11200000 Harris County Municipal Utility District No
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PRELIMINARY OFFICIAL STATEMENT DATED JULY 19, 2019 THIS PRELIMINARY OFFICIAL STATEMENT is subject to completion and amendment and is intended solely for the solicitation of initial bids to purchase the Bonds. Upon sale of the Bonds, the OFFICIAL STATEMENT will be completed and delivered to the Underwriter. IN THE OPINION OF BOND COUNSEL, THE BONDS ARE VALID OBLIGATIONS OF HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 489, AND INTEREST ON THE BONDS IS EXCLUDABLE FROM GROSS INCOME FOR PURPOSES OF FEDERAL INCOME TAXATION UNDER STATUTES, REGULATIONS, PUBLISHED RULINGS AND COURT DECISIONS EXISTING ON THE e Official Statement is DATE OF SUCH OPINION. SEE “LEGAL MATTERS” HEREIN FOR A DISCUSSION OF THE OPINION OF BOND COUNSEL. THE BONDS HAVE NOT BEEN DESIGNATED “QUALIFIED TAX-EXEMPT OBLIGATIONS” FOR FINANCIAL INSTITUTIONS. SEE “LEGAL MATTERS—NOT QUALIFIED TAX-EXEMPT OBLIGATIONS.” NEW ISSUE-BOOK-ENTRY-ONLY $11,200,000 these securities in any jurisdiction in which HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 489 accepted prior to the timeth (A political subdivision of the State of Texas located within Harris County) UNLIMITED TAX BONDS SERIES 2019 Dated Date: September 1, 2019 Due: September 1, as shown below The $11,200,000 Unlimited Tax Bonds, Series 2019 (the “Bonds”) are being issued by Harris County Municipal Utility District No. 489 (the “District”). Principal of the Bonds is payable at maturity or prior redemption. Interest on the Bonds initially accrues from September 1, 2019, and nor shall there be any sale of be any sale of shall there nor is payable on March 1, 2020 (six months interest). Thereafter, interest on the Bonds accrues from the most recent interest payment date and is payable on each September 1 and March 1 until maturity or prior redemption. The Bonds will be issued only in fully registered form in denominations of $5,000 each or integral multiples thereof. The Bonds mature and are subject to redemption prior to their maturity as shown below. be sold nor may offers to buy be t The Bonds will be registered and delivered only in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. Beneficial Owners (as defined herein under “BOOK-ENTRY-ONLY SYSTEM.”) of the Bonds will not receive physical certificates representing the Bonds, but will receive a credit balance on the books of the DTC participants. ties may no So long as Cede & Co. is the registered owner of the Bonds, the principal of and interest on the Bonds will be paid by the paying agent/registrar, initially The Bank of New York Mellon Trust Company, N.A. in Dallas, Texas (the “Paying Agent/Registrar”), directly to DTC, which will, in urisdiction. urisdiction. j turn, remit such principal and interest to its participants for subsequent disbursement to the Beneficial Owners. See “BOOK-ENTRY-ONLY solicitation of an offer to buy an offer solicitation of SYSTEM.” such such y MATURITY SCHEDULE Initial Initial Due PrincipalInterest Reoffering CUSIP Due PrincipalInterest Reoffering CUSIP (September 1) Amount (a)Rate Yield (c) Number (d) (September 1) Amount (a)Rate Yield (c) Number (d) 2020$ 125,000 % % 2033$ 420,000 (b) % % 2021 240,000 2034 440,000 (b) securities laws of an tion or amendment. These securi 2022 255,000 2035 460,000 (b) 2023 265,000 2036 480,000 (b) 2024 275,000 2037 505,000 (b) 2025 290,000 (b) 2038 525,000 (b) 2026 305,000 (b) 2039 550,000 (b) 2027 320,000 (b) 2040 575,000 (b) 2028 335,000 (b) 2041 605,000 (b) ualification under the 2029 350,000 (b) 2042 635,000 (b) q 2030 365,000 (b) 2043 660,000 (b) 2031 380,000 (b) 2044 695,000 (b) 2032 400,000 (b) 2045 745,000 (b) ed herein are subject tocomple ration or or ration t liminary Official Statement constitute an offer to sell or the is g (a) The Underwriter (hereinafter defined) may designate one or more maturities as term bonds. See accompanying “OFFICIAL NOTICE OF SALE” and “OFFICIAL BID FORM.” (b) Bonds maturing on or after September 1, 2025, are subject to redemption at the option of the District prior to their maturity dates in whole, or from time to time, in part, on September 1, 2024, or on any date thereafter, at a price of par plus unpaid accrued interest from the most recent interest payment date to rior to re to rior p the date fixed for redemption. See “THE BONDS—Redemption Provisions.” (c) Initial Reoffering Yield represents the initial offering yield to the public, which has been established by the Underwriter for offers to the public and which subsequently may be changed. Accrued interest from September 1, 2019 is to be added to the price. (d) CUSIP Numbers will be assigned to the Bonds by CUSIP Service Bureau and are included solely for the convenience of the