City of Syracuse Onondaga County, New York
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1 PRELIMINARY OFFICIAL STATEMENT DATED JUNE 8, 2021 NEW ISSUE SERIAL BONDS RATINGS: See “RATINGS” herein In the opinion of Trespasz & Marquardt, LLP, Bond Counsel to the City, based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, compliance by the City with certain covenants, interest on the Bonds excluded from gross income for Federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and is not treated as a preference item in calculating the alternative minimum tax imposed under the Code with respect to individuals. Bond Counsel is also of the opinion that interest on the Bonds is excluded from adjusted gross income for purposes of personal income taxes imposed by the State of New York and the City of New York. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the accrual of, interest on the Bonds. See “Tax Matters” herein. The Bonds are not “Qualified Tax-Exempt Obligations” under Section 265(b) of the Code. CITY OF SYRACUSE ONONDAGA COUNTY, NEW YORK $47,916,968 PUBLIC IMPROVEMENT BONDS, SERIES 2021A (the “Bonds”) Date of Issue: Date of Delivery Maturity Dates: May 15, 2023 – 2041 The Bonds are general obligations of the City of Syracuse, Onondaga County, New York (the “City”), and will contain a pledge of the faith and credit of the City for the payment of the principal of and interest on the Bonds. All the taxable real property within the City will be subject to the levy of ad valorem taxes to pay the Bonds and the interest thereon, subject to applicable statutory limitations. See “Nature of Obligation” and “Tax Levy Limitation Law,” herein. The Bonds will be issued in fully registered form, and when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Individual purchases may be made in book-entry form only, in the principal amount of $5,000 or integral multiples thereof. Purchasers will not receive certificates representing their ownership interest in the Bonds. Payment of the principal of and interest on the Bonds will be made by the City to DTC, which will in turn remit such principal and interest to its participants for subsequent disbursement to the beneficial owners of the Bonds as described herein. See “Book-Entry-Only System” herein. The Bonds will be dated their Date of Delivery, will bear interest from such date payable May 15, 2022, November 15, 2022 and semiannually thereafter on May 15 and November 15 until maturity, and will mature on the dates in the years and amounts as set forth on the inside cover page hereof. The Bonds will be subject to redemption prior to maturity (see “Optional Redemption” herein). The Bonds are offered subject to the final approving opinions of Trespasz & Marquardt, LLP, Syracuse, New York, Bond Counsel, and certain other conditions. Capital Markets Advisors, LLC has served as Municipal Advisor to the City in connection with the issuance of the Bonds. It is expected that delivery of the Bonds in book-entry form through DTC on or about June 30, 2021. THE OFFICIAL STATEMENT IS IN A FORM “DEEMED FINAL” BY THE CITY FOR PURPOSES OF THE SECURITIES AND EXCHANGE COMMISSION RULE 15C2-12 (“THE RULE”). THE CITY WILL COVENANT IN A DISCLOSURE UNDERTAKING TO PROVIDE NOTICE OF CERTAIN INFORMATION (AS DEFINED IN THE RULE) AS REQUIRED BY THE RULE (SEE “DISCLOSURE UNDERTAKING FOR THE BONDS” AND DISCLOSURE UNDERTAKING FOR THE NOTES,” HEREIN). Dated: June ___, 2021 This Preliminary Official Statement and the information contained herein are subject to completion or amendment without notice. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of sell or the to this Preliminary circumstances shall Under no an offer Statement constitute Official This Preliminary without notice. or amendment subject to completion herein are contained the information Statement and Official prior of such jurisdiction. or qualification under the securities to registration be unlawful laws solicitation, or sale would jurisdiction sale of the securities, in any in which such offer, nor shall there be any to buy, an offer *Preliminary, subject to change. **DRAFT**v1 2 $47,916,968 PUBLIC IMPROVEMENT BONDS, SERIES 2021A Dated Date: June 30, 2021 Principal Due: May 15 as shown below. Interest Due: May 15 and November 15 of each year until maturity commencing May 15, 2022. Principal Interest Year Amount Rate Yield CUSIP # 2023 $2,591,968 871702 _ 2024 2,815,000 871702 _ 2025 2,915,000 871702 _ 2026 3,000,000 871702 _ 2027 2,880,000 871702 _ 2028 2,965,000 871702 _ 2029 