PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 27, 2017 NEW ISSUE SERIAL BONDS MOODY’S RATING: “Baa3/ Stable” SEE “RATING” HEREIN In the opinion of Norton Rose Fulbright US LLP, New York, New York, Bond Counsel, assuming continuous compliance with certain covenants described herein, interest on the Bonds will be excludable from gross income for federal income tax purposes under existing law, and interest on the Bonds will not be subject to the alternative minimum tax on individuals. In the further opinion of Bond Counsel, under existing law interest on the Bonds is exempt from personal income taxes imposed by the State of New York or any political subdivision thereof (including The City of New York). See “TAX MATTERS” herein for a description of the opinion of Bond Counsel and certain other tax consequences. The Town will NOT designate the Bonds as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986. TOWN OF OYSTER BAY NASSAU COUNTY, NEW YORK $10,524,981 Public Improvement (Serial) Bonds, 2018 Series A (the “Bonds”) Dated: February 1, 2018 Due: As shown on the inside cover page The Bonds are general obligations of the Town of Oyster Bay, Nassau County, New York (the “Town”), for the payment of which the Town has pledged its faith and credit. All real property subject to taxation within the Town is subject to the levy of ad valorem taxes, without limitation as to rate or amount, subject to the statutory limitations imposed by Chapter 97 of the Laws of 2011, as amended, to pay the principal and interest on the Bonds. Interest on the Bonds will be payable on each February 1 and August 1, commencing February 1, 2019. Interest on the Bonds will be calculated based upon a 360-day year of 30-day months and will be payable at maturity in Federal Funds. The record date for the payment of interest on the Bonds will be the fifteenth business day of the calendar month immediately preceding the applicable interest payment date. The Bonds are subject to redemption prior to maturity as discussed herein. See “Optional Redemption of the Bonds” herein. The Bonds will be issued as registered Bonds and, when issued, will be registered in the name of Cede & Co., as partnership nominee of The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. The Town Clerk will be the fiscal and paying agent for the Bonds while the Bonds are in registered form. Individual purchases of the Bonds will be made in book-entry form, in denominations of $5,000 or integral multiples thereof, except for one necessary odd denomination. Purchasers will not receive certificates representing their ownership interest in the Bonds purchased. See “BOOK-ENTRY-ONLY SYSTEM” herein. Payment of the principal of and interest on the Bonds to the beneficial owners of the Bonds will be paid at maturity by the Town to DTC, which will in turn remit such principal and interest to its participants, for subsequent distribution to the beneficial owners of the Bonds, as described herein. See “BOOK-ENTRY-ONLY SYSTEM” herein. THE TOWN HAS EXPERIENCED SEVERE FINANCIAL DIFFICULTIES IN RECENT YEARS WHICH COULD AFFECT THE MARKETABILITY AND THE MARKET VALUE OF THE BONDS. SEE “BONDHOLDER RISKS”, “RECENT FINANCIAL OPERATIONS”, AND “MARKET AND RISK FACTORS”, HEREIN. THIS PRELIMINARY OFFICIAL STATEMENT SHOULD BE READ IN ITS ENTIRETY. The Bonds are offered when, as and if issued and received by the purchaser and subject to the receipt of the respective unqualified legal opinions as to the validity of the Bonds of Norton Rose Fulbright US LLP, New York, New York, Bond Counsel. Certain legal matters in connection with preparation of this Official Statement will be passed upon for the Town by Norton Rose Fulbright US LLP, New York, New York in its role as Special Disclosure Counsel. Certain legal matters will be passed upon for the Town by the Town Attorney. It is anticipated that the Bonds will be available for delivery through the facilities of DTC located in Jersey City, New Jersey on or about February 1, 2018. THE TOWN DEEMS THIS OFFICIAL STATEMENT TO BE FINAL FOR PURPOSES OF SECURITIES AND EXCHANGE COMMISSION RULE 15C2-12 (THE “RULE”), EXCEPT FOR CERTAIN INFORMATION THAT HAS BEEN OMITTED HEREFROM IN ACCORDANCE WITH SAID RULE AND THAT WILL BE SUPPLIED WHEN THIS OFFICIAL STATEMENT IS UPDATED FOLLOWING THE SALE OF THE BONDS HEREIN DESCRIBED. THE TOWN WILL COVENANT IN AN UNDERTAKING TO PROVIDE ANNUAL AND CONTINUING DISCLOSURE WITH RESPECT TO THE BONDS (AS DEFINED IN THE RULE) AS REQUIRED BY THE RULE (SEE “DISCLOSURE