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HomeMy WebLinkAboutReso 1990-236 - Approving official statement S.A.V.I assessment ,q.. 110 ,i ; RESOLUTION NO. PO RESOLUTION APPROVING OFFICIAL STATEMENT S.A.V.I. ASSESSMENT DISTRICT NO. 1988-4 The City Council of the City of Redding resolves: ! I As a part of the proceedings for the sale of improvement bonds in S.A.V.I. Assessment District No. 1988-4, City of Redding, Shasta County, California, this Council hereby approves the Official Statement dated May 15, 1990, and a Final Official Statement derived substantially therefrom. Distribution of the Official Statement and the Final Official Statement is hereby authorized. This Official Statement is final except for certain information which will not be known until the time of sale and is therefore "deemed final" within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. The City Manager is authorized to sign the Official Statement and the Final Official Statement. I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Redding, Shasta County, California, at a regular meeting thereof, held on the 15th day of May, 1990. AYES: Councilmembers Arnes:s, Dahl , Fulton, Moss, Bu f f um NOES: Councilmembers None ABSENT: Councilmembers None ETHEL A. NICHOLS, City Clerk . City of Redding, Shasta County, California By 1,,Ge4era N 4O` I . • 0I � c 1 , 1L 0 1 . , OFFICIAL STATEMENT 11 I, , i; (TO BE PROVIDED PRIOR TO MAY 15, 1990, BY MARK PRESSMAN ASSOCIATES) i i I EI I ; I. I 1 I 1 1 i i . it I" l • I + I OFFICIAL STATEMENT (TO BE PROVIDED PRIOR TO MAY 15, 1990, BY MARK PRESSMAN ASSOCIATES) i. II I:. t ! • — -01 The' or matfonin this t inc ' information . , , r under the head&Wlandholders'Risks" be,amts entirety if Official Statement Bond Dated Date Dated May 15. 1990 May 29, 1990 . $2,554,761 .55 MUNICIPAL BONDS 1 ' (Limited Obligation) •i CITY OF RIDWNG , ,I o O L X COO UAV T YLSCS TL( I, Via' ifi..t --- -- .10,,,-k x:�. - v, A4=„ . , re..., ..„.„„,,,,„,,,„,_ _• -,, •, - . , , 4,, ,„... 1 . . H i u -s 1 „.„„,„5,,,,,,,.„.,,,,,,,,,„„,„„„...,.., iiii,,7140., „4.,„.„,,,,,„ ..::,„:„.7,,,„:,__, . , . Hf ..-vi,„4::,..4:,- ..,, „;. . - 4&*- ,-;„.� -mar.,.„4,,, 1 - t ft,. / opo , , U - 4. I AIL /P alriqk .dliildi I SANTA ANA VALLEY IRRIGATION I ASSESSMENT DISTRICT NO. 1988-4 : MARK PRESSMAN ASSOCIATES 1 , Investment Banking Ii . M c t411 r t • r I j A CITY OF REDDING SHASTA COUNTY, CALIFORNIA Santa Ana Valley irrigation Assessment District No. 1988-4 CITY COUNCIL Nancy Buffum Mayor { Mike Dahl Vice Mayor Carl Amess Council Member Lee D. Fulton, M.D Council Member Charles Moss Council Member CITY STAFF Robert Christofferson City Manager Sam McMurry Assistant City Manager Randall A Hays City Attorney Peggie R Linville City Treasurer Linda Downing Director of Finance Phil Perry Director of Planning Robert W. Galusha Director of Public Works Ethel A. Nichols City Clerk PROFESSIONAL SERVICES Sturgis, Ness. Brunsell & Sperry Emeryville, California Bond Counsel Sharrah, Dunlop & Associates Redding, California Engineer of Work Bankers Trust Company of California, N.A. San Francisco, California Registrar, Transfer and Paying Agent MARK PRESSMAN ASSOCIATES Investment Banking 250 Montgomery Street - Suite 1200 San Francisco, California 94104 (415) 421-7300 Managing Underwriter i t • No dealer, broker, salesperson or other individual has been authorized by the Underwriter to II give any information or to make any representations, other than those contained in this Official Stateme.'t, and, if given or made, such other information or representations must not be relied upon as having been authorized by the Underwriter. The Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the bonds described herein by any person in any jurisdiction in which it is unlawful for such a person to make such offer, solicitation or sale. The information set forth herein has been obtained by the Underwriter from the City and from certain other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness. The summaries and references to the Bond Act, the Resolution and to other statutes and documents in this Official Statement do not purport to be comprehensive or definitive, and are qualified in their entireties by reference to each such statute and document. The information herein is subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or the District since the date hereof. The information set forth herein has been furnished by the City and from certain other sources which are believed to be accurate and reliable, but is not guaranteed as to accuracy or completeness. Statements contained in this Official Statement which involve estimates, forecasts, or other matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. Further the information and expressions of opinion contained herein are subject to completion or amendment. The Official Statement is not to be construed as a contract between the City or the Underwriter and the purchasers or owners of any of the Bonds. Neither the full faith and credit nor the taxing power of the City, the County, the State of California or any political subdivision thereof is pledged to the payment of the Bonds. The information set forth in this Official Statement, including information in the section herein entitled 'Bondholders'Risks"should be read in its entirety. IN CONNECTION WITH THIS BOND UNDERWRITING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS DESCRIBED HEREIN AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS DESCRIBED HEREIN TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED IN THIS OFFICIAL STATEMENT AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. MPA STATEMENT NO. 90- 1 i I a I I' • t ' i • • TABLE OF CONTENTS Pane rigs i ' ' ' THE BONDS 1 BONDHOLDERS' RISKS 10 Authority for Issuance 1 General 10 j ScheduleofMaturities 1 Limited City Obligation Upon Dated Date 1 Delinquency 10 Expected Delivery Date 2 Land Values 10 ! Payment Dates 2 Factors Which May Affect Land Record Date 2 Development and Property Values 10 �,' Payable 2 Property s 11 1 Registration 2 Bankruptcy 11 Denominations 2 Redemption .2 Refunding 2 LEGAL OPINION 11 Defeasance 3 Purpose of Issue 3 TAX EXEMPTION 11 SECURITY FOR THE BONDS 3 ABSENCE OF LITIGATION 12 Assessment Installments 3 NO RATING 12 Special Reserve Fund 3 Obligation of the City Upon Delinquency 4 UNDERWRITING 13 Covenant to Commence Superior Court Foreclosure 4 MISCELLANEOUS 13 Covenants with Respect to Arbitrage and Maintenance of Tax Exemption 5 Priority of Lien 5 APPENDIX A THE RESOLUTION 5 ASSESSMENT DIAGRAM A-1 'siablishment of Special Funds 5 APPENDIX B Debt Service Schedule 6 ECONOMIC -DEMOGRAPHIC PROFILE ...B-1 THE CITY 7 APPENDIX C THE DISTRICT 7 ORNION OF BOND COUNSEL C-1 THE PROJECT 7 ' APPENDIX D The Improvements 7 Sources and Uses of Funds 8 CUSIP NUMBERS D-1 Method of Spreading Assessments 9 Estimated Values 9 Value/Lien Ratios 9 ii 11 i c r r 1 , 0 • ji ' OFFICIAL STATE 1•NT $2,554,761.55 CITY OF REDDING Shasta County, 41lfornia 1 Banta Ana Valley Irrigation j Assessment District No. 1988-4 j , II i THE BONDS 1 { AUTHORITY FOR ISSUANCE The bonds designated "Santa Ana Valley Irrigation Assessment District No. 1988-4, City of Redding, Shasta County, California, Limited Obligation Improvement Bonds" (the "Bonds"), are being issued by the City of Redding (the "City") pursuant to its Resolution of Intention No. 88- 343 adopted September 20, 1989, and Resolution Amending Resolution of Intention to Order Iii Improvements No. 88-343, adopted February 6, 1990, by the City Council of the City of Redding and proceedings related thereto, and its Resolution No. adopted May 15, 1990. authorizing the issuance of the Bonds (the "Resolution") and pursuant to the provisions of the Municipal Improvement Act of 1913, and the improvement Bond Act of 1915 (the "Bond Act") Division 10 of the Streets and Highways Code of the State of California and all laws amendatory thereof or supplemental thereto. The Bonds were awarded to Mark Pressman Associates (MPA) on May 15, 1990, by the City pursuant to Resolution No. . i. SCHEDULE OF MATURITIES - $2,554,761.55 Interest Maturity Yield to Approx. Principal Rate September 2 Maturity Price $ 9,761.55 % 1991 % 1 . 1 ' 70,000 1992 75,000 1993 75.000 1994 80,000 1995 9G,000 1996 95,000 1997 100,000 1998 110,000 1999 115,000 2000 1 I 125,000 2001 ' 130,000 2002 I 140,000 2003 150,000 2004 165,000 2005 175,000 2006 . 190,000 2007 I 205,000 2008 220,000 2009 i . 235,000 2010 DATED DATE The Bonds are expected to be dated May 29, 1990. ! I SII1 1 t • EXPECFED DELMIT DATE The Bonds will be available for delivery on or about May 29, 1990, at Bankers Trust Company of California. NA, San Francisco, California. PAYMENT DATES The Bonds will pay interest on March 2 and September 2 ;n each year to the respective dates of maturity of the Bonds except for the first interest payment which will be for interest from May 29. 