3,050,000 871702 _ 2030 3,135,000 871702 _ 2031 3,130,000 871702 _ 2032 2,630,000 871702 _ 2033 2,675,000 871702 _ 2034 2,595,000 871702 _ 2035 2,655,000 871702 2036 2,560,000 871702 2037 1,655,000 871702 2038 1,685,000 871702 2039 1,715,000 871702 2040 1,750,000 871702 2041 1,515,000 871702 871702 **DRAFT**v1 3 CITY OF SYRACUSE ONONDAGA COUNTY, NEW YORK Ben Walsh MAYOR COMMON COUNCIL Helen Hudson President Khalid Bey ..................................... President Pro-Tempore and Councilor-at-Large Rita Paniagua .............................................................................. Councilor-at-Large Michael Greene ........................................................................... Councilor-at-Large Ronnie White, Jr. ........................................................................ Councilor-at-Large Joseph Carni ...................................... Councilor, First District and Minority Leader Patrick Hogan.................................................................. Councilor, Second District Chol Majok ........................................................................ Councilor, Third District Latoya Allen..................................................................... Councilor, Fourth District Joe Driscoll ......................................................................... Councilor, Fifth District ______________________________ Nader P. Maroun ................................................................................... City Auditor Brad O’Connor, CPA ....................................................... Commissioner of Finance Kristen E. Smith ....................................................................... Corporation Counsel Timothy Rudd ................................................. Director of Management and Budget ______________________________ BOND COUNSEL Trespasz & Marquardt, LLP Syracuse, New York ______________________________ MUNICIPAL ADVISOR Capital Markets Advisors, LLC Hudson Valley * Long Island * Southern Tier * Western New York (716) 662-3910 **DRAFT**v1 4 [THIS PAGE INTENTIONALLY LEFT BLANK] **DRAFT**v1 5 No person has been authorized by the City of Syracuse to give any information or to make any representations not contained in this Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized. 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 any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. TABLE OF CONTENTS THE BONDS ............................................................. 1 AND COMPLANCE REVIEWS ............................ 11 Description ........................................................... 1 LITIGATION .......................................................... 12 Authority for and Purpose of the Bonds .............. 2 TAX MATTERS ..................................................... 14 Optional Redemption for the Bonds ..................... 2 Tax Accounting Treatment of Premium on Book-Entry-Only System ..................................... 3 Certain Bonds ................................................. 15 NATURE OF OBLIGATION ................................... 5 LEGAL MATTERS ................................................ 15 Tax Levy Limitation Law .................................... 6 DISCLOSURE UNDERTAKING ........................... 16 SPECIAL PROVISIONS AFFECTING REMEDIES Compliance History ........................................... 17 UPON DEFAULT ................................................... 7 MUNICIPAL ADVISOR ........................................ 18 MARKET FACTORS ............................................. 10 RATINGS ................................................................ 18 THE STATE COMPTROLLER’S FISCAL STRESS CYBERSECURITY ................................................ 18 MONITORING SYSTEM ..................................... 11 ADDITIONAL INFORMATION............................ 19 Appendix A THE CITY ............................................................. A-1 CITY INDEBTEDNESS ..................................... A-33 General Information ......................................... A-1 Constitutional Requirements .......................... A-33 Form of Government........................................ A-2 Statutory Procedure ........................................ A-33 Services ............................................................ A-2 Constitutional Debt-Contracting Limitation .. A-34 Employees ........................................................ A-5 Statement of Debt Contracting Power- Employee