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Reso 1990-283 - Authorizing issuance of series A bonds
• 411 I ,,, i RESOLUTION NO. i RESOLUTION AUTHORIZING ISSUANCE OF SERIES A BONDS COLLEGE HIGHLANDS ASSESSMENT DISTRICT NO. 1989-4 The City Council of the City of Redding resolves: Section 1. RECITALS. On Tuesday, December 5, 1989, the City Council of the City of Redding adopted its resolution of intention, as later amended, to order improvements in College Highlands Assessment District No. 1989-4, City of Redding, Shasta County, it California, under the provisions of the Municipal Improvement Act of 1913 (the "Act") , as amended. Proceedings taken under the Act led to the levy of a special assessment by the City against parcels of land within the assessment district in the total amount of $1,550, 098.25. These assessments will be recorded in the office of the County Recorder of the County of Shasta, and thereupon will become a lien on each parcel assessed. Section 2 . ISSUANCE OF BONDS. The City hereby authorizes the issuance of Series A improvement bonds under the provisions of the Improvement Bond Act of 1915 to represent unpaid assessments in the amount of $744, 817. 65. Each bond shall be designated, "Limited Obligation Improvement Bond, City of Redding, College Highlands Assessment District No. 1989-4, Series 1989-4A. " Bonds shall be dated approximately the date of delivery and issued in denominations of $5, 000 or integral multiples thereof, except for Bond No. 1, which shall be an odd amount. Bonds shall mature in principal amounts as set forth in the table attached as Exhibit A. The bond date and interest rates on the bonds shall be as set forth in the bond purchase agreement. ORIGINAL i • It is the intention of this Council hereafter to issue one or more additional series of bonds. Any additional issues, if and when issued, will be on a parity with the Series A bonds for all purposes. Except as expressly otherwise stated in this resolution, all references to "the bonds" shall be deemed a reference to all 1 bonds of the Series A issue, and future issues, taken together as a single composite bond issue, it being the intention of the City Council that said bonds, though issued in separate series, shall be administered as a single bond issue for all purposes of the Improvement Bond Act of 1915. Section 3 . APPOINTMENT OF PAYING AGENT, REGISTRAR AND TRANSFER AGENT. The City Council hereby appoints Bankers Trust Company of California, National Association, as paying agent, registrar and transfer agent for the bonds in accordance with an agreement between the City of Redding and Bankers Trust Company of California, National Association. Section 4 . FORM AND EXECUTION. Bonds shall be issued as fully registered bonds substantially in the form set forth as is Exhibit B to this resolution. The bonds shall be signed by the City Treasurer and the City Clerk and the seal of the City shall be affixed. Both signatures and seal may be reproduced on the bonds by facsimile, but upon its registration or reregistration each bond shall be authenticated by the manual signature of the registrar. 1 Ij The paying agent shall assign to each bond authenticated and registered by it a distinctive letter, or number, or letter and H number, and shall maintain a record thereof which shall be i; available to the City for inspection. 1I V� l i li 110 Section 5. ESTABLISHMENT OF SPECIAL FUNDS. For administering the proceeds of the sale of bonds and payment of interest and principal on the bonds, there are hereby established five funds to be known as the improvement fund, the redemption fund, the special reserve fund, the investment earnings fund and the arbitrage rebate fund, respectively, for College Highlands Assessment District No. 1989-4. Section 5. 1. IMPROVEMENT FUND. Except as provided in Section 5.3 , proceeds of sale of the bonds, together with all amounts paid on the assessments before bond issuance, shall be deposited in the i , improvement fund to be maintained by the City Treasurer. Disbursements from the improvement fund shall be made by the City Treasurer in accordance with the budget of estimated costs and expenses set forth in the amended engineer's report heretofore approved by the City Council, which report and budget are subject to modification by the City Council from time to time as prescribed by the Act. Section 5.2 . REDEMPTION FUND. 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 before maturity, and all interest on the bonds shall be made from the redemption fund. Section 5. 3 . SPECIAL RESERVE FUND. The special reserve fund shall be maintained by the City Treasurer. There shall be is deposited into the special reserve fund the amount of $67, 033 . 59 , e i (the "Reserve Requirement") from the proceeds of the sale of bonds. 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 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. B. If any assessment is prepaid before final maturity of the bonds, the amount of principal which the assessee is required to prepay shall 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 li 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 110 0 ' due from assessed property owners shall be cancelled without payment. Section 5. 4. INVESTMENT EARNINGS FUND. Proceeds of the investment of amounts in the improvement fund and the special reserve fund 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 must be rebated to the United States pursuant to Section 148 of the United States Internal Revenue Code and regulations adopted thereunder. Any amounts required to be rebated will be transferred to the arbitrage rebate fund, and the balance will be transferred as follows: (a) To the extent that the balance in the special reserve fund is less than the Reserve Requirement, a transfer will be made from the investment earnings fund to the special reserve fund. (b) The remaining balance in the investment earnings fund, if I , any, will be transferred to the improvement fund until the improvement is completed and the improvement fund is closed; , I thereafter the balance in the investment earnings fund will be transferred to the redemption fund to be used, in the discretion of the City Treasurer, as a credit upon the annual installments of assessment or for the advance retirement of bonds. The City Treasurer is authorized to retain independent attorneys, accountants and other consultants to assist in complying with Federal requirements. Section 5.5. ARBITRAGE REBATE FUND. Amounts in the arbitrage rebate fund shall be invested in the same manner as amounts in the ill i other funds and shall be held in trust for rebate to the United States at the times required by Section 148 of the United States Internal Revenue Code and regulations adopted thereunder. Section 6. PAYMENT ON BONDS. The principal and interest on the bonds shall be payable at the office of Bankers Trust Company of California, National Association, 50 Fremont Street, 10th Floor, San Francisco, California 94105. Principal and interest shall be paid by check, draft or warrant mailed to the registered owner of each bond at the owner's address appearing on the register maintained by the registrar on the 15th day preceding the date of interest payment or maturity of each bond. Section 7. ADVANCE RETIREMENT OF BONDS. Any Bond or any portion thereof in the amount of $5, 000 or any integral multiple thereof, may be redeemed and paid in advance of maturity upon the second day of March or September in any year by giving at least 30 days' notice by registered or certified mail or by personal service to the registered owner hereof at such owner's address as it appears on the registration books of the Bank and by paying principal and accrued interest together with a premium equal to three percentum of the principal. Section 8 . REREGISTRATION. Any bond may be registered to a new owner by completing the assignment certificate on the reverse of the bond and delivering the bond to the registrar. Upon reregistration, any bond may be replaced by one or more bonds of the same maturity and aggregate amount in denominations of $5000 or any integral multiple thereof. rl • S 1 Section 9 . COVENANTS. In the event of a default in the payment of any bond or any installment of interest thereon, bondholders shall have the remedies set forth in the Improvement Bond Act of 1915. In addition, the City Council makes the following covenants, which shall constitute a contract with the bondholders: Section 9 . 