3505000 City of Chino Hills Reassessment District No
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NEW ISSUE – BOOK-ENTRY-ONLY NOT RATED (See “CONCLUDING INFORMATION – No Rating on the Bonds; Secondary Market” herein) 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 Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”) 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 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 Bonds. See “LEGAL MATTERS – Tax Matters.” SAN BERNARDINO COUNTY STATE OF CALIFORNIA $3,505,000 CITY OF CHINO HILLS REASSESSMENT DISTRICT NO. 10-1 LIMITED OBLIGATION IMPROVEMENT BONDS Dated: Date of Delivery Due: September 2 as Shown on the Inside Front Cover. The cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Investment in the Bonds involves risks. See “RISK FACTORS” herein for a discussion of special risk factors that should be considered in evaluating the investment quality of the Bonds. The City of Chino Hills Reassessment District No. 10-1, Limited Obligation Improvement Bonds (the “Bonds”) are being issued by the City of Chino Hills (the “City”) pursuant to an Indenture, dated as of August 1, 2010 (the “Indenture”), by and between the City and U.S. Bank National Association, as trustee (the “Trustee”) to: (i) refund outstanding obligations of the City of Chino Hills Reassessment District 1995, (ii) pay costs related to the issuance of the Bonds, and (iii) make a deposit to a Reserve Fund for the Bonds. The Bonds are being issued pursuant to provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds (the “Act”). The Bonds are payable from reassessments levied pursuant to the Act. See “SOURCES OF PAYMENT FOR THE BONDS” and “RISK FACTORS” herein. Interest on the Bonds is payable semiannually on September 2 and March 2 each year, commencing March 2, 2011 (each, an “Interest Payment Date”), until maturity. The Bonds are subject to optional and special mandatory redemption as described herein. See “THE BONDS - Redemption” herein. The Bonds are offered when, as and if issued subject to the approval as to their legality by Orrick, Herrington & Sutcliffe LLP, Los Angeles, California, Bond Counsel and certain other conditions. Certain legal matters will be passed on for the City by the City Attorney and by Fulbright & Jaworski L.L.P., Los Angeles, California, Disclosure Counsel and for the Underwriter by its Counsel, Nossaman LLP, Irvine, California. It is anticipated that the Bonds in book-entry form will be available for delivery through the facilities of The Depository Trust Company, New York, New York on or about August 19, 2010. The date of this Official Statement is August 5, 2010. $3,505,000 CITY OF CHINO HILLS REASSESSMENT DISTRICT NO. 10-1 LIMITED OBLIGATION IMPROVEMENT BONDS MATURITY SCHEDULE (Base CUSIP®† 16957H) Maturity Date Principal Interest Reoffering September 2 Amount Rate Yield CUSIP®† 2011 $265,000 2.00% 2.00% BR1 2012 275,000 2.50 2.50 BS9 2013 285,000 3.00 3.00 BT7 2014 290,000 3.375 3.375 BU4 2015 300,000 3.875 3.875 BV2 2016 310,000 4.25 4.25 BW0 2017 325,000 4.50 4.50 BX8 2018 340,000 4.75 4.75 BY6 2019 355,000 5.00 4.98* BZ3 2020 370,000 5.125 5.17 CA7 2021 390,000 5.25 5.32 CB5 __________________________ * Yield calculated to the September 2, 2016 optional call date. † CUSIP® A registered trademark of the American Bankers Association. Copyright © 1999-2010 Standard & Poor’s, a Division of The McGraw-Hill Companies, Inc. CUSIP® data herein is provided by Standard & Poor’s CUSIP® Service Bureau. This data in not intended to create a database and does not serve in any way as a substitute for the CUSIP® Service Bureau. CUSIP® numbers are provided for convenience of reference only. Neither the City nor the Underwriter takes any responsibility for the accuracy of such numbers. GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT Use of Official Statement. 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. Estimates and Forecasts. This Official Statement contains statements which, to the extent they are not recitations of historical fact, constitute “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. In this respect, such forward-looking statements are generally identified by the use of words “estimate,” “project,” “plan,” “budget,” “anticipate,” “expect,” “intend,” or “believe” or the negative thereof or other variations thereon or comparable terminology. The achievement of certain results or other expectations contained in such forward-looking statements involves known or unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be significantly different than those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties relating to economic conditions, the effect of changes in the amounts and timing of receipt of revenues, the availability and sufficiency of Reassessments, change in circumstances adversely affecting the projected use of proceeds, and risks involving pertinent court decisions. The City does not plan to issue any updates or revisions to those forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based change. Potential investors are cautioned that such statements are only predictions and that actual events or results may differ materially. In evaluating such statements, potential investors should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements. Limit of Offering. No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representations in connection with the offer or sale of the Bonds other than those contained herein and if given or made, such other information or representation must not be relied upon as having been authorized by the City, the Financial Advisor or the Underwriter. 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 a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. Involvement of Underwriter. 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. Information Subject to Change. The information and expressions of opinions herein are subject to change without notice and neither 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 or any other entity described or referenced herein since the date hereof. 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. Stabilization of Prices. In connection with this offering, the Underwriter may overallot or effect transactions which stabilize or maintain the market price of the Bonds 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 others at prices lower than the public offering prices set forth on the inside front cover page hereof and said public offering prices may be changed from time to time by the Underwriter. THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXCEPTION FROM THE REGISTRATION REQUIREMENTS CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. CITY OF CHINO HILLS, CALIFORNIA CITY COUNCIL W.C. “Bill” Kruger, Mayor Ed Graham, Vice Mayor Art Bennett, Council Member Gwenn Norton-Perry, Council Member Peter Rogers, Council Member ______________________________________________ CITY STAFF Michael S. Fleager, City Manager Mary M. McDuffee, City Clerk Mark D. Hensley, City Attorney Kathleen Gotch, Assistant City Manager Christine Kelly, Community Development Director Judy R. Lancaster, Finance Director/City Treasurer Jonathan Marshall, Community Services Director John Mura, Public Works Director Steve Nix, City Engineer ________________________________________ PROFESSIONAL SERVICES Bond Counsel Orrick, Herrington & Sutcliffe LLP Los Angeles, California Disclosure Counsel Fulbright & Jaworski L.L.P.