Community Facilities District No. 2018-1 (Bedford) (Improvement Area No
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PRELIMINARY OFFICIAL STATEMENT DATED JULY 12, 2018 NEW ISSUE – BOOK-ENTRY ONLY NO RATING In the opinion of Best Best & Krieger, LLP Riverside, California (“Bond Counsel”), subject to certain qualifications described in this Official Statement, under existing statutes, regulations, rulings and judicial decisions, and assuming certain representations and compliance with certain covenants and requirements described herein, the interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income tax. See “LEGAL MATTERS — Tax Exemption.” County of Riverside State of California $9,000,000* COMMUNITY FACILITIES DISTRICT NO. 2018-1 (BEDFORD) (IMPROVEMENT AREA NO. 1) OF THE CITY OF CORONA 2018 SPECIAL TAX BONDS, SERIES A Dated: Date of Delivery Due: September 1, as shown on the inside cover page The Community Facilities District No. 2018-1 (Bedford) (Improvement Area No. 1) of the City of Corona 2018 Special Tax Bonds, Series A (the “Bonds”) are being issued and delivered to (i) finance various public improvements needed with respect to the development within Community Facilities District No. 2018-1 (Bedford) of the City of Corona, County of Riverside, State of California (the “District”), (ii) fund a reserve fund securing the Bonds; (iii) fund capitalized interest on the Bonds due on September 1, 2018; (iv) fund a deposit to the administrative expense fund; and (v) pay costs of issuance of the Bonds. The District has been formed and Improvement Area No. 1 (“Improvement Area No. 1”) has been designated by the City of Corona (the “City”) and is located in the southeastern portion of the City, in the County of Riverside, California (the “County”). The Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Sections 53311 et seq. of the Government Code of the State of California), and pursuant to a Fiscal Agent Agreement, dated as of July 1, 2018 (the “Fiscal Agent Agreement”), by and between the City, for and on behalf of the District, and The Bank of New York Mellon Trust Company, N.A. as fiscal agent (the “Fiscal Agent”). The Bonds are special obligations of the City and the District and are payable solely from revenues derived from certain annual Special Taxes (as defined in this Official Statement) to be levied on and collected from the owners of certain taxable land within Improvement Area No. 1 and from certain other funds pledged under the Fiscal Agent Agreement, all as further described in this Official Statement. The Special Taxes are to be levied according to the Rate and Method of Apportionment for Improvement Area No. 1 approved by the City Council of the City and the qualified electors within Improvement Area No. 1. See “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes” and APPENDIX A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” The City Council of the City is the legislative body of the District. The Bonds are issuable in fully registered form and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). Individual purchases of the Bonds may be made in integral multiples of $5,000 and will be in book-entry form only. Purchasers of the Bonds will not receive certificates representing their beneficial ownership of the Bonds but will receive credit balances on the books of their respective nominees. The Bonds will not be transferable or exchangeable except for transfer to another nominee of DTC or as otherwise described in this Official Statement. Interest on the Bonds will be payable semiannually on each March 1 and September 1, commencing September 1, 2018. Principal of and interest on the Bonds will be paid by the Fiscal Agent to DTC for subsequent disbursement to DTC Participants who are obligated to remit such payments to the beneficial owners of the Bonds. See “THE BONDS — General Provisions,” “— Book-Entry Only System” and APPENDIX G — “INFORMATION CONCERNING DTC.” Neither the faith and credit nor the taxing power of the City, the County, the State of California or any political subdivision of such entities is pledged to the payment of the Bonds. Except for the Special Tax Revenues (as defined herein), no other taxes are pledged to the payment of the Bonds. The Bonds are special obligations of the City and the District payable solely from Special Taxes and certain other amounts held under the Fiscal Agent Agreement as more fully described in this Official Statement. The Bonds are subject to optional redemption, mandatory redemption prior to maturity from special tax prepayments and mandatory sinking fund redemption as described in this Official Statement. See “THE BONDS — Redemption.” Investment in the Bonds involves risks that are not appropriate for certain investors. Certain events could affect the ability of the City to pay the principal of and interest on the Bonds when due. See the section of this Official Statement entitled “RISK FACTORS” for a discussion of certain risk factors that should be considered, in addition to the other matters set forth in this Official Statement, in evaluating the investment quality of the Bonds. This cover page contains certain information for general reference only. It is not intended to be a summary of the security or terms of this issue. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision. MATURITY SCHEDULE (See Inside Cover Page) The Bonds are offered when, as and if issued and accepted by Stifel, Nicolaus & Company, Incorporated, the Underwriter, subject to approval as to their legality by Best Best & Krieger LLP, Riverside, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed on for the City and the District by the City Attorney and by Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, as Disclosure Counsel, for the Underwriter by Jones Hall, A Professional Law Corporation, San Francisco, California, as counsel to the Underwriter, and for the Fiscal Agent by its counsel. It is anticipated that the Bonds in book-entry form will be available for delivery to DTC in New York, New York, on or about July 31, 2018. Dated: July __, 2018. This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered prior accepted, be buy them delivered is Statement Official the time to the to offers nor may sold, be not securities These may This Preliminary amendment. or completion to are subject herein contained the information and Statement Official solicitation or of, these securitiesany jurisdiction in in which such offer, any sale nor shall there be buy, to Under no circumstances shall this Preliminary to sell or the solicitation of an offer Official Statement constitute an offer form. in final be unlawful. sale would * Preliminary, subject to change. COMMUNITY FACILITIES DISTRICT NO. 2018-1 (BEDFORD) (IMPROVEMENT AREA NO. 1) OF THE CITY OF CORONA 2018 SPECIAL TAX BONDS, SERIES A Base CUSIP No.† _______ $___________ Serial Bonds Maturity Date Principal Interest (September 1) Amount Rate Yield Price CUSIP No.† $_________ ___% Term Bonds due September 1, 20__ Yield: ___% Price: ____ CUSIP No.† ________ † CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by S&P Global Market Intelligence on behalf of The American Bankers Association. This information is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services Bureau. CUSIP numbers have been assigned by an independent company not affiliated with the City, the District or the Underwriter and are included solely for the convenience of the registered owners of the applicable Bonds. None of the City, the District or the Underwriter is responsible for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the applicable Bonds or as included herein. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds. CITY OF CORONA MAYOR AND CITY COUNCIL Karen Spiegel, Mayor Eugene Montanez, Vice Mayor Randy Fox, Council Member Dick Haley, Council Member Jason Scott, Council Member CITY STAFF Darrell Talbert, City Manager Chad Willardson, City Treasurer Kerry D. Eden, Assistant City Manager and Administrative Services Director Dean Derleth, Esq., City Attorney BOND COUNSEL Best Best & Krieger LLP Riverside, California DISCLOSURE COUNSEL Stradling Yocca Carlson & Rauth, a Professional Corporation Newport Beach, California MUNICIPAL ADVISOR CSG Advisors Incorporated San Francisco, California SPECIAL TAX CONSULTANT Spicer Consulting Group, LLC Temecula, California APPRAISER Kitty Siino & Associates, Inc. Tustin, California MARKET ABSORPTION ANALYST