1990, to March 2, 1991. RECORD DATE The record date will be fifteen (15) days before the interest dates of March 2 and September 2 of each year. PAYABLE Both principal and redemption premium, if any, on this issue are payable in lawful money of the United States at Bankers Trust Company of California, NA, San Francisco, California, or its successor, as Registrar, Transfer Agent and Paying Agent (the "Agent"). Interest is payable by check or draft mailed to the owner of record at the address as shown by the registry records of the Agent or to such address as may have been filed with the Agent for that purpose, as of the close of business on the 15th day next preceding an interest payment date. REGISTRATION The Bonds will be issued only as fully registered bonds. The Bonds may be transferred or exchanged at the aforesaid office of the Agent. For every exchange or transfer of any Bonds, the Agent may make a charge sufficient to reimburse it for any tax or governmental charge required to be paid with respect to such exchange or transfer, and may make a charge equal to the customary fee charged by the Agent for such transfers or exchanges. If any Bond is mutilated, lost, stolen or destroyed, the Agent shall execute a new Bond or Bonds of authorized denominations in replacement thereof in the same aggregate principal amount and of the same maturity as the case may be. In the case of a lost, stolen or destroyed Bond, the Agent shall require, and in the case of any mutilated Bond, may require satisfactory indemnification prior to authenticating a new Bond. The Agent will charge the owners of the Bonds for their reasonable fees and expenses in connection with replacing mutilated, lost, stolen or destroyed Bonds. DENOMINATIONS The Bonds will be issued in multiples of$5,000 denominations or any integral thereof, except that one bond may contain any odd amount. REDEMPTION Any Bond, or any portion thereof in the amount of $5,000 or any integral multiple thereof, may be called for redemption prior to maturity on any March 2 or September 2 upon payment of 103 percent of par value, plus accrued interest to the date of the redemption or date of payment if surrendered earlier. No interest will accrue on a Bond beyond the March 2 or September 2 on which said Bond is called for redemption. However, if a Bond is presented for payment and payment is refused because of lack of available funds, the Bond will continue to accrue interest. Notice of redemption will be given by registered or certified mail or personal service at least 30 days prior to the redemption date. The provisions of part 11.1 of the Bond Act are applicable to the advance payment of assessments and to the calling of the Bonds. REFUNDING The Bonds may also be subject to refunding in accordance with provisions of the California Streets and Highways Code. 2 . • DEFEASANCE The Bonds and the original assessments shall remain in full force and effect and the Bonds shall be secured by the original assessments until (1) the Bonds mature. (2) assessments are prepaid and the Bonds are redeemed. (3) apportionment of the original assessment occurs pursuant to the Bond Act, or (4) the original assessments are superseded and supplemented by reassessments and refunding bonds issued pursuant to Division 11 or DIvlalon 11.5 of the Streets and Highways Code, at which time the refunding escrow shall become the security for any outstanding Bonds not exchanged for refunding bonds. Any proceeds of sale of any refunding bonds or authorized investment securities purchased with such proceeds may be deposited in escrow, trust or safekeeping with a bank or trust company and shall be secured in accordance with the laws applicable to funds of the City. PURPOSE OF ISSUE The primary purpose of this bond issue is to fund the construction of approximately 8600 linear feet of new and widened roads including earthwork, asphalt paving, curb, gutter, sidewalk, storm drainage system, water system, sanitary sewer system and common utilities trench with all appurtenances. Roads or portions of roads constructed as a part of the District include Churn Creek Road (1250 LF), Old Alturas Road (2250 IA, Friendly Road (750 LF), Canby Road (1250 LF), Dana Drive(2650 LF), and Bradford Way(450 LF). During the offering of the Bonds, the complete Amended Engineer's Report is on file and available for inspection in the offices of the Underwriter. See also the section entitled 'The Improvements." SECURITY FOR THE BONDS j ASSESSMENT INSTALLMENTS The Bonds are issued and secured by the unpaid assessments together with interest thereon, and said unpaid assessments together with interest thereon constitute a trust fund for the redemption and payment of the principal of the Bonds and interest thereon. In addition, all the Bonds are secured by the moneys in the Redemption Fund and the Reserve Fund created pursuant to the Resolution and by the unpaid assessments levied to provide for payment of the principal and interest on the Bonds. Principal of and interest on the Bonds are payable exclusively out of said Redemption Fund into which all unpaid assessments will be deposited by the City. Although the unpaid assessments constitute fixed liens on the lots and parcels assessed, they do not constitute a personal indebtedness of the respective owners of said lots and parcels. The unpaid assessments are payable in annual installments, together with interest on the declining balances on the tax roll on which general taxes on real property are collected, and are payable and become delinquent at the same time and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do said general taxes. For additional pertinent information, the reader is referred to the section herein entitled "Bondholders' Risks." SPECIAL RESERVE FUND Upon issuance of the Bonds, an amount of ten percent (10.0%) of the principal amount of the Bonds ($255,476.16) shall be deposited in the Special Reserve Fund (the'Reserve Requirement") out of Bond proceeds. The Special Reserve Fund shall be maintained by the City Treasurer. A. During the term of the bonds, the amount in the Special Reserve Fund shall be available for transfer into the redemption fund in accordance with Section 8808 of the Streets and Highways Code. The amount so advanced shall be reimbursed 3 . , f i t j . to the Special Reserve Fund from the proceeds of redemption or sale of the parcel for which payment of delinquent assessment installments was made from the Special Reserve Fund. I ' B. If any assessment is prepaid before final maturity of the bonds, the amount of principal which the assessee is required to prepay shah be reduced by an amount which is in the same ratio to the original amount of the Special Reserve Fund as the original amount of the prepaid assessment bears to the total amount of unpaid assessments originally securing the Bonds. This reduction in the amount of principal prepaid shall be balanced by a transfer from the Special Reserve Fund to the redemption fund in the same amount. C. The amounts deposited in the reserve fund will never exceed 10% of the proceeds of the bond issue. Proceeds of investment of the Special Reserve Fund shall be deposited in the investment earnings fund. D. When the amount in the Special Reserve Fund equals or exceeds the amount required to retire the remaining unmatured bonds (whether by advance retirement or otherwise), the amount of the Special Reserve Fund shall be transferred to the redemption fund, and the remaining installments of principal and interest not yet due from assessed property owners shall be cancelled without payment. OBLIGATION OF THE CITY UPON DELINQUENCY Under the Bond Act, the City can determine prior to issuing the Bonds pursuant thereto, whether or not it will obligate itself to advance available funds from the City treasury to cure any deficiency which may occur in the Redemption Fund. The City has determined,pursuant to Section 876mb)of the Bond Act that it will not obligate itself to advance availablef uids from the City treasury to ewe any deficiency which may occur in the Redemption Fund. A determination not to obligate itsejf shall not prevent the City from, in its sole discretion,so advancing funds. If a delinquency occurs in the payment of any assessment installment, the City has a duty to transfer from the balance, if any, in the Special-Reserve Fund to the Redemption Fund, the amount of the delinquency. This duty of the City continues during the period of delinquency, until reinstatement, redemption or sale of the delinquent property. If, during the period of delinquency, there are insufficient funds in the Special Reserve Fund to meet all such delinquencies, a delay may occur in payment to the owner of the Bonds or there may be insufficient funds to make such payments. See also the following section entitled "Covenant to Commence Superior Court Foreclosure." COVENANT TO COMMENCE SUPERIOR COURT FORECLOSURE The Bond Act provides that in the event any assessment or installment thereof or any interest thereon is not paid when due, the City may order the institution of a court action to foreclose the lien of the unpaid assessment. In such an action, the real property subject to the unpaid assessment may be sold at judicial foreclosure sale. This foreclosure sale procedure is not - mandatory. However, in the Resolution, the City covenants with the holders of the Bonds that, not later than October 1 in any year, the City shall file an action in the Superior Court to , foreclose the lien of each delinquent assessment if the sum of uncured assessment delinquencies for the preceding fiscal year exceeds five percent (5%) of the assessment installments posted to the tax roll for that fiscal year and if the amount of the special reserve fund is less than the Reserve Requirement. Prior to July 1. 