Thursday, February 20, 2020 THE REGIONS FEDERAL PROSECUTORS IN Pennsylvania are recommend- ing a prison sentence of up to 30 years for former Scranton Mayor Bill Courtright, accord- ing to unsealed court docu- ments. . . . . . . . . . . . . . . . . 7 WEB EXCLUSIVES ILLINOIS GOV. J.B. PRITZKER LAID OUT two budget scenarios for fiscal 2021 with $1.4 billion in pro- posed spending tied to passage of a constitutional amendment allowing the state to move to a graduated income tax from the current flat one. A FISCAL CONTROL BOARD’S increased oversight powers of the struggling Nassau University Medical Center is a credit positive for Nassau County, according to Moody’s Investors Service. PODCAST — WAR AND PEACE Bob Jones, a member of AmeriVet Securities’ Board of Directors and a Vietnam war pilot, talks about his time in the military and his experience being held as a POW in Hanoi for 62 months. He discusses how AmeriVet, a veteran-owned and operated SDVOB financial services firm, helps transition vets into the financial services sector. THURSDAY www.bondbuyer.com Vol. 392 No. 35261 N.Y., N.Y. THE DAILY NEWSPAPER OF PUBLIC FINANCE The Securities and Exchange Commission approved a tool that would more visibly track the time- liness of secondary market disclo- sures despite stakeholders’ disap- proval. The SEC announced late Tues- day that it had approved the “sub- mission calculator” rule change, saying it would protect investors while preventing fraud and ma- nipulative acts and practices. The new tool will be displayed on the Municipal Securities Rulemaking Board’s EMMA site. “The Commission believes that the changes to the EMMA Portal contemplated by the proposed rule change would promote the pro- tection of investors and the public SEC Approves MSRB Submission Calculator BY SARAH WYNN Turn to Commission page 4 IL Argues Against GO Appeal An Illinois judge acted proper- ly when he dismissed a taxpayer complaint that challenged repay- ment of $14.3 billion of state general obligation bonds after concluding the case lacked legal merit, Illinois Attorney General Kwame Raoul’s office argues in an appellate filing. “The circuit court’s judgment denying petitioner leave to pro- ceed on his complaint should be affirmed because he failed to es- tablish a reasonable ground to pursue his claim to enjoin further payments on the 2003 and 2017 bonds based on his theory that the laws authorizing them violat- ed the State Debt Clause,” reads the brief filed Feb. 14 by Raoul’s office. “That claim lacked merit for several reasons. And the circuit court was not required, as peti- tioner contends, to let his case go forward even if doing so was ultimately futile as a matter of law,” the brief continued. The filing marked the latest BY YVETTE SHIELDS Turn to Illinois page 4. sultants recommended that the General Assembly consider a management plan submitted by Richmond, Virginia-based Do- minion Energy Inc., and a pur- chase proposal by Juno Beach, Florida-based NextEra Energy, the parent of Florida Power & Light Co. “The Reform Plan provides for improved governance and sub- stantial savings, and the Domin- ion management proposal and the NextEra sale bid provide alterna- tives worthy of consideration by the General Assembly and the governor,” the 111-page DOA re- port released Feb. 11 concludes. Gov. Henry McMaster, a vocal proponent of selling the state’s largest public power utility since it terminated work in July 2017 on two unfinished nuclear reac- tors, issued a statement shortly after the DOA report was re- leased. “Ratepayers will either contin- ue paying for two reactors which were never built, or they will get back what they’ve already paid,” McMaster said. “Our state will either gain a vibrant new addi- tion to our economic prosperity, or will remain stagnated in the status quo. The politics of inde- cision is unacceptable. The time to act is now.” By mid-March, South Caroli- na-owned Santee Cooper’s desti- ny finally may be known after en- countering more than two years of political and public turmoil from a decision that left the util- ity with $4 billion in debt and no asset to support it. The state Department of Ad- ministration has released a report analyzing proposals the agency and its consultants received from investor-owned utilities offering to manage Santee Cooper and to buy it. DOA consultants also scruti- nized the 449-page “Santee Coo- per Reform Plan” proposed by the utility, known formally as the South Carolina Public Service Authority. From 10 bids received, con- Santee Cooper stopped work at the V.C. Summer site in July 17. By December 2018 the site was nearly devoid of any sign of the project. Santee Cooper’s Fate Near Turn to Santee on page 6. BY SHELLY SIGO Director of the Office of Municipal Securitites Rebecca Olsen dis- cussed the calculator, pushing back against criticism of it. WEDNESDAY’S YIELDS Complete market coverage appears on page 2 1.6 2.1 2.7 3.2 3.8 02/19 02/13 02/10 02/05 The Bond Buyer 40 2.0 2.3 2.6 3.0 3.3 3.6 4.0 4.3 4.7 F J D N O S A J J M A M To Par Call 2.32 Down 0.02 To Maturity 3.50 Unchanged
Transcript
Thursday, February 20, 2020
THE REGIONS
FEDERAL PROSECUTORS IN
Pennsylvania are recommend-
ing a prison sentence of up to
30 years for former Scranton
Mayor Bill Courtright, accord-
ing to unsealed court docu-
ments. . . . . . . . . . . . . . . . . 7
WEB EXCLUSIVES
ILLINOIS GOV. J.B. PRITZKER LAID OUT
two budget scenarios for fiscal
2021 with $1.4 billion in pro-
posed spending tied to passage
of a constitutional amendment
allowing the state to move to a
graduated income tax from the
current flat one.
A FISCAL CONTROL BOARD’S
increased oversight powers
of the struggling Nassau
University Medical Center is
a credit positive for Nassau
County, according to Moody’s
Investors Service.
PODCAST — WAR AND PEACE
Bob Jones, a member of
AmeriVet Securities’ Board of
Directors and a Vietnam war
pilot, talks about his time in
the military and his experience
being held as a POW in Hanoi
for 62 months. He discusses
how AmeriVet, a veteran-owned
and operated SDVOB financial
services firm, helps transition
vets into the financial services
sector.
THURSDAYwww.bondbuyer.com
Vol. 392 No. 35261 N.Y., N.Y. THE DAILY NEWSPAPER OF PUBLIC FINANCE
The Securities and Exchange Commission approved a tool that would more visibly track the time-liness of secondary market disclo-sures despite stakeholders’ disap-proval.
The SEC announced late Tues-day that it had approved the “sub-mission calculator” rule change, saying it would protect investors while preventing fraud and ma-nipulative acts and practices. The new tool will be displayed on the Municipal Securities Rulemaking Board’s EMMA site.
“The Commission believes that the changes to the EMMA Portal contemplated by the proposed rule change would promote the pro-tection of investors and the public
SEC Approves MSRB Submission Calculator By Sarah Wynn
Turn to Commission page 4
IL Argues Against GO Appeal
An Illinois judge acted proper-ly when he dismissed a taxpayer complaint that challenged repay-ment of $14.3 billion of state general obligation bonds after concluding the case lacked legal merit, Illinois Attorney General Kwame Raoul’s office argues in an appellate filing.
“The circuit court’s judgment denying petitioner leave to pro-ceed on his complaint should be affirmed because he failed to es-tablish a reasonable ground to pursue his claim to enjoin further payments on the 2003 and 2017 bonds based on his theory that the laws authorizing them violat-ed the State Debt Clause,” reads the brief filed Feb. 14 by Raoul’s office.
“That claim lacked merit for several reasons. And the circuit court was not required, as peti-tioner contends, to let his case go forward even if doing so was ultimately futile as a matter of law,” the brief continued.
The filing marked the latest
By yvette ShieldS
Turn to Illinois page 4.
sultants recommended that the General Assembly consider a management plan submitted by Richmond, Virginia-based Do-minion Energy Inc., and a pur-chase proposal by Juno Beach, Florida-based NextEra Energy, the parent of Florida Power & Light Co.
“The Reform Plan provides for improved governance and sub-stantial savings, and the Domin-ion management proposal and the NextEra sale bid provide alterna-tives worthy of consideration by the General Assembly and the governor,” the 111-page DOA re-port released Feb. 11 concludes.
Gov. Henry McMaster, a vocal
proponent of selling the state’s largest public power utility since it terminated work in July 2017 on two unfinished nuclear reac-tors, issued a statement shortly after the DOA report was re-leased.
“Ratepayers will either contin-ue paying for two reactors which were never built, or they will get back what they’ve already paid,” McMaster said. “Our state will either gain a vibrant new addi-tion to our economic prosperity, or will remain stagnated in the status quo. The politics of inde-cision is unacceptable. The time to act is now.”
By mid-March, South Caroli-na-owned Santee Cooper’s desti-ny finally may be known after en-countering more than two years of political and public turmoil from a decision that left the util-ity with $4 billion in debt and no asset to support it.
The state Department of Ad-ministration has released a report analyzing proposals the agency and its consultants received from investor-owned utilities offering to manage Santee Cooper and to buy it.
DOA consultants also scruti-nized the 449-page “Santee Coo-per Reform Plan” proposed by the utility, known formally as the South Carolina Public Service Authority.
From 10 bids received, con-
Santee Cooper stopped work at the V.C. Summer site in July 17. By December 2018 the site was nearly devoid of any sign of the project.
Santee Cooper’s Fate Near
Turn to Santee on page 6.
By Shelly Sigo
Director of the Office of Municipal Securitites Rebecca Olsen dis-cussed the calculator, pushing back against criticism of it.
WEDNESDAY’S YIELDS
Complete market coverage appears on page 2
1.6
2.1
2.7
3.2
3.8
02/1902/1302/1002/05
The Bond Buyer 40
2.0
2.3
2.6
3.0
3.3
3.6
4.0
4.3
4.7
FJDNOSAJJMAM
To Par Call2.32 Down 0.02
To Maturity3.50 Unchanged
001_BB022020 1 2/19/2020 4:55:09 PM
The Bond Buyer2 Thursday, February 20, 2020
Government Securities Prices 10-year: 9912/32 to yield 1.57%, down 4/32
30-year: 9923/32 to yield 2.01%, down 6/32
Municipal Bond Index 13623/32, up 5/32
The Bond Buyer’s Total: $7.425 billion, down $810.5 million
30-Day Visible Supply Competitives: $3.340 billion, up $118.7 million
(as of 2/20) Negotiated: $4.084 billion, down $929.2 million
TheMuniCenter List Offering Total: $17.875 billion, up $424.0 million
The U.S. labor market remained strong and eco-nomic activity increased at a moderate rate, the Feder-al Open Market Committee determined at its Jan. 28-29 monetary policy meeting, ac-cording to minutes released on Wednesday.
“Job gains had been solid, on average, in recent months, and the unemployment rate had remained low. Although household spending had been rising at a moderate pace, business fixed investment and exports remained weak,” the FOMC minutes said. “On a 12-month basis, overall inflation and infla-tion for items other than food and energy were running below 2%. Market-based measures of inflation compensation re-mained low; survey-based measures of longer-term inflation expectations were little changed.”
At its meeting last month, the FOMC kept the fed fund target rate in a range of 1.50% to 1.75%. It raised the interest rate on excess reserves to 1.60% from 1.55%, a technical move to keep the funds rate in the specified range.
FOMC members felt the current stance of monetary policy was appropriate “to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric 2% objective.”
Members also agreed, “in determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee would assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2% inflation objective.”
The FOMC said data warranted a slight downgrade in the statement’s description of recent rises in household spending from “strong” to “moderate.” It also agreed to
describe the current monetary policy stance as consistent with inflation “returning to,” rather than being “near,” its 2% longer-run objective.
“Currently, the Fed’s com-mentary suggests a policy bias that can be described as ‘neutral-to-dovish,’ but it is giving no indication that ad-ditional rate cuts are likely in 2020 after the 75 basis points of cuts last year,” said said Robert Robis, chief global
fixed income strategist at BCA Research.The FOMC won’t cut rates further with-
out first seeing the U.S. Treasury curve becoming inverted for a prolonged period, he opined.
“While FOMC members have expressed concern about TIPs breakevens being per-sistently below the 2% inflation target, they would not necessarily respond to a further decline in breakevens with more rate cuts without first seeing the U.S. Trea-sury curve becoming inverted for a pro-longed period, just like in 2019,” he said.
HOUSING STARTS
Looking at real estate, the Commerce Department reported that privately owned housing starts fell 3.6% in January to a seasonally adjusted annual rate of 1.567 million from a revised level of 1.626 mil-lion in December, originally reported at 1.608 million.
Economists surveyed by IFR Markets had expected a rate of 1.415 million in January.
However, last month’s reading is 21.4% above the January 2019 rate of 1.291 mil-lion.
Building permits rose 9.2% in January to a seasonally adjusted annual rate of 1.551 million from a revised December rate of 1.420 million. q
Job Market Still Strong, Economic Activity Rising, FOMC Minutes Say
Chip Barnett
Market News
Mass. Takes Advantage of Low Rates in Competitive Sales New deals started to flow in and take
advantage of historic lows of muni yields and rates.
PRIMARY MARKET
Massachusetts ( / /AA+) sold $650 mil-lion of general obligation bonds in three separate sales on Wednesday.
Bank of America Securities won $350 million of GOs with a true interest cost of 2.7593%.
B of A Securities also won $200 million of GO bonds with a TIC of 2.3236%.
JPM won $100 million of GO bonds with a TIC of 1.0797%.
“I am pleased with our successful bond sales this morning,” said State Treasurer Deborah Goldberg. “We received very aggressive bids reflecting the low supply of muni bonds in this market and were able to capitalize on the new record low yield for the 30-year GO bonds set yester-
day. Our team was also for-tunate that the interest rates remained steady through our sale.”
Three series of bonds were sold at various matur-ities along the yield curve. The Commonwealth received over eight bids on each se-ries. BofA Securities pur-chased Series B and C for a total par amount of $585 million, upsized from the original $550 million.
Series A had an average maturity of 7.5 years with a TIC of 1.08%. Series B had an average maturity of 17 years and the winning bid consisted of coupons ranging from 2.0 to 4.0% with a TIC of 2.32%. Series C, the longest series, had an aver-age maturity of 28.6 years with coupons ranging from 2.75 to 3.00% and a TIC of 2.76%.
Barclays priced New Jer-sey Educational Facilities Authority’s ( /BBB+/ / ) $177.060 million of revenue green bonds for the Stevens Institute of Technology.
Morgan Stanley priced Ohio’s (Aa2/AA/AA/ ) $128.515 million of capital facilities lease appropriation taxable bonds on Wednesday.
Barclays is expected to price the largest deal of the week — District of Colum-
bia’s (Aa1/AAA/AA+/ ) $961.460 million of income tax secured revenue and reve-nue refunding bonds on Thursday.
Jefferies is scheduled to price a total of $695.335 million for the Texas Transpor-tation Commission (A3/A/A/NR) for the central Texas turnpike system on Thurs-day.
It is expected to come in three tranches: $277.174 million of first-tier revenue re-funding taxable bonds, scheduled to ma-ture serially from 2023 through 2030 and include a term bond in 2040; $225 million of first-tier revenue refunding PUT taxable term bond in 2042; and $193.160 million of first-tier revenue refunding tax-exempt bond, scheduled to mature serially from 2040 through 2041.
SECONDARY MARKET
Munis were mixed on Tuesday on the MBIS benchmark scale, with yields rising no more than one basis points in the 10-year maturity and falling by less than a basis point in the 30-year maturity. High-grades were also mixed with yields on MBIS AAA scale increasing by six basis points in the 10-year maturity and de-creasing by one basis point in the 30-year maturity.
On Refinitiv Municipal Market Data’s AAA benchmark scale, the yield on both the 10-year GO and 30-year GO were unchanged from 1.16% and 1.79%, re-spectfully. The 30-year set a record low on Tuesday.
The 10-year muni-to-Treasury ratio was calculated at 73.9% while the 30-year muni-to-Treasury ratio stood at 88.8%, according to MMD.
Long-term municipal bond funds and exchange-traded funds saw a combined inflow of $3.253 billion in the week ended Feb. 12, the Investment Company Institute reported on Wednesday.
It was the 58th straight week of inflows into the tax-exempt mutual funds reported by ICI. The previous week, ended Feb. 5, saw $2.989 billion of inflows into the funds. q
By aaron Weitzman
002_BB022020 2 2/19/2020 4:55:11 PM
www.bondbuyer.com 3Thursday, February 20, 2020
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The Bond Buyer4 Thursday, February 20, 2020
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News
Illinois AG Lays Out Case Against Appeal
salvo in the case watched closely by mar-ket participants that dates back to last summer when Illinois Policy Institute head John Tillman sought to file a lawsuit blocking repayment of the state’s $10 bil-lion 2003 GO pension obligation issue and $6 billion 2017 GO bill backlog borrow-ing, with $14.3 billion outstanding.
Tillman, who as head of the conserva-tive IPI is a frequent critic of state fiscal policies, argues the bonds violated the state constitution and therefore should be voided. A hedge fund that originally was named as a potential plaintiff is no longer named in any filings.
The circuit court denied Tillman’s request to file the complaint. Tillman’s lawyers appealed to the Fourth Judicial District.
Tillman’s appeal brief argued that San-gamon County Circuit Court Judge Jack D. Davis II erred in denying the taxpayer lawsuit by going beyond the legal test for whether it could proceed which Tillman contends is limited to whether it was “friv-olous” or filed for “malicious” purpose and should not yet consider the merits.
