Official Statement Relating to the Issuance Of
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In the opinion of Hawkins Delafield & Wood LLP, New York, New York, Bond Counsel to the City, under existing statutes and court decisions and assuming compliance with certain tax covenants described herein, interest on the Bonds (i) is excluded from gross income for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986 (the “Code”) and (ii) is not treated as a preference item in calculating the alternative minimum tax imposed on individuals and corporations under the Code; such interest, however, is included in the adjusted current earnings of certain corporations for purposes of calculating the alternative minimum tax imposed on such corporations. In addition, in the opinion of Bond Counsel to the City, under the existing statutes of the Commonwealth of Virginia, interest on the Bonds is not includable in computing the Virginia income tax. See “TAX MATTERS” herein. RATINGS: NEW ISSUE — Fitch: AA+ BOOK-ENTRY ONLY Moody’s: Aa2 Standard & Poor’s: AA+ (See “RATINGS” herein) Official Statement Relating To The Issuance Of $115,190,000 City Of Lynchburg, Virginia, General Obligation Public Improvement and Refunding Bonds, Series 2014 Dated: Date of Delivery Due: As Shown On Inside Cover This Official Statement has been prepared by the City of Lynchburg to provide information on the Bonds. Selected information is presented on this cover page for the convenience of the reader. To make an informed decision regarding the Bonds, a prospective investor should read this Official Statement in its entirety. Purpose The proceeds of the Bonds will be used to finance the costs of various public improvement projects of and for the City, to pay the outstanding principal of a general obligation note issued to finance the costs of various public improvement projects of and for the City, and to refund and defease certain outstanding general obligation bonds of the City (see “INTRODUCTION” and “PLAN OF REFUNDING” herein). Issued Pursuant to The Bonds will be issued pursuant to the Public Finance Act of 1991, Title 15.2, Chapter 26, of the Code of Virginia, 1950. The City Council of the City adopted a resolution on May 13, 2014 authorizing the issuance and sale of the Bonds. Security The Bonds will be general obligations of the City, and the full faith and credit of the City will be irrevocably pledged to the punctual payment of the principal of and interest on the Bonds as they become due. Interest Payment Dates June 1 and December 1, beginning December 1, 2014. Record Dates May 15 and November 15, beginning November 15, 2014. Redemption Provisions See “SECTION TWO: THE BONDS - Description of the Bonds - Optional Redemption” and “- Mandatory Sinking Fund Redemption” herein. Denomination $5,000 or whole multiples thereof. Registration Book-entry only; Cede & Co., as nominee for The Depository Trust Company. Registrar/Paying Agent Director of Financial Services, City of Lynchburg, Virginia. Financial Advisor Davenport & Company LLC. Bond Counsel Hawkins Delafield & Wood LLP, New York, New York. Issuer Contact Director of Financial Services, City of Lynchburg, Virginia, (434) 455-3968. The Bonds are offered when, as and if issued, subject to approval of their validity by Hawkins Delafield & Wood LLP, New York, New York, Bond Counsel to the City, as described herein. It is expected that delivery of the Bonds will be made through the facilities of DTC on or about July 10, 2014. Dated: June 10, 2014 $115,190,000 CITY OF LYNCHBURG, VIRGINIA, GENERAL OBLIGATION PUBLIC IMPROVEMENT AND REFUNDING BONDS, SERIES 2014 Year Principal Interest CUSIP (June 1) Amount Rate Yield Number** 2015 $ 1,295,000 2.00% 0.15% 551239 5H5 2016 1,065,000 5.00 0.42 551239 5J1 2017 2,635,000 5.00 0.77 551239 5K8 2018 2,990,000 5.00 1.15 551239 5L6 2019 4,245,000 5.00 1.47 551239 5M4 2020 4,800,000 5.00 1.76 551239 5N2 2021 5,565,000 5.00 2.03 551239 5P7 2022 5,600,000 5.00 2.24 551239 5Q5 2023 5,670,000 5.00 2.42 551239 5R3 2024 5,510,000 5.00 2.54 551239 5S1 2025 5,585,000 5.00 2.65* 551239 5T9 2026 5,660,000 5.00 2.75* 551239 5U6 2027 4,000,000 5.00 2.85* 551239 5V4 2028 3,995,000 4.00 3.07* 551239 5W2 2029 3,995,000 4.00 3.16* 551239 5X0 2030 3,995,000 4.00 3.24* 551239 5Y8 2031 3,990,000 4.00 3.31* 551239 5Z5 2032 3,990,000 4.00 3.38* 551239 6A9 2033 3,980,000 4.00 3.45* 551239 6B7 2034 3,980,000 4.00 3.52* 551239 6C5 2035 3,270,000 4.00 3.57* 551239 6D3 2036 3,270,000 4.00 3.66* 551239 6E1 $13,060,000 4.00% Term Bond Due on June 1, 2040 – Yield 3.85%* CUSIP: 5512396F8 $13,045,000 4.00% Term Bond Due on June 1, 2044 – Yield 4.00% CUSIP: 5512396G6 ___________________ * Yield to par call on June 1, 2024. ** 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 Bonds. The City is not responsible for the selection or uses of these CUSIP numbers, nor is any representation made as to their correctness on the Bonds as indicated above. CITY OF LYNCHBURG, VIRGINIA CITY COUNCIL Michael A. Gillette, Mayor Caesor T. Johnson, Vice Mayor Hunsdon “H” Cary, III Joan F. Foster Jeff S. Helgeson J. Randolph Nelson Edgar J.T. Perrow, Jr. CITY OFFICIALS L. Kimball Payne, III, City Manager Bonnie Svrcek, Deputy City Manager Donna S. Witt, Director of Financial Services Valeria P. Chambers, Clerk of Council Walter C. Erwin, III, City Attorney BOND COUNSEL HAWKINS DELAFIELD & WOOD LLP New York, New York AUDITORS BROWN, EDWARDS & COMPANY, L.L.P. Lynchburg, Virginia FINANCIAL ADVISOR DAVENPORT & COMPANY LLC Richmond, Virginia [This Page Intentionally Left Blank] No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell or the solicitation of any offer to buy, nor shall there by any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers or owners of any of the Bonds. The information 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 since the date hereof. TABLE OF CONTENTS Page SECTION ONE: INTRODUCTION ........................................................................................................................................................ 1 The Issuer .......................................................................................................................................................................................... 1 Purpose and Use of Proceeds of the Bonds ........................................................................................................................................ 1 The Bonds .......................................................................................................................................................................................... 1 Delivery ............................................................................................................................................................................................. 2 Ratings ............................................................................................................................................................................................... 2 Additional Information ...................................................................................................................................................................... 2 SECTION TWO: THE BONDS ............................................................................................................................................................... 3 Authorization and Purposes of the Bonds .......................................................................................................................................... 3 Sources and Uses of Funds ................................................................................................................................................................ 3 Description of the Bonds ................................................................................................................................................................... 4 Notice of Redemption ........................................................................................................................................................................ 5 Security for the Bonds ....................................................................................................................................................................... 6 Plan of Refunding .............................................................................................................................................................................. 6 Bondholders’ Remedies in the Event of Default ................................................................................................................................ 7 Approval of Legal Proceedings ........................................................................................................................................................