1983, the right of redemption from foreclosure sales was limited to a period of one year from the date of sale. Under legislation effective July 1, 1983, the statutory right of redemption from such foreclosure sales has been repealed. However, a period of 120 days must elapse after a court adjudges and decrees a lien against the lot or parcel of land covered by an 4 r S • • • • assessment before the notice of the sale of such parcel can be given. Furthermore, if the purchaser at the sale is the judgment creditor, Le., the City, an action may be commenced by the delinquent property owner within 6 months after the date of sale to set aside such sale. The constitutionality of the aforementioned legislation which repeals the one year redemption period has not been tested and there can be no assurance that, if tested, such legislation will be upheld. In the event such Superior Court foreclosure or foreclosures are necessary, there may be a delay in payments to bondholders pending prosecution of the foreclosure proceedings and receipt by the City of the proceeds of the foreclosure sale; it is also possible that no bid for the purchase of the applicable property would be received at the foreclosure sale. See the section herein entitled "Bondholders' Risks." COVENANTS WITH RESPECT TO ARBITRAGE AND MAINTENANCE OF TAX EXEMPTION During the term of the Bonds, the City will make no use of bond proceeds which, if such use had been reasonably expected at the date the bonds were issued, would have caused the Bonds to be 1 "arbitrage bonds" within the meaning of Section 148 of the United States Internal Revenue Code of 1986, and regulations of the Internal Revenue Service authorized thereby, and further shall rebate to the United States any amounts actually earned as arbitrage in accordance with the provisions of that Code and those regulations, all as more particularly set forth in the detailed arbitrage covenant to be executed by the City prior to delivery of the Bonds. The City will take all reasonable actions required to maintain the status of the Bonds as bonds exempt from Federal income taxes and State of California personal income taxes. I PRIORITY OF LIEN The assessment (and any further assessment) and each installment thereof and any interest and penalties thereon constitute a lien against the lots and parcels of land on which they were imposed until the same is paid. Such lien is subordinate to all fixed special assessment liens previously imposed upon the same property, but has priority over all fixed special assessment liens which may thereafter be created against the property, and also has priority over all private liens including the lien of any mortgage or deed of trust thereafter created. Such lien is co-equal to and independent of the lien for general taxes. As of funding of this bond issue, all prior fixed special assessment liens on parcels in this District have been paid off and incorporated into the new lien which secures the Bonds. THE RESOLUTION ESTABLISHMENT OF SPECIAL FUNDS The City will establish five funds to administer the proceeds of the sale of Bonds and payment of interest and principal on the Bonds, to be known as the Improvement Fund, the Redemption Fund, the Special Reserve Fund, the Investment Earnings Fund and the Arbitrage Rebate Fund. Improvement Fund All moneys in the Improvement Fund shall be withdrawn only upon checks of the City and shall be applied exclusively to the payment of the issuance costs and expenses of the Project. Disbursements from the Improvement Fund shall be subject to the provisions of the Resolution for the Bonds. Any surplus remaining after payment of all said costs and expenses shall be used as set forth in said proceedings and applicable provisions of the municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code of the State of California. i 5 I I 1 S • RedetnIstlon FAQ I The Redemption Fund shall be maintained by the City Treasurer. All payments of principal and interest installments on the assessments, together with penalties, if any, shall be deposited in the Redemption Fund, which shall be a trust fund for the benefit of the bondholders. Payment of the Bonds at maturity, or at redemption prior to maturity, and all interest on the Bonds shall be made from the Redemption Fund. Special Reserve Fund The Special Reserve Fund will be maintained by the City Treasurer. Amounts in the Special Reserve Fund will be available for transfer to the Redemption Fund in the event of delinquent 1 assessment installments on the parcels within the District. As of September 2 of each year 1 during the term of the Bonds, when the amount in the Special Reserve Fund equals or exceeds the amount required to retire the remaining unmatured Bonds. (whether by advance retirement or otherwise), the amount of the Special Reserve Fund will be transferred to the Redemption Fund, and the remaining installments of principal and interest not yet due from assessed property owners will be cancelled without payments. . 1 Investment Earnings Fund Proceeds of the investment of amounts in the Improvement Fund and the Special Reserve Fund I will be deposited in the Investment Earnings Fund. As of September 2 of each year during the term of the Bonds, the Treasurer shall determine whether any portion of investment earnings I'I must be rebated to the United States pursuant to Section 148 of the Internal Revenue Code of 1986. as amended (the "Code"), and regulations adopted thereunder. Any amounts required to be rebated will be transferred to the Arbitrage Rebate Fund. Arbitrage Rebate Fund Amounts in the Arbitrage Rebate Fund shall be invested in the same manner as amounts in the other funds and shall be held in trust for rebate to the United States at the times required by Section 148 of the Code and regulations adopted thereunder. I DEBT SERVICE SCHEDULE The following table sets forth the annual debt service on the Bonds. ' I Interest September Z Ride Principal Interest Total 1991 % $ 9.761.55 $* $ 1992 70,000 1993 75,000 1994 75,000 1995 80,000 ' 1996 90.000 'I 1997 95,000 1998 100,000 (; 1999 110.000 2000 115,000 2001 125,000 2002 130.000 2003 140,000 2004 150,000 2005 165,000 2006 175,000 2007 190,000 2008 205,000 2009 220,000 2010 235,000 I I TOTALS $2,554,761.55 $ $ I ' • Interest computed from May 29 1990, to September 2, 1991. I 6 S • 1 ' TM.; CITY The City of Redding is located in the extreme north of the Sacramento Valley. approximately 230 miles north of San Francisco. The City is served by U.S. Interstate 5 freeway from north to south and U.S. Highway 299 from east to west. Mountain ranges surround it on all sides except to the south. Driving time and conditions to destinations located to the north, east, and west make Redding a desirable stopover place for travelers. Because of its centralized location in the northern part of the state, Redding serves as a trade and cultural center for the numerous communities located in the mountainous areas to the north, east and west. The most important natural resources of the area include forests, minerals, water and the fertile valley soils. For further information see "Appendix B - Economic and Demographic Profile." THE DISTRICT The District is comprised of 14 parcels all of which are being assessed, and is zoned for a mixture of Office-Residential and Retail use. Construction has just been completed on a 102,000 square foot Target store (Assessment Number 6) and a 54,239 square foot Food 4 Less grocery store (Assessment Number 3). Currently under construction is a Home Federal Savings building (Assessment Number 8) and a Costco wholesale department store (Assessment Number 14). The District is located in the east central section of the City and is situated north of Highway 44. east of Interstate 5 and west of Churn Creek Road, extending from approximately one and three-quarter miles north of the Mount Shasta Mall Shopping Center and the Highway 44 interchange, south to the shopping center just south of Cypress Avenue. Tilt.; PROJECT THE IMPROVEMENTS The improvements consist of the construction of approximately 8600 linear feet of new and widened roads including earthwork, asphalt paving, curb, gutter, sidewalk, storm drainage system, water system, sanitary sewer system and common utilities trench with all appurtenances. Roads or portions of roads constructed as a part of the District include Churn Creek Road (1250 LF), Old Alturas Road (2250 LF). Friendly Road (750 LF), Canby Road (1250 LF). Dana Drive (2650 LF), and Bradford Way (450 LF). 