The AG argued that the judge correctly looked at whether reasonable grounds existed for the filing. “The circuit court here properly considered the legal merits of petitioner’s complaint in connection with its ruling that he had not established a reasonable ground for being allowed to file it,” the AG brief reads.
The brief goes further outlining the de-bate over the merits, arguing that Till-man acted too late. “Had petitioner timely sought and obtained an injunction against issuance of the bonds, the state could have
made different financial arrangements. In that case, bondholders would not now be needlessly placed in peril, and the state would not now be facing the risk of a po-tentially serious downgrade in its cred-it rating based on a court ruling forcing the state into a de facto default on bonds backed by its full faith and credit,” the AG brief reads.
The brief further argues the bonds met the legal test for issuance required under state law and that bondholders should have been named in the lawsuit, given the harm they would suffer if payments were halted, and so should have a voice as a party to the litigation.
Many market participants thought the challenge was a long shot given the state’s bond review process and the wide latitude of the statutory language.
State spreads narrowed after the judge denied the filing and have steadily nar-rowed due to the state’s near-term rating stability and market conditions that re-flect strong inflows and a thirst for high-er-yielding paper like Illinois due to record low interest rates.
In the appeal, Tillman’s lawyers argue that the trial court went too far. “At the petition stage, the trial court was tasked with determining solely whether these arguments are ‘frivolous or malicious,’ or ‘otherwise unjustified,’” the appeal said.
The lawsuit would have argued the bonds violated state debt guidelines on the use of proceeds and the authorizing statutes lacked sufficient information as to the “specific purpose” for their issuance.
The circuit court rejected the arguments, finding the bond issues did offer specific enough language to pass constitutional muster and said that to allow the case to
proceed would result in the improper in-terference with the application of public funds.
“This court finds the legislature stated with reasonable detail the specific pur-poses for the issuance of the bonds and assumption of the debt as well as the ob-jectives to be accomplished by enactment of the legislation,” Davis wrote in the Aug. 29 judgment denying Tillman’s petition.
The judge’s order outlined the high bar for granting taxpayer lawsuits. Taxpayer actions by a citizen and taxpayer of the state can move forward if the courts grant leave to restrain and enjoin the defendant from disbursing state public funds.
The court must believe there is reason-able ground for the filing of such action, or it can grant leave to file the complaint as to certain items, parts or portions of any appropriation act sought to be enjoined and mentioned in such complaint, and may deny leave as to the rest.
The decision noted that while Tillman is an Illinois resident, the hedge fund War-lander Asset Management LP did not meet that description. The firm is a holder of $25 million of state GO bonds and it ar-gued repayment of alleged illegal bonds would impair the market value of its hold-ings of uncontested bonds. By dropping Warlander from the appeal, the lawsuit addressed one issue the judge questioned.
The firm disclosed in the courtroom that it stood to benefit if the bonds were ruled illegal because of credit default hedges it had entered into involving the challenged bonds. Nuveen Asset Management LLC and AllianceBernstein LP put forth the claim in support of Illinois’ position that the bonds were legally issued and should continue to be paid. q
Continued from page 1
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interest by increasing their awareness and understanding of the type and timing of fi-nancial information available in the munic-ipal securities market, which could enable investors to make more informed investment decisions,” the SEC wrote.
The MSRB proposed an amendment late last year to EMMA Information Facility IF-3, which outlines the basic functions of the EMMA site. The change will not require more work from issuers.
The calculator will show the number of days between the posting of an annual fi-nancial disclosure and the end date of the financial period. The calculation would be triggered once the submission is made to EMMA.
Muni market groups have said the cal-culator could lead to submission errors and investor confusion. Groups were also upset that the MSRB did not reach out for input before proposing the rule change.
Despite concerns from stakeholders, the SEC believes the benefits offset the potential downside.
The rule change would also not have a negative effect on capital formation and does not impose any burden on competition, the SEC found.
The SEC has encouraged municipal issu-ers to provide timely and accurate informa-tion to investors. The SEC said in its approval order that the timeliness of disclosures is a “major challenge” in the secondary market for municipal securities.
Rebecca Olsen, director of the SEC Of-fice of Municipal Securities, discussed the calculator at a Government Finance Officers Association conference late last year, pushing back against criticism of it.
The new feature will provide an informa-tional box including a link to the disclosure of annual information and/or an audited fi-nancial statement for the most recent fiscal
period and the end date of the financial pe-riod detailed in the disclosure. It will also include the date the disclosure was posted to EMMA and a static calculation of the number of days between the posting of the first disclosure for that fiscal period and the end date of the financial period detailed in that disclosure.
“By promoting transparency and aware-ness of the timing of annual financial infor-mation, the proposed rule change could en-able more efficient analysis by investors and others of the age of the financial information available about an issuer and its securities,” the SEC said. q
Commission Says Benefits of Calculator Outweigh ObjectionsContinued from page 1
For registration information,
Contact Zachary Binns at zachary.binns@arizent or (212) 803-8250.
MEET THE CONFERENCE CO-CHAIRNoe Hinojosa, Jr.Chairman, President, and Chief Executive Officer
February 24-26, 2020, Austin
Conference Co-Chair
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005_BB022020 5 2/19/2020 4:55:19 PM
The Bond Buyer6 Thursday, February 20, 2020
TRENDS IN THE REGIONSoutheast
South Carolina Lawmakers to Decide Santee Cooper’s Future
State lawmakers will hold hearings to consider the report and its options. At a joint meeting of the Senate Finance and House Ways and Means Committee Feb. 13, Marcia Adams, the DOA’s executive director, and consultants reviewed the agency’s report.
In a public presentation on the Reform Plan the next day that was webcast, a San-tee Cooper board member took issue with a statement he said consultants made to lawmakers saying that the utility has a “broken culture.”
“We had leadership issues and failures. We’re addressing those,” the member said.
In a notice to investors, Santee Cooper said the DOA report was delivered to the Senate Finance Committee and the House Ways and Means Committee, including the authority’s own “proposal to remain an ongoing, self-managed entity.”
The committees are required to make a recommendation to the President of the Senate and the Speaker of the House within 30 days, the Feb. 12 notice on the Municipal Securities Rulemaking Board’s EMMA filing system said. Santee Cooper provided a link to its website where the plan, a related handout and press release can be found. While Santee Cooper co-operated with DOA consultants providing documentation and negotiating changes in the Reform Plan, investors were told that the utility didn’t participate in writing it.
“As a result, we are not currently able to discuss the DOA report or matters re-lated thereto on a one-on-one basis with investors and accordingly we will not be accepting investor calls at this time,” the notice said, adding that an investor com-munication on the plan’s key components is expected to be released the week of Feb. 24.
Santee Cooper — on its website, in its Reform Plan, and again at the authority’s Feb. 14 meeting — apologized for its role
in discontinuing construction on the two partially built reactors at the V.C. Summer Nuclear Power Station near Jenkinsville, South Carolina. Santee Cooper issued $4 billion of bonds to finance its 45% owner-ship share in the failed project, a point that has created political and public tension for two and a half years.
“We do shoulder our share of the blame” for shutting down work on the V.C. Summer reactor units 2 and 3, Santee Cooper President Mark Bonsall said at the authority’s meeting, apologizing “for that cancellation.”
The reactor project for a host of reasons needed to be brought to an end, he said, adding that “needless to say such a large cancellation led to public and political outcry that was and is justifiable.” The Reform Plan, he said, is a way to “make it up” to ratepayers and the state.
Bonsall, hired as Santee Cooper’s pres-ident and chief executive officer in July 2019 to reinvent the agency in an effort to convince lawmakers that it is a valuable asset that the state should retain, said in a press release that the Reform Plan empha-sizes transparency, risk management, price and service stability.
“It also keeps all the benefits South Car-olina realizes from a state-based electric utility, such as economic development and environmental stewardship, and it keeps control of that utility local. It is a very certain path forward,” he said.
Santee Cooper said it will transform itself into a “leaner, greener” power supply agency focusing more on solar generation, new battery storage, closing coal-fired plants, adding natural gas capacity, and new conservation programs. All are aimed at producing net present value savings of $2.7 billion over 20 years that will help pay off debt and provide price stability for customers for at least seven years.
The utility expects to cut 300 jobs over a decade, most, if not all, through retire-ments and attrition. More aggressive pay
down of debt will stabilize rates for seven years. Some $3.6 billion will be paid off in 12 years, “equal” to the outstanding nu-clear debt, Bonsall said. The debt ratio is expected to reach a “historic low” of 68% by 2026. The plan will provide 12 years of price stability to the Central Electric Power Cooperative, Santee Cooper’s larg-est customer.
The plan will also include improved transparency and accountability, adding a series of checks and balances and public hearings to operations and siting plans, including an offer to allow the South Car-olina Public Service Commission to settle siting disputes between Santee Cooper and the state Office of Regulatory staff.
The DOA report said Santee Cooper’s Reform Plan doesn’t “provide a roadmap to resolve the Cook litigation. Consequent-ly, it remains a potential financial risk for ratepayers or taxpayers.”
The Jessica S. Cook class-action law-suit is a complicated ongoing massive case that involves numerous parties and cross claims, and Santee Cooper typi-cally doesn’t comment on pending legal matters.
The suit is over $9 billion in fees charged by Santee Cooper and South Car-olina Electric & Gas. SCE&G, an inves-tor owned utility, had a 55% share in the doomed project and merged with Domin-ion Energy on Jan. 1, 2019, a move that brought Dominion into the Cook case.
In November, Santee Cooper issued a rare press release saying that it opposed a tactic by Dominion to remove the Cook case from state to federal court. Dominion had also filed a motion in the case attempt-ing to extract legal costs from Santee Coo-per, and filed an arbitration case against Santee Cooper, which was stayed by the court and subsequently withdrawn. The case is set for trial on April 20.
While the consultants’ report said both the Dominion management proposal and the NextEra sale bid focus on costs over a
20-year period as requested by lawmakers, the report also says the initial term of Do-minion’s plan would be 10 years and that it can be terminated in the event a change in control occurs by either party.
The Dominion proposal consists of placing three or more company employ-ees at Santee Cooper to fill key manage-ment roles, and potentially the post of chief executive officer. A management fee wouldn’t be charged but placed employees would be reimbursed for costs, which were not revealed.
Dominion doesn’t contemplate chang-es in the workforce, and Santee Cooper would retain its tax-exempt borrowing power. Consultants also negotiated the re-moval of a requirement that Santee Cooper indemnify Dominion was removed. It also doesn’t address the Cook litigation and it would remain “a potential financial risk for ratepayers or taxpayers.”
NextEra wants to buy Santee Cooper, a plan that terminates the authority’s tax-ex-empt status, pays off $6.9 billion of debt, provide $400 million in rate relief for cus-tomers and includes a rate freeze for four years.
The bid to purchase Santee Cooper in-cludes cutting more than 700 jobs over the next decade and providing $540 million to customers, an amount intended to settle the Cook lawsuit. The lawsuit, however, seeks billions in recompense for the nucle-ar debacle. As a privately held company, NextEra would have to pay taxes and fees to the state.
The NextEra bid doesn’t assume Santee Cooper’s existing pension liabilities and liabilities related to OPEBs trust for active or inactive employees. q
For more content about this region, visit the Regional News tab on BondBuyer.com.
February 19, 2020 February 12, 2020State Issues Amount Issues Amount Chg in Amt
visible supplY bY state
Dollar amounts are in thousands
006_BB022020 6 2/19/2020 4:55:20 PM
www.bondbuyer.com 7Thursday, February 20, 2020 Commentary
The Regions
Time for A Reset to Make NYC Property Taxes More Equitable As many of us can appreciate, the topic
of taxes, and especially the property tax, has been polemical for centuries. It is front and center in New York City. We have to go back to the early 1990s for the last time the topic was taken up in a serious way.
It has become clear that there is a wide-ly held conviction that the property tax is not as fair and equitable as it could be. It probably comes as no surprise that some of the strongest reactions to the present system are emanating from the outer boroughs. We have all heard the stories about the two neighbors with nearly iden-tical properties who are paying different amounts of property taxes.
In its preliminary report, the New York City Advisory Commission has released its findings and recommendations. For those who want to drill down on the de-tails, there is a lot of excellent content.
As most are familiar with there are four classes of property in the city. The treatment of Class 3 Utilities, and Class 4 Commercial will be untouched by the rec-ommendations in the report. Commercial properties are evaluated using longstand-ing practices of cap rates and discount-ed cash flows. There really is no need to change these practices except one may always debate the fine points. In regard to the Utilities, the state also has consider-able power in how the process is conduct-ed and these practices are longstanding.
What remains is Class 1 that includes 1-3-family homes and Class 2, which in-cludes rental buildings, co-ops and condos. Class 1 has 1,095,061 residential units and Class 2 has 1,921,292 residential units.
These are very large numbers even for a very experienced assessment organization.
The Commission recommends mov-ing away from the Billable AV concept with all of the adjustments and strongly recommends moving to a system of as-sessing every property in the residential class at full market value. In addition, the new Residential Class would include 1-3-family homes, co-ops, condominiums, and rental buildings with up to 10 units. This combination represents more of a melding between existing Class 1 and 2 designations. However, there would still be a Class 2 designation under the recom-mended proposal for rental properties with greater than 10 units.
The change is recommended because the existing Class 2 designation properties (rental buildings, co-ops, and condos) are assessed as if they were rental properties. Given the great appreciation in values in this class over time, the finding is that using the rental property assessment ap-proach is not reflecting the large gains in valuation over time in the class. Over longer periods these differences become heightened in the real estate environment.
Valuing all of the properties in the proposed Class 1 residential designation would be very difficult indeed. In my es-timation, without knowing all of the vari-ables, it is not hard to see how the task could require multiple years. Given this reality, the Commission recommends em-ploying a sales-based methodology for the residential class. Clearly, the emphasis is to move to a real market-based assessment method. Given the reality of the jump in assessments that is likely to take place in individual properties, the Commission
proposes phases in market value changes over five years at 20% per year. A major departure from the present system would be to remove AV caps entirely. Once again, the idea is to firmly adhere to real current market values.
To reflect many of the realities of life in the city, there is an acknowledgement that those on limited incomes who have had great appreciation on their properties should not be displaced by the new basis for the property tax. The Commission rec-ommends that a partial homestead exemp-tion for a primary residence for owners with a specified level of income be grant-ed. The level is not specified and would be the subject of considerable debate in the City Council and with other interested parties. Nor is it clear that the specified income level would be indexed over time. Other abatements would be curtailed.
Another consideration of the property tax burden on low-income owners would be to create a “circuit breaker” that would presumably limit the level of property tax paid to income. Once again, there is no mention of indexing such a level over time but it could be considered in the final iteration of any proposal to be adopted.
The existing tax rate has not been changed for about 10 years. There is this concept of recalibrating the burden among the different classes of properties and then setting the tax rate for each class. Ap-parently, this practice has caused some confusion due to the complexity. We can-not go into all of the niceties herein, but, suffice it to say, the system could be more transparent. The Commission recommends that any new system would freeze the rela-tive shares of the classes of properties for
five years. Presumably, the freeze would be imposed to provide breathing room to implement the new system. After the five-year period, an evaluation would be done to determine if the different classes continue to accurately reflect their relative market shares and the consequent relative tax rates and burdens.
Whenever a property turns over, said property would come on the rolls at the new market value. This is the practice in California and many other states where property appreciation over time has been relatively strong. This proposal enhances fairness. For other properties, there would be a transition to the new system.
The final recommendation is that there should be a comprehensive review of the system every 10 years. One could envi-sion that there would be more to address if valuation increases are ongoing. It is not quite clear what would transpire if we hit a recession and properties were either experiencing declines or a slowing in the rate of market increases. We know that there will always be a need to have a sound yield from the property tax given the spending pressures are many. Many of the city’s fiscal practices are such that the differing rates of growth in revenues ver-sus expenditures should not put the fiscal integrity at risk.
Given all of the changes that have been proposed, we believe it will be difficult to make the update completely revenue neutral.
It is proposed precisely because the cur-rent system is not capturing the large ap-preciation that owners have experienced. Income limits and circuit breakers will serve to limit some of the effects. q
by John Hallacy
Federal prosecutors in Pennsylvania are recommending a prison sentence of up to 30 years for former Scranton Mayor Bill Courtright, according to unsealed court documents.
Courtright’s lawyer, Paul Walker, is seeking a lighter sentence and called the sentencing-formula calculations by the U.S. Attorney’s Office “arbitrary and im-proper and result in an egregious enhance-ment of the guideline range.”
Courtright, 62, resigned last July and pleaded guilty to three felony pay-to-play public corruption charges in a William-sport federal court. The case has since been reassigned to U.S. District Judge Malachy Mannion of the Middle District of Pennsylvania in Scranton. A November sentencing date was postponed, and no new date has been set.
Federal guidelines, though no longer mandatory, still play significant roles in sentencing, especially in calculations in-volving economic loss.
“It is truly a judgment call for Judge
Mannion,” said Anthony Sabino, a Min-eola, New York, attorney and St. John’s University law professor.
“The essential sticking point is the cal-culation of economic loss from the wrongs the former mayor pleaded guilty to. Quite naturally, his defense team is seeking to minimize the raw dollars involved, while the prosecution seeks to maximize the economic harm the defendant did to tax-payers,” Sabino said.
