................................................................ 15 ABSENCE OF LITIGATION ................................................................. 34 Financial Control Procedures .............................................................. 17 Accounting Practice and Independent Audits ..................................... 17 RATING .................................................................................................... 34 FINANCIAL HISTORY OF THE CITY ............................................ 17 General Fund ....................................................................................... 17 MISCELLANEOUS ................................................................................. 34 Albany Municipal Water Finance Authority and Albany Water Board ............... 17 Revenues .............................................................................................. 18 APPENDIX - A Expenses .............................................................................................