CITY of TIGARD WASHINGTON COUNTY, OREGON $17,000,000 $8,655,000 General Obligation Bonds, General Obligation Refunding Bonds, Series 2011A Series 2011B
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OFFICIAL STATEMENT DATED JANUARY 25, 2011 NEW ISSUE – Competitive Ratings: Moody’s Aa2 and S&P AA Book-Entry Only See “Ratings” herein In the opinion of K&L Gates LLP, Bond Counsel to the City (“Bond Counsel”), assuming compliance with certain covenants of the City, interest on the Bonds is excludable from gross income for federal income tax purposes under existing law and interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individual and corporations; however, interest on the Bonds is included in adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on certain corporations. See “Tax Matters” herein for a discussion of the opinion of Bond Counsel. In the opinion of Bond Counsel, interest on the Bonds is exempt from Oregon personal income tax under existing law. CITY OF TIGARD WASHINGTON COUNTY, OREGON $17,000,000 $8,655,000 General Obligation Bonds, General Obligation Refunding Bonds, Series 2011A Series 2011B Dated: Date of Delivery Due: Series A: June 1; Series B: December 1, as shown on inside cover The General Obligation Bonds, Series 2011A (the “2011A Bonds”) and the General Obligation Bonds, Series 2011B (the “2011B Bonds”) (the “2011A Bonds” and with the “2011B Bonds”, collectively, the “Bonds”) will be issued by the City of Tigard, Washington County, Oregon (the “City”), in book-entry only form in denominations of $5,000 or integral multiples thereof. The Bonds are registered bonds issued in the name of CEDE & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York. (See "BOOK-ENTRY SYSTEM ONLY" herein.) Interest is payable semiannually on December 1 and June 1 of each year, commencing December 1, 2011, through the principal trust offices of the City’s paying agent, currently The Bank of New York Mellon Trust Company, N.A., Seattle, Washington (the “Paying Agent”). The proceeds of the sale of the Bonds will be used to acquire open spaces, protect clean water, improve parklands, refund the City’s outstanding general obligation bonds to achieve debt service savings and to pay the costs of issuing the Bonds. The City has pledged its full faith and credit for the punctual payment of the Bonds. The City has covenanted to levy annually, and as provided by law, a direct ad valorem tax upon all of the taxable property within the City in sufficient amount to pay the Bonds promptly as they mature. The City covenants to levy this tax each year until all the Bonds are paid. This tax shall be in addition to all other taxes of the City, and this tax shall not be limited in rate, amount or otherwise, by Sections 11 or 11b of Article XI of the Oregon Constitution. The Series 2011A Bonds and the Series 2011B Bonds are subject to optional redemption. The 2011A Bonds are also subject to mandatory redemption prior to maturity. See "Redemption of the Bonds" herein. _______________________________________________ Maturity Schedule On Inside Cover _________________________________________________ Wells Fargo Bank National Association purchased the 2011A Bonds and Citigroup Global Markets Inc. purchased the 2011B Bonds via competitive sale on January 25, 2011. The Bonds are offered when, as and if issued and sold by the City and accepted by the Bond Purchasers, subject to the approving opinion of K&L Gates LLP, Portland, Oregon, Bond Counsel to the City. The City expects that the Bonds will be available for delivery to the Paying Agent for Fast Automated Securities Transfer on behalf of DTC, on or about February 3, 2011. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire official statement to obtain information essential to the making of an informed investment decision. Western Financial Group, LLC 333 State Street, Suite V Lake Oswego, Oregon 97034 MATURITY SCHEDULES $ 17,000,000 GENERAL OBLIGATION BONDS, SERIES 2011A Due Principal Interest CUSIP#† June 1 Amount Rate Yield 886708 2012 $ 395,000 3.00% 0.42% EV4 2013 625,000 3.00 0.83 EW2 2014 645,000 3.00 1.21 EX0 2015 665,000 3.00 1.67 EY8 2016 685,000 3.00 1.99 EZ5 2017 705,000 3.00 2.30 FA9 2018 725,000 3.00 2.66 FB7 2019 750,000 4.00 2.99 FC5 2020 780,000 4.00 3.27 FD3 2021 810,000 4.00 3.52 FE1 2022 845,000 4.00 3.76* FF8 2023 875,000 4.00 3.94* FG6 2024 910,000 4.00 4.10 FH4 2025 950,000 4.25 4.25 F J0 2026 990,000 4.25 4.40 FK7 $2,105,000 4.50% Term Bond due June 1, 2028 @ 4.62% CUSIP#†886708 FL5 $3,540,000 4.75% Term Bond due June 1, 2031 @ 4.75% CUSIP#†886708 FM3 * Priced to the first call