Coatesville Area School District School Area Coatesville
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This Offering Memorandum and the information contained herein are subject to completion, amendment or other change without notice. The Notes may not be sold nor may offers to buy be accepted prior to the time the Offering Memorandum is delivered in final form. Under no circumstances shall this Offering Memorandum constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in wh ich such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction. July " See Notes. on such interest aDTC Participan through, or acts is, dealer abroker who or with account an maint purchaser must of aNote, such Owner be To and aBeneficial purchase purchased. in the Notes interests ownership their rece described to Purchasers Beneficial not in as turn Owners herein. and will excessin thereof. Principal of and interest on the Notes are payable directly to CEDE CO.& for redistribution to DTC Partic for Notes. the Beneficial ownership interests the in Notes will be denominations in CO. as & nominee for The Depository Trust Company ("DTC"), York, New New York, which act as will securities depository Philadelphia, *Preliminary, subject to change. *Preliminary, Underwriter Approvals: Legal decision. investment informed an of making the to essential information obtain to appendices, including Memorandum, Offering is It only. reference information quick for contains page cover This Redemption: Chester County, Pennsylvania The Notes: CUSIP: Principal and Interest Due Dated: and enac currently as law, existing under purposes tax income federal for Notes the of owners the of income gross from excludable is Notes onthe interest District, School the of covenants certain with compliance assuming Counsel, Bond of opinion the In NEW ISSUE corporate net inc net corporate an tax income personal Pennsylvania from exempt is Notes onthe interest the and Pennsylvania in taxes property personal from th opinion the of also is Counsel Bond on individuals. imposed tax minimum alternative the determining of purposes for “Code”), (the Pennsylvania Notes PC , West construed. Interest on the Notes will not be an item of tax preference under the Internal Revenue Code of 1986, as amended amended as 1986, of Code Revenue Internal the under preference tax of item an be not will Notes the on Interest construed. Certain . Certain Date of Delivery of Date , 190684 190684 2020 Chester at under the laws of the Commonwealth of Pennsylvania, as currently enacted and construed, the Notes are exempt exempt are Notes the andconstrued, enacted currently as Pennsylvania, of Commonwealth of the laws the under at , , S subject to prior sale, withdrawal or modification of the offer without notice, and to the issuance by The Tax and Revenue Anticipation Notes, Notes, Anticipation Revenue Tax and The Pennsylvania TAX AND REVENUE ANTICIPATION NOTES, ANTICIPATION REVENUE TAX AND . The are Notes olicitor to the School District legal - ome tax. ome tax. , Pennsylvania, [ ] [ BOOK PRELIMINARY The matters will be passed upon for the School District by Notes . ENTRY : BOOK It expected is the that COATESVILLE AREASCHOOL DISTRICT not November 1 November (the “School District” of its legal opinion as are offered for delivery when, as and if issued by the School District and received by the the by received and District the School by issued if and as when, delivery for are offered subject to - ENTRY ONLY OFFERING MEMORANDUM DATED 3 optional or mandatory mandatory or optional , 2020 , ( Chester County Chester - and for the Underwriter by by Underwriter and the for ONLY SYSTEMONLY Note ) , be recordedwill in $11,225,000* Bond Counsel s s will be available for delivery throu Series of 2020 of Series ." , Pennsylvania redemption prior to maturity. not to the School District, to be furnished upon delivery of the a summary of this issue. Investors must read the entire read the entire Investors must issue. of this a summary (the “Notes”) of the Coatesville Area School District, (the “Notes”) Coatesville of the Area School District, book its t in ordert in to payment receive of the principal of and Counsel, - ive physical delivery of certificates representing certificates of ive physical delivery entry only form, registered in the name of CEDE Michael Levin of $100,000, and integral multiples of $5,000 $5,000 of multiples integral and $100,000, of ) Eckert Cherin Seamans Mellott, LLC, & SERIES OFSERIES 2020 JULY 1 JULY gh the facilities of DTC, on or