“While the truth is probably in between, the fact that this is a public corruption case increases the likelihood that the court will count every dollar possible against the defendant, and enhance the sentence accordingly.”
According to a filing by U.S. Attorney David Freed, the U.S. Probation Office calculated sentencing guidelines based on Courtright’s status as a high-ranking public official, leadership enhancement, multiple bribes involved and the benefit to the briber.
Freed said evidence makes clear that “Company No. 1,” identified in other court filings as tax-collection firm Northeast
Revenue Service of Plains, Pennsylvania, bribed Courtright over years to ensure that it kept tax and refuse-fee collection contracts.
Prosecutors allege the company re-ceived nearly $3 million in profits by re-taining the contract from 2015 to 2019. They said Courtright should be responsi-ble for $50,000 in bribes received.
Evidence obtained after Courtright’s guilty plea, according to Freed’s filing, suggests that the Lackawanna County Tax Claim Bureau offered an inexpensive al-ternative to the contract with Northeast Revenue, “which would have saved the City of Scranton substantially.”
Evidence, Freed said, also suggests Courtright’s office stalled such an alter-native so Northeast Revenue could keep its contract.
Walker said the federal calculation be-lies that the contract, and two modifie-cations, existed before Courtright took office. “Moreover, there was no predicate factual foundation to establish that Court-right did accept in excess of $50,000 in payments as alleged in the [pre-sentenc-
ing report],” he said. Walker pegged the amount at $18,000.
Courtright was elected mayor in 2013 and re-elected four years later.
“Let’s remember this is the former may-or of Scranton,” Sabino said. “The power and prestige he once enjoyed will now haunt him, since it materially boosts the government’s claim that he was a ring-leader of this wrongful conduct, and his sentence should be maximized for that reason.”
Scranton, the seat of Lackawanna Coun-ty, has struggled with chronic budget im-balance and unfunded pension liability. Its credibility in the capital markets plummet-ed in 2012 when it missed a bond payment to the local parking authority amid a polit-ical dispute. Its bonds are junk.
S&P Global Ratings, the only agen-cy that rates the city, assigns its BB-plus rating, one level into speculative grade. S&P in August 2017 upgraded the city from BB after it sold its sewer system and earmarked a majority of sale proceeds to retire more than $40 million in high-cou-pon debt. q
Prosecutors Recommend 30-Year Prison Sentence for Ex-Scranton MayorBy Paul Burton
007_BB022020 7 2/19/2020 4:55:20 PM
The Bond Buyer8 Thursday, February 20, 2020Competitive Sales Notices
THREE VILLAGE CENTRAL SCHOOL DISTRICTOF BROOKHAVEN AND SMITHTOWN,
IN THE COUNTY OF SUFFOLK, NEW YORK
NOTICE OF $6,010,000* BOND SALE
SEALED PROPOSALS will be received by the President of the Board of Education, Three Village Central School District of Brookhaven and Smithtown (the “District”), Suffolk County, New York, at the offices of Munistat Services, Inc. (the “Municipal Advisor”), 12 Roosevelt Avenue, Port Jefferson Station, New York (Telephone No. 631-331-8888, Fax No. 631-331-8834), on Wednesday, February 26, 2020, until 11:00 A.M. (Prevailing Time) via iPreo’s Parity Electronic Bid Submission System (“Parity”) or by facsimile transmission, at which time they will be publicly opened and announced, for the purchase of $6,010,000* SCHOOL DISTRICT REFUNDING SERIAL BONDS-2020 (the “Bonds”), maturing on June 1, in annual principal installments as shown below which, together with interest thereon, are expected to effectuate and provide for substantially level or declining annual debt service.
The Bonds are offered subject to approval by the State Comptroller of the Certificate of the President of the Board of Education of the District executed pursuant to Section 90.10(g) of the Local Finance Law.
Delivery and Payment Dates for the BondsThe Bonds will be dated the date of their delivery, which is expected to be March 18, 2020,
and will bear interest at the rate or rates per annum specified by the successful bidder therefor in accordance herewith, payable semiannually on each June 1 and December 1 in each year to maturity, commencing June 1, 2020.
Date of Principal Maturity Amount* 2020 $1,205,000 2021 1,115,000 2022 1,170,000 2023 1,225,000 2024 1,295,000
* Post-sale Adjustment of Par Amount of the BondsThe amount of the issue, purchase price and amounts of the maturities of the Bonds are
subject to change depending upon the actual interest rates bid and the successful bidder’s initial reoffering yields in order to effectuate the District’s plan of refunding certain outstanding bonds. Accordingly, the District reserves the right, in its discretion, but only to the extent necessary, to increase or decrease the size of the issue and the maturities of the Bonds, in order that the District can effectuate the most cost effective refunding of outstanding bonds. The annual maturities of the Bonds may also be adjusted for the purpose of attaining debt service that is substantially level or declining, as provided pursuant to Section 21.00(d) of the New York State Local Finance Law (the “Law”). Such adjustments will be made by 3:00 P.M. (Prevailing Time) on the date of the bid opening. The successful bidder may neither withdraw nor modify its bid as a result of any such post-bid adjustment. Any such adjustment shall be conclusive, and shall be binding upon the successful bidder.
The Bonds of each maturity, as adjusted, will bear interest at the same rate and must have the same initial reoffering yields as specified for that maturity by the successful bidder for the Bonds. It is the intent of this provision to hold constant, on a per bond basis, the successful bidder’s underwriting spread. However, the award will be made to the bidder whose bid produces the lowest true interest rate, calculated as specified below, solely on the basis of the Bonds offered, without taking into account any adjustment in the amount of Bonds pursuant to this paragraph.
Changes to the Time and/or Date of Bid OpeningThe District reserves the right to change the time and/or date of the bid opening, and notice of
any change thereof shall be provided at least one (1) hour prior to the time set forth above for the opening of sealed proposals, by means of a supplemental notice of sale to be transmitted over the Thomson Municipal Newswire.
No Optional Redemption for the BondsThe Bonds will not be subject to redemption prior to maturity.
Form of BondsThe Bonds will be issued in the form of fully registered bonds, in denominations corresponding
to the total principal amounts due in each year of maturity. As a condition to delivery of the Bonds, the successful bidder will be required to cause the Bond certificates to be (i) registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), and (ii) deposited with DTC to be held in trust until maturity. DTC is an automated depository for securities and clearinghouse for securities transactions, and will be responsible for establishing and maintaining a book-entry system for recording the ownership interests of its participants, which include certain banks, trust companies and securities dealers, and the transfers of the interests among its participants. The DTC participants will be responsible for establishing and maintaining records with respect to the beneficial ownership interests of individual purchasers in the Bonds. Individual purchases of beneficial ownership interests in the Bonds may only be made through book entries (without certificates issued by the District) made on the books and records of DTC (or a successor depository) and its participants, in denominations of $5,000 or integral multiples thereof. Principal of and interest on the Bonds will be payable by the District or its agent by wire transfer or in clearinghouse funds to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. The District will not be responsible or liable for payments by DTC to its participants or by DTC participants to beneficial owners or for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants.
Submission of BidsEach proposal must be a bid of not less than $6,010,000 for all of the Bonds and must state in
a multiple of one-hundredth of 1% or a multiple of one-eighth of 1%, the rate or rates of interest per annum which the Bonds are to bear and may state different rates of interest for Bonds maturing in different calendar years, provided, however, that (i) only one rate of interest may be bid for all Bonds maturing in any one calendar year and (ii) variations in rates of interest so bid may be in any order of maturity.
Sealed proposals may be submitted electronically via Parity or via facsimile transmission at 631-331-8834, in accordance with this Notice of Sale, until the time specified herein. No other form of electronic bidding services nor telephone proposals will be accepted. No proposal will be accepted after the time for receiving proposals specified above. Bidders submitting proposals via facsimile must use the “Proposal for Bonds” form attached hereto. Once the proposals are communicated electronically via Parity or via facsimile to the District, each bid will constitute an irrevocable offer to purchase the Bonds pursuant to the terms therein provided.
Bidding using Parity Prospective bidders wishing to submit an electronic bid via Parity must be contracted customers
of Parity. Prospective bidders who do not have a contract with Parity must call (212) 849-5021 to become a customer. By submitting an electronic bid for the Bonds, a bidder represents and warrants to the District that such bidder’s bid for the purchase of the Bonds is submitted for and on behalf of such prospective bidder by an officer or agent who is duly authorized to bind the bidder to a legal, valid and enforceable contract for the purchase of the Bonds.
Each prospective bidder who wishes to submit an electronic bid shall be solely responsible to register to bid via Parity. Each qualified prospective bidder shall be solely responsible to make necessary arrangements to access Parity for purposes of submitting its bid in a timely manner and in compliance with the requirements of this Notice of Sale. Neither the District nor Parity shall have any duty or obligation to undertake such registration to bid for any prospective bidder or to provide or assure such access to any qualified prospective bidder, and neither the District nor Parity shall be responsible for a bidder’s failure to register to bid or for proper operation of, or have any liability for any delays or interruptions of, or any damages caused by Parity. The District is using Parity as a communications mechanism, and not as the District’s agent, to conduct the electronic bidding for the District’s Bonds. The District is not bound by any advice or determination of Parity as to whether any bid complies with the terms of this Notice of Sale. All costs and expenses incurred by prospective bidders in connection with their registration and submission of bids via Parity are the sole responsibility of the bidders, and the District is not responsible, directly or indirectly, for any such costs or expenses. If a prospective bidder encounters any difficulty in registering to bid, or submitting or modifying a bid for the Bonds, it should telephone Parity and notify the District’s Municipal Advisor, Munistat Services, Inc. at 631-331-8888 (provided that the District shall have no obligation to take any action whatsoever upon receipt of such notice).
If any provisions of this Notice of Sale shall conflict with information provided by Parity, as approved provider of electronic bidding services, this Notice of Sale shall control. Further information about Parity, including any fee charged, may be obtained from Parity at (212) 849-5021. The time maintained by Parity shall constitute the official time with respect to all bids submitted.
Bidders submitting bids via facsimile do not need to register to bid. Good Faith DepositAs a condition precedent to the consideration of the bidder’s proposal, a good faith deposit (the
“Deposit”) in the amount of $60,100 is required for each bid to be considered. Such Deposit may be in the form of: (i) a certified or cashier’s check payable to the order of “Three Village Central School District of Brookhaven and Smithtown, County of Suffolk, New York,” or (ii) a wire transfer in accordance with instructions set forth herein. If a wire transfer is used, it must be sent to the account so designated by the District for such purpose, not later than 10:00 A.M. on the date of the sale; however, the District reserves the right to award the Bonds to a successful bidder whose wire transfer is initiated but not received by such time provided that such successful bidder’s fed wire reference number has been received. A wire reference number must be provided when the bid is submitted. Bidders must contact Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York, 11776 telephone No. 631-331-8888, the District’s Municipal Advisor, no later than 24 hours prior to the bid opening to obtain the District’s wire instructions. The District shall not incur any liability from delays of or interruptions in the receipt of the Deposit by fed wire or return of the Deposit to any unsuccessful bidder. Under no circumstances shall interest accrue on the Deposit occasioned by a delay in the return of the Deposit to any unsuccessful bidder. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Bonds.
Award of BondsThe Bonds will be awarded and sold to the bidder complying with the terms of sale and offering
to purchase such issue of Bonds at such rate or rates of interest per annum as will produce the lowest true interest cost over the life of such issue and, if two or more such bidders offer the same lowest true interest cost, then to one of said bidders selected by the Sale Officer by lot from among all said bidders. True interest cost shall be determined for each bid by doubling the semi-annual interest rate, compounded semiannually, necessary to discount all interest and principal payments from the payment dates thereof to the dated date of the Bonds, so that the sum of the present value of said payments equals the price bid, such price bid excluding interest accrued to the date of delivery. The true interest cost shall be calculated from the dated date of the bonds. The successful bidder must also pay an amount equal to the interest on the Bonds, if any, accrued to the date of payment of the purchase price.
Award of the Bonds will be made without taking into consideration any adjustment to be made to the principal amount of the Bonds described herein.
The District reserves the right to reject any and all bids (regardless of the interest rate bid), to reject any bid not complying with this official Notice of Sale and, so far as permitted by law, to waive any irregularity or informality with respect to any bid or the bidding process.
When the successful bidder has been ascertained, the Sale Officer will promptly return all
continued on next page
008_BB022020 8 2/19/2020 4:11:52 PM
www.bondbuyer.com 9Thursday, February 20, 2020Competitive Sales Notices
Submission of BidsEach proposal must be a bid of not less than $6,010,000 for all of the Bonds and must state in
a multiple of one-hundredth of 1% or a multiple of one-eighth of 1%, the rate or rates of interest per annum which the Bonds are to bear and may state different rates of interest for Bonds maturing in different calendar years, provided, however, that (i) only one rate of interest may be bid for all Bonds maturing in any one calendar year and (ii) variations in rates of interest so bid may be in any order of maturity.
Sealed proposals may be submitted electronically via Parity or via facsimile transmission at 631-331-8834, in accordance with this Notice of Sale, until the time specified herein. No other form of electronic bidding services nor telephone proposals will be accepted. No proposal will be accepted after the time for receiving proposals specified above. Bidders submitting proposals via facsimile must use the “Proposal for Bonds” form attached hereto. Once the proposals are communicated electronically via Parity or via facsimile to the District, each bid will constitute an irrevocable offer to purchase the Bonds pursuant to the terms therein provided.
Bidding using Parity Prospective bidders wishing to submit an electronic bid via Parity must be contracted customers
of Parity. Prospective bidders who do not have a contract with Parity must call (212) 849-5021 to become a customer. By submitting an electronic bid for the Bonds, a bidder represents and warrants to the District that such bidder’s bid for the purchase of the Bonds is submitted for and on behalf of such prospective bidder by an officer or agent who is duly authorized to bind the bidder to a legal, valid and enforceable contract for the purchase of the Bonds.
Each prospective bidder who wishes to submit an electronic bid shall be solely responsible to register to bid via Parity. Each qualified prospective bidder shall be solely responsible to make necessary arrangements to access Parity for purposes of submitting its bid in a timely manner and in compliance with the requirements of this Notice of Sale. Neither the District nor Parity shall have any duty or obligation to undertake such registration to bid for any prospective bidder or to provide or assure such access to any qualified prospective bidder, and neither the District nor Parity shall be responsible for a bidder’s failure to register to bid or for proper operation of, or have any liability for any delays or interruptions of, or any damages caused by Parity. The District is using Parity as a communications mechanism, and not as the District’s agent, to conduct the electronic bidding for the District’s Bonds. The District is not bound by any advice or determination of Parity as to whether any bid complies with the terms of this Notice of Sale. All costs and expenses incurred by prospective bidders in connection with their registration and submission of bids via Parity are the sole responsibility of the bidders, and the District is not responsible, directly or indirectly, for any such costs or expenses. If a prospective bidder encounters any difficulty in registering to bid, or submitting or modifying a bid for the Bonds, it should telephone Parity and notify the District’s Municipal Advisor, Munistat Services, Inc. at 631-331-8888 (provided that the District shall have no obligation to take any action whatsoever upon receipt of such notice).
If any provisions of this Notice of Sale shall conflict with information provided by Parity, as approved provider of electronic bidding services, this Notice of Sale shall control. Further information about Parity, including any fee charged, may be obtained from Parity at (212) 849-5021. The time maintained by Parity shall constitute the official time with respect to all bids submitted.
Bidders submitting bids via facsimile do not need to register to bid. Good Faith DepositAs a condition precedent to the consideration of the bidder’s proposal, a good faith deposit (the
“Deposit”) in the amount of $60,100 is required for each bid to be considered. Such Deposit may be in the form of: (i) a certified or cashier’s check payable to the order of “Three Village Central School District of Brookhaven and Smithtown, County of Suffolk, New York,” or (ii) a wire transfer in accordance with instructions set forth herein. If a wire transfer is used, it must be sent to the account so designated by the District for such purpose, not later than 10:00 A.M. on the date of the sale; however, the District reserves the right to award the Bonds to a successful bidder whose wire transfer is initiated but not received by such time provided that such successful bidder’s fed wire reference number has been received. A wire reference number must be provided when the bid is submitted. Bidders must contact Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York, 11776 telephone No. 631-331-8888, the District’s Municipal Advisor, no later than 24 hours prior to the bid opening to obtain the District’s wire instructions. The District shall not incur any liability from delays of or interruptions in the receipt of the Deposit by fed wire or return of the Deposit to any unsuccessful bidder. Under no circumstances shall interest accrue on the Deposit occasioned by a delay in the return of the Deposit to any unsuccessful bidder. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Bonds.
Award of BondsThe Bonds will be awarded and sold to the bidder complying with the terms of sale and offering
to purchase such issue of Bonds at such rate or rates of interest per annum as will produce the lowest true interest cost over the life of such issue and, if two or more such bidders offer the same lowest true interest cost, then to one of said bidders selected by the Sale Officer by lot from among all said bidders. True interest cost shall be determined for each bid by doubling the semi-annual interest rate, compounded semiannually, necessary to discount all interest and principal payments from the payment dates thereof to the dated date of the Bonds, so that the sum of the present value of said payments equals the price bid, such price bid excluding interest accrued to the date of delivery. The true interest cost shall be calculated from the dated date of the bonds. The successful bidder must also pay an amount equal to the interest on the Bonds, if any, accrued to the date of payment of the purchase price.