1. FORECLOSURE OF LIENS. 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. H, Section 9. 2. ARBITRAGE. During the term of the bonds, the I City will make no use of bond proceeds which, if such use had been reasonably expected at the date the bonds are issued, could have caused the bonds to be "arbitrage bonds" within the meaning of 1. Section 148 of the United States Internal Revenue Code of 1986, and regulations of the Internal Revenue Service adopted thereunder, and further shall rebate to the United States any amounts actually earned as arbitrage in accordance with the provisions of that Code I ' and those regulations. Section 9 . 3 . MAINTENANCE OF TAX EXEMPTION. The City will take 11 all reasonable actions required to maintain the status of interest 1 ! on the bonds as excludable from gross income for federal income tax I purposes and as exempt from the State of California personal income taxes. J : • • 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 5th day of June, 1990. AYES: COUNCILMEMBERS Arness, Dahl , Fulton, Moss & Buffum NOES: COUNCILMEMBERS None ABSENT: COUNCILMEMBERS None ETHEL A. NICHOLS, City Clerk, City of Redding, Shasta County, California By Cie etil• 7y.e. .6- . Ethel A. Nichols, City Clerk li • MATURITY SCHEDULE OF BONDS CITY OF REDDING College Highlands A.D. No. 1989-4 (Series A of Bonds) Bonds mature on September 2 in the years and amounts, and bear interest at the annual rates, set forth below. YEAR FACE AMOUNT RATE(%) 1991 19, 817 . 65 6.500 1992 30, 000.00 6.600 1993 35, 000. 00 6.700 1994 35, 000. 00 6.800 1995 40, 000.00 6.900 1996 40, 000.00 7.000 1997 45, 000. 00 7. 100 1998 45, 000. 00 7.200 1999 50, 000. 00 7.250 2000 55, 000. 00 7. 350 2001 60, 000. 00 7.400 2002 65, 000. 00 7 .450 2003 70, 000. 00 7.550 2004 75, 000. 00 7. 600 2005 80, 000. 00 7. 600 I TOTAL: 744 , 817. 65 EXHIBIT A Illnited States of America • State of California County of Shasta REGISTERED REGISTERED Number LIMITED OBLIGATION IMPROVEMENT BOND CITY OF REDDING COLLEGE HIGHLANDS ASSESSMENT DISTRICT NO. 1989-4 SERIES 1989-4A INTEREST RATE MATURITY DATE BOND DATE CUSIP NUMBER REGISTERED OWNER: PRINCIPAL SUM: DOLLARS Under and by virtue of the Improvement Bond Act of 1915, Division 10 (commencing with Section 8500) , of the Streets and Highways Code, (the "Act") , the City of Redding, County of Shasta, State of California, (the "City") , will, out of the redemption fund for the payment of the bonds issued upon the unpaid portion of assessments made for the acquisition, work and improvements more fully described in proceedings taken pursuant to Resolution of Intention No. 89-443 , adopted by the City of Redding on the 5th day of December, 1989, as later amended, pay to the registered owner stated above or registered assigns, on the maturity date stated above, the principal sum stated above, in lawful money of the United 11 States of America and in like manner will pay interest from the interest payment date next preceding the date on which this Bond is authenticated, unless this Bond is authenticated and registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or unless this Bond is authenticated and registered prior to March 2 , 1991 in which event it shall bear interest from its date, until payment of such principal sum shall have been discharged, at the rate per annum stated above, payable semiannually on March 2 and September 2 in each year commencing on March 2, 1991. Both the principal hereof and redemption premium hereon are payable at the principal corporate trust office of Bankers Trust Company of California, National Association, or its successor, as Transfer Agent, Registrar and Paying Agent, in San Francisco, California, and the interest hereon is payable by check or draft mailed to the owner hereof at the owner' s address as it appears on the registration books of the Bank, or at such address as may have been filed with the Bank for that purpose, as of the fifteenth day immediately preceding each interest payment date. REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH IN THE REVERSE SIDE HEREOF WHICH SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN. This Bond will continue to bear interest after maturity at the rate above stated, provided, it is presented at maturity and EMI g QU It ES thereof is r•sed upon the sole ground •t there are not payment sufficient moneys in said redemption fund with which to pay same. If it is not presented at maturity, interest thereon will run until maturity. This Bond shall not be entitled to any benefit under the Act or the Resolution Authorizing Issuance of Bonds (the "Resolution of Issuance") , or become valid or obligatory for any purpose, until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Bank. IN WITNESS WHEREOF, said City of Redding has caused this Bond to be signed in facsimile by the City Treasurer of said City and by its Clerk, and has caused its corporate seal to be reproduced in facsimile hereon all as of the 20th day of June, 1990. 1I CITY OF REDDING Clerk Treasurer (SEAL) 1 CERTIFICATE OF AUTHENTICATION AND REGISTRATION i This is one of the Bonds described in the within mentioned Resolution of Issuance, which has been authenticated and registered on , 1990. BANKERS TRUST COMPANY OF CALIFORNIA, NATIONAL ASSOCIATION as paying agent, transfer agent and registrar By Authorized Officer 2 • •(REVERSE OF BOND) LIMITED OBLIGATION IMPROVEMENT BOND CITY OF REDDING COLLEGE HIGHLANDS ASSESSMENT DISTRICT NO. 1989-4 SERIES 1989-4A ADDITIONAL PROVISIONS OF THE BOND The total unpaid amount of assessments in College Highlands Assessment District No. 1989-4 is $1, 550, 098.25. The unpaid Series A assessments are represented by this Series A bond issue in the amount of $744, 817. 65. There remains to be issued an amount of $805, 280. 60. All bonds of this Series A issue, together with all bonds hereafter issued shall be administered as a single consolidated bond issue for all purposes contemplated by the Improvement Bond Act of 1915. This Bond is one of several annual series of bonds of like date, tenor and effect, but differing in amounts, maturities and interest rates, issued by the City of Redding under the Act and the Resolution of Issuance, for the purpose of providing means for paying for the improvements described in said proceedings, and is secured by the moneys in said redemption fund and by the unpaid portion of said assessments made for the payment of said improvements, and, including principal and interest, is payable exclusively out of said fund. This Bond is transferable by the registered owner hereof, in person or by the owner' s attorney duly authorized in writing, at said office of the Bank, subject to the terms and conditions provided in the Resolution of Issuance, including the payment of certain charges, if any, upon surrender and cancellation of this Bond. Upon such transfer, a new registered Bond or Bonds, of any authorized denomination or denominations, of the same maturity, for the same aggregate principal amount, will be issued to the transferee in exchange therefor. Bonds shall be registered