about or on DTC, of facilities the gh , Esquire, Esquire, , 20 Yield: Interest Rate: Interest Price: 20 Huntingdon Valley Huntingdon Lamb McErlaneLamb ipants % % % ain ted d , NO DEALER, BROKER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED BY THE SCHOOL DISTRICT OR THE UNDERWRITER TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION, OTHER THAN THAT GIVEN OR MADE IN THIS OFFERING MEMORANDUM, AND IF GIVEN OR MADE, ANY SUCH OTHER INFORMATION OR REPRESENTATION MAY NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE SCHOOL DISTRICT OR THE UNDERWRITER NAMED ON THE COVER PAGE HEREOF (THE “UNDERWRITER”). THIS OFFERING MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF THE NOTES BY ANY PERSON IN ANY JURISDICTION IN WHICH IT IS UNLAWFUL FOR SUCH PERSON TO MAKE SUCH OFFER, SOLICITATION OR SALE. THIS OFFERING MEMORANDUM HAS BEEN APPROVED BY THE SCHOOL DISTRICT AND, WHILE THE INFORMATION SET FORTH IN THIS OFFERING MEMORANDUM HAS BEEN FURNISHED BY THE SCHOOL DISTRICT AND OTHER SOURCES WHICH ARE BELIEVED TO BE RELIABLE, SUCH INFORMATION IS NOT GUARANTEED AS TO ACCURACY OR COMPLETENESS. THE INFORMATION AND EXPRESSIONS OF OPINION SET FORTH IN THIS OFFERING MEMORANDUM ARE SUBJECT TO CHANGE WITHOUT NOTICE AND NEITHER THE DELIVERY OF THIS OFFERING MEMORANDUM NOR ANY SALE MADE UNDER THIS OFFERING MEMORANDUM SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THE AFFAIRS OF THE SCHOOL DISTRICT HAVE REMAINED UNCHANGED SINCE THE DATE OF THIS OFFERING MEMORANDUM. THE ORDER AND PLACEMENT OF MATERIALS IN THIS OFFERING MEMORANDUM, INCLUDING THE APPENDICES, ARE NOT TO BE DEEMED TO BE A DETERMINATION OF RELEVANCE, MATERIALITY OR IMPORTANCE, AND THIS OFFERING MEMORANDUM, INCLUDING THE APPENDICES, MUST BE CONSIDERED IN ITS ENTIRETY. THE OFFERING OF THE NOTES IS MADE ONLY BY MEANS OF THIS ENTIRE OFFERING MEMORANDUM. IN CONNECTION WITH THE OFFERING OF THE NOTES, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF NOTES AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME, WITHOUT PRIOR NOTICE. THE UNDERWRITER HAS PROVIDED THE FOLLOWING SENTENCE FOR INCLUSION IN THIS OFFERING MEMORANDUM. THE UNDERWRITER HAS REVIEWED THE INFORMATION IN THIS OFFERING MEMORANDUM PURSUANT TO ITS RESPONSIBILITIES TO INVESTORS UNDER THE FEDERAL SECURITIES LAWS, BUT THE UNDERWRITER DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. THIS OFFERING MEMORANDUM CONTAINS CERTAIN “FORWARD-LOOKING STATEMENTS” CONCERNING THE OPERATIONS AND FINANCIAL CONDITION OF THE SCHOOL DISTRICT. THESE STATEMENTS ARE BASED UPON A NUMBER OF ASSUMPTIONS AND ESTIMATES WHICH ARE SUBJECT TO SIGNIFICANT UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF THE SCHOOL DISTRICT. THE WORDS "MAY," "WOULD," "COULD," "WILL,' "EXPECT," "ANTICIPATE," "BELIEVE," "INTEND," "PLAN," "ESTIMATE" AND SIMILAR EXPRESSIONS ARE MEANT TO IDENTIFY THESE FORWARD- LOOKING STATEMENTS. THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVES KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE SCHOOL DISTRICT DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THESE FORWARD- LOOKING STATEMENTS IF OR WHEN CHANGES TO ITS EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH STATEMENTS ARE BASED, OCCUR. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] Table of Contents School District Employees A-14 BOARD OF SCHOOL DIRECTORS 1 INTRODUCTION 2 PENSION PROGRAM A-14 USE OF PROCEEDS 2 Pension Contributions A-14 History of Tax Anticipation Note Financings and Certain Prior Bonds 2 Other Post-Employment Benefits A-14 SOURCES AND USES OF FUNDS 3 APPENDIX B SECURITY FOR THE NOTES 3 DEMOGRAPHIC CHARACTERISTICS RELATING DEFAULTS AND REMEMDIES 3 Population Trends B-1 BOOK-ENTRY ONLY SYSTEM 4 Age Composition - 2010 B-1 TAX MATTERS 5 Income - 2010 2 B-1 MISCELLANEOUS 6 Occupied Housing Units - 2010 B-2 Underwriting 6 Medical Facilities B-3 No Litigation 6 Transportation B-3 Legal Opinion 6 Labor Force, Employment and Unemployment Trends B-4 Rating 6 Top Employers of Chester County (2nd Q 2016) B-4 The Notes are not rated. 6 Distribution of Employment by Industry B-5 Continuing Disclosure 6 APPENDIX C - Estimated General Fund Cash Flow for 2019-20 and 2020- 21 Infectious Disease Outbreak – COVID-19 6 APPENDIX D - FINANCIAL STATEMENTS Estimated General Fund Cash Flows for Fiscal Years 2019-2020 and 2020-2021 7 APPENDIX E - OPINION OF BOND COUNSEL Other 8 APPENDIX A THE SCHOOL DISTRICT AND FINANCIAL REVIEW THE SCHOOL DISTRICT A-1 Introduction A-1 School Facilities and Current Enrollment A-1 Historical Enrollment Trends (Actual and Projected)