Award of the Bonds will be made without taking into consideration any adjustment to be made to the principal amount of the Bonds described herein.
The District reserves the right to reject any and all bids (regardless of the interest rate bid), to reject any bid not complying with this official Notice of Sale and, so far as permitted by law, to waive any irregularity or informality with respect to any bid or the bidding process.
When the successful bidder has been ascertained, the Sale Officer will promptly return all
Deposits made to the persons making the same, except the deposit made by such bidder. Award of the Bonds to the successful bidder, or rejection of all bids, is expected to be made promptly after opening of the bids, but the successful bidder may not withdraw his proposal until after 3:00 o’clock P.M. (Prevailing Time) on the day of such bid-opening and then only if such award has not been made prior to the withdrawal. The successful bidder will be promptly notified of the award to him, and if he refuses or neglects to pay the agreed price of the Bonds less the amount deposited by him, the amount deposited by him shall be forfeited to and retained by the District as liquidated damages for such neglect or refusal.
Bond InsuranceIf the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of a bidder, the purchase of any such insurance policy or the issuance of any such commitment therefor shall be at the sole option and expense of such bidder and any increased costs of issuance of the Bonds resulting by reason of the same, unless otherwise paid, shall be paid by such bidder. Any failure of the Bonds to be so insured or of any such policy of insurance to be issued, shall not constitute cause for a failure or refusal by the purchaser of the Bonds to accept delivery of and pay for said Bonds in accordance with the terms hereof.
Use of ProceedsThe proceeds of the Bonds will be used to refund certain outstanding serial bonds of said District
issued in 2008.Payment and Security for the BondsThe Bonds are general obligations of the District and shall contain a pledge of the faith and credit
of the District for the payment of the principal thereof. There is no limitation, either as to rate or amount, upon ad valorem taxes upon taxable real property in the District which may be required to pay the Bonds and the interest thereon. The State Constitution requires the District to pledge its faith and credit for the payment of the principal of the Bonds and the interest thereon and to make annual appropriations for the amounts required for the payment of such interest and the redemption of the Bonds. The State Constitution also provides that if at any time the appropriating authorities fail to make the required appropriations for the annual debt service on the Bonds and certain other obligations of the District, a sufficient sum shall be set apart from the first revenues thereafter received and shall be applied for such purposes, and also that the fiscal officer of the District may be required to set apart and apply such revenues as aforesaid at the suit of any holder of such obligations.
Upon default in the payment of principal of or interest on the Bonds or certain other obligations of the District, the State Comptroller is required, under the conditions and to the extent prescribed by Section 99-b of the State Finance Law, to withhold State aid and assistance to the District and apply the amount thereof so withheld to the payment of defaulted principal and interest with respect to said Bonds and said other obligations.
Debt Statement filed with the State ComptrollerThe population of the District is estimated to be 48,424. The debt statement to be filed pursuant
to Section 109.00 of the Law in connection with the sale of the Bonds, prepared as of February 18, 2020, will show the full valuation of real property subject to taxation by the District to be $6,582,172,695, its debt limit to be $658,217,270, and its total net indebtedness (exclusive of the Bonds) to be $92,040,000. The issuance of the Bonds will increase the total net indebtedness of the District. The calculation of such net indebtedness has not taken into account any deductions therefrom of any apportionment of State aid for debt service for school building purposes to which the District may be entitled.
Delivery of the Bonds and Assignment of CUSIP NumbersThe Bonds will be delivered to DTC and shall be paid for in Federal Funds on or about March
18, 2020 at such place in New York City, and on such business day and at such hour, as the Sale Officer shall fix on three business days’ notice to the successful bidder, or at such other place and time as may be agreed upon with the successful bidder. The deposit of the Bonds with DTC under a book-entry system requires the assignment of CUSIP numbers prior to delivery. It shall be the responsibility of the District’s Municipal Advisor to obtain CUSIP numbers for the Bonds within one day after distribution of the Notice of Sale for the Bonds. The District will not be responsible for any delay occasioned by the inability to deposit the Bonds with DTC due to the failure of the District’s Municipal Advisor to obtain such numbers and to supply them to the District in a timely manner. The CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the winning bidder; however, all expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid for by the District.
Legal OpinionThe successful bidder will be furnished without cost with the approving opinion of the law firm
of Hawkins Delafield & Wood LLP (“Bond Counsel”) substantially as set forth in Appendix C to the Preliminary Official Statement dated February 18, 2020 (the “Preliminary Official Statement”) circulated in connection with the sale of the Bonds, which shall be supplemented by the final official statement to be dated February 26, 2020 (the “Official Statement”).
Tax ExemptionThe successful bidder may at its option refuse to accept the Bonds if prior to their delivery the
opinion of Bond Counsel is not delivered or if any income tax law of the United States of America is hereafter enacted which shall provide that the interest thereon is taxable, or shall be taxable at a future date, for federal income tax purposes, and in such case the deposit made by it will be returned and it will be relieved of its contractual obligations arising from the acceptance of its proposal.
The Internal Revenue Code of 1986, as amended (the “Code”), establishes certain ongoing requirements that must be met subsequent to the issuance and delivery of the Bonds in order that interest on the Bonds be and remain excludable from gross income under Section 103 of the Code. Concurrently with the delivery of the Bonds, the District will execute a Tax Certificate, which will contain provisions and procedures relating to compliance with the requirements of the Code and a certification to the effect that the District will comply with the provisions and procedures set forth therein and that it will do and perform all acts and things necessary or desirable to assure that
interest paid on the Bonds is excludable from gross income under Section 103 of the Code.Upon delivery of the Bonds, Bond Counsel will deliver an opinion that states that, under
existing statutes and court decisions and assuming continuing compliance with the provisions and procedures set forth in the Tax Certificate, (i) interest on the Bonds is excluded from gross income for federal income tax purposes pursuant to Section 103 of the Code; and (ii) interest on the Bonds is not treated as a preference item in calculating the alternative minimum tax imposed under the Code. In addition, the opinion of Bond Counsel will state that, under existing statutes, interest on the Bonds is exempt from personal income taxes of New York State and its political subdivisions, including The City of New York.
The District will NOT designate the Bonds as “qualified tax-exempt obligations” pursuant to the provisions of Section 265 of the Code.
Obligation of Winning Bidder to Deliver an Issue Price Certificate at ClosingBy submitting a bid, each bidder is certifying that its bid is a firm offer to purchase the Bonds, is a
good faith offer which the bidder believes reflects current market conditions, and is not a “courtesy bid” being submitted for the purpose of assisting in meeting the competitive sale requirements relating to the establishment of the “issue price” of the Bonds pursuant to Section 148 of the Code, including the requirement that bids be received from at least three (3) underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds (the “Competitive Sale Requirements”). The Municipal Advisor will advise the winning bidder if the Competitive Sale Requirements were met at the same time it notifies the winning bidder of the award of the Bonds. Bids will not be subject to cancellation in the event that the Competitive Sale Requirements are not satisfied.
The winning bidder shall, within one (1) hour after being notified of the award of the Bonds, advise the Municipal Advisor by electronic or facsimile transmission of the reasonably expected initial public offering price or yield of each maturity of the Bonds (the “Initial Reoffering Prices”) as of the date of the award.
By submitting a bid, the winning bidder agrees (unless the winning bidder is purchasing the Bonds for its own account and not with a view to distribution or resale to the public) that if the Competitive Sale Requirements are not met, it will elect and satisfy either option (1) or option (2) described below. Such election must be made on the bid form submitted by each bidder. In the event a bidder submits a bid via Parity, such bidder must notify the Municipal Advisor by email ([email protected]) as to such election at the time such bid is submitted.
(1) Hold the Price. The winning bidder:(a) will make a bona fide offering to the public of all of the Bonds at the Initial Reoffering
Prices and provide Bond Counsel with reasonable supporting documentation, such as a copy of the pricing wire or equivalent communication, the form of which is acceptable to Bond Counsel,
(b) will neither offer nor sell to any person any Bonds within a maturity at a price that is higher, or a yield that is lower, than the Initial Reoffering Price of such maturity until the earlier of (i) the date on which the winning bidder has sold to the public at least 10 percent of the Bonds of such maturity at a price that is no higher, or a yield that is no lower, than the Initial Reoffering Price of such maturity or (ii) the close of business on the 5th business day after the date of the award of the Bonds, and
(c) has or will include within any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the winning bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, language obligating each underwriter to comply with the limitations on the sale of the Bonds as set forth above.
(2) Follow the Price. The winning bidder:(a) will make a bona fide offering to the public of all of the Bonds at the Initial Reoffering Prices
and provide the Issuer with reasonable supporting documentation, such as a copy of the pricing wire or equivalent communication, the form of which is acceptable to Bond Counsel,
(b) will report to the Issuer information regarding the first price that at least 10 percent of the Bonds within each maturity of the Bonds have been sold to the public,
(c) will provide the Issuer with reasonable supporting documentation or certifications of such sale prices the form of which is acceptable to Bond Counsel. This reporting requirement, which may extend beyond the closing date of the Bonds, will continue until such date that the requirement set forth in paragraph (b) above for each maturity of the Bonds is satisfied, and
(d) has or will include within any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the winning bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, language obligating each underwriter to comply with the reporting requirement described above.
For purposes of the “hold the price” or “follow the price” requirement, a “maturity” refers to Bonds that have the same interest rate, credit and payment terms.
Regardless of whether or not the Competitive Sale Requirements were met, the winning bidder shall submit to the Issuer a certificate (the “Reoffering Price Certificate”), satisfactory to Bond Counsel, prior to the delivery of the Bonds stating the applicable facts as described above. The form of Reoffering Price Certificate is available by contacting Bond Counsel or the Municipal Advisor.
If the winning bidder has purchased the Bonds for its own account and not with a view to distribution or resale to the public, then, whether or not the Competitive Sale Requirements were met, the Reoffering Price Certificate will recite such facts and identify the price or prices at which the purchase of the Bonds was made.
For purposes of this Notice, the “public” does not include the winning bidder or any person that agrees pursuant to a written contract with the winning bidder to participate in the initial sale of the Bonds to the public (such as a retail distribution agreement between a national lead underwriter and a regional firm under which the regional firm participates in the initial sale of the Bonds to the public). In making the representations described above, the winning bidder must reflect the effect on the offering prices of any “derivative products” (e.g., a tender option) used by the bidder in connection with the initial sale of any of the Bonds.
Official Statement, Continuing Disclosure and Compliance HistoryThe District will provide a reasonable number of Official Statements to the successful bidder
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within seven (7) business days following receipt of a written request therefor made to the District and its Municipal Advisor. Such request may specify the applicable (a) offering price(s), (b) selling compensation, (c) rating(s), (d) credit enhancement and (e) identity and complete name of such bidder and any participating underwriters, and if so, the Preliminary Official Statement will be modified or supplemented by the information so specified. Neither the District nor its Municipal Advisor shall be liable in any manner for any delay, inaccuracy, or omission on the part of the successful bidder with respect to such request, nor shall the District’s failure, as a result thereof, to provide the Official Statement within the above time period, constitute cause for a failure or refusal by such bidder to accept delivery of and pay for the Bonds in accordance with the terms hereof.
The Preliminary Official Statement is in a form “deemed final” by the District for the purpose of Securities and Exchange Commission Rule 15c2-12 (“Rule 15c2-12”) but may be modified or supplemented as noted above. In order to assist bidders in complying with Rule 15c2-12 and as part of the District’s contractual obligation arising from its acceptance of the successful bidder’s proposal, at the time of the delivery of the Bonds the District will provide an executed copy of its “Undertaking to Provide Continuing Disclosure” (the “Undertaking”). The form of said Undertaking is set forth in Appendix D in the Preliminary Official Statement.
Except as otherwise set forth in the Preliminary Official Statement (see the caption entitled “DISCLOSURE UNDERTAKING”), the District is in compliance in all material respects with all previous undertakings made pursuant to Rule 15c2-12 during each of the past five years.
Documents Accompanying the Delivery of the BondsThe obligation hereunder to deliver or accept the Bonds pursuant hereto shall be conditioned on
the delivery to the successful bidder at the time of delivery of the Bonds of: (i) the opinion of Bond Counsel; (ii) a certificate of the School Attorney, dated the date of delivery of the Bonds, to the effect that there is no controversy or litigation of any nature pending or threatened to restrain or enjoin the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any of the proceedings taken with respect to the issuance and sale thereof or the application of moneys to the payment of the Bonds, and further stating that there is no controversy or litigation of any nature now pending or threatened by or against the District wherein an adverse judgment or ruling could have a material adverse impact on the financial condition of the District or adversely affect the power of the District to levy, collect and enforce the collection of taxes or other revenues for the payment of its Bonds, which has not been disclosed in the Official Statement; (iii) certificate of the President of the Board of Education to the effect that as of the date of the Official Statement and at all times subsequent thereto, up to and including the time of the delivery of the Bonds, the Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements herein, in the light of the circumstances under which they were made, not misleading, and further stating that there has been no adverse material change in the financial condition of the District since the date of the Official Statement to the date of issuance of the Bonds (and having attached thereto a copy of the Official Statement); (iv) a certificate signed by the President of the Board of Education evidencing payment for the Bonds; (v) a signature certificate evidencing the due execution of the Bonds, including statements that (a) no litigation of any nature is pending or, to the knowledge of the signers, threatened, restraining or enjoining the issuance and delivery of the Bonds or the levy and collection of taxes to pay the principal of and interest thereon, nor in any manner questioning the proceedings and authority under which the Bonds were authorized or affecting the validity of the Bonds thereunder, (b) neither the corporate existence or boundaries of the District nor the title of the signers to their respective offices is being contested, and (c) no authority or proceedings for the issuance of the Bonds have been repealed, revoked or rescinded, and (vi) Tax Certificate executed by the President of the Board of Education, as described under “TAX MATTERS” in the Preliminary Official Statement.
Additional InformationCopies of this Notice of Sale and the Preliminary Official Statement are available in electronic format
on the website of the District’s Municipal Advisor, Munistat Services, Inc. (“www.munistat.com”) or may be obtained upon request from the offices of Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York 11776, telephone No. 631-331-8888.
Dated: February 18, 2020William F. Connors, Jr.
President of the Board of Educationand Chief Fiscal Officer
TOWN OF SMITHTOWN,IN THE COUNTY OF SUFFOLK, NEW YORK
NOTICE OF $10,037,090* BOND SALE
SEALED PROPOSALS will be received by the Supervisor, Town of Smithtown (the “Town”), Suffolk County, New York, at the offices of Munistat Services, Inc. (the “Municipal Advisor”), Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York (Telephone No. 631-331-8888, Fax No. 631-331-8834), on Wednesday, February 26, 2020, until 11:00 A.M. (Prevailing Time) via iPreo’s Parity Electronic Bid Submission System (“Parity”) or by facsimile transmission, at which time they will be publicly opened and announced, for the purchase of $10,037,090* PUBLIC IMPROVEMENT SERIAL BONDS-2020 (the “Bonds”), maturing on February 15, in annual principal installments as shown below which, together with interest thereon, are expected to effectuate and provide for substantially level or declining annual debt service.
Date of Principal Date of Principal Maturity Amount* Maturity Amount* 2021 $242,090 2031 $605,000 2022 670,000 2032 620,000 2023 680,000 2033 625,000 2024 700,000 2034 635,000 2025 715,000 2035 645,000 2026 580,000 2036 175,000 2027 585,000 2037 180,000 2028 600,000 2038 185,000 2029 600,000 2039 190,000 2030 635,000 2040 170,000
Delivery and Payment Dates for the BondsThe Bonds will be dated the date of their delivery, which is expected to be March 10, 2020,
and will bear interest at the rate or rates per annum specified by the successful bidder therefor in accordance herewith, payable on February 15, 2021, August 15, 2021, and semi-annually thereafter on February 15 and August 15 in each year to maturity.
Post-sale Adjustment of Par Amount of the BondsThe aggregate par amount of Bonds may be decreased in an amount not in excess of
the premium offered by the successful bidder and the amount of each annual maturity, as set forth herein, may be adjusted to the extent necessary, in order that the total proceeds, which include the total par amount of the Bonds plus the original issue premium, if any, received by the Town does not exceed the maximum amount permitted under applicable provisions of the Internal Revenue Code of 1986, as amended. The annual maturities of the Bonds may also be adjusted for the purpose of attaining debt service that is substantially level or declining, as provided pursuant to Section 21.00(d) of the New York State Local Finance Law (the “Law”). Such adjustments will be made by 3:00 P.M. (Prevailing Time) on the day of the bid opening. The successful bidder may neither withdraw nor modify its bid as a result of any such post-bid adjustment. Any such adjustment shall be conclusive, and shall be binding upon the successful bidder.
The Bonds of each maturity, as adjusted, will bear interest at the same rate and must have the same initial reoffering yields as specified for that maturity by the successful bidder for the Bonds. It is the intent of this provision to hold constant, on a per bond basis, the successful bidder’s underwriting spread. However, the award will be made to the bidder whose bid produces the lowest net interest cost, calculated as specified herein, solely on the basis of the Bonds offered, without taking into account any adjustment in the amount of Bonds pursuant to this paragraph.