only in the name of an individual (including joint owners) , a corporation, a partnership or a trust. Neither the City nor the Bank shall be required to make such exchange or registration of transfer of bonds during the fifteen (15) days immediately preceding any interest payment date. The City will not obligate itself to advance available funds from the city treasury to cure any deficiency which may occur in the bond redemption fund. A determination not to obligate itself shall not prevent the City from, in its sole discretion, so advancing funds. The City and the Bank may treat the registered owner hereof li as the absolute owner for all purposes, and the City and the Bank shall not be affected by any notice to the contrary. This Bond or any portion of it in the amount of $5, 000 or any integral multiple thereof, may be redeemed and paid in advance of maturity upon the second day of March or September in any year by giving at least 30 days' notice by registered or certified mail or by personal service to the registered owner hereof at such owner's address as it appears on the registration books of the Bank and by 3 paying principal andOcrued interest together At a premium equal to three percentum of the principal. II I hereby certify that the following is a correct copy of the signed legal opinion of STURGIS, NESS, BRUNSELL & SPERRY, a professional corporation, Emeryville, California, on file in my office. City Clerk 1 I 1 1 I • 1 4 II The information ilkorth in this Official Statement Inc! ding information 1 under the heading 'Bondholders'Risks"should be read in its entirety Official Statement Bond Dated Date Dated June 5, 1990 June 20, 1990 $7449817. i5 :Q !Q M CI BONDS 4,),> (Limited Obligation) I, cCFTY QF NIDWNG 1 n er'%i co© TiRww BALL/2 00m rt/A , ,........: -44 004 zirti , .77_,.: , z ,, , . .,,..4 .4 , .. IL .i "for.. r ,.- '% , ,_..._ ,,,_,. _4 . ‘. 1. -„,„, ,4k. - i L "eh seal I. i Off } - .��i"�e�> _ c a`sz* 15F t ./ , ; :e__..-710" ,, ,„„ -,- ,t,,,,,1 ,,,,,,„.„-,,,,,o--„,,,,Aniu, 1111. 4e;PA7. A� ', ,-.s .?#• 6 4';w.I'Y ,t""�,, ,"P,,. a' sir: i, . yr ',..;. �'kl' ilie , ‘‘ ii,..,.,...,,,i ,„ ,;I COLLEGE HIGHLANDS ii i' ASSESSMENT DISTRICT NO. 1989-4, SERIES A. ., 0. 't 1 Yt Y 1 k - . MARK PRESSMAN ASSOCIATES . Investment Banking • • CITY OF " t`DDING SHASTA COUNTY, CALIFORNIA College Highlands Assessment District No. 1989-4, Series A CITY COUNCIL j Nancy Buffum Mayor Mike Dahl Vice Mayor Lee D. Fulton, M.D Council Member Maurice Johannessen - 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 I! 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 f Registrar, Transfer and Paying Agent ,. MARK PRESSMAN ASSOCIATES Investment Banking 250 Montgomery Street - Suite 1200 San Francisco, California 94104 (415) 421-7300 Managing Underwriter II, 10 11111 I No dealer, broker, salesperson or other individual has been authorized by the Underwriter to give any information or to make any representations, other than those contained in this Final Official Statement, 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 I 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. * . e IN CONNECTION WITH THIS BOND UNDERWRITING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE 1I' MARKET PRICE OF THE BONDS DESCRIBED HEREIN AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING. I I! 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 I ' UNDERWRITER. 1' I'1 ! • MPA STATEMENT NO. 90-10 Ir._ ;I III Ilk II TABLE OF CONTENTS THE BONDS 1 BONDHOLDERS' RISKS 11 1. :?i::`ority for Issuance 1 General 11 S+:: u1e of Maturities 1 Limited City Obligation Upon :1 D.1:-.-d Date 1 Delinquency 12 ,, Ex:--^ted Delivery Date 1 Land Values 12 ' i'a•:hent Dates 2 Factors Which May Affect Land ti:• --d Date 2 Development and Property Values 12 I =ble 2 Property Taxes 12 :-,:s1ration 2 Bankruptcy 12 Der.-rinations 2 4r-',-rnption 2 LEGAL OPINION 13 lir:_:riding 2 ' Dr!-osance 2 TAX EXEMPTION 13 1 i'::r::ose of Issue 3 ABSENCE OF LITIGATION 14 SECURITY FOR THE BONDS 3 , NO RATING 14 As--�ssment. Installments 3 Spe-:al Reserve Fund 4 UNDERWRITING 14 , 1 Ob : ation of the City Upon Delinquency 4 I Ccy:errant to Commence Superior MISCELLANEOUS 15 Court Foreclosure 5 Cc:nnants with Respect to Arbitrage and Maintenance of Tax Exemption 5 APPENDIX A Pr my of Lien 5 THE RESOLUTION 6 ASSESSMENT DIAGRAM A-1 1 APPENDIX B Establishment of Special Funds 6 II' Deb: Service Schedule 7 THE APPRAISAL B-1 • THE CITY 7 APPENDIX C I • THE DISTRICT 7 ECONOMIC - DEMOGRAPHIC PROFILE .C-1 ' THE PROJECT 8 APPENDIX D i. The improvements 8 OPINION OF BOND COUNSEL D-1 Sources and Uses of Funds 9 Me:hod of Spreading Assessments 10 APPENDIX E I Est::Hated Values 10 Value/Lien Ratios 11 CUSIP NUMBERS E-1 I`, THE PROPERTY OWNERS 11 I, i I' l i H. I., li It, • It OFFICIAL STATEMENT $744,817.65 CITY OF REDDING Shasta County, California College Highlands Assessment District No. 1989-4, Series A THE BONDS AiTTHORITY FOR ISSUANCE The bonds designated "College Highlands Assessment District No. 1989-4, Series A, 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. 89-443 adopted December 5. 1989, by the City Council of the City of Redding and proceedings related thereto, and its Resolution No. adopted June 5, 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 June 5, 1990. by the City pursuant to Resolution No. SCHEDULE OF MATURITIES - $744.817.55 Interest Maturity Yield to Approx. Principal Rate September 2 Maturity Price $ 14,817.65 °r6 1991 % 30.E 1992 35,000 1993 i+ 35.000 1994 40,000 1995 40,E 1996 45.000 1997 50.000 1998 50,000 1999 55.000 2000 60•000 2001 65,000 2002 70,0002003 Is 75,E 2004 80.000 2005 DATED DATE I ,. The Bonds are expected to be dated June 20, 1990. " EXPECTED DELIVERY DATE The Bonds will be available for delivery on or about June 20, 1990, at the Bankers Trust Company of California, San Francisco, California. 1 i • PAYMENT DATES The Bonds will pay interest on March 2 and September 2 in each year to the respective dates of maturity of the Bonds except for the first interest payment which will be for interest from June 20, 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 he United States at Bankers Trust Company of California. N.A., San Francisco, C.ii:fornia, or its successor, as Registrar, Transfer Agent and Paying Agent (the "Agent"). 1 .:crest is payable by check or draft mailed to the owner of record at the address as shown by -h e registry records of the Agent or to such address as may have been filed with the Agent for :hat 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 I 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 I will continue to accrue interest. Notice of redemption will be given by registered or certified 11.1' 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 nay-also e-subjeet-to-refunding-In ccotdance with provisions of the California I' Streets and Highways Code. I ' j .. 2 I , il� • • • 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 Division 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 the following. Shasta View Drive: the construction of the intersection of Chancellor Boulevard and Shasta view Drive from curb return to curb return including earthwork, asphalt paving, curb, gutter and sidewalk, striping and all appurtenances. Chancellor Boulevard: the construction of approximately 750 LF of road improvements including earthwork, asphalt paving, curb, gutter and sidewalk, wastewater facilities, underground electric utilities, and all necessary appurtenances. Edinburgh Way and Edinburgh Place: the construction of approximately 580 LF of road improvements including earthwork, asphalt paving, curb, gutter and sidewalk, wastewater facilities, storm drain and underground electrical utilities with all appurtenances. Coll e View Drive (for Simpson College): the widening of approximately 1650 LF of College View Drive including asphalt paving, striping, signage and curb and gutter with all appurtenances. 