7 i • SOURCES D MS OP FUNDS SOLtlZCES: Par Value $2.554,761.55 USES: Construction &Acquisition Costs $2,733,257.44 Incidental Expenses Course of Constr. Insurance $ 2,432.00 Interest&Loan Fee 19,212.72 Legal 40,547.62 Legal out of pocket 1,500.00 Bond Printing 2,500.00 Printing &Prep. of O.S.. UWoop+UW Counsel 8,500.00 Underwriter's Discount (2.5%) 63,869.04 Bond Service Charge 15,500.00 Construction Inspection a. City of Redding 15,000.00 b. J.H. Kleinfelder (soils) 9.358.00 Appraisal fee 6,000.00 Bond Reserve Fund (10.0%) 255,476.16 City Treasurer 5,000.00 City Finance Department 4,000.00 City Clerk 1,500.00 Traffic Study 2,900.00 Engineering 120,000.00 Misc. out of pocket 14.321.21, $ 587.616.75 TOTAL USES $3.320,874.19 Less Cash Payments (766.112.64) TOTAL TO BOND S2.554.761.55 usES OF PU VS Bond Service Charge f:' Inures c!'Ivan /nci�cm! cns u Construcrian Insputwn Le Feu ss Discount Unite, y �� : r • foscrvc'Jund � zr construction costs ef • 8 I 05/17/00 14:31 44t421 075* IfirA Or U.n 'NI, • "• 1 . . , ,, •II • .. ,11 , . i -i-D1251-LezErkg•Rize.tegmegazaft The turprovemeuls constructed under the District provide full public services to s and include sheets. drainage. sewer Se/vices. watts service. sidewalks,saelectrical y featuresly 80 acres of developinglands within the City of Redding The improvements constructed benefit the properties served and are necessary for the development othe lands within the District and oniy benefit those lands within the District. The costs for these tnrprovemhave been :r.portioned to the parcels within the District based on a combination of tactors such as • :,ii_ generation. frontage of parcel along major streets. estimated storm water generated by each parcel, and footage of any public utilities within the parcels. The apportion of assessments which was prepared by the engineer of work has been agreed to by the owners of the parcels la the District. There are two existing Assessment Districts within the District which will be paid off and incorporated into the new assessments levied by the District ESTIMATED VALUES • An appraisal was completed on the District in May of 1989. According to the Appraisal report. the estimated aggregate market value of the land in the District with the completed ' imps-o�vementB totals approximately $11.113,800. The Appraisal is on file end available for review during the underwriting period in the office of the Underwriter. VAUTE/L1EN R.Angla The unpaid assessments in the District total S2,554,76L55. The total appraised value for land only on parcels with assessments is$11,113,300. The value to lien ratio averages 4.35 to 1 for the assessed parvels within the District. The following table estimates the value to lien ratio for individual lots and the lots as a whole with unpaid assessments. Assmnt. Appraised Coverage N _slue Assmnt. Ratio 1 $i,309,8 5301,299.35 4.35 2 166,300 . 44,147.74 3.54 3 1,4.35?00 303.781.13 4.72 4 230.000 50,243.18 4.58 • 5 1,015.700 246,895.87 4.11 6 NA 0.00 NA 7 289,840 42,866.90 6.76 I 8 420.000 50,727.67 8.28 9 232,000 50,885.67 4.56 10 2,075.000 572,667.06 3.62 . . 11 280.000 63278.54 4.43 12 1,510.200 362,559.27 4.16 132,159.300 465,409.17 4.64 14 --t& � NA i Totals $11,113,800 $2,554,76L55 435:1 . i I 0 I 1 • BONDHOLDERS' RISKS u . • ' GENERAL In order to pay debt service on the Bonds, it is necessary that unpaid installments of assessments on land within the Assessment District are paid in a timely manner. The City will establish a Reserve Fund in the amount of ten percent (10.0%) of the original proceeds of the Bonds, which will be used to pay delinquent assessment installments should they occur. The assessments are secured by a lien on the parcels of land and the City can institute foreclosure proceedings to sell land with delinquent installments for the amount of such delinquent installments in order to obtain funds to pay debt service on the Bonds. Failure by owners of the parcels to pay installments of assessments when due, depletion of the Reserve Fund, or the inability of the City to sell parcels which have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of assessments levied { against such parcels may result in the inability of the City to make full or punctual payments of debt service on the Bonds and Bondholders would therefore be adversely affected. Unpaid assessments do not constitute a personal indebtedness of the owners of the lots and parcels within the Assessment District. There is no assurance the owners will be able to pay the assessment installments or that they will pay such installments even though financially able to do so. Development of parcels within the District, transfers of property ownership and certain other circumstances could result in prepayment of assessments. Such prepayment would result in redemption of all or a portion of the Bonds prior to their stated maturities. LIMITED CITY OBLIGATION UPON DELIN9UENCY The City's liability to advance moneys to pay Bond debt service in the event of delinquent assessment installments shall not exceed the balance in the Special Reserve Fund. The City has determined, pursuant to Section 8769(b) of the Bond Act, that it will not obligate itself to advance available funds from the City treasury to cure any deficiency which may occur in the Redemption Fund. Notwithstanding the above, the City may, at its sole option and in its sole discretion, elect to advance available surplus funds of the City to pay for any delinquent installments pending sale, reinstatement, or redemption of the delinquent property. However, Bondowners should not rely upon the City to advance moneys to the Redemption Fund if the Special Reserve Fund were ever depleted. LAND VALUES The value of land within the District is an important factor in determining the investment quality of the Bonds (see the section entitled "Value/Lien Ratios"). If a property owner defaults in the payment of assessment installments, the City's only remedy is to commence foreclosure proceedings in an attempt to obtain funds to pay the delinquent assessment. There can be no assurances that any amounts reali,ed by the City upon completion of a foreclosure proceeding will equal the amount of delinquent or future assessments. See the section herein entitled "Bankruptcy." FACTORS WHICH MAY AFFECT LAND DEVELOPMENT AND PROPERTY VALUES Development in the District and property values may be affected by changes in general economic conditions, fluctuations in the real estate market, seismic activity, flooding, and other factors. In addition, further development may be subject to future federal, state, and local regulations. Approval may be required from various agencies from time to time in connection with the layout and design of proposed development in the District, the nature and extent of public improvements, land use, zoning and other matters. Although no such delays are anticipated, failure to meet any such future regulations or obtain any such approvals in a timely manner could delay or adversely affect further development in the District which could. depending on the circumstances, adversely affect property values. Ij 10 li • PRI. OPERTTTAXES All property taxes are paid current on all parcels in the District as of the date of this Official Statement. )I ' i A1N�2L'PT I The payment of property owners' assessment installments and the foreclosure by the City of the lien on any delinquent unpaid assessment may be limited by bankruptcy, insolvency, or other laws, local, state or federal, generally affecting creditors' rights or by the laws of the state • relating to judicial