|
Holmes & Graven -- Second Draft -- May 5, 1994 -- Marked to show changes from the April 20, 1994 draft
<br />Preliminary Oficial Statement dated May —, 1994
<br />NEW ISSUE NOT RATED
<br />In the opinion of Bond Counsel, based on existing statutes, regulations, rulings and court decisions and assuming, among other matters, compliance with certain covenants,
<br />interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes. In the opinion of Bond Counsel,
<br />interest on the Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that it is
<br />included in adjusted current earnings in calculating corporate alternative minimum taxable income. Bond Counsel express no opinion regarding other federal or State tax
<br />consequences relating to the ownership or disposition of, or the accrual or receipt of interest on the Bonds. See 'TAX EXEMPTION" herein.
<br />STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO
<br />$2,970,000'
<br />CITY OF COLTON
<br />LIMITED OBLIGATION IMPROVEMENT BONDS
<br />ASSESSMENT DISTRICT NO. 94-1
<br />(RANCHO MEDITERRANIA PUBLIC IMPROVEMENTS PROJECT)
<br />Dated: June 1, 1994
<br />Due: September 2, as shown below
<br />The City of Colton (the "Issuer') is issuing its limited Obligation Improvement Bonds, Assessment District No. 94-1 (Rancho Mediterrania Public
<br />Improvements Project) (the "Bonds") pursuant to provisions of the Municipal Improvement Act of 1913 (Division 12 of the California Streets and Highways
<br />Code) (the "Act") and applicable provisions of the Improvement Bond Act of 1915 (Division 10 of the California Streets and Highways Code) (the "Bond
<br />Act"). The Bonds are secured by assessments levied in proceedings conducted by the Issuer for Assessment District No. 94-1 (Rancho Mediterrania Public
<br />Improvements Project) (the "Assessment District"). Proceeds of the Bonds shall be used to finance the acquisition of certain improvements in the Assessment
<br />District consisting of streets and drainage systems.
<br />The Bonds will be issued as fully registered bonds in denominations of $5,000 and integral multiples thereof. Principal, prepayment premium, if any,
<br />and interest due with respect to the Bonds will be paid by First Interstate Bank of California, as Fiscal Agent (the "Fiscal Agent"). Interest on the Bonds
<br />is payable semiannually on March 2 and September 2 of each year, commencing March 2, 1995. The Bonds will mature on September 2 of each of the
<br />years and in the amounts and will bear interest at the nates shown in the maturity schedule below.
<br />The Bonds are subject to optional and mandatory redemption andpayment in advance of maturity as set forth herein. (See "THE BONDS - Optional
<br />Redemption and Prepayment of Bonds" and "THE BONDS - Mandatory Sinking Fund Redemption" herein.)
<br />Under the provisions of the Act, assessment installments of principal and interest sufficient to meet annual debt service on the Bonds will be included
<br />on the regular County of San Bernardino tax bills sent to owners of property against which there are unpaid assessments. These assessment installments
<br />are to be paid into the Redemption Fund (as such term in herein defined), to be held by the Fiscal Agent and used to pay debt service on the Bonds as it
<br />becomes due.
<br />To provide funds for payment of the Bonds and the interest thereon as a result of any delinquent assessment installments, a Bond Reserve Fund for
<br />the Bonds will be held and maintained by the Fiscal Agent. Upon issuance of the Bonds, certain proceeds of the Bonds will be deposited in the Bond
<br />Reserve Fund, as more fully described herein under "SECURITY FOR THE BONDS - Bond Reserve Fund". If a delinquency occurs in the payment of
<br />any assessment installment, the Fiscal Agent will transfer from the Bond Reserve Fund to the Redemption Fund the amount of the delinquency, to the extent
<br />sufficient funds are on deposit in the Bond Reserve Fund. Such transfers will continue to be made during the period of delinquency, until such time as the
<br />delinquent property is reinstated from the proceeds of the sale of such property upon foreclosure, or redemption following such foreclosure. There is no
<br />assurance that funds will be available in the Bond Reserve Fund for this purpose and if, during the period of delinquency, there are insufficient monies in
<br />the Bond Reserve Fund, no funds of the Issuer other than the Bond Reserve Fund will be available for the payment of delinquent assessment installments.
<br />The Issuer has determined and declared pursuant to Section 8769(b) of the Bond Act that the Issuer will not obligate itself to advance available funds from
<br />the treasury of the Issuer to cure any deficiency which may occur in the Redemption Fund for the Bonds. The Bonds are not general obligations of the
<br />Issuer, the County of San Bernardino, the State of California or any other political subdivision of the State of California and neither the Issuer, the County
<br />nor the State nor any political subdivision of the State has pledged its full faith and credit for the payment thereof.
<br />This cover page contains information for reference only. Itis not a summary of the issue. Investors must read the entire Official Statement, including
<br />the section entitled "BONDOWNERS RISKS", for a discussion of special factors which should be considered, in addition to other matters set forth herein,
<br />in considering the investment quality of the Bonds.
<br />$530,000 _% Term Bond Due September 2, 2009
<br />$1,830,000 _% Term Bond Due September 2, 2019
<br />The Bonds are offered when, as and if issued and delivered to the Underwriter subject to the approval of Nossaman, Guthner, Knox & Elliott, Los
<br />Angeles, California, Bard Counsel, and certain other conditions. It is expected that the Bonds will be available for delivery in New York, New York on
<br />or about May _, 1992.
<br />MILLER & SCHROEDER FINANCIAL, INC.
<br />The date of this Official Statement is May , 1994
<br />`Preliminary; subject to change
<br />MATURITY SCHEDULE*
<br />PRICE: 100%
<br />Bonds Maturing
<br />Principal
<br />Interest Bonds Maturing
<br />Principal Interest
<br />September 2
<br />Amount
<br />Rate Yield September 2
<br />Amount Rate Yield
<br />1996
<br />$55,000
<br />2000
<br />65,000
<br />1997
<br />55,000
<br />2001
<br />70,000
<br />1998
<br />60,000
<br />2002
<br />75,000
<br />1999
<br />65,000
<br />2003
<br />80,000
<br />2004
<br />85,000
<br />$530,000 _% Term Bond Due September 2, 2009
<br />$1,830,000 _% Term Bond Due September 2, 2019
<br />The Bonds are offered when, as and if issued and delivered to the Underwriter subject to the approval of Nossaman, Guthner, Knox & Elliott, Los
<br />Angeles, California, Bard Counsel, and certain other conditions. It is expected that the Bonds will be available for delivery in New York, New York on
<br />or about May _, 1992.
<br />MILLER & SCHROEDER FINANCIAL, INC.
<br />The date of this Official Statement is May , 1994
<br />`Preliminary; subject to change
<br />
|