County of Forsyth, North Carolina (The “County”) to Provide Information in Connection with the Sale and Issuance of the Bonds Described Herein (The “Bonds”)
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Ratings: Moody’s: Aaa S&P: AAA Fitch: AAA (See “RATINGS” herein) NEW ISSUE—Book-Entry Only This Official Statement has been prepared by the North Carolina Local Government Commission and the County of Forsyth, North Carolina (the “County”) to provide information in connection with the sale and issuance of the bonds described herein (the “Bonds”). Selected information is presented on this cover page for the convenience of the user. To make an informed decision regarding the Bonds, a prospective investor should read this Official Statement in its entirety. Unless indicated, capitalized terms used on this cover page have the meanings given in this Official Statement. County of Forsyth, North Carolina $13,550,000 $34,000,000 General Obligation General Obligation Public Improvement Bonds Library Bonds Series 2014 Series 2014 Dated: Date of delivery Due: As shown on inside cover page Tax Treatment In the opinion of Bond Counsel, which is based on existing law and assumes continuing compliance by the County with certain covenants to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Bonds will not be includable in the gross income of the owners thereof for purposes of federal income taxation and will not be a specific preference item for purposes of the alternative minimum tax imposed by the Code on corporations and other taxpayers, including individuals; however, such interest will be includable in determining adjusted current earnings of corporations for purposes of computing the alternative minimum tax imposed by the Code on corporations. Furthermore, in the opinion of Bond Counsel, based on existing law, interest on the Bonds will be exempt from all State of North Carolina income taxes. See “TAX TREATMENT” herein. Redemption The Bonds are subject to optional redemption at the times and price set forth herein. Security The Bonds constitute general obligations of the County, secured by a pledge of the faith and credit and taxing power of the County. Interest Payment Dates May 1 and November 1, commencing May 1, 2015. Denominations $5,000 or any integral multiple thereof. Expected Closing/Settlement Date November 4, 2014 with respect to the Public Improvement Bonds. November 5, 2014 with respect to the Library Bonds. Bond Counsel Womble Carlyle Sandridge & Rice, LLP, Raleigh, North Carolina. Financial Advisor DEC Associates, Inc., Charlotte, North Carolina. The date of this Official Statement is October 14, 2014. MATURITY SCHEDULE $13,550,000 General Obligation Public Improvement Bonds, Series 2014 Due Principal Interest Initial Public Due Principal Interest Initial Public May 1 Amount Rate Offering Yields1 May 1 Amount Rate Offering Yields1 2016 $ 500,000 4.00% 0.30% 2025 $ 500,000 3.00% 2.04%2 2017 500,000 5.00 0.47 2026 775,000 3.00 2.122 2018 500,000 5.00 0.71 2027 775,000 3.00 2.252 2019 500,000 5.00 0.95 2028 775,000 3.00 2.382 2020 500,000 5.00 1.17 2029 1,400,000 3.00 2.512 2021 500,000 5.00 1.40 2030 1,425,000 3.00 2.572 2022 500,000 5.00 1.64 2031 1,425,000 3.00 2.642 2023 500,000 5.00 1.77 2032 1,425,000 3.00 2.702 2024 500,000 5.00 1.85 2033 550,000 3.00 2.762 $34,000,000 General Obligation Library Bonds, Series 2014 Due Principal Interest Initial Public Due Principal Interest Initial Public May 1 Amount Rate Offering Yields1 May 1 Amount Rate Offering Yields1 2016 $1,200,000 4.00% 0.30% 2025 $1,200,000 3.00% 2.04%2 2017 1,200,000 5.00 0.47 2026 1,925,000 3.00 2.122 2018 1,200,000 5.00 0.71 2027 1,925,000 3.00 2.252 2019 1,200,000 5.00 0.95 2028 1,925,000 3.00 2.382 2020 1,200,000 5.00 1.17 2029 3,500,000 3.00 2.512 2021 1,200,000 5.00 1.40 2030 3,575,000 3.00 2.572 2022 1,200,000 5.00 1.64 2031 3,575,000 3.00 2.642 2023 1,200,000 5.00 1.77 2032 3,575,000 3.00 2.702 2024 1,200,000 5.00 1.85 2033 2,000,000 3.00 2.762 ____________ 1Information obtained from the underwriters of the Bonds. 2Priced to the May 1, 2024 call date at par. COUNTY OF FORSYTH, NORTH CAROLINA _______________ BOARD OF COMMISSIONERS Richard V. Linville ......................................................................................................................... Chairman Gloria D. Whisenhunt .................................................................................................................... Vice Chair Mark Baker Walter Marshall David R. Plyler Bill Whiteheart Everette Witherspoon _______________ COUNTY STAFF J. Dudley Watts, Jr. .............................................................................................................. County Manager Paul L. Fulton, Jr. ....................................................................................................... Chief Financial Officer Davida W. Martin, Esq. ....................................................................................................... County Attorney FINANCIAL ADVISOR DEC Associates, Inc. Charlotte, North Carolina BOND COUNSEL Womble Carlyle Sandridge & Rice, LLP Raleigh, North Carolina -i- TABLE OF CONTENTS Page INTRODUCTION ........................................................................................................................................ 1 THE NORTH CAROLINA LOCAL GOVERNMENT COMMISSION ..................................................... 1 THE BONDS ................................................................................................................................................ 2 Description ....................................................................................................................................... 2 Redemption Provisions .................................................................................................................... 2 Authorization and Purposes ............................................................................................................. 3 Security ............................................................................................................................................ 3 THE COUNTY ............................................................................................................................................. 4 General Description ......................................................................................................................... 4 Demographic Characteristics ........................................................................................................... 4 Commercial, Industrial and Institutional Profile .............................................................................. 5 Economic Development ................................................................................................................... 9 Employment ................................................................................................................................... 12 Government and Major Services ................................................................................................... 13 Debt Information ............................................................................................................................ 17 Tax Information ............................................................................................................................. 20 2013-14 Budget Commentary ........................................................................................................ 21 2014-15 Budget Outlook................................................................................................................ 21 Pension Plans ................................................................................................................................. 21 Other Post-Employment Benefits .................................................................................................. 22 Contingent Liabilities..................................................................................................................... 23 CONTINUING DISCLOSURE .................................................................................................................. 23 APPROVAL OF LEGAL PROCEEDINGS ............................................................................................... 25 RATINGS ................................................................................................................................................... 26 TAX TREATMENT ................................................................................................................................... 26 Opinion of Bond Counsel .............................................................................................................. 26 Original Issue Premium ................................................................................................................. 26 Other Tax Consequences ............................................................................................................... 27 UNDERWRITING ..................................................................................................................................... 27 MISCELLANEOUS ................................................................................................................................... 28 APPENDICES A — The North Carolina Local Government Commission ......................................................... A-1 B — Certain Constitutional Statutory, and Administrative Provisions Governing or Relevant to the Issuance of General Obligation Bonded Indebtedness by Units of Local Government