foreclosure. Although bankruptcy proceedings would not cause the assessment liens to become extinguished, bankruptcy of a property owner could result in a delay in the City instituting Superior Court foreclosure proceedings. Such delay could increase the likelihood of a delay in payment of the principal of and interest on the Bonds, and the possibility of delinquent assessment installments not being paid in full. Bond Counsel's approving legal opinion, to be delivered concurrently with the delivery of the Bonds, will be qualified as to the enforceability of the various legal instruments by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. { LEGAL OPINION All proceedings in connection with the issuance of the Bonds are subject to the approval of Sturgis, Ness. Brunsell & Sperry, a professional corporation of Emeryville, California, Bond Counsel for the City. The unqualified opinion of Sturgis, Ness, Brunsell & Sperry, attesting to the validity of the Bonds, shall be supplied free of charge to the original purchaser of the Bonds. A copy of the legal opinion, certified by the official in whose office the original is filed, will be printed on each Bond. The statements of law and legal conclusions set forth in the Official Statement under the heading 'The Bonds" herein have been reviewed by Bond Counsel. Bond Counsel's engagement is limited to a review of the legal procedures required for the authorization of the Bonds and the exemption of interest on the Bonds from income taxation. See 'Tax Exemption" herein. The opinion of Bond Counsel will not consider or extend to any documents, agreements, representations, offering statements or other material of any kind concerning the Bonds, including this Official Statement, not mentioned in this paragraph. Payment of Bond Counsel's fee in connection with the issuance of the Bonds is contingent upon the issuance and delivery of the Bonds. For the complete text of the Bond Counsel Opinion, see Appendix C. TAX EXEMPTION In the opinion of Bond Counsel, subject, however, to the qualifications set forth below, under existing law, interest on the Bonds and received by the owners of the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, provided, however, that for the purpose of computing the alternative minimum tax imposed on such corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings. 11 II • • • • �� II The opinions set forth in the preceding sentences are subject to the condition that the City II comply with all requirements of the Code that must be satisfied subsequent to the delivery of the Bonds in order that such interest be, or continue to be, excluded from gross income for federal income tax purposes. The City has covenanted to comply with certain restrictions designed to assure compliance with each such requirement. Failure to comply with certain of such requirements may cause the Inclusion of such interest in gross income for federal income• tax purposes to be retroactive to the date of delivery of the Bonds. Bond Counsel expresses no opinion regarding other federal tax consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should be aware that (i) section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the bonds or, in the case of a financial institution, that portion of the bondowner's interest expense allocated to interest payable with respect to the bonds, (11) with respect to insurance companies subject to the tax imposed by section 831 of the Code, for taxable years beginning after December 31, 1986, section 832(b)(5)(b)(i) reduces the deduction for loss reserves by 15 percent of the sum of certain items, including interest payable with respect to the Bonds, (iii) for taxable years beginning after December 31, 1986 and before January 1, 1992, interest payable with respect to the Bonds earned by some corporations could be subject to the environmental tax imposed by section 59A of the Code, (iv) for taxable years beginning after December 31, 1986, interest payable with respect to the Bonds earned by certain foreign corporations doing business in the United States could be subject to a branch profits tax imposed by section 884 of the Code, (v) passive investment income, including interest payable with respect to the Bonds. may be subject to federal income taxation under section 1375 of the Code for 5 corporations that have subchapter C earnings and profits at the close of the taxable year if greater than 25 percent of the gross receipts of such subchapter 5 corporation is passive investment income, and (iv) section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take into account, in determining gross income, receipts or accruals of interest payable with respect to the Bonds. In the further opinion of Bond Counsel, such interest on the Bonds is exempt from California personal income taxes. ABSENCE OF LITIGATION There is no action, suit or proceeding known by the City to be pending or threatened restraining or enjoining the delivery of the Bonds or in any way contesting or affecting the validity of the Bonds or any delivery thereof. A no litigation certificate executed by the authorized representatives of the City will be delivered to the Underwriter simultaneously with the delivery of the Bonds. NO RATING The City has not applied for, and does not contemplate making application to any rating agency for the assignment of a rating to the Bonds. 12 ip, • UNDERWRITING The Underwriter of the Bonds has purchased the Bonds from the City at a price of $ . The purchase agreement relating to the Bonds provides that the Underwriter will purchase all of the Bonds if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in said purchase agreement, the approval of certain legal matters by Bond Counsel and certain other conditions. The public offering prices may be changed from time to time by the Underwriter. The Underwriter may offer and sell Bonds to certain dealers and others at prices lower than the offering prices stated in the section entitled 'The Bonds." II . MISCELLANEOUS All quotations from, and summaries and explanations of, the Resolution and other statutes and documents contained herein do not purport to be complete, and reference is made to said documents, Resolution and statutes for full and complete statements of their provisions. This Official Statement is submitted only in connection with the sale of the Bonds by the City. All estimates, assumptions, statistical information and other statements contained herein. while taken from sources considered reliable, are not guaranteed by the City or the Underwriter. The information contained herein should not be construed as representing all conditions affecting the City or the Bonds. . The execution and delivery of this Official Statement have been authorized by the City. . City of Redding � ! I it ' I - � ' I ; 1 3 • I • •it it I , • I I Ij APPENDIX A ASSESSMENT DIAGRAM • II � I II I ,i . I II Iii Ali' • • • • VP/ r. . . • C7 — r:n I • . i .e.• _.••••:- r.a ~ =Q• 1 t ergs N= a.`t1 ' • Y C it , .....~....1 c7?1tM• rOi ' 0 '' a.1 sz tft aia !:a 7 r g!1 rr i. n 1 . .tea u.. 'N ,°I Ifil..74. fr r�3 • e� ` b. .. .lb's;; I 2 : c. ,,. yt1 i 1•... <'.., '. IOuH.1 ' VIA Srl a- � a I ...._. ea;~`: 5. a " rd ' rI • ® • Ia N,•/< • . . ::I i: 1.0 ' i p ' , O . � O . !:-, •,. ...L.:: I - 510 n a'e Yr x.; I •• ..•• a % j ;.. . ,..N .. Aryrn1. rt • N: ?? r'�rnb a, . r 0041seq-1 !4 • r.�`. 4, Ag Lia .. 114 ra'scit clb 5 !':7 :;:. i , y rh �t ii+an.:...7t:c... c.:3 a . it ii i I j , It Ji 1 - CATON MAP ,I i' ' III I ArT. SHASTA • UUNSMU1R® V4cCL®UD CASTELLAs EP p `� . ; ® CI: EAD `�,�� ?� Yom may} ` < 'BURNEY II Weavervilie ,3 sx ,.,,• ®OAK RUN CENTRAL YALLE'!• ,.....49 I= iI , SNA$TA• "` a Whiskeytown Lake •MILLdiLI.E ! I Q®\J JODUmoi, Redding -� �J Municipal44 Airport I LASSEN• NATL. PARK to Anderson, Sscramento 1 1 , o • • I' t II THE CITY II' f General Description The City of Redding (the "City', comprising approximately 50.2 square miles, is located at the northern end of the Sacramento Valley. 