Changes to the Time and/or Date of Bid OpeningThe Town reserves the right to change the time and/or date of the bid opening, and notice of
any change thereof shall be provided at least one (1) hour prior to the time set forth above for the opening of sealed proposals, by means of a supplemental notice of sale to be transmitted over the Thomson Municipal Newswire or TM3.
Optional RedemptionThe Bonds maturing on or before February 15, 2027 will not be subject to redemption prior to
maturity. The Bonds maturing on February 15, 2028 and thereafter will be subject to redemption prior to maturity, at the option of the Town, in whole or in part, and if in part, in any order of their maturity and in any amount within a maturity (selected by lot within a maturity), on any date on or after February 15, 2027, at a redemption price equal to the principal amount of the Bonds to be redeemed, plus accrued interest to the date of redemption.
The Town may select the maturities of the Bonds to be redeemed and the amount to be redeemed of each maturity selected, as the Town shall determine to be in the best interest of the Town at the time of such redemption. If less than all of the Bonds of any maturity are to be redeemed prior to maturity, the particular Bonds of such maturity to be redeemed shall be selected by the Town by lot in any customary manner of selection as determined by the Town. Notice of such call for redemption shall be given by mailing such notice to the registered owner at least thirty (30) days prior to the date set for such redemption. Notice of redemption having been given as aforesaid, the bonds so called for redemption shall, on the date for redemption set forth in such call for redemption, become due and payable together with interest to such redemption date. Interest shall cease to be paid thereon after such redemption date.
Form of BondsThe Bonds will be issued in the form of fully registered bonds, in denominations corresponding
to the total principal amounts due in each year of maturity. As a condition to delivery of the Bonds, the successful bidder will be required to cause the Bond certificates to be (i) registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), and
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To reach the widest audiencewithin the marketplace, advertise your competitive bond sales in The Bond Buyer. For rates and additional information about advertising a NOS, please call Kerry-Ann C. Parkes at 212-803-8436 or send an email to [email protected].
THE DAILY NEWSPAPER OF PUBLIC FINANCE
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www.bondbuyer.com 11Thursday, February 20, 2020Competitive Sales Notices
(ii) deposited with DTC to be held in trust until maturity. DTC is an automated depository for securities and clearinghouse for securities transactions, and will be responsible for establishing and maintaining a book-entry system for recording the ownership interests of its participants, which include certain banks, trust companies and securities dealers, and the transfers of the interests among its participants. The DTC participants will be responsible for establishing and maintaining records with respect to the beneficial ownership interests of individual purchasers in the Bonds. Individual purchases of beneficial ownership interests in the Bonds may only be made through book entries (without certificates issued by the Town) made on the books and records of DTC (or a successor depository) and its participants, in denominations of $5,000 or integral multiples thereof, except for one necessary odd denomination. Principal of and interest on the Bonds will be payable by the Town or its agent by wire transfer or in clearinghouse funds to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. The Town will not be responsible or liable for payments by DTC to its participants or by DTC participants to beneficial owners or for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants.
Submission of BidsEach proposal must be a bid of not less than $10,037,090 for all of the Bonds. Each proposal
must state in a multiple of one-hundredth of 1% or a multiple of one-eighth of 1%, the rate or rates of interest per annum which the Bonds are to bear and may state different rates of interest for Bonds maturing in different calendar years; provided, however, that (i) only one rate of interest may be bid for all Bonds maturing in any one calendar year, and (ii) variations in rates of interest so bid shall be in ascending progression in order of maturity so that the rate of interest on Bonds maturing in any particular calendar year shall not be less than the rate of interest applicable to Bonds maturing in any prior calendar year.
Sealed proposals may be submitted electronically via Parity or via facsimile transmission at 631-331-8834, in accordance with this Notice of Sale, until the time specified herein. No other form of electronic bidding services nor telephone proposals will be accepted. No proposal will be accepted after the time for receiving proposals specified above. Bidders submitting proposals via facsimile must use the “Proposal for Bonds” form attached hereto. Once the proposals are communicated electronically via Parity or via facsimile to the Town, each bid will constitute an irrevocable offer to purchase the Bonds pursuant to the terms therein provided.
Bidding Using Parity Prospective bidders wishing to submit an electronic bid via Parity must be contracted customers
of Parity. Prospective bidders who do not have a contract with Parity must call (212) 849-5021 to become a customer. By submitting an electronic bid for the Bonds, a bidder represents and warrants to the Town that such bidder’s bid for the purchase of the Bonds is submitted for and on behalf of such prospective bidder by an officer or agent who is duly authorized to bind the bidder to a legal, valid and enforceable contract for the purchase of the Bonds.
Each prospective bidder who wishes to submit an electronic bid shall be solely responsible to register to bid via Parity. Each qualified prospective bidder shall be solely responsible to make necessary arrangements to access Parity for purposes of submitting its bid in a timely manner and in compliance with the requirements of this Notice of Sale. Neither the Town nor Parity shall have any duty or obligation to undertake such registration to bid for any prospective bidder or to provide or assure such access to any qualified prospective bidder, and neither the Town nor Parity shall be responsible for a bidder’s failure to register to bid or for proper operation of, or have any liability for any delays or interruptions of, or any damages caused by Parity. The Town is using Parity as a communications mechanism, and not as the Town’s agent, to conduct the electronic bidding for the Town’s Bonds. The Town is not bound by any advice or determination of Parity as to whether any bid complies with the terms of this Notice of Sale. All costs and expenses incurred by prospective bidders in connection with their registration and submission of bids via Parity are the sole responsibility of the bidders, and the Town is not responsible, directly or indirectly, for any such costs or expenses. If a prospective bidder encounters any difficulty in registering to bid, or submitting or modifying a bid for the Bonds, it should telephone Parity and notify the Town’s Municipal Advisor, Munistat Services, Inc., at 631-331-8888 (provided that the Town shall have no obligation to take any action whatsoever upon receipt of such notice).
If any provisions of this Notice of Sale shall conflict with information provided by Parity, as approved provider of electronic bidding services, this Notice of Sale shall control. Further information about Parity, including any fee charged, may be obtained from Parity at (212) 849-5021. The time maintained by Parity shall constitute the official time with respect to all bids submitted.
Bidders submitting bids via facsimile do not need to register to bid. Good Faith DepositAs a condition precedent to the consideration of the bidder’s proposal, a good faith deposit (the
“Deposit”) in the amount of $105,000 is required for each bid to be considered. Such Deposit may be in the form of: (i) a certified or cashier’s check payable to the order of “Town of Smithtown, County of Suffolk, New York,” or (ii) a wire transfer in accordance with instructions set forth herein. If a wire transfer is used, it must be sent to the account so designated by the Town for such purpose, not later than 10:00 A.M. on the date of the sale; however, the Town reserves the right to award the Bonds to a successful bidder whose wire transfer is initiated but not received by such time provided that such successful bidder’s fed wire reference number has been received. A wire reference number must be provided when the bid is submitted. Bidders must contact Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York, telephone No. 631-331-8888, the Town’s Municipal Advisor, no later than 24 hours prior to the bid opening to obtain the Town’s wire instructions. The Town shall not incur any liability from delays of or interruptions in the receipt of the Deposit by fed wire or return of the Deposit to any unsuccessful bidder. Under no circumstances shall interest accrue on the Deposit occasioned by a delay in the return of the Deposit to any unsuccessful bidder. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Bonds.
Award of BondsThe Bonds will be awarded and sold to the bidder complying with the terms of sale and offering
to purchase the Bonds at such rate or rates of interest per annum as will produce the lowest net interest cost over the life of such issue, and if two or more such bidders offer the same lowest net interest cost, then to one of said bidders selected by the Sale Officer by lot from among all said bidders. The successful bidder must also pay an amount equal to the interest on the Bonds, if any, accrued to the date of payment of the purchase price.
Award of the Bonds will be made without taking into consideration any adjustment to be made to the principal amount of the Bonds described herein.
The Town reserves the right to reject any and all bids (regardless of the interest rate bid), to reject any bid not complying with this official Notice of Sale and, so far as permitted by law, to waive any irregularity or informality with respect to any bid or the bidding process.
When the successful bidder has been ascertained, the Sale Officer will promptly return all Deposits made to the persons making the same, except the Deposit made by such bidder. Award of the Bonds to the successful bidder, or rejection of all bids, is expected to be made promptly after opening of the bids, but the successful bidder may not withdraw its proposal until after 3:00 o’clock P.M. (Prevailing Time) on the day of such bid-opening and then only if such award has not been made prior to the withdrawal. The successful bidder will be promptly notified of the award to it, and if the successful bidder refuses or neglects to pay the agreed price of the Bonds less the amount deposited by it, the amount deposited shall be forfeited to and retained by the Town as liquidated damages for such neglect or refusal.
Bond InsuranceIf the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of a bidder, the purchase of any such insurance policy or the issuance of any such commitment therefor shall be at the sole option and expense of such bidder and any increased costs of issuance of the Bonds resulting by reason of the same, unless otherwise paid, shall be paid by such bidder. Any failure of the Bonds to be so insured or of any such policy of insurance to be issued, shall not constitute cause for a failure or refusal by the purchaser of the Bonds to accept delivery of and pay for said Bonds in accordance with the terms hereof.
Use of ProceedsThe proceeds of the Bonds will be used to provide original financing for various capital projects
in and for the Town. Payment and Security for the BondsThe Bonds are general obligations of the Town and shall contain a pledge of the faith and credit
of the Town for the payment of the principal thereof and interest thereon. The State Constitution requires the Town to pledge its faith and credit for the payment of the principal of the Bonds and the interest thereon and to make annual appropriations for the amounts required for the payment of such interest and the redemption of the Bonds. The State Constitution also provides that if at any time the appropriating authorities fail to make the required appropriations for the annual debt service on the Bonds and certain other obligations of the Town, a sufficient sum shall be set apart from the first revenues thereafter received and shall be applied for such purposes, and also that the fiscal officer of the Town may be required to set apart and apply such revenues as aforesaid at the suit of any holder of such obligations.
Debt Statement The population of the Town is estimated to be 116,384, according to the 2018 U.S. Census
Bureau estimate. The debt statement to be filed pursuant to Section 109.00 of the Law in connection with the sale of the Bonds, prepared as of February 14, 2020 shows the five-year average full valuation of real property subject to taxation by the Town to be $19,386,198,506, its debt limit to be $1,357,033,895, and its total net indebtedness (exclusive of the Bonds) to be $25,499,875. The issuance of the Bonds will increase the total net indebtedness of the Town by $10,037,090.
Delivery of the Bonds and Assignment of CUSIP NumbersThe Bonds will be delivered to DTC and shall be paid for in Federal Funds on or about March
10, 2020 at such place in New York City, and on such business day and at such hour, as the Sale Officer shall fix on three business days’ notice to the successful bidder, or at such other place and time as may be agreed upon with the successful bidder. The deposit of the Bonds with DTC under a book-entry system requires the assignment of CUSIP numbers prior to delivery. It shall be the responsibility of the Town’s financial advisor to obtain CUSIP numbers for the Bonds within one day after distribution of the Notice of Sale of the Bonds. The Town will not be responsible for any delay occasioned by the inability to deposit the Bonds with DTC due to the failure to obtain such numbers and to supply them to the Town in a timely manner. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid for by the Town; provided, however, that the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the successful bidder.
Legal OpinionThe successful bidder will be furnished without cost with the approving opinion of the law firm
of Hawkins Delafield & Wood LLP (“Bond Counsel”) substantially as set forth in Appendix C to the Preliminary Official Statement dated February 14, 2020 (the “Preliminary Official Statement”) circulated in connection with the sale of the Bonds, which shall be supplemented by the final official statement to be dated February 26, 2020 (the “Official Statement”).
Tax Exemption The successful bidder may at its option refuse to accept the Bonds if prior to their delivery the
opinion of Bond Counsel is not delivered or if any income tax law of the United States of America is hereafter enacted which shall provide that the interest thereon is taxable, or shall be taxable at a future date, for federal income tax purposes, and in such case the deposit made by it will be returned and it will be relieved of its contractual obligations arising from the acceptance of its proposal.
The Internal Revenue Code of 1986, as amended (the “Code”), establishes certain ongoing requirements that must be met subsequent to the issuance and delivery of the Bonds in order that interest on the Bonds be and remain excludable from gross income under Section 103 of the Code.
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Concurrently with the delivery of the Bonds, the Town will execute a Tax Certificate, which will contain provisions and procedures relating to compliance with the requirements of the Code and a certification to the effect that the Town will comply with the provisions and procedures set forth therein and that it will do and perform all acts and things necessary or desirable to assure that interest paid on the Bonds is excludable from gross income under Section 103 of the Code.
Upon delivery of the Bonds, Bond Counsel will deliver an opinion that states that, under existing statutes and court decisions and assuming continuing compliance with the provisions and procedures set forth in the Tax Certificate, (i) interest on the Bonds is excluded from gross income for federal income tax purposes pursuant to Section 103 of the Code; and (ii) interest on the Bonds is not treated as a preference item in calculating the alternative minimum tax under the Code. In addition, the opinion of Bond Counsel will state that, under existing statutes, interest on the Bonds is exempt from personal income taxes of New York State and its political subdivisions, including The City of New York.
The Town will NOT designate the Bonds as “qualified tax-exempt obligations” pursuant to the provisions of Section 265 of the Code.
Obligation of Winning Bidder to Deliver an Issue Price Certificate at ClosingBy submitting a bid, each bidder is certifying that its bid is a firm offer to purchase the Bonds, is a
good faith offer which the bidder believes reflects current market conditions, and is not a “courtesy bid” being submitted for the purpose of assisting in meeting the competitive sale requirements relating to the establishment of the “issue price” of the Bonds pursuant to Section 148 of the Code, including the requirement that bids be received from at least three (3) underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds (the “Competitive Sale Requirements”). The Municipal Advisor will advise the winning bidder if the Competitive Sale Requirements were met at the same time it notifies the winning bidder of the award of the Bonds. Bids will not be subject to cancellation in the event that the Competitive Sale Requirements are not satisfied.
The winning bidder shall, within one (1) hour after being notified of the award of the Bonds, advise the Municipal Advisor by electronic or facsimile transmission of the reasonably expected initial public offering price or yield of each maturity of the Bonds (the “Initial Reoffering Prices”) as of the date of the award.
By submitting a bid, the winning bidder agrees (unless the winning bidder is purchasing the Bonds for its own account and not with a view to distribution or resale to the public) that if the Competitive Sale Requirements are not met, it will elect and satisfy either option (1) or option (2) described below. Such election must be made on the bid form submitted by each bidder. In the event a bidder submits a bid via Parity, such bidder must notify the Municipal Advisor by email ([email protected]) as to such election at the time such bid is submitted.
(1) Hold the Price. The winning bidder:(a) will make a bona fide offering to the public of all of the Bonds at the Initial Reoffering
Prices and provide Bond Counsel with reasonable supporting documentation, such as a copy of the pricing wire or equivalent communication, the form of which is acceptable to Bond Counsel,
(b) will neither offer nor sell to any person any Bonds within a maturity at a price that is higher, or a yield that is lower, than the Initial Reoffering Price of such maturity until the earlier of (i) the date on which the winning bidder has sold to the public at least 10 percent of the Bonds of such maturity at a price that is no higher, or a yield that is no lower, than the Initial Reoffering Price of such maturity or (ii) the close of business on the 5th business day after the date of the award of the Bonds, and
(c) has or will include within any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the winning bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, language obligating each underwriter to comply with the limitations on the sale of the Bonds as set forth above.
(2) Follow the Price. The winning bidder:(a) will make a bona fide offering to the public of all of the Bonds at the Initial Reoffering Prices
and provide the Issuer with reasonable supporting documentation, such as a copy of the pricing wire or equivalent communication, the form of which is acceptable to Bond Counsel,
(b) will report to the Issuer information regarding the first price that at least 10 percent of the Bonds within each maturity of the Bonds have been sold to the public,
(c) will provide the Issuer with reasonable supporting documentation or certifications of such sale prices the form of which is acceptable to Bond Counsel. This reporting requirement, which may extend beyond the closing date of the Bonds, will continue until such date that the requirement set forth in paragraph (b) above for each maturity of the Bonds is satisfied, and
(d) has or will include within any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the winning bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, language obligating each underwriter to comply with the reporting requirement described above.
For purposes of the “hold the price” or “follow the price” requirement, a “maturity” refers to Bonds that have the same interest rate, credit and payment terms.
Regardless of whether or not the Competitive Sale Requirements were met, the winning bidder shall submit to the Issuer a certificate (the “Reoffering Price Certificate”), satisfactory to Bond Counsel, prior to the delivery of the Bonds stating the applicable facts as described above. The form of Reoffering Price Certificate is available by contacting Bond Counsel or the Municipal Advisor.
If the winning bidder has purchased the Bonds for its own account and not with a view to distribution or resale to the public, then, whether or not the Competitive Sale Requirements were met, the Reoffering Price Certificate will recite such facts and identify the price or prices at which the purchase of the Bonds was made.
For purposes of this Notice, the “public” does not include the winning bidder or any person that agrees pursuant to a written contract with the winning bidder to participate in the initial sale of the Bonds to the public (such as a retail distribution agreement between a national lead underwriter and a regional firm under which the regional firm participates in the initial sale of the Bonds to the public). In making the representations described above, the winning bidder must reflect the effect
on the offering prices of any “derivative products” (e.g., a tender option) used by the bidder in connection with the initial sale of any of the Bonds.