1 . Wastewater Facilities (for Simpson College): the installation of approximately 1900 LF of 8" diameter wastewater pipe and all necessary appurtenances. Miscellaneous: the installation of approximately 1800 LF of underground electric line in Chancellor Boulevard. Installation of approximately 3500 LF of 8" diameter wastewater pipe from College Highlands to Churn Creek. i 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." . j, SECURITY FOR THE BONDS 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--F-und and-#he Reserve Fi unci rrpated - 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. 3 ► i, s • • Alt hough 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. rl II Ii For additional pertinent information, the reader is referred to the section herein entitled Bc:.dholders' Risks." SPECIAL RESERVE FUND Upon issuance of the Bonds, an amount of nine percent (9.0%) of the principal amount of the Bonds ($67,033.59) shall be deposited in the Special Reserve Fund (the "Reserve Requirement") out of Bond proceeds. The Special Reserve Fund shall be maintained by the I City Treasurer. i I I 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 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. B. If any assessment is prepaid before final maturity of the bonds, the amount of I I.! principal which the assessee is required to prepay shall 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 ► F from the Special Reserve Fund to the redemption fund in the same amount. I • I 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 I' 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 I I Under the Bond Act, the City can determine prior to issuing the Bonds pursuant thereto, II 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 8769(b) of the Bond Act that it will not obligate itself-to g -advance available funds-,from---the City Il_e_aSuly=-t0-=cureZiTiy------- deficiency which-may-occur in the Redemption Fund. A determination not to obligate r. itself 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. I ft the amount of the delinquency. This duty of the City continues during the period of I ;I '� i, 4 • ! • 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 Authorizing Issuance of Bonds (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 assessment before the notice of the sale of such parcel can be given. Furthermore, if the purchaser at the sale is the judgment creditor, i.e., 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, Ii 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 1 . 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 "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. PRIORITY OF LIEN I The assessment (and any further assessment) and each-installment thereof and-any-int-ere-St::: and penalties thereon constitute a lien against the lots and parcels of land on which they I 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. 5 I • 1: As of funding of this bond issue, there are no prior fixed special assessment liens on parcels I. in this District. The amount being assessed against parcels in this District totals $1.550.098.25. This bond issue in the amount of $744,817.65 is for the Series A Bonds only. The authorized, but unissued. Series B Bonds are in the amount of$805,280.60. The Series A and Series B Bonds are parity bonds. When and if the Series B Bonds are issued, they will be co-equal with the Series A Bonds. I ,, THE RESOLUTION ESTABLISHMENT OF SPECIAL FUNDS I :e City will establish five funds to administer the proceeds of the sale of Bonds and 1payment 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 11;. 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. Redemption Fund 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 assessment installments on the parcels within the District. As of September 2 of each year 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. Investment Earnings Fund Proceeds of the investment of amounts in the Improvement Fund and the Special Reserve Fund 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 must be rebated to the United States pursuant to Section 148 of the 11 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. I I . 6 ri I!. • • I '' 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. DEBT SERVICE SCHEDULE The following table sets forth the annual debt service on the Bonds. Interest September 2 Rate Principal Interest Total 1991 % $ 14,817.65 $• $ i 1992 30,000 1993 35,000 1994 35,000 I, 1995 40,000 1996 40,000 I 1997 45.000 1998 50,000 1999 50,000 j 2000 55,000 2001 60,000 2002 65,000 2003 70.000 2004 75,000 ! ' 2005 80,000 TOTALS $744,817.65 $ $ • Interest computed from June 20, 1990, to September 2, 1991. THE 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 C - Economic and Demographic Profile." THE DISTRICT The District is comprised of 18 parcels all of which are being assessed, and is zoned unclassified within the City of Redding. The general plan calls for planned residential development with a density of 3.5 units per acre. Located immediately to the South of the 7 • District is a subdivision, the first phase of which is currently being marketed. These homes are up-scale with completed residences ranging in price from $122,900 to $144,900. Approximately three-quarters of a mile West of the District is a subdivision of which the first phase of 66 lots has been sold out. These homes are moderately up-scale residences ranging in price from $94,500 to $115,850. Located approximately one and one-quarter miles West of the District is Shasta Hills i ' Estates subdivision. Homes are in $100,000+/- price range and are targeted towards seniors as a retirement community. Located in the North of the District is Simpson College, a $6.000,000 four year college that was completed in 1989. All of the residential lots in the District are directly adjacent to the I college. The District is located in north-east Redding, off of Highway 299 approximately one and one-half miles east of Interstate 5. i THE PROJECT THE IMPROVEMENTS I,. The improvements consist of the construction of the following: Shasta View Drive: the construction of the intersection of Chancellor Boulevard and Shasta View Drive from curb return to curb return including earthwork, asphalt paving, curb, gutter and sidewalk, striping and all appurtenances.. II Chancellor Boulevard: the construction of approximately 750 LF of road improvements including earthwork, asphalt paving, curb, gutter and sidewalk, wastewater facilities, underground electric utilities, and all necessary appurtenances. ii Edinburgh Way and Edinburgh Place: the construction of approximately 580 LF of road improvements including earthwork, asphalt paving, curb, gutter and sidewalk, wastewater l fac ities, storm drain and underground electrical utilities with all appurtenances. College View Drive (for Simpson College): the widening of approximately 1650 LF of College i View Drive including asphalt paving, striping, signage and curb and gutter with all appurtenances. f! wastewater Facilities (for Simpson College): the installation of approximately 1900 LF of 8" diameter wastewater pipe and all necessary appurtenances. Miscellaneous: the installation of approximately 1800 LF of underground electric line in Chancellor Boulevard. Installation of approximately 3500 LF of 8" diameter wastewater pipe from College Highlands to Churn Creek. II. • • I ,! i 8 rr it • • SOURCES AND USES OF FUNDS I ' SOURCES: I Par Value $744.817.65 I' USES: Construction Costs $512.901.40 Incidental Expenses City of Redding Plan Check & Inspection Fees $ 2,948.40 i Soils Engineering Fee 2,721.11 Legal (2.5%) 18,620.44 Legal out of pocket 1,500.00 ' Bond Printing 2.000.00 Underwriter's Discount (2.25%) 16,758.40 1 , Bond Service Charge 15.500.00 1 Bond Reserve Fund (9%) 67,033.59 City Treasurer & Finance Dept. 7,448.18 City Clerk 2.000.00 Civil Engineering Fee 60.000.00 Printing, Prep. OS & UWOOP, Misc. & Publication 6,586.13 City of Redding Sanitary Sewer Connection Fees 28.800.00 I $231.916.25 TOTAL TO BOND $744,817.65 I USES OF FUNDS .. te, ee. ,...,:,---4,:,,,,,,,41,-.