160 miles north of Sacramento and 230 miles north of San Francisco. It is the county seat of Shasta County and the major trade, recreational and commerce center for the northern central and northeastern portion of California. The City is situated in the midst of a vast recreational area that includes nine national forests, six wilderness areas, two state parks and one national park The City experiences hot summers and mild winters. Annual precipitation is approximately 38 inches. Elevation within the area varies from 400 feet above sea level to 10,456 feet at Lassen Park,just outside Shasta County. Municipal Government The City was incorporated on October 4, 1887 and operates as a general law city with the council-manager form of government. The City Council consists of five members elected "at large" for four-year overlapping terms. The Mayor is selected by the City Council from among its members. The current members of the City Council are as follows: NANCY KAY BUFFUM, Mayor, was elected to the City Council in 1988. Education: Attended Shasta College. Redding, California, and the University of California, Berkeley, California. where she majored in Political Science. Prior to her position on the City Council, Ms. Buffum served nearly six years on the Planning Commission for the City. Ms. Buffum currently sits on the Forward Redding Foundation Board, the Private Industry Council, the Board of Directors of the Chamber of Commerce and the Transportation Committee. Regional Transportation Planning Agency, Redding Area Bus Authority. Redding Redevelopment Agency, Superior California Development Council, and serves as City Council liaison to the Convention and Visitors Bureau, Redding Museum and Art Center, Carter House Science Museum. Planning Department, and Traffic and Parking Commission. MIKE DAHL,Vice Mayor,was elected to the City Council in 1986. Education: Bachelor's Degree in Political Science and a Master's Degree in Public Administration from California State University. Chico, California. Mr. Dahl is currently Marketing Director for SECO Surveying Company and SECO Manufacturing Company, Inc. Mr. Dahl's community involvement has included Chairman of the Shasta County Economic Development Task Force. Regional Transportation Planning Agency, Regional Wastewater Planning Commission. Chairman, Redding Area Bus Authority, Redding Redevelopment Agency, and he currently serves as City Council liaison to the Public Works, Personnel, Finance, and Recreation and Parks Departments. CARL ARNESS. member, was elected to the City Council in 1990. Education: Bachelors and Master degree in Civil Engineering, University of Washington. Mr. Arness is a registered professional Civil Engineer in California and recently retired as Director of Public Works for the City. Currently. Mr. Arness is a representative on the Redding Area Bus Authority, Northern California Power Agency, MSR Power Agency. Central California Power Agency, Transmission Agency of Northern California, and serves as a liaison to the Electric Utility. LEE D. FULTON, M.D., member, was elected to the City Council in 1964 and is currently in his 25th year of service on the City Council. Education: Bachelor's Degree from the University of California. Berkeley, California, and M.D. Degree from the University of California School of f I' II • 0 I'Ii ' City of Redding Estimated Population Growth 1990-2010 I i Annualized year Population Growth 11 1990 64,912 4.2% 1995 78,591 3.6 ' 2000 92,284 2.9 2005 105,487 2.8 2010 116.656 2.4 Source: City of Redding Population Forecast prepared by Economic Sciences Corporation April 28. 1989. 1 The Redding area is expected to have 40 or more percent of the total Shasta County population because of a variety of factors that will support urban development, including sewers, public water supply,jobs. shopping, recreation opportunities and reduced commute costs. AP�� APo Housing Housing in the City is less costly than in other urban areas in the State of California. The following table sets forth the median price of homes in urban areas of California. Comparison of Housing Costs Single Family (1989) J Redding Sacramento San Jose San Diego Los Angeles San Joaquin Valley Median priced 1 three-bedroom $83,500 $107.895 $268,903 $177,736 $220,253 $96,510 ihome Comparison of Housing Costs Multi-Family(1989 ! Redding Sacramento San Jose San Diego Los Angeles San Joaquin Valley Median rental rate of a two-bedroom apartment $300-465 $375-525 $650+ $500+ $500+ $375-525 Source: California Association of Realtors. Industry and Employment Extractive timber and the processing of wood by-products, together with agriculture, tourism and government, have historically been the major sectors of employment in the City. Over the last decade, the City's economic base has diversified to a regional services economy supported by retail and wholesale trade plus educational, recreational, medical and government services for an area covering several counties. The major employers in the City d the County include those in medical services, heavy forest products, government andj lephon ervices. Major employers, their products or services, and "the Trumberof ei respective emp oyees in 1988 are listed in the following table. Vr. 0,1 div. Y,. II • • • S • City Redding/Shasta County Major Employes 1ett8 li Company Product/Services Employees Mercy Medical Center Medical facilities and services 1,025 Simpson Pager Co. Paper products 650 Redding Medical Center Medical facilities and services 616 Shasta Community College Education 520 Roseburg Lumber Co. Plywood and lumber 500 Citizens Utilities Telephone company 370 United States Post Office Postal services 256 Pacific Bell Telephone company 244 Coopervision Electronic medical equipment 231 Sierra Pacific Industries Lumber 225 I � . I Source: "Economic Profile for Redding, Shasta County California", prepared by the greater Redding Chamber of Commerce 1988. The City has attracted new manufacturing industries through a combination of industrial development policies, the availability of a growing labor pool, comparatively low development and living costs and inexpensive power. A consistent factor in the growth of the labor force continues to be the out-migration of all types of workers from the population centers of Southern California and the San Francisco Bay area to Shasta County and other Northern California counties. A large portion of the in-migrants possess high technical and administrative skills. The following table summarizes employment by industry of workers in the County in 1984 through 1988. The figures presented are annual averages which are estimated by the State Department of Employment Development. • I i I I li Ii I' .. . ,, 1 . . . . , • ill . , h 1 , . Shasta County Labor Market Survey !, Annual�;� Average Employment88 14 to 1988 1984 1985 1 1987 1988 Agriculture, forestry and fishing 1.325 1.175 1,025 1.150 1,025 i Construction and mining 2,225 2,378 2,750 3.025 3,250 Manufacturing: Lumber and wood products 2,100 1.800 1,875 2,125 2,500 Other manufacturing 2.625 2.575 2.375 2,525 2,675 ' Transportation and public utilities 2,775 2,850 2.925 3,025 3,275 Wholesale trade 1,825 1,925 2.075 2,125 2,175 Retail trade 7,950 8,275 8.625 9,550 9,975 Finance, insurance and real estate 1,500 1.525 1.500 1,525 1,550 I . Services (1) 7,750 8,325 9.075 10,700 11,325 Government: (1) i Federal 1,125 1,150 1,175 1,200 1,225 State 1,100 1,075 1.100 1,150 1,200 Local and education(2) 5.550 5.750 5.975 5.250 5.200 Total 37,850 38,803 40,475 44,375 46,475 Source: State of California Department of Employment Development (I) Includes hotels and other lodging, business services, health service and other service. (2) Local government includes employees of counties, cities and special districts. Education includes employees of public schools at both the state and local levels. 1 I According to the State Department of Labor, the unemployment rate of the City's metropolitan area was 8.1% in September 1988. Since 1984, unemployment within the City's metropolitan area has decreased 6.0%, from 14.1% in 1983 to 8.1% in 1988. The following table sets forth the number and rate of unemployed persons living within the City's metropolitan area in 1984 through 1988. I Civilian Labor Force and Unemployment Redding Metropolitan Statistical Area (Shasta County) 1983 to 1988 I Labor(1) Unemployment(2) 1 ' Year Force Number Rate 1984 52,975 7,475 14.1 1985 51,900 6,925 13.3 1986 52,875 5,975 11.3 1987 55,150 5,150 9.3 ' 1988 58,775 5,275 9.0 li ' (1) Civilian labor force and unemployment by place of residence. (2) The number includes all persons without Jobs who are actively seeking work. The unemploy- ment rate is computed from unrounded data; therefore. it may differ from rates computed from rounded I figures in this table. ' i Source: State Department of Employment Development. ; II { , i ! I I: S Corstruction Activity For the ten years ending December 1988, the City issued commercial and residential building permits valued at a total of$655,514.321. In calendar year 1988 alone. 