UNDERTAKING” HEREIN). Dated: January ___, 2018 $10,524,981 Public Improvement (Serial) Bonds, 2018 Series A February 1, Principal Amount Interest Rate Price or Yield CUSIP(1) 2019 349,981 2020 565,000 2021 585,000 2022 605,000 2023 630,000 2024 650,000 2025 675,000 2026 700,000 2027 725,000 2028 755,000 2029 785,000 2030 825,000 2031 855,000 2032 890,000 2033 930,000 (1) Copyright, American Bankers Association. CUSIP data herein are provided by S&P Global Ratings, CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. The CUSIP numbers listed above are being provided solely for the convenience of Bondholders only at the time of issuance of the Bonds and the Town makes no representation with respect to such numbers nor undertakes any responsibility for their accuracy now or at any time in the future. No person has been authorized by the Town of Oyster Bay 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 solicitation of an offer to buy any of the Bonds in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. The information, estimates and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Town of Oyster Bay since the date hereof. TABLE OF CONTENTS INTRODUCTION .................................................................................. 1 STATUTORY PROCEDURE ................................................................... 32 DEBT OUTSTANDING ......................................................................... 33 THE BONDS ........................................................................................... 1 DETAILS OF OUTSTANDING INDEBTEDNESS ...................................... 34 DESCRIPTION OF THE BONDS ............................................................... 1 BONDED DEBT OF OVERLAPPING POLITICAL SUBDIVISIONS OPTIONAL REDEMPTION OF THE BONDS .............................................. 2 ................................................................................................................ 36 PURPOSE OF ISSUE ................................................................................ 2 DEBT STATEMENT SUMMARY ..................................................... 36 BOOK-ENTRY-ONLY SYSTEM ......................................................... 3 DEBT RATIOS .................................................................................... 37 CERTIFICATED BONDS ......................................................................... 4 GENERAL OBLIGATION BOND PRINCIPAL AND INTEREST ................. 37 BONDHOLDER RISKS ......................................................................... 4 AUTHORIZED BUT UNISSUED OBLIGATIONS ...................................... 38 ANTICIPATED BORROWINGS .............................................................. 38 GENERAL ECONOMIC AND POLITICAL RISKS ....................................... 5 CASH FLOW BORROWINGS ................................................................ 38 ENFORCEMENT OF REMEDIES ...................................................... 5 CAPITAL PLANNING ........................................................................... 39 OPEN SPACES AND PARK AND RECREATIONAL USE PROGRAM ......... 39 RECENT FINANCIAL OPERATIONS ............................................... 7 OTHER INFORMATION ........................................................................ 40 2012 STORM IMPACT ............................................................................ 7 MARKET AND RISK FACTORS ...................................................... 40 BUDGETARY REMEDIATION EFFORTS .................................................. 7 2013 YEAR END RESULTS .................................................................... 7 TAX MATTERS ................................................................................... 41 2014 BUDGET/AUDITED YEAR END RESULTS ...................................... 8 TAX EXEMPTION ................................................................................ 41 2015 BUDGET/AUDITED YEAR END RESULTS ...................................... 8 TAX ACCOUNTING TREATMENT OF DISCOUNT AND PREMIUM ON 2016 BUDGET/AUDITED YEAR END RESULTS ...................................... 9 CERTAIN BONDS ................................................................................ 42 2017 BUDGET/UNAUDITED YEAR END RESULTS ................................. 9 2018 BUDGET ....................................................................................... 9 LEGAL MATTERS ............................................................................