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<br />OFFICIAL STATEMENT
<br />Dated April 8., 1996
<br />:NEW ISSUE - Book-Entry-Only
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<br />In the opinion of Bond Counsel, interest on the Boods will be excludable from gross income for federal income tax purposes
<br />under existing statutes, regulations, published rulings and court decisions existing on the date thereot: subject to the matters
<br />described under "TAX MATfERS" herein, including the alternative minimum tax on corporations.
<br />
<br />THE BONDS WILL BE DESIGNA1ED AS
<br />"OUALIF1ED TAX-EXEMPT OBUGATIONS"
<br />, -. . FOR FINANCw. INSTITIJITONS
<br />
<br />I SLSOO,OOO
<br />CITY OF SAN MARCOs, TEXAS
<br />-- (Hays County)
<br />WATERWORKS AND SEWER SYSTEM REVENUE BONDs, SERIES 1996-A
<br />
<br />Dated: April 15, 19% Due: January 1, see inside front cnver
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<br />Payment Terms. . . Interest on the Sl,500,000 City of San Marcos, Texas Waterworks and Sewer System Revenue Bonds,
<br />Series 1996-A (the "Bonds") will accrue fi:om April 15, 1996 (the "Dated Date") and will be payable January 1 and July 1 of
<br />each year, commencing January 1,1997, and will be calculated on the basis of a 36O-àay year of twelve 30-day months. The
<br />definitive Bonds will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company
<br />("DTC") pursuant to the Book-Entry-Only System described herein. Beneficial ovmership of the Bonds may be acquired in
<br />denominations of S5,000 or integral multiples thereof. No physical delivery of the :Bonds will be made to the beneficial
<br />ownen thereot: Principal of, premium, if any, and interest on the Bonds will be payable by the Paying Agent/Registrar to
<br />Cede & Co., which will make distribution of the amounts so paid to the beneficial ovmers of the Bonds, (see "BOND
<br />INFORMATION - Book-Entry-Only System" herein.
<br />
<br />These are the fourth installment of$11,830,000 bonds authorized at an election held September 8,.. 1990.
<br />
<br />Authority for Issuance. . . The Bonds are issued pursuant to the Constitution and the genera1laws of the State of Texas,
<br />particularly Articles 1111 through 1118, inclusive, Vernon's Annotated Texas Civil Statutes ("VATCS"), and an ordinance (the
<br />"Ordinance") passed by the City Council, and are special obligations of the City of San :M.arcos, Texas (the "City") payable,
<br />both as to principal and interest, solely fi:om and secured by a first lien on and pledge of the Net Revenues of the City's
<br />Waterworks and Sewer System (the "System"). The City has not covenanted nOr obligated itself to pay the Bonds from
<br />money raised or to be raised from taxatioa (see "BOND INFORMATION - Security for :Bonds").
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<br />Paying Agent. . . The initial Paying Agent/R.egistrar shall be Texas COIDIIleI'Ce Bank: National Association (see "BOND
<br />INFORMATION - Paying Agent/Registrar").
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<br />Purpose. . . Proceeds fi:om the sale of the Bonds will be used to pay for improvements and extensions to the City's System and
<br />to pay the costs associated with the issuance of the Bonds.
<br />
<br />
<br />
<br />.. oJ MATURITY SCHEDULE
<br />See Iaside Front Cover
<br />
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<br />Redemption Option. . . The City reserves the right, at its option, to redeem Bonds having stated maturities on and after
<br />January 1,2007, in whole or in part, in principal amounts of S5,000 or any integral multiple thereof on January 1, 2006, or any
<br />date thereaft.er, at the par value thereof plus accrued interest to the date fixed for redemption (see "BOND JNFORMATION -
<br />Redemption of Bonds").
<br />
<br />Ratings. . . The presently outstanding revenue debt of the City is rated "A" by Moody's Investors Service, Iru::. ("Moody's")
<br />and "A" by Standard & Poor's Ratings Services, A Division of The McGraw-Hill Companies, Inc. ("S&P"). The outstanding
<br />issue is rated "Aas.'" by Moody's and "AAA" by S&P by virtue of insurance by :MBIA (see "OTHER. RELEVANT
<br />JNFORMATION - Ratings").
<br />
<br />Legality. . . The Bonds are offered for delivery when, as and if issued and received by the Purchasers and subject to the
<br />approving opinion of the Attorney General of the State of Texas and of Fisher & Newsom, PC, Bond CoUD.5el, Austin, Texas.
<br />The legal opinion of Bond Counsel will be printed on or attached to the Boods (see APPENDIX C, "Form of Bond COUD.5el's
<br />Opinion").
<br />
<br />Delivery. . . It is expected that the Bonds will be tendered for delivery to the Purchasers through DTC. Delivery is anticipated
<br />œoraboutMay21,1996.
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