Official Statement, Continuing Disclosure and Compliance HistoryThe Town will provide a reasonable number of Official Statements to the successful bidder within
seven (7) business days following receipt of a written request therefor made to the Town and its Municipal Advisor. Such request may specify the applicable (a) offering price(s), (b) selling compensation, (c) rating(s), (d) credit enhancement and (e) identity and complete name of such bidder and any participating underwriters, and if so, the Preliminary Official Statement will be modified or supplemented by the information so specified. Neither the Town nor its Municipal Advisor shall be liable in any manner for any delay, inaccuracy, or omission on the part of the successful bidder with respect to such request, nor shall the Town’s failure, as a result thereof, to provide the Official Statement within the above time period, constitute cause for a failure or refusal by such bidder to accept delivery of and pay for the Bonds in accordance with the terms hereof.
The Preliminary Official Statement is in a form “deemed final” by the Town for the purpose of Securities and Exchange Commission Rule 15c2-12 (“Rule 15c2-12”) but may be modified or supplemented as noted above. In order to assist bidders in complying with Rule 15c2-12 and as part of the Town’s contractual obligation arising from its acceptance of each successful bidder’s proposal, at the time of the delivery of the Bonds the Town will provide an executed copy of its “Undertaking to Provide Continuing Disclosure” (the “Undertaking”). The form of said Undertaking is set forth in Appendix D in the Preliminary Official Statement.
Except as otherwise set forth in the Preliminary Official Statement (see the caption entitled “DISCLOSURE UNDERTAKING”), the Town is in compliance in all material respects with all previous undertakings made pursuant to Rule 15c2-12 during each of the past five years.
Documents Accompanying the Delivery of the BondsThe obligation hereunder to deliver or accept the Bonds pursuant hereto shall be conditioned on
the delivery to the successful bidder at the time of delivery of the Bonds of: (i) the opinion of Bond Counsel; (ii) a certificate of the Town Attorney, dated the date of delivery of the Bonds, to the effect that there is no controversy or litigation of any nature pending or threatened to restrain or enjoin the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any of the proceedings taken with respect to the issuance and sale thereof or the application of moneys to the payment of the Bonds, and further stating that there is no controversy or litigation of any nature now pending or threatened by or against the Town wherein an adverse judgment or ruling could have a material adverse impact on the financial condition of the Town or adversely affect the power of the Town to levy, collect and enforce the collection of taxes or other revenues for the payment of its Bonds, which has not been disclosed in the Official Statement; (iii) a certificate of the Supervisor to the effect that as of the date of the Official Statement and at all times subsequent thereto, up to and including the time of the delivery of the Bonds, the Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements herein, in the light of the circumstances under which they were made, not misleading, and further stating that there has been no adverse material change in the financial condition of the Town since the date of the Official Statement to the date of issuance of the Bonds (and having attached thereto a copy of the Official Statement); (iv) certificates signed by the Supervisor evidencing payment for the Bonds; (v) a signature certificate evidencing the due execution of the Bonds, including statements that (a) no litigation of any nature is pending or, to the knowledge of the signers, threatened, restraining or enjoining the issuance and delivery of the Bonds or the levy and collection of taxes to pay the principal of and interest thereon, nor in any manner questioning the proceedings and authority under which the Bonds were authorized or affecting the validity of the Bonds thereunder, (b) neither the corporate existence or boundaries of the Town nor the title of the signers to their respective offices is being contested, and (c) no authority or proceedings for the issuance of the Bonds have been repealed, revoked or rescinded, and (vi) Tax Certificate executed by the Supervisor, as described under “TAX MATTERS” in the Preliminary Official Statement.
Additional InformationCopies of this Notice of Sale and the Preliminary Official Statement are available in electronic
format on the website of the Town’s Municipal Advisor, Munistat Services, Inc. (“www.munistat.com”) or may be obtained upon request from the offices of Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York 11776, telephone No. 631-331-8888.
on the offering prices of any “derivative products” (e.g., a tender option) used by the bidder in connection with the initial sale of any of the Bonds.
Official Statement, Continuing Disclosure and Compliance HistoryThe Town will provide a reasonable number of Official Statements to the successful bidder within
seven (7) business days following receipt of a written request therefor made to the Town and its Municipal Advisor. Such request may specify the applicable (a) offering price(s), (b) selling compensation, (c) rating(s), (d) credit enhancement and (e) identity and complete name of such bidder and any participating underwriters, and if so, the Preliminary Official Statement will be modified or supplemented by the information so specified. Neither the Town nor its Municipal Advisor shall be liable in any manner for any delay, inaccuracy, or omission on the part of the successful bidder with respect to such request, nor shall the Town’s failure, as a result thereof, to provide the Official Statement within the above time period, constitute cause for a failure or refusal by such bidder to accept delivery of and pay for the Bonds in accordance with the terms hereof.
The Preliminary Official Statement is in a form “deemed final” by the Town for the purpose of Securities and Exchange Commission Rule 15c2-12 (“Rule 15c2-12”) but may be modified or supplemented as noted above. In order to assist bidders in complying with Rule 15c2-12 and as part of the Town’s contractual obligation arising from its acceptance of each successful bidder’s proposal, at the time of the delivery of the Bonds the Town will provide an executed copy of its “Undertaking to Provide Continuing Disclosure” (the “Undertaking”). The form of said Undertaking is set forth in Appendix D in the Preliminary Official Statement.
Except as otherwise set forth in the Preliminary Official Statement (see the caption entitled “DISCLOSURE UNDERTAKING”), the Town is in compliance in all material respects with all previous undertakings made pursuant to Rule 15c2-12 during each of the past five years.
Documents Accompanying the Delivery of the BondsThe obligation hereunder to deliver or accept the Bonds pursuant hereto shall be conditioned on
the delivery to the successful bidder at the time of delivery of the Bonds of: (i) the opinion of Bond Counsel; (ii) a certificate of the Town Attorney, dated the date of delivery of the Bonds, to the effect that there is no controversy or litigation of any nature pending or threatened to restrain or enjoin the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any of the proceedings taken with respect to the issuance and sale thereof or the application of moneys to the payment of the Bonds, and further stating that there is no controversy or litigation of any nature now pending or threatened by or against the Town wherein an adverse judgment or ruling could have a material adverse impact on the financial condition of the Town or adversely affect the power of the Town to levy, collect and enforce the collection of taxes or other revenues for the payment of its Bonds, which has not been disclosed in the Official Statement; (iii) a certificate of the Supervisor to the effect that as of the date of the Official Statement and at all times subsequent thereto, up to and including the time of the delivery of the Bonds, the Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements herein, in the light of the circumstances under which they were made, not misleading, and further stating that there has been no adverse material change in the financial condition of the Town since the date of the Official Statement to the date of issuance of the Bonds (and having attached thereto a copy of the Official Statement); (iv) certificates signed by the Supervisor evidencing payment for the Bonds; (v) a signature certificate evidencing the due execution of the Bonds, including statements that (a) no litigation of any nature is pending or, to the knowledge of the signers, threatened, restraining or enjoining the issuance and delivery of the Bonds or the levy and collection of taxes to pay the principal of and interest thereon, nor in any manner questioning the proceedings and authority under which the Bonds were authorized or affecting the validity of the Bonds thereunder, (b) neither the corporate existence or boundaries of the Town nor the title of the signers to their respective offices is being contested, and (c) no authority or proceedings for the issuance of the Bonds have been repealed, revoked or rescinded, and (vi) Tax Certificate executed by the Supervisor, as described under “TAX MATTERS” in the Preliminary Official Statement.
Additional InformationCopies of this Notice of Sale and the Preliminary Official Statement are available in electronic
format on the website of the Town’s Municipal Advisor, Munistat Services, Inc. (“www.munistat.com”) or may be obtained upon request from the offices of Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New York 11776, telephone No. 631-331-8888.
Dated: February 14, 2020EDWARD R. WEHRHEIM
Supervisor and Chief Fiscal Officer
* Preliminary, subject to change as noted herein.
Legal Notices
MASSACHUSETTS HOUSING FINANCE AGENCY
REQUEST FOR PROPOSALS FOR UNDERWRITER SERVICES
The Massachusetts Housing Finance Agency (“MassHousing”), which provides bond financing for affordable rental and homeownership programs, is seeking proposals from firms interested in serving as underwriters to MassHousing. Interested firms may obtain a copy of the REQUEST FOR PROPOSALS (“RFP”) at www.masshousing.com/rfp. Responses to the RFP are due no later than 3:00 p.m. on Friday, March 13, 2020.
Requests for Proposals AdvertisementADDENDUM TOOFFICIAL NOTICE OF SALE
$19,000,000ROMEO COMMUNITY SCHOOLS
COUNTIES OF MACOMB AND OAKLAND, STATE OF MICHIGAN2020 SCHOOL BUILDING AND SITE BONDS, SERIES 2
(General Obligation Unlimited Tax)
SEALED OR ELECTRONIC BIDS: Written bids for the purchase of the bonds described herein (the “Bonds”) will be received by the undersigned either in a sealed envelope enclosed within the postage envelope or by facsimile on the date of sale, on behalf of the Romeo Community Schools (the “School District” or “Issuer”), on Monday, February 24, 2020 at 11 a.m., Eastern Standard Time, at the offices of the School District, 316 N. Main Street, Romeo, MI 48065, facsimile number (586) 752-0227; or at the offices of the Municipal Advisory Council of Michigan, 26211 Central Park Blvd, Suite 508, Southfield, Michigan 48076, facsimile number (313) 963-0943 where they will be publicly opened and read.
The Bonds will be awarded or all bids will be rejected by the Superintendent of the District at a proceeding to be held within twenty-four hours of the sale.
The Addendum consists of the following addition to the Official Notice of Sale:FAXED BIDS: Bidders may submit signed bids via facsimile transmission to the Issuer at (586)
752-0227 or the Municipal Advisory Council at (313) 963-0943, provided that the faxed bids are received prior to the time and date fixed for receipt of bids. Bidders submitting faxed bids bear the full risk of failed or untimely transmission of their bids. Bidders are encouraged to confirm the timely receipt of their full and complete bids by telephoning the Issuer at (586) 752-0220 or the Municipal Advisory Council at (313) 963-0420.
ELECTRONIC BIDS will also be received on the same date and until the same time by an agent of the undersigned Bidcomp/PARITY (“PARITY”). To the extent any instructions or directions set forth in PARITY conflict with this Notice, the terms of this Notice shall control. For further information about PARITY, potential bidders may contact PFM Financial Advisors LLC, at (734) 994-9700 or PARITY, Eric Washington, 1359 Broadway, 2nd Floor, New York, NY, 10018, (212) 849-5021.
Price matters—get the best yield
Advertise your competitive sales in The Bond Buyer.For more information, contact or Kerry-Ann C. Parkes at 212-803-8436 or at [email protected]
It’s more than a bond deal— you’re improving a community
Employers: Are you looking for a...
Bond CounselFinance DirectorResearch Analyst
SalespersonMuni Bond TraderPortfolio ManagerInvestment Banker
UnderwriterOr other Public Finance
Professionals?
If so, The Bond Buyer’s Classified Section canhelp you. For information on employment
advertising options, including online advertising inour Career Zone section, please contact:
For rates and additional information about advertising a notice of competitive sale, please call Kerry-Ann C. Parkes at 212-803-8436 or send an email to [email protected].
013_BB022020 13 2/19/2020 4:11:57 PM
The Bond Buyer14 Thursday, February 20, 2020
For more information, contact:
John Hester (212) 849-5125
James Kellum (212) 849-5156
Full service electronic document delivery and tracking system
www.i-dealprospectus.com
I-Deal Prospectus
Electronic Official Statements Negotiated
Tennessee HDA, TN Residential Finance Program Bonds, Issue 2020-1A&IB
Cumberland (County of), ME 2020 GO Refunding Bonds (Taxable)
Kaufman County, TX Unlimited Tax Road Bonds, Series 2020
Kaufman County, TX Limited Tax Bonds, Series 2020A
Red River (Parish of) Parishwide SD No. 1, LA GO School Bonds, Series 2020
***S&P RATING REPORTS HAVE BEEN ADDED***
Red River (Parish of) Parishwide SD No. 1, LA GO School Bonds, Series 2020
Horseshoe Bay (City of), TX General Refunding Bonds, Series 2020
Cleveland ISD, TX Unlimited Tax School Building Bonds, Series 2020A
El Paso ISD, TX Variable Rate Maintenance Tax Notes, Series 2020
Mount Pleasant (City of), TX GO Refunding Bonds, Series 2020
Caddo Parish (Parishwide SD of), LA GO School Bonds, Series 2020**THE S&P RATING HAS BEEN ADDED**
St. Mary (Parish of), LA Taxable Pub Imprv Sales Tax & Ref Bonds, Series 2020A
***THE S&P RATING HAS BEEN ADDED***
Manor ISD, TX Unltd Tax School Bldg Bonds, Series 2020
St. Mary (Parish of), LA Taxable Pub Imprv Sales Tax & Ref Bonds, Series 2020A
Galveston County WC&ID No. 8, TX Unltd Tax Ref Bonds, Series 2020
Caddo Parish (Parishwide SD of), LA GO School Bonds, Series 2020
Waller ISD, TX Unlimted Tax School Building Bonds, Series 2020
***The Preliminary Official Statement has been revised
Midland (City of), TX GO Bonds and Tax & Limited Pledge Revenue COOs, Series 2020
Del Valle ISD, TX Unlimited Tax School Building Bonds, Series 2020
El Paso (City of), TX GO Ref & Improv Bonds, Srs 2020A & Combo Tax & Rev COO, Srs 2020
El Paso (City of), TX GO Refunding Bonds, Series 2020B
El Paso (City of), TX Airport Revenue Refunding Bonds, Series 2020
Waller ISD, TX Unlimted Tax School Building Bonds, Series 2020
Granbury (City of), TX ComboTax&Rev COO, Series 2020
Washington County, TX Limited Tax Refunding Bonds, Series 2020
**THE S&P RATING REPORT HAS BEEN ADDED.**
Joaquin ISD, TX Unlimited Tax School Building & Refunding Bonds, Series 2020
Arlington ISD, TX Unlimited Tax School Building Bonds, Srs 2020
Wolfforth (City of), TX Go Refunding Bonds & Tax Notes, Series 2020
Regional School District No. 18, CT GO Refunding Bonds, Issue of 2020
**Page one of Appendix B has been replaced to reflect that the bonds are subject to redemption prior
to maturity.**
Hubbard ISD, TX Unltd Tax Refunding Bonds, Series 2020
Eastmark CFD No. 2, AZ Assessment Dist A Spl Assess Rev Bonds, Series 2020
Washington County, TX Limited Tax Refunding Bonds, Series 2020
2/24-Deaf Smith County, TX General Obligation Bonds, Srs 2020
2/26-Yakima County, WA Limited Tax General Obligation Bonds, 2020
2/27-ISD No. 3, OK (Broken Arrow BOE) Taxable GO Combined Purp Bonds of 2020
2/27-Brazoria County MUD No. 31, TX Unlimited Tax Bonds, Series 2020
2/27-Utah (State of), UT State Bldg Ownership Auth, Lease Rev Bonds, Srs 2020
2/25-Milwaukee Area TCD, WI General Obligation Promissory Notes, Srs 2019-20I
2/25-Rockwall County MUD No. 6, TX Unlimited Tax Utility Bonds, Series 2020
2/20 - Crosswinds Municipal Utility District (TX), TX
2/20 - Lindbergh Schools (MO), MO
2/20 - Santa Cruz Libraries Facilities Financing Authority (CA), CA
2/20 - Fairfield-Suisun Unified School District, CA
2/20 - State of New Hampshire (NH), NH
2/20 - Kaufman County Municipal Utility District No. 5, TX
2/20 - City of Norwalk (IA), IA
2/20 - City of Norwalk (IA), IA
2/20 - Southwest Wisconsin Technical College District (WI), WI
2/20 - Fort Bend County Municipal Utility District No. 134B (TX), TX
2/20 - New York State Thruway Authority (NY), NY
2/20 - City of Jamestown (NY), NY
2/20 - City of Danville (KY), KY
2/20 - City of Rochester (NY), NY
2/20 - DeQueen School District No. 17 of Sevier County, AR
2/20 - Village of Island Park, NY
2/20 - Auburn Water District (MA), MA
2/20 - Ypsilanti Community Utilities Authority, MI
2/20 - New York State Thruway Authority (NY), NY
2/20 - Floyd County School District Finance Corporation, KY
2/20 - Town of Mattapoisett, MA
2/20 - Township of Grattan (MI), MI
2/20 - Independent School District No. 8 of Comanche County (Lawton), OK
2/24 - Independent School District No. 593 (Crookston), MN
2/24 - Independent School District No. 761 (Owatonna), MN
2/25 - Virginia Housing Development Authority (VA), VA
2/26 - Fort Edward Union Free School District, NY
BiDCOMP®/Parity®
www.newissuehome.i-deal.com
THE DAILY NEWSPAPER OF PUBLIC FINANCE THE DAILY NEWSPAPER OF PUBLIC FINANCE
GIVE NOTICE buyers want to know
Advertise your competitive sales in The Bond Buyer.For more information, contact or Kerry-Ann C. Parkes at 212-803-8436 or at [email protected]
For rates and additional information about advertising a notice of competitive sale, please call Kerry-Ann C. Parkes at 212-803-8436 or send an email to [email protected].
