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<br /> PRELIMINARY OFFICIAL STATEMENT [DRA~T
<br /> Dated July 10, 1995
<br /> NEW ISSUE - Book-Entry-Only Ratings:
<br /> Moody's: "-"
<br /> S&P:" "
<br /> Insured:-
<br /> (See "Other Information
<br /> - Ratings" herein)
<br /> In the opinion of Bond Counsel, interest on the Bonds will be excludable from gross income for federal income tax purposes
<br /> -- under exi~tutes, regulations, published rulings and court decisions existing on the date thereQf, subject to the matters
<br /> described un "Ta.x Matters" herein, including the alternative minimum ta.x on corporations.
<br /> S8,350,OOO"
<br /> CITY OF SAI.~ :"'fARCOs, TEXAS
<br /> (Hays County)
<br /> WATERWORKS AND SEWER SYSTEM
<br /> REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 1995
<br /> Dated: July 15, 1995 Due: February 15, as shown below
<br /> Interest on the 58,350,000" City of San Marcos, Texas Waterworks and Sewer System Revenue Refunding and Improvement
<br /> Bonds, Series 1995 (the "Bonds") "Will accrue trom the dated date as ShO"Wl1 above and \ViII be payable February 15 and August
<br /> 15 of each year, commencing February 15, 1996, and will be calculated on the basis ofa 360-day year of twelve 30-day months.
<br /> The defuútive Bonds \Vill be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust
<br /> Company ("DTC") pursuant to the Book-Entry-Only System described herein. Beneficial o""l1ership of the Bonds may be
<br /> acquired in denominations of $5,000 or integral multiples thereof. No physical delivery of the Bonds will be made to the
<br /> beneficial owners thereof. Principal of, premium, if any, and interest on the Bonds ""ill be payable by the Paying
<br /> Agent/Registrar to Cede & Co., which ""ill make distribution of the amounts so paid to the beneficial O""l1ers of the Bonds, (see
<br /> "BOND INFORMATION - Book-Entry-Only System" herein).
<br /> The Bonds are issued pursuant to the general laws of the State of Texas, particularly Article 717k and Articles 1111 through
<br /> 1118, inclusive, Vernon's Annotated Texas Civil Statutes, as amended ("VATCS"), and an ordinance (the "Ordinance") passed
<br /> by the City Council, and are special obligations of the City of San Marcos, Texas (the "City") patable, both as to principal and
<br /> interest, solely trom and secured by a first lien on and pledge of the Net Revenues of the City's Waterworks and Sewer System
<br /> (the "System"). The City has not covenanted nor obligated itself to pay the Bonds from monies raised or to be raised
<br /> from taxation (see "BOND INFOR.\fA.TION - Authority for Issuance and Security of Bonds").
<br /> The initial Paying Agent/Registrar shall be Texas Commerce Bank, N.A. Austin, Texas (see "BOND INFORMATION - Paying
<br /> Agent/Registrar").
<br /> Proceeds trom the sale of the Bonds \ViII be used i) to refund all of the City's outstanding Waterworks and Sewer System
<br /> Revenue Bonds, (the "Refunded Bonds") ü) to provide 51,000,000 to pay for improvements and extensions to the City's
<br /> System, and üi) to pay the costs associated WIth the issuance of the Bonds.
<br /> l'r1A TURITY S CHE D ULE'
<br /> Price Price
<br /> or or
<br /> Amount Maturitv Rate Yield Amount Maturitv Rate Yield
<br /> S 1996 S 2003
<br /> 1997 2004
<br /> 1998 2005
<br /> 1999 2006
<br /> 2000 2007
<br /> 2001 2008
<br /> 2002 2009
<br /> The City reserves the right, at its option, to r~ Bonds having stated maturities on and after February 15,2005, in whole or
<br /> in part In principal amounts of $5,000 or any integra} multiple thereQf, on February 15, 2004, or any date thereafter, at the par
<br /> value thereQfplus accrued interest to the date fixed for redemption (see "BOND INFORMATION - Redemption ofBondsff).
<br /> The bresently outstanding serùor lien revenue debt of the City is rated "A" by Moody's Investors Service, Inc. ("Moody's") and
<br /> "A" y Standard & Poot's Rating Group, a division of McGraw-Hill ("S&P"). The presently outstanding junior lien revenue
<br /> debt of the City is rated "A" b{; Moody's and "A-" by S&P. Four outstanding issues are rated "Aaa" by Moody's and "MA"
<br /> by S&P by virtue of insurance ~ous commercial insurance companies. Requests for ratings for the Bonds have been made
<br /> to both rating services (see "0 INFOR!vfATION - Ratings").
<br /> The Bonds are offered for delivery when, as and if issued and received by the Underwriters and subject to the ~ro~
<br /> opinion of the Attorney General of the State of Texas and of Fisher & Newsom, P.C., Bond Counsel, Austin, Texas. e leg
<br /> opinion of Bond Counsel \Vi11 be printed on or attached to the Bonds (see APPENDIX C, "Fonn of Bond Counsel's Opinion").
<br /> Certain legal matters \Vill also be passed upon for the Underwriters by . , Texas, Counsel for the
<br /> Underwriters. It is expected that the Bonds "Will be tendered for delivery to the initial purchaser(s) through DTC. Delivery is
<br /> anticipated on or about August 22, 1995.
<br /> UND ER WRITER
<br /> -Preliminary, subject to change.
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