--,y -- _ __ I 0. nJ.» V:. 0 C \q j Incidental Evenses ♦ w.� x% y ¢ t.s. ,, Constructum Costs ,`+J. :.¢q' ern -M `. . ak' Bond Service Charge s•:::::::::::.. .....,,,,. ', x Ii Sewer Connection Fees z ' '` ,'w r • . �.. aOOLegal Fees �f . P• Y Ne -n 'i Vndrwriter's Discount a v a� y : twYvo v 5�SYZ''ii Tnginuring 9 ii II • 0 Table A Value to Lien Ratio Discounted Bulk Sale Value Assmnt. Value Series A Series A Total Series A + B No As Is Lien Coverage Lien Coverage j,, 1 $1,185,000(1) $12,210.66 2.63 (1) $12,210.66 1.05 (1) 2 12,210.66 12.210.66 II' 3 12,210.69 12,210.69 4 12,210.66 12,210.66 5 12,210.66 12.210.66 6 12,210.66 12,210.66 7 12,210.66 12.210.66 8 12,210.66 12.210.66 9 12,210.66 12,210.66 10 12,210.66 12,210.66 11 12,210.66 12,210.66 ' 12 12,210.66 12,210.66 13 136,000 44,139.40 3.08 44,139.40 3.08 i 14 15 6,500,000 249,440.33 26.06 50,027.01 382,266.38 202,362.78 17.00 H' 16 50,027.01 202,362.78 I' 17 118,245.66 319,867.95 18 86,410.29 252.571.01 I, Total/Avg. $7,821,000 $744,817.65 10.50 $1,550,098.25 5.05 I (1) Includes Assessment Numbers 1-12 and 15-18. These parcels include a total of 79 planned lots, 12 of which are finished lots (Assessment Numbers 1-12) and 67 of which are unimproved lots (Assessment Numbers 15-18). Table B Value to Lien Ratio Retail Value as Finished Lots (after sale of Series B Bonds) IAssmnt. Retail Series A Series A Total Series A + B I, No. Value Lien Coverage Lien Coverage , 1 $53,000 $12,210.66 4.34 $12,210.66 4.34 2 50,000 12,210.66 4.09 12.210.66 4.09 I; 3 60,000 12,210.69 4.91 12.210.69 4.91 4 55,000 12,210.66 4.50 12,210.66 4.50 5 55,000 12,210.66 4.50 12,210.66 4.50 6 53,000 12,210.66 4.34 12,210.66 4.34 7 57,000 12,210.66 4.67 12,210.66 4.67 8 58,000 12,210.66 4.75 12,210.66 4.75 9 57,000 12,210.66 4.67 12,210.66 4.67 10 55,000 12,210.66 4.50 12,210.66 4.50 11 55,000 12,210.66 4.50 12.210.66 4.50 12 53,000 12,210.66 4.34 12.210.66 4.34 13 136,000 44,139.40 3.08 44,139.40 3.08 14 6,500.000 249,440.33 26.06 382,266.38 17.00 15 609,000 50,027.01 12.17 202,362.78 3.01 16 619,000 50,027.01 12.37 202,362.78 3.06 17 1,426,000 118,245.66 12.06 319,867.95 4.46 18 1.055.000 86.410.29 12.21 252.571.01 4.18 I Total/Avg. $11,006,000 $744,817.65 14.78 $1,550,098.25 7.10 Table A shows the discounted "as is" bulk sale value. Table B is the retail value of finished lots without consideration for bulk sale. When this appraisal was written, Series A work had not been completed; therefore, there were no finished lots. As of the date of the Official Statement, Series A work is complete and assessment numbers 1-12 are now finished lots having the value shown in Table B. On issuance of the Series B Bonds, it is expected that all lots will be saleable individually and the Table B values will apply to all lots in the District. 1 12 I t 1 1 • • I.' P i:l 1 THE PROPERTY OWNER Simpson College is presently the only property owner in the District. Simpson College currently intends to subdivide and develop all parcels in the District for sale to the public. Simpson College was founded as Simpson Bible Institute in 1921 by W.W. Newberry in i Seattle, Washington. In 1955, the school moved to San Francisco, and became Simpson Bible College. In 1971, the College celebrated its fiftieth anniversary and was renamed II. Simpson College to more adequately reflect its broadened purpose and curricula. Simpson College moved to the City of Redding in September of 1989 to a new campus which is located just off of Highway 299 about one and one-half miles east of Interstate 5. The 89/90 current student enrollment stands at 297 students. This is a substantial increase over 88/89 enrollment which was 195 students. Students come to Simpson College from several states and various foreign countries including Australia. Canada. China, Germany, and several South American countries. The students are representative of a variety of ethnic bac grounds. BONDHOLDERS' RISKS 111 1, 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 nine percent (9.0%) 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 1'1; 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. I I' 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. I! LIMITED CITY OBLIGATION UPON DELINQUENCY 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 13 ii • •iil I; i 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 realized by the City upon completion of a foreclosure proceeding will equal the amount of delinquent or future assessments. See the section herein entitled "Bankruptcy." I ' i, 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. PROPERTY TAXES All property taxes are paid current on all parcels in the District as of the date of this Official Statement. BA3RUPTCY 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. II 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 1,: 1 4 411 i ;„ 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 I upon the issuance and delivery of the Bonds. For the complete text of the Bond Counsel Opinion, see Appendix D. TAX EXEMPTION In the opinion of Bond Counsel, subject, however, to theualifications set forth under existing law, interest on the Bonds and received by the owners of theBondso 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. The opinions set forth in the preceding sentences are subject to the condition that the City • 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 (1) 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, (1i) with respect to insurance • companies subject to the tax imposed by section 831 of the Code, for taxable years beginning I 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 taxableears beginning Y g ning 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. I , 15 I , 1 ' • • 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. I UNDERWRITING The Underwriter of the Bonds has purchased the Bonds from the City at a price of $728,059.26. 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 11, 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." 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 , /5/ Nancy Buffum Mayor I . I 16 IIS II li I APPENDIX A ASSESSMENT DIAGRAMS I ' l. I I I I 0 • . : Ii'I , i It f.n y}3��" _tam...!C5 : ]. n OJ. f !e Se.n i. a -f : (SU1 c.nn dinar. . lif.)f•nfM7n •)•. 1 , �_ _ .: ii I...a_ ..�,_I _.Y:.: .. X41! fin "t/t C,:!`^.f 3•ZAt.6Q5 I' / Sl .Ce-OYt1 ( • • co m I , 11I . 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[ 1. - Boaa. r I ; N8888%888$$$$88 W { iRRRRIRIRS�RRSikRgR J g g RS _ I I' -, + 1ouY it u�iuu C vuv V... • • , • APPENDIX B 11 APPRAISAL REPORT - SUMMARY LETTERS I' • I I I IA • s RYAN &ASSOCIATES I real estate analysts and consultants I May 17, 1990 I, Simpson College 2.211 College View Dr. Redding, CA. 96003 Attention: Dr. Francis Grubbs, President Dear Dr. Grubbs: RE: Appraisal of Simpson College File # 900140 In accordance with your request for an appraisal on the above referenced property, the subject has been physically inspected, the applicable market researched, and all discoverable pertinent data has been analyzed to arrive at an estimate of the market value. The date of the appraisal is that of the day of the physical inspection, being May 9, 1990. The purpose of this appraisal is to estimate the Market Value of the above mentioned property. The function of this report is to provide a basis to obtain bond financing. The appraisal has been performed taking into consideration all pertinent data affecting the value I I in the market place including legal, social, and economic factors. il The subject property is comprised of two separately assessed parcels. Parcel number 076-08- 23 is a 15.74 acre parcel that fronts Hwy. 299. Parcel number 076-120-12 is a 43.72 acre parcel, of which 31.35 acres is devoted to the college site. The remaining acreage in this parcel is devoted to the future College Highlands Subdivision. 