THE DAILY NEWSPAPER OF PUBLIC FINANCE
014_BB022020 14 2/19/2020 4:11:58 PM
15www.bondbuyer.comThursday, February 20, 2020 New Issues
Thursday, February 20 DeQueen SD #17 AR Construction 3,540 11 am C First Sec Beardsley Friday Eldredge 22-47 --- Aa2 --- --- --- BQ 13-Feb
Fairfield-Suisun USD CA GO *85,000 9:30 am P Isom Advisors Kronick Moskovitz 21-40 --- --- --- --- --- --- 7-Feb
P Santa Cruz Lib Facs Fin Auth CA Special Tax 18,345 9:30 am P Harrell & Company Jones Hall 21-46 BAM --- --- --- --- --- 4-Feb
Norwalk IA Wtr Rev *1,710 10 am C PFM Fin Advisors Dorsey & Whitney 21-34 --- --- A+ --- --- BQ 18-Feb
Norwalk IA GO Corp Purp *6,950 10 am C PFM Fin Advisors Dorsey & Whitney 21-31 --- --- AA --- --- BQ 18-Feb
Danville KY GO Pub Project Ref *11,635 11 am E Compass Muni Adv Wyatt Tarrant 21-45 --- --- AA- --- --- --- 13-Feb
Floyd Co SD Fin Corp KY Sch Bldg Rev *2,175 11:30 am E Ross Sinclaire Steptoe & Johnson 21-35 --- --- --- --- --- BQ 14-Feb
Auburn Wtr Dt MA GO *3,300 11 am E UniBank Fiscal Adv Locke Lord 20-39 --- --- --- --- --- BQ 14-Feb
Mattapoisett (Town) MA GO Muni Purp Loan *11,715 11:30 am E UniBank Fiscal Adv Locke Lord 20-39 --- --- --- --- --- --- 18-Feb
P Grattan Twp MI Cap Imp *1,850 1 pm E Baker Tilly MA Mika Meyers 21-38 --- --- --- --- --- BQ 6-Feb
Ypsilanti Comm Utils Auth MI Ref *1,185 11 am E PFM Fin Advisors Miller Canfield 21-25 --- --- AA- --- --- BQ 13-Feb
Lindbergh Schools MO GO *65,000 9:30 am C Piper Sandler Gilmore & Bell 31-40 --- Aa1 --- --- --- --- 7-Feb
New Hampshire NH GO Cap Imp *80,000 10 am E Public Resources Locke Lord 20-39 --- Aa1 AA AA+ --- --- 14-Feb
NYS Thruway Auth NY Gen Rev *157,820 10:45 am E Public Resources Harris Beach 33-40 --- A1 A --- --- --- 14-Feb
NYS Thruway Auth NY Gen Rev *292,180 11:15 am E Public Resources Harris Beach 41-50 --- A1 A --- --- --- 14-Feb
Comanche Co ISD #8 OK Comb Purp 8,000 1 pm C BOK Fin Secs Public Fin Law Grp 22-25 --- --- --- --- --- BQ 14-Feb
Crosswinds MUD TX Unltd Tax Road 3,330 9 am C GMS Group Winstead 23-47 --- --- --- --- --- BQ 27-Jan
Fort Bend Co MUD #134B TX Unltd Tax 5,000 10:30 am C Masterson Advisors Coats Rose 21-44 --- A3 --- --- --- --- 5-Feb
Kaufman Co MUD #5 TX Unltd Tax Road 9,900 10 am C Baird Coats Rose 21-45 --- Baa3 --- --- --- --- 5-Feb
SW Wisconsin Tech Coll Dt WI GO Prom 4,000 10:30 am C Baird Quarles & Brady 20-24 --- Aa2 --- --- --- BQ 10-Feb
Monday, February 24 Carroll IA GO Cap Loan *1,505 10 am C PFM Fin Advisors Ahlers & Cooney 20-29 --- Aa3 --- --- --- BQ 19-Feb
Dallas Ctr Grimes Comm SD IA GO Sch 22,705 12 pm C Piper Sandler Ahlers & Cooney 21-39 --- Aa2 --- --- --- --- 5-Feb
Romeo Comm Schs MI Sch Bldg & Site *19,000 11 am E PFM Fin Advisors Clark Hill 21-44 --- --- --- --- --- --- 14-Feb
Crookston ISD #593 MN GO Sch Bldg *2,835 10 am C Ehlers Dorsey & Whitney 21-30 --- --- --- --- --- BQ 31-Jan
Crosby ISD #182 MN GO Sch Bldg *23,200 11 am C Ehlers Kennedy & Graven 21-43 --- --- --- --- --- --- 27-Jan
Owatonna ISD #761 MN GO Sch Bldg *109,720 10:30 am C Ehlers Dorsey & Whitney 21-45 --- --- --- --- --- --- 30-Jan
Shakopee ISD #720 MN GO *11,900 10:30 am C Baker Tilly MA Knutson Flynn 21-35 --- --- --- --- --- --- 4-Feb
Canton MO GO Ref *1,205 10:30 am C McLiney & Co Gilmore & Bell 21-31 BAM --- --- --- --- BQ 18-Feb
Chambers County TX GO *9,760 11 am C USCA Municipal Bickerstaff, Heath 21-45 --- --- --- --- --- BQ Today
Deaf Smith County TX GO *36,200 10:30 am C Specialized Pub Fin McCall Parkhurst 21-45 --- --- A+ --- --- --- 18-Feb
Fort Bend Co MUD #128 TX Unltd Tax 6,010 9:15 am C Masterson Advisors Muller Law Group 20-41 --- --- --- --- --- BQ 11-Feb
Tuesday, February 25 Jessieville SD #1 AR Ref *8,345 11 am C First Sec Beardsley Friday Eldredge 20-39 --- Aa2 --- --- --- BQ Today
Valley View SD #58 AR Ref & Construction 28,400 1 pm C First Sec Beardsley Friday Eldredge 21-50 --- Aa2 --- --- --- --- Today
Lake Land Comm Coll Dt #517 IL GO Comm Coll *11,535 10 am C PMA Securities Chapman and Cutler 21-23 --- --- --- --- --- --- 13-Feb
Kentucky Assn of Cos Fin Corp KY Rev (Tax) *1,040 11:30 am E Compass Muni Adv Dinsmore & Shohl 21-35 --- --- AA- --- --- --- 14-Feb
Kentucky Assn of Cos Fin Corp KY Rev *5,420 11 am E Compass Muni Adv Dinsmore & Shohl 21-40 --- --- AA- --- --- --- 14-Feb
Washington Suburban San Dt MD Pub Imp Ref 100,330 10:30 am E Wye River Group McKennon Shelton 21-30 --- --- --- AAA --- --- 11-Feb
Van Buren Pub Schs MI Sch Bldg & Site *13,000 11 am E Baker Tilly MA Thrun Law Firm 20-49 --- --- --- --- --- --- 12-Feb
Belton MO Swr Sys Rev Ref *2,625 10 am C Piper Sandler Gilmore & Bell 21-36 --- --- AA- --- --- BQ 18-Feb
Bronxville UFSD NY Sch Dist *3,000 11 am E Capital Markets Adv Orrick Herrington 21-30 --- --- --- --- --- BQ 12-Feb
Atoka Co ISD #19 OK Bldg 900 12 pm C Stephen L. Smith Phillips Murrah 22-30 --- --- --- --- --- BQ 13-Feb
Chambersburg Area SD PA GO *7,790 11:15 am E PFM Fin Advisors Eckert Seamans 21-40 --- --- --- --- --- BQ Today
Montgomery Co Drain Dt # 10 TX Unltd Tax 4,070 9:45 am C Masterson Advisors Smith Murdaugh 21-43 --- --- --- --- --- BQ 12-Feb
16 The Bond BuyerThursday, February 20, 2020New Issues
Virginia Hsg Dev Auth VA Rental Hsg (Tax) *75,000 11 am E Municipal Official Hawkins Delafield 22-55 --- --- --- --- --- --- 18-Feb
Milwaukee Area Tech Coll WI GO Prom 1,500 9:30 am C Baird Michael Best 21-24 --- Aa1 --- --- --- --- 12-Feb
Prairie Du Sac Vlg WI GO Corp Purp 3,690 10 am C Ehlers Quarles & Brady 21-40 --- --- --- --- --- BQ 19-Feb
Wednesday, February 26 Emerson-Taylor-Bradley SD AR Ref & Construction 7,885 11 am C First Sec Beardsley Friday Eldredge 21-50 --- Aa2 --- --- --- BQ Today
Owensboro KY GO Ref (Tax) *36,830 11 am E First Kentucky Secs Dinsmore & Shohl 20-42 --- --- --- --- --- --- Today
Collingswood Borough NJ GO 19,752 11 am E --- Parker McCay 21-40 --- --- --- --- --- --- 19-Feb
Fort Edward UFSD NY GO Sch *1,285 11 am E Bernard P. Donegan Barclay Damon 21-30 --- --- --- --- --- BQ 19-Feb
Smithtown (Town) NY Pub Imp *10,037 11 am E Munistat Services Hawkins Delafield 21-40 --- --- --- --- --- --- 19-Feb
Three Vlg Ctrl SD NY Sch Dist Ref *6,010 11 am E Munistat Services Hawkins Delafield 20-24 --- --- --- --- --- --- Today
Okmulgee Co ISD #3 OK Bldg 450 12 pm C Stephen L. Smith Phillips Murrah 22-25 --- --- --- --- --- BQ 14-Feb
Springfield Twp SD PA GO *9,995 11:15 am E PFM Fin Advisors Fox Rothschild 20-31 --- --- --- --- --- BQ Today
Yakima County WA Limited Oblig *8,420 8:30 am P PFM Fin Advisors K&L Gates 21-35 --- --- --- --- --- BQ 19-Feb
Thursday, February 27 White Hall SD #27 AR Ref & Construction 47,550 11 am C First Sec Beardsley Friday Eldredge 21-50 --- Aa2 --- --- --- --- Today
Wyandotte Co/Kansas City PBC KS Rev *2,790 10 am C Baker Tilly MA Gilmore & Bell 21-40 --- --- --- --- --- --- 23-Jan
Wyandotte Co/Kansas City PBC KS Rev *3,190 10 am C Baker Tilly MA Gilmore & Bell 21-40 --- --- --- --- --- --- 23-Jan
Wyandotte Co/Kansas City PBC KS Rev *4,575 10 am C Baker Tilly MA Gilmore & Bell 21-40 --- --- --- --- --- --- 23-Jan
Ocean City MD GO (Tax) *1,120 10:45 am E Wye River Group McGuireWoods 21-24 --- --- --- AA --- --- 13-Feb
Ocean City MD GO *7,000 10:30 am E Wye River Group McGuireWoods 24-40 --- --- --- AA --- --- 13-Feb
Tulsa Co ISD #3 OK Comb Purp (Tax) 15,200 11:45 am C Stephen L. Smith Phillips Murrah 22-25 --- --- --- --- --- --- 18-Feb
Brazoria Co MUD #31 TX Unltd Tax 7,100 9 am C GMS Group Allen Boone 20-47 --- --- --- --- --- BQ 13-Feb
Harris Co MUD #50 TX Unltd Tax 2,200 11 am C GMS Group Norton Rose 21-48 --- --- --- --- --- BQ 30-Jan
Harris Montgomery Cos MUD #386 TX Unltd Tax 11,180 11 am C Masterson Advisors State Atty General 20-44 --- --- --- --- --- --- 12-Feb
Utah Bldg Ownership Auth UT Lease Rev *18,745 9:30 am M Zions Pub Fin Gilmore & Bell 21-39 --- --- --- --- --- --- 18-Feb
Monday, March 2 Sumner IA GO Corp Purp *730 11 am C Speer Financial Dorsey & Whitney 22-33 --- --- --- --- --- BQ 19-Feb
Sumner IA GO Urban Renewal *2,000 10:30 am C Speer Financial Dorsey & Whitney 21-34 --- --- --- --- --- BQ 19-Feb
Mahnomen MN GO Swr 1,215 10 am C Ehlers Taft Stettinius 21-32 --- --- --- --- --- BQ 7-Feb
Rochester Econ Dev Auth MN Lease Rev *21,365 10 am C Baker Tilly MA Kennedy & Graven 21-40 --- --- --- --- --- --- 11-Feb
Niagara Wheatfield Ctrl SD NY Sch Dist *9,925 11 am E R.G. Timbs Hawkins Delafield 21-35 --- --- --- --- --- --- 19-Feb
Harris Co MUD #423 TX Unltd Tax 6,110 10 am C GMS Group Allen Boone 24-50 --- --- --- --- --- BQ 19-Feb
Tuesday, March 3 Kingfisher Co ISD #16 OK Bldg (Tax) 1,750 12 pm C Stephen L. Smith Phillips Murrah 22 --- --- --- --- --- --- 19-Feb
Galveston Co MUD #44 TX Unltd Tax 3,250 11 am C RBC Capital Mkts --- --- --- --- --- --- --- BQ Today
Henrico County VA GO Ref 25,000 10:45 am E PFM Fin Advisors --- --- --- --- --- --- --- --- 13-Feb
Pewaukee Vlg WI GO Corp Purp *6,605 10 am C Baird Quarles & Brady 21-40 --- --- --- --- --- BQ 11-Feb
Sturgeon Bay WI GO Ref (Tax) *1,240 9:30 am C Baird Quarles & Brady 21-28 --- --- --- --- --- --- 11-Feb
Sturgeon Bay WI GO Ref *2,140 9:30 am C Baird Quarles & Brady 29-39 --- --- --- --- --- BQ 11-Feb
Wednesday, March 4 Maryland MD GO (Tax) *50,000 11:30 am E Public Resources Ballard Spahr --- --- --- --- --- --- --- Today
Maryland MD GO *234,270 11 am E Public Resources Ballard Spahr --- --- --- --- --- --- --- Today
Maryland MD GO *245,055 10 am E Public Resources Ballard Spahr --- --- --- --- --- --- --- Today
Maryland MD GO *249,945 10:30 am E Public Resources Ballard Spahr --- --- --- --- --- --- --- Today
Harris Co MUD #502 TX Unltd Tax 7,045 9:30 am C RBC Capital Mkts --- --- --- --- --- --- --- BQ Today
Thursday, March 5 Windsor Vlg WI GO Corp Purp 7,765 10 am C Ehlers Husch Blackwell 21-40 --- --- --- --- --- BQ 19-Feb
Monday, March 9 Chanhassen MN GO Utl Rev 6,795 10:30 am C Ehlers Taft Stettinius 21-31 --- --- --- --- --- BQ 13-Feb
Minnetrista MN GO 2,515 10 am C Ehlers Kennedy & Graven 21-40 --- --- --- --- --- BQ 12-Feb
Yellow Medicine East ISD 2190 MN GO Ref (Tax) *870 10 am C Baker Tilly MA --- 21-25 --- --- --- --- --- --- 19-Feb
Amount Time of Bank- Latest Issuer St Description ($000s) Sale Financial Adviser Legal Opinion Maturing Insurer Mdy’s S&P Fitch KBRA Qual. Details
Competitive Bond Offerings *Preliminary and subject to change. SHADED LISTINGS ARE NEW.
Compiled by IHS Markit
016_BB022020 16 2/19/2020 3:41:17 PM
17www.bondbuyer.comThursday, February 20, 2020 New Issues
Tuesday, March 10 Clara City MN GO Imp Ref 1,035 10:30 am C Ehlers Taft Stettinius 21-27 --- --- --- --- --- BQ 19-Feb
Lakeville ISD #194 MN COPs 5,580 11 am C Ehlers Knutson Flynn 21-35 --- --- --- --- --- --- 18-Feb
Lakeville ISD #194 MN GO Sch Bldg 66,285 11 am C Ehlers Knutson Flynn 21-37 --- --- --- --- --- --- 18-Feb
St Louis Co ISD #2142 MN GO Cap 3,745 10 am C Ehlers Dorsey & Whitney 21-35 --- --- --- --- --- BQ 7-Feb
St Louis Co ISD #2142 MN GO 5,130 10 am C Ehlers Dorsey & Whitney 31-41 --- --- --- --- --- BQ 7-Feb
Virginia Pub Bldg Auth VA Pub Fac (Tax) 11,000 12 pm E Frasca & Associates --- --- --- --- --- --- --- --- 4-Feb
Virginia Pub Bldg Auth VA Pub Fac (Tax) *100,000 12 pm E Frasca & Associates --- --- --- --- --- --- --- --- 4-Feb
Virginia Pub Bldg Auth VA Pub Fac *195,000 11:30 am E Frasca & Associates --- --- --- --- --- --- --- --- 4-Feb
Virginia Pub Bldg Auth VA Pub Fac Ref *198,000 11 am E Frasca & Associates --- --- --- --- --- --- --- --- 4-Feb
Wausau WI Wtr & Swr Rev 5,120 10:30 am C Ehlers Quarles & Brady 22 --- --- --- --- --- --- Today
Wednesday, March 11 Albany ISD #745 MN GO 3,790 10 am C Ehlers Dorsey & Whitney 22-36 --- --- --- --- --- BQ 13-Feb
Monday, March 16 Detroit Lakes ISD #22 MN GO 3,770 10:30 am C Ehlers Kennedy & Graven 24-35 --- --- --- --- --- BQ 13-Feb
Wrenshall ISD #100 MN GO 8,995 11 am C Ehlers Knutson Flynn 21-40 --- --- --- --- --- BQ 18-Feb
Menomonie WI GO Prom (Tax) 2,330 11 am C Ehlers Fryberger Buchanan 22-30 --- --- --- --- --- --- 18-Feb
Tuesday, March 17 Mahtomedi MN GO Imp 10,000 10:30 am C Ehlers Kennedy & Graven 22-36 --- --- --- --- --- BQ 13-Feb
Thursday, April 2 Forest Lake ISD #831 MN GO 10,235 9:30 am C Ehlers Dorsey & Whitney 22-35 --- --- --- --- --- --- Today
Day to Day Florida BOE FL Cap Outlay Ref *123,500 --- Division of Bond Fin --- --- --- --- --- --- --- --- 19-Feb
Florida Dept of Transp FL Rev Ref *193,450 --- Division of Bond Fin Greenberg Traurig 21-40 --- Aa2 --- AA --- --- 5-Feb
Amount Time of Bank- Latest Issuer St Description ($000s) Sale Financial Adviser Legal Opinion Maturing Insurer Mdy’s S&P Fitch KBRA Qual. Details
Competitive Bond Offerings *Preliminary and subject to change. SHADED LISTINGS ARE NEW.