date of June 1, 2021 at par. $ 8,655,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2011B Due Principal Interest CUSIP#† December 1 Amount Rate Yield 886708 2011 $ 510,000 3.00% 0.40% FN1 2012 625,000 3.00 0.60 FP6 2013 645,000 3.00 1.00 FQ4 2014 665,000 3.00 1.25 FR2 2015 685,000 3.00 1.75 FS0 2016 705,000 3.00 2.00 FT8 2017 730,000 3.00 2.35 FU5 2018 755,000 4.00 2.68 FV3 2019 785,000 4.00 3.05 FW1 2020 815,000 4.00 3.35 FX9 2021 850,000 4.00 3.57* FY7 2022 885,000 4.00 3.78* FZ4 * Priced to the first call date of December 1, 2020 at par. This Official Statement does not constitute an offer to sell the Bonds in any jurisdiction in which or to a person to whom it is unlawful to make such an offer. No dealer, salesperson or other person has been authorized by the City, the Financial Advisor or the Bond Purchasers to give any information or to make any representations, other than those contained herein, in connection with the offering of the Bonds and, if given or made, such information or representations must not be relied upon. 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 will, under any circumstances, create an implication that there has been no change in the affairs of the City since the date hereof. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEME NT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. † © 2010, American Bankers Association. CUSIP® is a registered trademark of the American Bankers Association. The CUSIP numbers are provided by Standard & Poor’s CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. These numbers are not intended to create a database and do not serve in any way as a substitute for CUSIP service. CUSIP numbers are provided for convenience and reference only and are subject to change. The City makes no representation regarding, nor is it responsible for, the accuracy of the CUSIP numbers. OFFICIAL STATEMENT CITY OF TIGARD WASHINGTON COUNTY, OREGON 13125 S.W. Hall Blvd. Tigard, Oregon 97223 (503) 639-4171 RELATING TO $17,000,000 GENERAL OBLIGATION BONDS, SERIES 2011A AND $8,655,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2011B CITY COUNCIL Craig Dirksen, Mayor Nick Wilson, President Gretchen Buehner Marland Henderson Marc Woodard ADMINISTRATION City Manager Craig Prosser Assistant City Manager Elizabeth Ann Newton Finance and Information Services Director Toby LaFrance Assistant Finance Director Debbie Smith-Wagar Public Works Director Dennis Koellermeier Park and Facilities Manager Steven F. Martin PROFESSIONAL SERVICES K&L Gates LLP, Bond Counsel Western Financial Group LLC, Financial Advisor The Bank of New York Mellon Trust Company, N.A., Seattle, Washington, Paying Agent (THIS PAGE INTENTIONALLY LEFT BLANK) TABLE OF CONTENTS THE BONDS .............................................................................. 1 Deferred Compensation Plans ................................................. 24 Authorization and Purpose ........................................................ 1 Other Post-Employment Benefits ............................................ 24 Security....................................................................................... 1 ECONOMIC AND DEMOGRAPHIC INFORMATION . 25 Redemption of the Bonds .......................................................... 2 Population ................................................................................ 25 Paying Agent, Registration ........................................................ 2 Table 17 - Estimated Population ......................................... 25 Transfer of the Bonds ................................................................ 2 Employment ............................................................................. 26 Use of Proceeds .......................................................................... 3 Table 18 - Washington County Labor Force ...................... 26 Table 1 - Sources and Uses of Funds .................................... 3 Table 19 - Washington County Non-Agricultural Wage and Table 2 - General Obligation Bond Debt Service Salary Employment NAICS ....................................... 27 Requirements ................................................................ 4 Table 20 - Major Employers ............................................... 28 DEBT INFORMATION ........................................................... 5 Economic Development ........................................................... 28 Debt Ratios ................................................................................. 5 Table 21 - Income Estimates for the County, State and Debt Limitation