11 Simpson College is a four year accredited college that recently moved to the Redding area from San Francisco.They currently have four completed structures out of a planned thirteen. The completed structures consist of a learning center, a dining hall, and two dormitories. The learning center is a 28,000 square foot building that houses a library, classrooms and executive offices. The dining hall is a 12,000 square foot building that has a large fireplace, a vaulted wood ceiling in the conversation area, banquet rooms and a full service kitchen. The dormitories are 16,000 square feet each, and consist of three stories each. The men's dorm houses 96 people, and the women's dorm houses 98 people. Each dorm features two handicapped rooms, a resident advisor's apartment, a kitchen, and a recreation area. The Highest and Best use of the subject property has been analyzed given the four necessary Lr criteria that must be met. We estimate the highest and best use as vacant to be a residential development,and the highest and best use as improved is special purpose, a college campus. i REDOING OFFICE. CHICO OFFICE. '7:4 WEST STRE_- REDOING.CA 96007 330 WALL STREET SUITE .: ;.O. 20x :22e. RE..:ANG. CA Z.6099--::.:6 CHICO.CA 95023 :r• r.... Ricci :: .. . i r Dr. Grubbs Page Two ji May 17, 1990 The market has been researched and analyzed and we conclude to the following market value estimate, as of the date of inspection, being May 9,1990 subject to the definitions, limiting conditions, and assumptions set forth in this report, of: I, I; LAND ANT .TIviPf:::...<<.;::;;::>::; :.::;;;;.:;:.:<;>.::..5: < R4�ENIENT� :, $6,SO0,tIOt This 100 page report has been made in conformance with and subject to the Standards of Professional Practice and Code of Ethics of the American Institute of Real Estate Appraisers of the National Association of Realtors. This report has been made based upon the recommended methods and techniques of the American Institute of Real Estate Appraisers. We certify that to the best of our knowledge and beliefs, the statements, opinions, and conclusions on which the final value is based are true and correct. The American Institute of Real Estate Appraisers conducts a voluntary program of continuing education for its designated members. MAI's and RM's who meet the minimum • standards of this program are awarded periodic educational certification. Charles W. Ryan, MAI is currently certified under this program. We trust this is satisfactory for your needs at this time and if you have any questions or desire further information, please contact us at your earliest convenience. Sincerely, it • harles W. Ryan, MM CWR/djc I i it 900140.DJC 1 I • -- RYAN&ASSOC IATES real estate analysts and consultants May 18, 1990 Dr. Francis Grubbs Simpson College 11 College View Drive Redding, CA 96003 Dear Dr. Grubbs: RE: APPRAISAL REPORT OF PROPOSED COLLEGE HIGHLANDS IN THE CITY OF REDDING, SHASTA COUNTY, CALIFORNIA FILE #900299 In accordance with your request for an appraisal report concerning the above mentioned property,a physical inspection and an investigation of all pertinent data has been undertaken and the valuation process completed. We have researched the market and analyzed the applicable data in order to arrive at an estimate of current market value based on the definition of value contained herein. In addition, a prospective value assuming completion of the proposed subdivision is included. The date of the appraisal is the last day of physical inspection being February 15, 1990. The ownership is assumed to be fee simple in nature, subject only to normal and existing easements and rights-of-way of public record. The purpose of the appraisal is to estimate the current market value of the subject property, plus the market value as proposed for units one, two, three, and four of College Highlands subdivision as 79 single family residential lots. The function of this report is to provide a basis to obtain bond financing. The subject property is located on both sides of Chancellor Drive south of Simpson College. The property comprises a 5.21 acre vacant land parcel and 79 single family semi-improved lots. At the time of inspection, limited work had already begun on excavating the roadways in the subdivision. Development adjoining the subject has brought full utility service to the boundary of the site. All the conclusions and value of estimates in this report are based on the preliminary plans enclosed. The property is zoned unclassified but the general plan calls for a planned development, (PD) within the City of Redding having a density of 3.5 units per acre. The highest and best use of the subject property is estimated to be for residential subdivision development. 1724 West Street, Redding, CA 96001 (916) 246-1635 7,E3D::G OF�•CE. CHICO NICE -'',cc. BEDDING. :.: r,i;CI :: WALL STREET .:1 - - - ����>.�� ;y9 CHICO CA • • Dr. Grubbs Page Two May 18, 1990 • The market has been researched and analyzed and we conclude to the following market value estimates, plus the prospective value as if improved, as of the date of inspection, subject to the definitions, limiting conditions, and assumptions set forth in this report, of: VALUE:EST TA'1 SIS"EOE THE 5 21 ACRE"PARCEL A I , ......• $I3;. I' VALUE'F.STIMATE"ASIS" 3R '79 SEMI ROVED TEI AT1VEL'Y APPROVED ..:�.. .,�r.,,.,,::?:::::;ter•:.:.-..::;ii:.y,;::;:;:;::>: �I ,....:....................................:.........::....:........:.::........::.......x�...vm.,w.�...o��.::a::-:yri:n:ati::w:G.::::r::::i:.';:;:Z:r:>:>::�:::�:>: (refer to chart on followtn age) AGGREGATE BULK VALC I ;5TIATE OF 9 FISHED LO3'I '7 2,+575'000 This 128 page report has been made in conformance with and subject to the Standards of Professional Practice and Code of Ethics of the American Institute of Real Estate Appraisers of the National Association of Realtors. This report has been made based upon the recommended methods and techniques of the American Institute of Real Estate Appraisers. We certify that to the best of our knowledge and beliefs, the statements, opinions, and conclusions on which the final value is based are true and correct. 1 The American Institute of Real Estate Appraisers conducts a voluntary program of continuing education for its designated members. MAI's and RM's who meet the minimum standards of this program are awarded periodic educational certification. Charles W. Ryan, MAI is currently certified under this program. We trust this is satisfactory for your needs at this time and if you have any questions or desire further information, please contact us at your earliest convenience. Sincerely, OS61, II) Richard A. Murphy ,� Charles W. Ryan, MAI Associate Appraiser 900299.RAM s • APPENDIX C ECONOMIC-DEMOGRAPHIC PROFILE (Supplied by the City of Redding Chamber of Commerce) t • !