Compiled by IHS Markit
Thursday, February 20 Pembroke (Town) MA GO Bond Antic 410 11 am E Hilltop Securities --- 20 --- --- --- --- --- BQ 14-Feb
Bloomingdale Borough NJ Bond Antic 6,792 11 am E Phoenix Advisors Wilentz Goldman 21 --- --- --- --- --- BQ 18-Feb
Hoboken NJ Bond Antic (Tax) 3,548 10:30 am E Acacia Fin Group Parker McCay 21 --- --- --- --- --- --- 18-Feb
Hoboken NJ Bond Antic 19,254 10:45 am E Acacia Fin Group Parker McCay 21 --- --- --- --- --- --- 18-Feb
Ridgefield Borough NJ Bond Antic 3,045 11 am E Municipal Official Archer & Greiner 20 --- --- --- --- --- --- 13-Feb
Seaside Heights Borough NJ Bond Antic 2,850 11 am E Municipal Official GluckWalrath 20 --- --- --- --- --- BQ 18-Feb
Island Pk Vlg NY Bond Antic 3,165 11 am E Liberty Capital Svcs Orrick Herrington 21 --- --- --- --- --- BQ 14-Feb
Jamestown NY Bond Antic 3,934 11 am E Capital Markets Adv Squire Patton 21 --- --- --- --- --- BQ 14-Feb
Rochester NY Bond Antic 35,120 11 am E Capital Markets Adv Woods Oviatt 21 --- --- --- --- --- --- 14-Feb
Tuesday, February 25 Beachwood Borough NJ Bond Antic 15,139 11 am E Phoenix Advisors GluckWalrath 21 --- --- --- --- --- --- Today
Kinnelon Borough NJ Bond Antic 3,361 11 am E Municipal Official Hawkins Delafield 21 --- --- --- --- --- BQ Today
Woodridge Vlg NY Bond Antic 825 11 am E Municipal Solutions Hawkins Delafield 21 --- --- --- --- --- BQ 19-Feb
Wednesday, February 26 Kenilworth Borough NJ GO Bond Antic 2,615 11 am E Municipal Official Rogut McCarthy 21 --- --- --- --- --- BQ 19-Feb
Roxbury Twp NJ GO Bond Antic 3,680 11 am E Municipal Official Rogut McCarthy 21 --- --- --- --- --- BQ Today
Thursday, February 27 Buchanan Vlg NY Bond Antic 1,000 11 am E Capital Markets Adv Jeffrey E Storch 21 --- --- --- --- --- BQ Today
Tuesday, March 3 South Lewis Ctrl SD NY Bond Antic 15,000 10:45 am E Fiscal Adv & Mkt Trespasz & Marquardt 20 --- --- --- --- --- --- 13-Feb
Amount Time of Bank- Latest Issuer St Description ($000s) Sale Financial Adviser Legal Opinion Maturing Insurer Mdy’s S&P Fitch KBRA Qual. Details
Competitive Note Offerings Tentative dates for negotiated sales of $1 million or more. SHADED LISTINGS ARE NEW.
Compiled by IHS Markit
017_BB022020 17 2/19/2020 3:41:18 PM
18 The Bond BuyerThursday, February 20, 2020New Issues
Week Of February 18
Auburn Univ AL Gen Rev Ref 35,620 Wells Fargo Secs PFM Fin Advisors --- --- --- --- --- 18-Feb
Auburn Univ AL Gen Rev Ref (Tax) 104,500 Wells Fargo Secs PFM Fin Advisors --- --- --- --- --- 18-Feb
Pima County AZ COPs 43,065 Stifel Nicolaus RBC Capital Mkts --- --- --- AA --- 14-Feb
California Infra & Econ Dev Bk CA Rev 100,000 Wells Fargo Secs --- --- --- --- --- --- 13-Feb
California Pub Fin Auth CA Ed Facs Rev (Tax) 1,335 BB&T Cap Mkts --- --- --- --- --- --- 14-Feb
California Pub Fin Auth CA Ed Facs Rev 8,440 BB&T Cap Mkts --- --- --- --- --- --- 14-Feb
Harmony Union SD CA GO 3,000 RBC Capital Mkts --- --- --- --- --- --- 14-Feb
Riverside CA Special Tax 3,000 Raymond James CSG Advisors --- --- --- --- --- 14-Feb
San Luis Obispo County CA Lease Rev Ref 4,265 Raymond James --- --- --- --- --- --- 14-Feb
San Luis Obispo County CA Lease Rev 20,580 Raymond James --- --- --- --- --- --- 14-Feb
District of Columbia DC Rev Ref 458,385 Barclays Capital Public Resources --- --- --- AA+ --- 14-Feb
District of Columbia DC Rev 503,075 Barclays Capital Public Resources --- --- --- AA+ --- 14-Feb
Polk County FL Util Sys Rev 83,475 BofA Securities RBC Capital Mkts --- --- --- AA --- 14-Feb
Gainesville-Hall Co Dev Auth GA Rev 4,700 Raymond James --- --- --- --- --- --- 14-Feb
USAFA Visitor’s Ctr Bus Imp Dt CO Rev 10,500 RBC Capital Mkts --- --- --- --- --- --- 11-Feb
USAFA Visitor’s Ctr Bus Imp Dt CO Rev 17,710 RBC Capital Mkts --- --- --- --- --- --- 11-Feb
USAFA Visitor’s Ctr Bus Imp Dt CO Rev (Tax) 49,265 RBC Capital Mkts --- --- --- --- --- --- 11-Feb
Windsor Locks (Town) CT GO 7,050 Raymond James Phoenix Advisors --- --- --- --- --- Today
Downers Grove Vlg IL GO Ref (Tax) 20,425 Raymond James --- --- --- --- --- --- 18-Feb
La Grange SD #102 IL GO Ref 7,365 Raymond James --- --- --- --- --- --- 18-Feb
Amount First Issuer St Description ($000s) Lead Manager Financial Adviser Insurer Mdy’s S&P Fitch KBRA Appeared
Negotiated Bond Offerings Tentative dates for negotiated sales of $1 million or more. A “+” under Insurer signifies that insurance is available. SHADED LISTINGS ARE NEW.
Compiled by IHS Markit
018_BB022020 18 2/19/2020 3:41:18 PM
19www.bondbuyer.comThursday, February 20, 2020 New Issues
Skokie SD #69 IL GO Sch 22,935 Raymond James --- --- --- --- --- --- 12-Feb
Madison Co SD MS GO Ref 13,090 Crews & Associates --- --- --- --- --- --- 18-Feb
Salem Co Poll Cntr Fin Auth NJ Rev Ref 23,150 Morgan Stanley --- --- --- --- --- --- 14-Feb
Oklahoma Univ BOR OK Gen Rev Ref (Tax) 84,030 Morgan Stanley --- --- --- --- --- --- Today
Columbia County PA GO 5,000 PNC Capital Markets --- --- --- --- --- --- 19-Feb
Columbia County PA GO (Tax) 5,000 PNC Capital Markets --- --- --- --- --- --- 19-Feb
Henrico Co Econ Dev Auth VA Rev Ref 5,830 JPMorgan --- --- --- --- --- --- 13-Feb
Henrico Co Econ Dev Auth VA Rev (Tax) 50,000 JPMorgan --- --- --- --- --- --- 13-Feb
Univ of Washington WA Gen Rev (Tax) 51,000 BofA Securities Piper Sandler --- --- --- --- --- 19-Feb
Univ of Washington WA Gen Rev 51,000 BofA Securities Piper Sandler --- --- --- --- --- 19-Feb
Univ of Washington WA Gen Rev Ref (Fwrd) 122,030 BofA Securities Piper Sandler --- --- --- --- --- 19-Feb
Gladstone MI GO Cap Imp 4,800 Baird --- AGM --- --- --- --- Today
Public Fin Auth UT Sch Rev 20,455 Stifel Nicolaus --- --- --- --- --- --- 28-Oct
Amount First Issuer St Description ($000s) Lead Manager Financial Adviser Insurer Mdy’s S&P Fitch KBRA Appeared
Negotiated Bond Offerings Tentative dates for negotiated sales of $1 million or more. A “+” under Insurer signifies that insurance is available. SHADED LISTINGS ARE NEW.
Compiled by IHS Markit
APPROVED
Saturday, Feb 15, 2020
NEW JERSEY
Washington Twp Fire Dt #1 BOC $9,970,000To build and renovate firehouses
DEFEATED
Tuesday, Feb 18, 2020
WISCONSIN
Edgar SD $650,000Sustaining educational programming, operational & maintenance expenses
Lakeland Union High SD $3,450,000To fund increasing operating and facility costs
River Ridge SD $2,300,000Educational facility, including athletic fields and site improvements
The 30-Day Visible Supply reflects the total dollar volume of bonds to be offered at competitive bidding and through negotiation over the next 30 days. It includes issues scheduled for sale on the date listed along with anticipated offerings listed in that day’s “Competitive Bond Offerings” and “Negotiated Bond Offerings” tables published on BondBuyer.com.
Current Previous 2020 2020Weekly 2/13/20 2/6/20 High Date Low Date
This week’s volume excludes sales expected to close on Friday. Next week’s estimated 844 excludes bond offerings on a “day to day”schedule.
Market Indicators Dollar amounts are in millions
Market Statistics
Competitive Negotiated Total ($000s) ($000s) ($000s)
Competitive Negotiated Total ($000s) ($000s) ($000s)
Visible Supply
The 30-day visible supply is compiled daily from The Bond Buyer’s Competitive and Negotiated Bond and Note Offerings calendars. It reflects the dollar volume of bonds expected to reach the market in the next 30 days. Issues maturing in 13 months or more are included. The 30-day visible supply of competitive bonds has been reported since 1927, while the negotiated supply has been reported since 1971.
Figures are as of 3 pm Eastern time Feb. 19, 2020. Yields represent the fair market offer side for most liquid and available credits in each ratings category as determined by MMD. “Insured” primarily represents bonds with the strongest available enhancement available, assuming a “A” rated underlying. The above data, provided by Thomson Reuters Municipal Market Data ([email protected]), is the copyright property of Thomson Reuters and distribution is strictly prohibited. Visit www.tm3.com.
Municipal Market Data General Obligation YieldsVisible Supply Declines
30Y — 2 .00% due 02/2050 . . . . . . 99 .230/250 98 .286/306 2 .013Plus signs indicate an additional one–64th. If no bid is available, the yield shown represents the yield at the last trade.–
Barclays Capital Long Treasury Bond Index Index Value Yield Index Total
Yesterday Prev. Day Change Yesterday Prev. Day Change Return
Index values reflect the compounded total return growth of each respective market, with values set at 100 at inception dates. Total return equals the sum of price change, interest income, and reinvestment income.Source: Merrill Lynch & Co.
(1) General obligation bonds maturing in 20 years are used in compiling these indexes. The 20-bond index has an average rating equivalent to Moody’s Aa2 and S&P’s AA, while the 11-bond index is equivalent to Aa1 and AA-plus. (No average Fitch rating is provided because Fitch does not rate one of the bonds.) The 11 bonds used in the higher-grade index are marked with an asterisk.
Moody’s/S&P/Fitch Moody’s/S&P/Fitch Moody’s/S&P/FitchBaltimore, Md. Aa2 / AA / NR *Massachusetts. Aa1 / AA / AA+ Pennsylvania. Aa3 / A+/ AA–California Aa2 / AA– / AA Memphis, Tenn. Aa2 / AA / AA *Phoenix, Ariz Aa1 / AA+ /AAA*Denver, Colo. Aaa / AAA / AAA Miami-Dade Co., Fla. Aa2 / AA / AA *Seattle, Wash. Aaa / AAA / AAA*Florida Aaa / AAA / AAA Milwaukee, Wis. A1 / AA / AA *South Carolina Aaa / AA+ / AAA*Georgia Aaa / AAA / AAA New York City Aa1 / AA / AA *Texas Aaa / AAA / AAAHouston, Tex. Aa3 / AA / AA *New York State Aa1 / AA+ / AA+ *Washington Aaa / AA+ / AA+*Maryland Aaa / AAA / AAA North Carolina Aaa / AAA / AAA
(2) Revenue bonds maturing in 30 years are used in compiling this index. It has an average rating equivalent to Moody’s A1 and S&P’s A-plus. (No average Fitch rating is provided because Fitch does not rate seven of the bonds.) The bonds and their ratings are: Moody’s S&P FitchAtlanta, Ga., airport (AMT) .................................................................................................................................................................... Aa3 AA– AA–California Housing Finance Agency, multi-unit rental (AMT) ................................................................................................................. A1 AA+ NRConnecticut Housing Finance Authority ................................................................................................................................................ Aaa AAA NRDallas-Fort Worth International Airport Board, Tex. (AMT).................................................................................................................... A1 A+ AEnergy Northwest (formerly WPPSS), Wash., power revenue .............................................................................................................. Aa1 AA– AAIllinois Health Facilities Authority (Northwestern Memorial Hospital) ................................................................................................... Aa2 AA+ NRIllinois Housing Development Authority mtg. revenue bonds ............................................................................................................... Aa2 AA NRIntermountain Power Agency, Utah ....................................................................................................................................................... A1 A+ AAJEA (formerly Jacksonville Electric Authority), Fla. electric revenue ..................................................................................................... A2 A+ AAKentucky Turnpike Authority ................................................................................................................................................................. Aa3 A– NRLos Angeles Department of Water and Power, Calif., electric revenue .................................................................................................. Aa2 AA AAMassachusetts Port Authority (AMT) .................................................................................................................................................... Aa2 AA AAMEAG Power (formerly Municipal Electric Authority of Georgia) .......................................................................................................... A1 A A–Nebraska Public Power District, power supply ...................................................................................................................................... A1 A+ A+New Jersey Turnpike Authority, turnpike revenue ................................................................................................................................. A2 A+ ANew York State Local Government Assistance Corp., revenue .............................................................................................................. Aa1 AA+ NRNew York State Power Authority, general purpose ................................................................................................................................ Aa1 AA AANorth Carolina Municipal Power Agency No. 1, Catawba electric revenue ............................................................................................ A2 A APort Authority of New York and New Jersey, consolidated (AMT) ......................................................................................................... Aa3 AA– AA–Puerto Rico Electric Power Authority .................................................................................................................................................... Ca D DSalt River Project Agricultural Improvement and Power District, Ariz., electric revenue ....................................................................... Aa1 AA NRSouth Carolina Public Service Authority, electric revenue ..................................................................................................................... A2 A A–Texas Municipal Power Agency ............................................................................................................................................................. A1 A+ A+Virginia Housing Development Authority .............................................................................................................................................. Aa1 AA+ NR
(3) Yield on the most current U.S. Treasury 10-year note and 30-year Treasury bond. (Source: Thomson Reuters)
Bond Buyer IndexesAverage Municipal Bond Yields — Compiled Weekly
Market Statistics
Latest Previous Year 12-Month Week Week Ago High Low20-Bond Index 2.51 2.53 4.24 4.24 2.4710-Year Treasury Note 1.62 1.64 2.67 2.73 1.5130-Year Treasury Bond 2.07 2.11 3.01 3.10 1.97Basis Pt Spread to Note –89.00 –89.00 –156.54 –75.00 –157.38BBI as % of Note 154.94 154.27 158.63 203.00 141.44Basis Pt Spread to Bond –44.00 –42.00 –122.54 –30.00 –122.54BBI as % of Bond 121.26 119.91 140.71 156.42 113.27
Weekly Yields of 20-Bond GOIndex and Treasury Securities
NOTE : We have no new bond after January 31 pricings.
Due to this, the list of 40 bonds used in the Municipal Bond Index was not revised after the February 14 pricings. The list will be revised at the next regularly scheduled revision on February 28.
As a result, the coefficient remains at 1.068, the average coupon rate at 4.11%, the average par call date is July 3, 2026 and the average maturity date is May 18, 2046.
