HomeMy WebLinkAbout11-18-13 Preliminary Official Statement - Water-Sewer Revenue BondPRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 14,2013
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m°NEW ISSUE RATING: "AA-"(S&P)
5 BOOK-ORDER ENTRY BANK QUALIFIED—2013A Bonds
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NIn the opinion ofBond Counre4 under existing federal law and asiuming compliance with appkrcable requirements of the Internal Revenue Code of 1986,as amended(the
m Cade'), that must be satlsed subsequent to the urge date of the 2013A Bonds,interest on the 2013A Bonds is excluded from gross income for federal income taxE
purposes and is not an item of taxprejerence forpurpoiei of the akemative miramum tax appluable to individuals. However,while interest on the 2013A Bonds also is
not an item of tax preference forpurposes of the alternative minimum tau appheable to corporations,intemn on the 2013A Bonds maned by amwrations is taken into
account in the computation of adjusted earnent earnings forpurporer of the akernative minimum tau apph abk to mrpora*onr,interest on the 20134 Bondi received byLretrainScorporationsmaybesubjecttotax,and interest on the 2013A Bondi received by jaeign rorpomtionr with United States branches may be Subject to a Joreign
Z brancbprofcu tax. Recept ofinteren on the 2013A Bonds may have otherjederal tax consequencesfor certain taxpayers. See `TAX MATTERS."a
In the furtheropinion ojBond Coume!imerest on the 2013T Bondr is not excludable f amgmrr income under Section 103 of the Code. See `TAX MATTERS-6 No Tax Fxemptionfor2013TBondr"herein
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2,525,000` 7,260,000*
CITY OF PASCO,WASHINGTON CITY OF PASCO,WASHINGTON
WATER AND SEWER WATER AND SEWER
REVENUE BONDS, REVENUE BONDS,
2013A 2013T(TAXABLE)
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w DATED: Date of Delivery DUE: December 1,as shown on inside covet
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o The City of Pasco,Washington (the "City',Water and Sewer Revenue Bonds,2013A (the "2013A Bonds") and Water and
z Sewer Bonds,2013T(Taxable) (the"2013T Bonds"and,together with the 2013A Bonds,the`Bonds',will be issued as fullyEregisteredbondsunderabook-entry only system, registered in the name of Cede and Co. as bond owner and nominee for
L DTC. DTC will act as initial securities depository for the Bonds. Individual purchases of the Bonds will be made in book-
entry form, in the denomination of $5,000 or any integral multiple thereof. Purchasers will not receive certificates
o representing their interests in the Bonds. Interest on the Bonds will be paid semiannually on each June 1 and December 1,
o_beginning June 1,2014,to the maturity or earlier redemption of the Bonds.The principal of,and premium,if any,and interestaontheBondsarepayablebytheCity's Bond Registrar,the fiscal agent of the State of Washington currently The Bank of New
a York Mellon in New York, New York, to DTC, which, in tam,is obligated to remit such payments to its participants for
t subsequent disbursement to beneficial owners of the Bonds,as described in Appendix D- "BOOK-ENTRY SYSTEM".
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s MATURITY SCHEDULES - See Inside Cover
t The Net Revenue of the City's Waterworks Utility, including any Utility Local Improvement District Assessments ("ULID
Z'Assessments' in any ULID created to secure the payment of any Parity Bonds,are pledged to the payment of the principal ofd € and interest on the Outstanding Parity Bonds,the Bonds and any Future Parity Bonds when due. The lien and charge of the
Bonds, the Outstanding Parity Bonds and any Future Parity Bonds on the Net Revenue and ULID Assessments is prior and
m superior to any other liens and charges whatsoever. See"SECURITY OF THE BONDS" herein. The Bonds are not general
obligations of the City,and neither the full faith and credit nor the taxing power of the City or of the State of Washington,nor
any revenues of the City derived from sources other than the Waterworks Utility,are pledged to the payment thereof
asy Certain Bonds are subject to redemption prior to their stated maturity dates. See "DESCRIPTION OF THE BONDS —
oRedemption Provisions."
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N The City has designated the Series 2013A Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3)(b)of
the Code. See`TAX MATTERS—The 2013A Bonds."
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E ` The Bonds are offered when, as and if issued, subject to the final approving legal opinion of Foster Pepper PLLC, Seattle,
v m Washington, Bond Counsel. The forth of Bond Counsel's opinion is attached as Appendix C. It is expected that the Bonds
A a will be available for delivery in New York,New York,through the facilities of DTC by Fast Automated Securities Transfer onooraboutDecember5,2013.
a This coverpage contains certain information for quick reference only. It is not a.summary of this issue. Investors must read the entire OfficialEgStatementtoobtaininformationessentialtothemakingofaninformedinvestmentdecision.d_
M ; *Prekminary,sulyect to cbange.
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PiperJaffray,