� OLOCATION MAP T. SHASTA • ,, A UUHSMUrno McCU3Ufl CASTED® t,;, q `may e :, a : • • I I i1. THE cmr 'I 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 � I San Francisco. It is the county seat of Shasta County and the major trade, recreational and Icommerce center for the northern central and northeastern portion of California. I! The City is situated in the midst of a vast recreational area that includes nine national forests, 11 six --z;l derness 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 I van-s from 400 feet above sea level to 10,456 feet at Lassen Park,just outside Shasta County. Munich sal Gave ent The City was incorporated on October 4, 1887 and operates as a general law city with the I' council-manager form of government. The City Council consists of five members elected "at 11 larce• for four-year overlapping terms. The Mayor is selected by the City Council from among I 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. vhe.e she majored in Political Science. Prior to her position on the City Council, Ms. Buffum ser:ed 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 I the Chamber of Commerce and the Transportation Committee. Regional Transportation I Planning Agency, Redding Area Bus Authority, Redding Redevelopment Agency, Superior .1 California Development Council, and serves as City Council liaison to the Convention and 1' visitors Bureau. Redding Museum and Art Center, Carter House Science Museum, Planning Department, and Traffic and Parking Commission. MIICE DARL,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 I. Transportation Planning Agency, Regional Wastewater Planning Commission, Chairman, 1 I Redding Area. Bus Authority, Redding Redevelopment Agency, and he currently serves as City I ,' 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, i l Transmission Agency of Northern California, and serves as a liaison to the Electric Utility. ;I 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 Medicine. San Francisco, California. Dr. Fulton works for the California State Health II H i ' i II I , • • I Department in Redding. Presently, Dr. Fulton is a representative on the Regional Transportation Planning Agency and Shasta County Community Action Agency Advisory Board, Redding Area Bus Authority, Redding Redevelopment Agency, Shasta County Air ' Pollution Control Board, and serves as liaison to the Police and Fire Departments. I, CHARLES MOSS, member, was elected to the City Council in 1990. Education: Bachelor of Science degree in Business Administration with emphasis in accounting and economics. Mr. Moss started and managed. with other members of his family, two successful lumber companies. He is currently a representative on the Airport Land Use Commission, Local Agency Formation Commission, and serves as liaison to the airports. The City Manager is appointed by the Council and is responsible for implementation of Council policies and for day-to-day operation of the City. The offices of City Clerk and City Treasurer are elective, for four-year terms, and the City Attorney is appointed by the Council. The City is regarded as a full service city and municipally provided services include planning i! and building regulation, police protection, fire protection, parks, recreation, electric, water, sewer, solid waste and operation of two airports. I I' A full-time staff of 638 employees and 276 part-time workers carry out the functions of municipal government. City employees have been represented by various unions since 1965. Population Characteristics The City was one of the fastest growing cities in California between 1970 and 1980, growing to 41.995 residents in 1980 from 16.659 in 1970. This represents an average annual growth rate of 9.7%. The average annual increase for the State of California as a whole during the same time period was 1.6%. A January 1989 estimate by the California Department of Finance placed the City's population at 59,886, an increase of 43% over the 1980 U.S. Census tabulation. I'l The City's population represents approximately 42% of Shasta County's population of 143,106 4 in 1989, according to estimates by the California State Department of Finance. The following I! table indicates population growth for the City and Shasta County from 1950 to 1989. City of Redding and Shasta County Population from 1950 to 1989 City of Redding Shasta County Annualized Annualized i Percent Change Percent Change I Year Number Over Interval Number Over Interval 1 I,j 1950 10,256 36.413 1. 1960 12,773 2.22% 39,468 0.81% 1970 16,659 2.69 77,640 6.95 1980 41,995 9.69 119,449 4.40 1985 48,500 2.92 128.100 1.40 1988 55,439 4.56 137,032 2.27 1989 59.886 7.35 143,106 3.86 I', Source: 1950-1980 figures from U.S.Census.1985, 1988 and 1989 estimates from the California State Department of Finance. i It is estimated that the City will add approximately 800 new households per year for the next ten years. The following table sets forth a projection of the City's population growth over the 11 next forty years. I 11 I ', I , I II 1,, • • City of Redding Estimated Population Growth 1990-2010 Annualized Population Growth Rate 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. ! 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 publicly owned electric, wastewater facilities, public water supply, jobs, shopping, recreation opportunities and reduced commute costs. Housing Housing in the City is less costly than in other urban areas in the State of California. The ,I following table sets forth the median price of homes in urban areas of California. Comparison of Housing Costs Single Family (1989) Redding Sacramento San Jose San Diego Los Angeles San Joaquin Valley Median priced three-bedroom $83,500 $107,895 $268,903 $177,736 $220.253 $96,510 home 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 I.. 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 and the County include those in medical services, heavy forest products, government and communication services. Major employers, their products or services, and the number of their respective employees in 1988 are listed in the following table. 111 II. 411 • II City of Redding/Shasta County Major Employers 1988 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 Citz ens Utilities Telephone company 370 United States Post Office Postal services 256 Pac Sic Bell Telephone company 244 Coopervision Electronic medical equipment 231 Sierra Pacific Industries Lumber 225 Source: "Economic Profile for Redding. Shasta County California". prepared by the greater Redding Chamber of Commerce 1988. j 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 1 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. it ,I H, i j,, , • • Shasta County Labor Market Survey Average Annual Employment 1984 to 1988 ' 1984 1985 1986 1987 1988 I AQnculture, forestry and fishing 1.325 1.175 1.025 1,150 1,025 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 Services (1) 7,750 8,325 9.075 10,700 11.325 Government: (1) 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 (1) Includes hotels and other lodging, business services, health service and other service. 'I 1 (2) Local government includes employees of counties, cities and special districts. Education includes employees of public schools at both the state and local levels. 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 I the number and rate of unemployed persons living within the City's metropolitan area in 1984 through 1988. Civilian Labor Force and Unemployment Redding Metropolitan Statistical Area (Shasta County) 1983 to 1988 Labor(l) Unemployment(2) Year force Number Rate 1 1984 52,975 7,475 14.1 1998855 51.900 6.925 13.3 152,875 5.975 11.3 1987 55,150 5.150 9.3 1988 58.775 5,275 9.0 (1) Civilian labor force and unemployment by place of residence. I 11 (2) The number includes all persons without)obs who are actively seeking work. The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in I this table. Source: State Department of Employment Development. V I I,i S • Construction 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 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 nauonwide 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 fiscal years ending June 30, 1984-1988. City of Redding Value and Number of Permits for Single Family and Multiple Dwellings and Businesses for Fiscal Years 1984 through 1988 1984 1985 1986 1987. 