1.735 commercial and residential building permits were issued with a total value of$90.512,932. The 1988 total value of commercial and residential construction permits represents a 21.79% decrease over the prior fiscal year. This is the result of 1987 being a record setting year for building activities in the City. New residential construction over the ten-year period represents 56% of the total construction activity. Over the same period the City has seen continual growth in its stock of I commercial buildings. The annual number of commercial construction permits over the ten- year period has ranged from a low of 24 in 1982, a period of high interest rates and a nationwide recession in the building industry, to a high of 80 in 1979. The following table sets forth the value and number of permits for single family, multiple dwellings and businesses located in the City for the five fiscal years ended June 30, 1988. City of Redcling Value and Number of Permits for Single Family and Multiple Dwellings and Businesses for Fiscal Years 1984 through 1988 1984 1985 1281987 1988 Value-Single Family $25,306.375 $331,360,634 $44,497,412 $51,913,764 $46,359,828 Number of permits 413 530 653 725 687 Value-Multiple Dwellings $12,951,176 516.627,338 $9,804,808 $9,098,682 $6,268,944 Number of Permits 34 87 20 30 13 Value-Business 518,937,390 $13,573,377 S11,842,331 $21,053,060 $19,820,780 Number of Permits 53 44 38 60 55 Value-Total All Permits $57,194,941 $361,561,349 $66,144,551 $82,065,506 $72,449,552 Source: 1989 City of Redding Planning and Progress Guide. Commerce The City is a regional center of commerce for several Northern California counties. This is evidenced by its many shopping centers and malls, including two new regional shopping centers located in the Canby-Hilltop-Cypress Redevelopment Project area. Support for retail sales is derived from a retail trade area population of approximately 220,000 people for appliance commodities and approximately 80,000 to 100,000 people for convenience commodities. Large portions of this trade is drawn from Trinity, Tehama. Siskiyou and Lassen Counties. The City has the highest retail sales for taxable items per capita of any California city north of Sacramento. Taxable transactions in the Citytopped $823,235,000 in 1988. The number of outlets reporting taxable sales to the CaliforniState Board of Equalization increased from 1,883 in 18 2,404 in 1988. These trends are reflected in the following table. I is • , . . • • Iia, , . • I Taxable. , , , 1 of Redefizyj Transactions For Fiscal Years 1980 through 1988 1:1 . Fiscal Year Number of Outlets Taxable Transactions ' + 1980 1.883 $478,456,000 1981 2.014 472,586.000 ' 1982 2,030 446,063,000 1983 2,025 525.097.000 1984 2,136 593,327,000 I� , 1985 2,195 645,807,000 ii 1986 2,273 679,130,000 it 1987 2,321 750,949,000 II 1988 2,404 823,235,000 i Source: California State Board of Equalization. i 1 1 The following table sets forth a breakdown of taxable sales by type of business for the City for I fiscal year 1988. . i City of Redding , , Taxable Transactions by Type of Business for Fiscal Year 1988 (in thousands of dollars) Number of Taxable Business Outlets Transactions ' iApparel Stores 64 $22,235 General Merchandise Stores 22 90,303 Drug Stores 17 29,882 Food Stores 62 53,679 I Package Liquor Stores 13 7,519 Eating and Drinking Places 217 62,886 { Home Furnishings, Appliances 92 28,227 I + Building Materials, Farm Implements 69 94,580 Auto Dealers and Auto Supplies 91 153,850 1 Service Stations 45 47,064 I. Other Retail Stores 382 77.482 Total Retail 1,074 $667,725 it I All Other Outlets 1,380 $155.510 II 'I Total Outlets 2,404 $823,235 Source: California State Board of Equalization. , II Transportation I The City enjoys a strategic location on U.S. Interstate Highway 5, the principal transportation artery running north-south from Mexico to Canada which connects the City to an estimated Pacific Coast marketplace of 31 million people. The City is also bisected by State Highway 299, Ithe key east-west transportation artery in northern California. ' I II I .III li . . . i • The City is served by the Southern Pacific and Amtrak for rail transportation, and Greyhound and Continental Trailways for bus service. United Express Airlines and American Eagle Airlines provide air service from the Redding Municipal Airport to cities throughout 1` California and the Pacific Northwest. Eight truck terminals are located in Shasta County and daily service is provided by six major carriers. 'THE RIDE" is the City's multi-bus transportation system and offers eight different fixed routes and demand response services. For fiscal year 1989, 'THE RIDE" had an average total monthly ridership of 36,090, of which 30,680, or 85 percent. were paid riders. Utilities Electricity, solid waste collection, water and wastewater services are provided by utilities owned and operated by the City. Natural gas is provided by Pacific Gas and Electric Company. Telephone service is provided by Pacific Bell. i Community Services The City has 12 elementary schools, two middle schools, three private schools and three high schools. The school system employs 505 teachers. Shasta College, a two-year institution, offers both day and evening courses to approximately 10,000 students. In addition, Simpson College, a four-year liberal arts institution located in the City, will commence operations in September 1989. The City's parks system includes 23 improved parks, 19 open space parks, and 13 unimproved parks. Total park lands encompass 3,078 acres. City operated cultural facilities include the Redding Museum and Art Center,the Carter House Science Museum, the Martin Luther King. Jr. Memorial Center. the Teen Center, and a senior citizens center. The Redding Convention rt Center hosts the Shasta Symphony. conferences and conventions. The City serves as the primary medical center for Northern California. The City's two hospitals serve approximately 220.000 people in Tehama, Trinity, Siskiyou and Lassen Counties. The two general care hospitals have a total of 418 beds and employ over 1,083 full- time staff members, plus another 533 part-time employees. I i . ji i l , i , I , � 1 1 0 ! ' • I , CITY FINAINICIAL DATA The following financial data is included only for the purpose of providing genera inforriatlM Assessed Valuations The assessment and collection of taxes is the responsibility of Shasta County. City taxes are collected at the same time and on the same tax rolls as are Shasta County. school district. and special district taxes. Assessed valuations are the same for both City and Shasta County taxing purposes. j; California law exempts $7,000 of the full cash value of an owner-occupied dwelling, but this exemption does not result in any loss of revenue to local agencies, since an amount equivalent to the taxes which would have been payable on such exempt values is paid by the State of California. ; The following table shows the taxable valuation of the City by tax roll for the last ten fiscal years. City of Redding Actual Value of Taxable Property(0 For Fiscal Years 1979 through 1989 Fiscal Year Secured Roll Unsecured Roll Total 1978 - 1979 $ 55,966,156 $ 85,740,000 $ 641,706,156 1979 - 1980 652,138,000 106,500,000 758,638,000 1980- 1981 821,316,212 74,407,796 895.724,008 1981 - 1982 947,094,550 90,930,910 1,038,025,460 1982 - 1983 1,140,137,915 82,170,805 1,222,308,720 1983 - 1984 1,242,597,390 84,866,370 1,327,463,760 1984 - 1985 1.345,884.050 109,236,275 1,455,120,325 1985 - 1986 1,469,779,770 123,715,455 1,593,495,155 1986- 1987 1,585,752,950 131,776,665 1,717,529,615 1 1987 - 1988 1,722,844,792 146,982,677 1,869,827,469 198.8 - 1989 1,933,990,443 152,238,603 2,086,229,046 (1)All valuations shown are "full cash value", before deduction of State-reimbursed exemptions. Includes redevelopment incremental valuation. Source: 1989 City of Redding Comprehensive Annual Financial Report and City Finance Department. City Property Tax Levy Procedures The rate of tax that the City receives is determined by a formula prepared by the County Tax Assessor, in accordance with the laws of the State of California. The City receives its proportionate share of property taxes in several installments commencing November 30 of each calendar year. The following table shows the record of tax collections over the last ten fiscal years. jl l . S . 