purchasers of the Bonds. Neither the District nor the Underwriter shall be responsible for the selection or correctness of the CUSIP Numbers set forth herein. The Bonds, when issued, will constitute valid and legally binding obligations of the District and will be payable from the proceeds of an annual ad valorem tax, without legal limitation as to rate or amount, levied upon all taxable property within the District, as further described herein. The no circumstances shall this Pre Bonds are obligations solely of the District and are not obligations of the State of Texas, Harris County, the City of Houston, or any entity other than the District. INVESTMENT IN THE BONDS IS SUBJECT TO SPECIAL RISK FACTORS DESCRIBED HEREIN. See “RISK FACTORS.” The Bonds are offered when, as and if issued by the District, subject, among other things, to the approval of the Bonds by the Attorney General of Texas and the approval of certain legal matters by Schwartz, Page & Harding, L.L.P., Houston, Texas, Bond Counsel. Delivery of the Bonds in book-entry form through DTC is expected on or about September 18, 2019. solicitation or sale would be unlawful unlawful be would sale or solicitation , Bids Due: Monday, August 19, 2019, at 9:30 A.M., Houston, Texas Time, in Houston, Texas Bid Award: Monday, August 19, 2019 at 11:00 A.M., Houston, Texas Time, in Houston, Texas delivered in final form. Under form. in final delivered such offer This Preliminary Official Statement the informationand contain TABLE OF CONTENTS MATURITY SCHEDULES ............................................................... 1 District Consultants ........................................................................ 28 USE OF INFORMATION IN OFFICIAL STATEMENT .............. 3 WATER, WASTEWATER AND DRAINAGE .............................. 29 SALE AND DISTRIBUTION OF THE BONDS .............................. 4 Regulation ...................................................................................... 29 Award of the Bonds .......................................................................... 4 Master Facilities ............................................................................. 29 Prices and Marketability ................................................................... 4 Internal Water Distribution, Wastewater Collection and Storm Securities Laws ................................................................................. 4 Drainage Facilities .......................................................................... 31 OFFICIAL STATEMENT SUMMARY ........................................... 5 100-Year Flood Plain ..................................................................... 31 SELECTED FINANCIAL INFORMATION (UNAUDITED) ........ 9 Water and Wastewater Operations ................................................. 32 RISK FACTORS .............................................................................. 10 ROADS .............................................................................................. 33 General ........................................................................................... 10 MAJOR CHANNEL AND DETENTION IMPROVEMENTS .... 33 Recent Tropical Weather Events; Hurricane Harvey ...................... 10 FINANCIAL INFORMATION CONCERNING Specific Flood Type Risks .............................................................. 11 THE DISTRICT (UNAUDITED) .................................................... 34 Economic Factors and Interest Rates .............................................. 11 Investments of the District .............................................................. 34 Credit Markets and Liquidity in the Financial Markets .................. 11 Outstanding Bonds ......................................................................... 35 Competition .................................................................................... 11 Debt Service Requirements ............................................................ 35 Development and Home Construction in the District ..................... 11 Estimated Overlapping Debt .......................................................... 36 Possible Impact on District Tax Rates ............................................ 12 Overlapping Taxes ......................................................................... 37 Overlapping Debt and Taxes .......................................................... 12 TAX DATA ....................................................................................... 37 Tax Collections Limitations and Foreclosure Remedies ................. 13 Debt Service Tax ............................................................................ 37 Dependence on Principal Taxpayers ............................................... 13 Maintenance