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 $11.842,331 $21,053,060 $19,820,780 Number of Permits 53 44 38 60 55 Valu e-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 I. California city north of Sacramento. Taxable transactions in the City topped $823,235,000 in 1988. The number of outlets reporting taxable sales to the California State Board of Equalization increased from 1,883 in 1980 to 2.404 in 1988. These trends are reflected in the following table. vi •' III • I 1 City of Redding Taxable Transactions For Fiscal Years 1980 through 1988 I Fiscal Year Number of Outlets Taxable Transactions I 1 i 1980 1,883 $478,456,000 1981 2,014 472,586,000 1982 2,030 446,063,000 1983 2,025 525,097,000 IL 1984 2,136 593,327,000 L 1985 2,195 645,807,000 1986 2,273 679,130,000 I I 1987 2,321 750,949,000 1988 2,404 823,235,000 I Source: California State Board of Equalization. i The following table sets forth a breakdown of taxable sales by type of business for the City for I ;, fiscal year 1988. City of Redding Taxable Transactions by Type of Business for Fiscal Year 1988 (in thousands of dollars) Number of Taxable Business Outlets Transactions I I Apparel Stores 64 $22,235 General Merchandise Stores 22 90,303 H Drug Stores 17 29,882 Food Stores 62 53,679 Package Liquor Stores 13 7,519 Eating and Drinking Places 217 62,886 I Home Furnishings, Appliances 92 28.227 Building Materials. Farm Implements 69 94,580 ' Auto Dealers and Auto Supplies 91 153,850 Service Stations 45 47,064 Other Retail Stores ....2a. 77482 . Total Retail 1,074 667,725 All Other Outlets 1.380 155.510 Total Outlets 2.404 $823.235 Source: California State Board of Equalization. Transportation 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, 1 the key east-west transportation artery in northern California. 11 I 'i vii h.I 1!i II • • 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 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 i' 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. i, 1 Utilities Electricity, solid waste collection and disposal, water and wastewater services are provided by utilities owned and operated by the City. Natural gas is provided by Pacific Gas and Electric i Company. Telephone service is provided by Pacific Bell. 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, commenced 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 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. , II I�. iI Viii III, • • ' CITY FINANCIAL DATA The following financial data is included only for the purposc of Providing general information. Assessed Valuations III, 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. 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(I) For Fiscal Years 1979 through 1989 I 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 1987 - 1988 1,722,844.792 146,982,677 1,869,827,469 1988 - 1989 1,933.990,443 152,238,603 2,086,229,046 U) All valuations shown are "full cash value", before deduction of State-reimbursed exemptions. Includes I redevelopment incremental valuation. Source: 1989 City of Redding Comprehensive Annual Financial Report 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 i each calendar year. The following table shows the record of tax collections over the last ten fiscal years. 1X Ilj , . Ill IP ,k,111 . . k !! Cy Redding Taxable valuatitionsof -Tangible Property Tax Levies and Collections for Fiscal Years 1979 through 1999 Total Tax II 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 j 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 1982/83 2,673,106 2,248,393 157,467 2.405.860 90.00 1983/84 2,895,432 2,482,454 189,561 2,672,015 92.28 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 1988/89 3,890,515 3,798,606 207,161 4.005.767 102.96 .i Source: 1989 City of Redding Comprehensive Annual Financial Report. I Pension Plan The City contributes to the California Public Employee Retirement System (PERS), an agent 1 multiple employer public employees retirement system that acts as a common investment and administrative agent for participating public entities within the State of California. All full time City employees are eligible to participate in PERS. The City is required to contribute using the actuarial basis recommended by PERS actuaries and actuarial consultants and adapted by the Board of Administration. Outstanding Indebtedness The following table sets forth the total outstanding indebtedness of the City of Redding as of June 30. 1989. 1:: 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 Revenues. Expenditures and Fund Balances i.� The table on the following page 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. X 1 1 • • CITY OF REDDING GENERAL FUND Statement of Revenues, Expenditures and Changes in Fund Balance 1 For the Fiscal Years Ended June 30, 1985-1989 ! 11 Revenue it 1985 1986 1987 1988 1989 Property Taxes $3,003.480 $3,184,463 $3.545,080 $3,403,313 $3.842.475 Sales & Use Taxes $8,366,311 $8,507,087 $9,023,246 $10,035,710 $10,832,990 Licenses & Permits $404,501 $502.547 $699,618 $491,088 $1.030,571 Intergovernmental Revenue $1,949,408 $2,048,067 $2.613,639 $2,967,680 $3,282,759 Charges for Services $286.134 $309.083 $405,837 $436,834 $764.970 Fines. Forfeitures&Penalties $199,646 $241,268 $229.016 $231,147 $244,942 I,', Use of Honey&Property $1,268.458 $802,900 $695.886 $693,612 $1.840.207 Other $239.647 $386,012 $580,311 $307,675 $526,678 Total Revenue $15.717,585 $15,981,427 $17.792,633 $18,567,059 $22.365,592 Expenditures Current: General Government $958,627 $1,182,172 $1.344.472 $1.577,570 $2.531.851 Public Safety $7,302,533 $8,394,821 $9.947,103 $9,581,123 $10,856,495 Planning $959.340 $1,133,248 $1.303,096 $1,257,061 $3.806.751 Public Works $3,512.838 $4,060,628 $4.500,004 $4.061,705 $1.486.855 Parks. Recreation&Culture $1.418,043 $1.542,953 $1.873,316 $1.962.089 $2,143.347 Midtown Mall $215,980 $188.753 $193.437 $227,134 $287,922 Non-Departmental Capital Outlay $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 11 Interest & Fiscal Charges $24,953 $68.346 $35,120 $49,079 $89.908 Total Expenditures $16,563.365 $18,159,394 $21,693.842 $21,473,701 $24.793,685 (Excess) of Expenditures Over Revenue ($845,780) ($2.177.967) ($3.901,209) ($2.906,642) ($2,428,093) Other Financing Sources (Uses) $1,752.100 $2,261,375 $1.910.855 $2,928,321 $1.637.864 Excess of Expenditures and Other Uses Over Revenue and Other Sources $906.320 $83.408 ($1.990,354) $21.679 ($790.229) Fund Balance, Beginning of Year $4.652,684 $5,640,328 $5,723,736 $3,733,382 $3,755.061 Fund Balance. End of Year $5.640,328 $5,723,736 $3,733,382 $3,755,061 $2.964,832 Source: Comprehensive Annual Financial Report of the City [1, • • Directand Qverlapp 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 l98-S-89 Assessed Valuation: $1,778,940,641 (after deducting $165,013,284 redevelopment tax allocation increment) 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 Dstrict Authority 4.960 603,086 Columbia School District 34.746 4,169 Enterprise School District 1 (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 a-td Overlapping Bonded Debt $29,523,254 Less: City of Redding self-supporting bonds 7,4.45,000 Total Net Direct and Overlapping Bonded Debt $22,078.254 (I) Excludes sewer limited obligation bonds to be sold. Ratios to Assessed Valuation: Direct Debt($10.745.0001 0.6% ThtalGinEsDett 1,66% IVA NetDebt 1.24% !I Share of Authorized and Unsold Bonds: Various School Districts $26,731 i State School Buil ding_m ttuyable as of Rmaa: $2,335,508 I xi II'1 h � • • APPENDIX D OPINION OF BOND COUNSEL it Ii II • I. 'I I • 11 • • APPENDIX E CUSIP NUMBERS 1 it i