11 City c Redding I Taxable Valuations-Tangible Property Tax Levies and Collections for )tel Years 1979 through 1989 i. li Total Tax Delinquent Percent of Fiscal Total Tax Current Tax Tax Total Collections Year Levy Collections Collections Collections To Tax Levy 1978/79 $1,277,587 $944,476 $156,644 $1,101,120 86.19% 1979/80 1,695,775 1,554,132 109,143 1,663,275 98.08 1980/81 1,921,948 1.682,766 109,584 1,792,350 93.25 1981/82 2.188,291 1,982,393 283,562 2,265,955 103.56 1 1982/83 2,673,106 2,248,393 157,467 2,405,860 90.00 I 1983/84 2,895,432 2,482,454 189,561 2,672,015 92.28 I 1984/85 3,013,756 2,693,582 204,470 2,898,002 9616 1985/86 3,155,295 3,066,434 250,485 3,316,719 105.13 • 1986/87 3,375,031 3,315,276 300,224 3.615,500 10712 1987/88 3,665,800 3,548,597 250,977 3.799,574 103.67 i ' 1988/89 3,890,515 3,798,606 207,161 4,005,767 102.96 1 Source: 1989 City of Redding Comprehensive Annual Financial Report. I ' Revenues, Expenditures and Fund Balances The following table presents a summary of revenues, expenditures and fund balances of the City for the past five fiscal years, as reported in the City's annual financial statements. Copies of the City's audited financial statements are available upon written request directed to: Director of Finance, City of Redding, 760 Parkview Avenue, Redding, California. II I Pension Plan All full-time City employees are members of the State of California Public Employee's Retirement System. The City's policy is to fund all pension costs accrued. Such costs to be funded are determined annually as of July 1 by such System's actuary. iii Outstanding Indebtedness ' 1 The following table sets forth the total outstanding indebtedness of the City of Redding as of j June 30, 1989. Type of Outstanding Anticipated Source • Obligation principal Amount of Payment 1 General Obligation Debt $ 999,154 Enterprise funds General Obligation Debt 34,766 Government funds ' Revenue Bonds 29.083,359 Enterprise funds Certificates of Participation (1) 68.414,581 Proprietary funds Capital Leases 685,100 Enterprise funds ' ; Capital Loan 1,063,944 Internal service ! and government funds. TOTAL $109,235,904 1 I f1' it I 1 0 • •Direct and Overlapping Bonded Debt The following table shows a statement of direct and overlapping bonded debt for the City as of June 30, 1989. The total net direct and overlapping debt is$16.216.079. City of Redding Statement of Direct and Overlapping Bonded Debt as of July 10, 1989 .1988-89 Assessed Valuation: $1,778,940,641 (after deducting • $165,013.284 redevelopment tax allocation increment) iI Direct and Overlapping Debt; % Applicable Debt 8/1/89 { Shasta County Public Facilities Corporation 41.258% $6,456,551 Shasta-Tehama-Trinity Joint Community College District 30.346 242,768 Anderson Union High School District Authority 4.960 603.086 Columbia School District 34.746 4,169 Enterprise School District (Various issues) 97.383-97.488 27,289 Pacheco Union School District 37.493 2,999 Shasta Lake Union School District 19.820 5,153 Other School Districts Various 50 City of Redding 100.000 6.580,000(1) City of Redding Building Authorities 100.000 4,165,000 City of Redding 1915 Act Bonds 100.000 11,436.189 Total Gross Direct and Overlapping Bonded Debt $29,523,254 Less: City of Redding self-supporting bonds 7,445,000 Total Net Direct and Overlapping Bonded Debt $22,078,254 (1) Excludes sewer limited obligation bonds to be sold. I j Ratios to Assessed Valuation: Direct Debt($10.745.0001 0,6% 'Inta)Grass Debt 1.66% "Thal NetDeLt 1,24% Share of Authorized and Unsold Bonds: Various School Districts $26,731 i State School Building Aid Repayable as of 6/30/89: $2,335,508 � I . � I I• 111, 0 , I CI°I°T OF REDDING GENERAL FUND Statement of Revenues,Expenditures and Changes in Fund Balance For the Five Fiscal Years Ended June 30, 1989 ' 1 . Revenue 1983-1984 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 Property Tares $2,474,315 $3,003,480 $3,184,463 $3,545,080 $3,403,313 $3,842,475 Sales&Use Taxes $7,551,818 $8,366,311 $8,507,087 $9,023,246 $10,035,710 $10,832,990 Licenses& Permits $375,302 $404.501 $502,547 $699,618 $491,088 $1,030,571 , Intergovernmental Revenue $957,867 $1,949,408 $2,048,067 $2,613,639 $2,967,680 $3,282,759 Charges for Services $232,027 $286,134 $309,083 $405,837 $436,834 $764,970 Fines, Forfeitures&Penalties $150,499 $199,646 $241,268 $229,016 $231,147 $244,942 Use of Money&Property $440,156 $1,268,458 $802,900 $695,886 $693,612 $1,840,207 Other $320,971 $239,647 $386.012 $580,311 $307,675 $526,678 ; Total Revenue $12,502,955 $15,717,585 $15,981,427 $17,792,633 $18,567,059 $22,365,592 I it Expenditures I , Current: 1 General Government $1,182,203 $958.627 $1,182,172 $1,344,472 $1,577,570 $2,531,851 j ' Publtc Safety $6,930,096 $7,302,533 88,394,821 $9,947,103 $9,581,123 $10,856,495 Planning $879,853 $959,340 $1,133,248 $1,303,096 $1,257,061 $3,806,751 Public Works $2,919,720 $3,512,838 $4,060,628 $4,500,004 $4,061,705 $1,486,855 Parks,Recreation&Culture $1,295,246 $1,418,043 $1,542,953 $1,873,316 $1,962,089 $2,143,347 Midtown Mall $225,070 $215,980 $188,753 $193,437 $227,134 $287,922 Non-Departmental $560,569 ' 1 Capital Outlay $1,161,685 $2,080,371 $1,392,782 $2,479,386 $2,734,297 $3,471,022 Debt Service_ Principal Retirement $90,680 $195,691 $17,908 $23,643 $119,534 Interest&Fiscal Charges $24,953 $68,346 $35,120 $49,079 $89,908 j Total Expenditures $15,154,442 $16,563,365 $18,159,394 $21,693,842 $21,473,701 $24,793,685 (Excess)of Expenditures , � Over Revenue ($2,651,487) ($845,780) ($2,177,967) ($3,901,209) ($2,906,642) ($2,428,093) II Other Financing Sources (Uses) $3,545,107 $1,752,100 $2,261,375 $1,910,855 $2,928,321 $1,637,864 , Excess of Expenditures and j� Other Uses Over Revenue and Other Sources $893,620 $906,320 $83,408 ($1,990,354) $21,679 ($790,229) Fund Balance. Beginning of Year $3,840,380 $4,652,684 $5,640,328 $5,723,736 $3,733,382 $3,755,061 1 { Fund Balance, End of Year $4,652,684 $5,640,328 $5,723,736 $3,733,382 $3,755,061 $2,964,832 j I Source: Comprehensive Annual Financial Report of the City 1 J i ;1 ' I , j ' i l i 1, I 1, li j a • I I APPENDIX C OPINION OF BOND COUNSEL fi. I I• L ' • ~ .- .•, a • Euoaxc K SNlt(}IS STURGI9. .NESS,RRUNSELI.&SPERRY (415) 652-7588 j rldg4_12761 a profeaaional corporationFwx:(413)852.0190 1 EDWIN N.Num Roma OrttJNS u. 2000 Powell Street.Suite 1690 , SAMUEL A.SPERRY MAI.ADDRESS: DANIEL C.Boar Emeryville.California 94808-1844 POST OFFICE BOX 8808 ; Ti1LtP D.AssAY EMERYVILLE.CA 94662 I I OPINION OF BOND COUNSEL I � LIMITED OBLIGATION IMPROVEMENT BONDS , S.A.V.I. ASSESSMENT DISTRICT NO. 1988-4 CITY OF REDDING, SHASTA COUNTY, CALIFORNIA 11 We have acted as bond counsel for the City of Redding for the II issuance of improvement bonds representing unpaid special ` i assessments in S.A.V. I. Assessment District No. 1988-4 , City of , 1 Redding, Shasta county, California. We have examined the law and such certified proceedings and other documents as we deem necessary to render this opinion. I : we have not incependently verified questions of fact but have relied on the certifications of public officials. Nor have we I : reviewed the accuracy or sufficiency of the offering material related to the sale of the bonds. Based on our examination, we are of the following opinion: l ' H 1. The unpaid assessments in 8.A.V.I. Assessment ] ; District No. 1988-4, City of Redding, Shasta County, California, o. were validly levied and now constitute a lien on the parcels of Hi land assessed, as provided in the Municipal Improvement Act of 1913 of the State of California. Bonds representing the unpaid ! , assessments were validly issued under the provisions of the ' 1 ! Improvement Bond Act of 1915 of the State of California. 11 ' 2 . The bonds are valid special obligations of the City : ; of Redding, payable solely from the redemption fund, into which are placed all sums received from the collection of installments i ' of principal and interest on the unpaid assessments. The bonds H are enforceable in accordance with the Improvement Bond Act of 1915. Ii , 3. Interest on the bonds is not includable in the 0j gross income of the bondholder for purposes of federal income ;II taxes under existing statutes, regulations and court decisions. H Interest on the bonds is not a preference item for federal individual or corporate alternative minimum taxes, but is [ , H included in adjusted net book income and adjusted current I earnings when calculating corporate alternative minimum taxable 11 income. Interest on the bonds is exempt from State of California II ; i personal income taxes. The federal tax-exempt status of bond I ' II 1 A I • II Opinion of Bond Counsel Page 2 interest depends upon continuing compliance by the issuer with the arbitrage covenant contained in the Resolution Authorizing Issuance of Bonds. 4 . The rights of the bondholders and the enforceability of the bonds may be subject to bankruptcy, � insolvency, reorganization, moratorium and other similar laws affecting creditors ' rights, heretofore or hereafter enacted. Enforcement of the bonds may be subject to the exercise of judicial discretion in accordance with general principles of equity. STURGIS, NESS, BRUNSELL & SPERRY a professional corporation By: Samuel A. Sperry i ; Dated as of May 29, 1990 I I 1 . I III ,,I II I ' I 1 ' t I , I t.• 11' I • • `11 I I I I , II • I .1 • APPENDIX D CUSIP NUMBERS I , • , 1,