14415000 County of Sacramento
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NEW ISSUE (Book-Entry Only) NO RATING In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the County, based on 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 2007A Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended, and is exempt from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the 2007A Bonds is not a specific preference item for purposes of federal individual or corporate alternate minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings in calculating corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding any other tax consequences relating to the ownership or disposition of, or the accrual or receipt of interest on, the 2007A Bonds. See “CONCLUDING INFORMATION—Tax Matters” herein. $14,415,000 COUNTY OF SACRAMENTO COMMUNITY FACILITIES DISTRICT NO. 2005-2 (NORTH VINEYARD STATION NO. 1) SPECIAL TAX BONDS, SERIES 2007A Dated: Date of Initial Issuance Due: September 1, inside cover The County of Sacramento Community Facilities District No. 2005-2 (North Vineyard Station No. 1) Special Tax Bonds, Series 2007A (the “2007A Bonds”) are being issued by the County of Sacramento (the “County”) on behalf of its Community Facilities District No. 2005-2 (North Vineyard Station No. 1) (the “District”) to provide funds to (i) pay costs of the acquisition and construction of certain public facilities required in connection with the development of land within the District, (ii) fund a Bond Reserve Fund in the amount described herein, and (iii) pay certain costs of issuing the 2007A Bonds. The 2007A Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53111 et seq. of the Government Code of the State of California), and pursuant to Resolution No. 2007-0997 adopted by the Board of Supervisors of the County on August 7, 2007 (the “Bond Resolution”). The District has been formed by and is located in the County. The 2007A Bonds are being issued in fully registered book-entry form only in the denomination of $5,000 or any integral multiple thereof and, when executed and delivered, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the 2007A Bonds, and purchasers will not receive certificates representing their interests in the 2007A Bonds. See “THE 2007A BONDS—Book-Entry Only System.” Interest on the 2007A Bonds is payable semiannually on each March 1 and September 1, commencing March 1, 2008. Such interest on and the principal of the 2007A Bonds is payable by the County’s Director of Finance to Cede & Co., and such payments are expected to be disbursed to the beneficial owners of the 2007A Bonds through the participants of DTC. The 2007A Bonds and any additional bonds payable on a parity with them (collectively, the “Bonds”) are payable from the proceeds of an annual special tax (the “Special Tax”) to be levied on and collected from Parcels of Taxable Property (as defined herein) in the District. The Special Tax is to be levied according to the amended rate and method of apportionment approved by the County Board of Supervisors, as the legislative body of the District, and by the vote of the qualified landowner-electors in the District. See APPENDIX B—“AMENDED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes applicable to the Parcels of Taxable Property. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS—The Special Tax.” The 2007A Bonds are subject to optional, mandatory and extraordinary redemption as described herein. See “THE 2007A BONDS—Redemption.” NEITHER THE FULL FAITH AND CREDIT NOR THE GENERAL TAXING POWER OF THE COUNTY, THE DISTRICT, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE COUNTY BUT ARE LIMITED OBLIGATIONS OF THE COUNTY PAYABLE SOLELY FROM THE PROCEEDS OF THE SPECIAL TAX AND CERTAIN FUNDS AND ACCOUNTS AS PROVIDED IN THE BOND RESOLUTION. This cover page contains certain information for general reference only. It is not a summary of the 2007A Bonds. Prospective investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. See “SPECIAL RISK FACTORS” for a discussion of special risk factors that should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the 2007A Bonds. MATURITY SCHEDULE (See Inside Cover) The 2007A Bonds are offered when, as and if issued and accepted by the Underwriter, subject to the approval as to their legality by Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the County, and certain other conditions. Certain legal matters will be passed on for the County by the County Counsel, and other legal matters will be passed upon for the County by its Disclosure Counsel, Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California. It is anticipated that the 2007A Bonds in book-entry form will be available for delivery to DTC in New York, New York on or about September 6, 2007. The date of this Official Statement is August 24, 2007. $14,415,000 COUNTY OF SACRAMENTO COMMUNITY FACILITIES DISTRICT NO. 2005-2 (NORTH VINEYARD STATION NO. 1) SPECIAL TAX BONDS, SERIES 2007A MATURITY SCHEDULE Maturity Principal Interest September 1 Amount Rate Yield CUSIP No. † 2009 $ 5,000 4.400% 4.400% 786153 HZ2 2010 25,000 4.600 4.600 786153 JA5 2011 40,000 4.750 4.750 786153 JB3 2012 60,000 4.875 4.900 786153 JC1 2013 85,000 5.000 5.000 786153 JD9 2014 105,000 5.000 5.100 786153 JE7 2015 130,000 5.125 5.200 786153 JF4 2016 155,000 5.250 5.250 786153 JG2 2017 185,000 5.250 5.300 786153 JH0 2018 215,000 5.250 5.400 786153 JJ6 2019 245,000 5.375 5.500 786153 JK3 2020 280,000 5.500 5.600 786153 JL1 2021 315,000 5.500 5.650 786153 JM9 $12,570,000 6.000% Term Bond due September 1, 2037 Yield 6.050% CUSIP No.†: 786153 JQ0 † CUSIP® is a registered trademark of the American Bankers Association. Copyright© 1999-2007 Standard & Poor’s, a Division of the McGraw Hill Companies, Inc. All rights reserved. CUSIP® data herein is provided by Standard & Poor’s CUSIP Service Bureau. This data is 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 County nor the Underwriter takes any responsibility for the accuracy of such numbers. COUNTY OF SACRAMENTO, CALIFORNIA BOARD OF SUPERVISORS Don Nottoli, Supervisor, District 5, Chair Jimmie R. Yee, Supervisor, District 2, Vice Chair Roger Dickinson, Supervisor, District 1 Susan Peters, Supervisor, District 3 Roberta MacGlashan, Supervisor, District 4 COUNTY STAFF Terry Schutten, County Executive Geoffrey B. Davey, Chief Financial/Operating Officer Dave Irish, Director of Finance Robert A. Ryan, Jr., Esq., County Counsel Paul J. Hahn, Administrator Municipal Services Agency Mark Norris, Administrator, Internal Service Agency Michael J. Penrose, Director, Department of County Engineering Cindy H. Turner, Clerk of the Board of Supervisors ___________________ BOND COUNSEL Orrick, Herrington & Sutcliffe LLP FINANCIAL ADVISOR First Southwest Company Santa Monica, California DISCLOSURE COUNSEL Stradling Yocca Carlson & Rauth, a Professional Corporation Newport Beach, California SPECIAL TAX CONSULTANT Goodwin Consulting Group Sacramento, California APPRAISER Seevers Jordan Zeigenmeyer Real Estate Appraisal and Consultation Rocklin, California Investment in the 2007A Bonds involves risks which are not appropriate for certain investors. Therefore, only persons with substantial financial resources (in net worth or income) who understand (either alone or with competent investment advice) the risk of investment in the 2007A Bonds should consider such an investment. All information for investors regarding the County of Sacramento (the County), its Community Facilities District No. 2005-2 (North Vineyard Station No. 1) (the District), and the 2007A Bonds is contained in this Official Statement. While the County maintains an internet website for various purposes, none of the information on that website is intended to assist investors in making any investment decision or to provide any continuing information with respect to the 2007A Bonds or any other obligations of the County or the District. No dealer, broker, salesperson or other person has been authorized by the County to provide any information or to make any representations other than as contained herein and, if given or made, such other information or representation must not be relied upon as having been authorized by the County. 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 2007A Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers of the 2007A Bonds. Statements contained in this Official Statement that involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of facts.