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<br />Attach~/.9'
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<br />28015-21
<br />
<br />JH:SM:ldw
<br />
<br />10/28/05
<br />11/21/05
<br />12/23/05
<br />01/06/05
<br />01/09/05
<br />
<br />PRELIMINARY OFFICIAL STATEMENT DATED [JANUARY -' ]2006
<br />NEW ISSUE- BOOK ENTRY ONLY
<br />
<br />RATINGS: Moody's: "-"; Underlying Rating: "-"
<br />S&P: "-"; Underlying Rating: "-"
<br />Fitch: "-"; Underlying Rating: "-"
<br />In the opinion of Nossaman, Guthner, Knox & Elliott, LLP, Irvine, California ("Bond Counsel"), under existing statutes,
<br />regulations, rulings and judicial decisions, and assuming certain representations and compliance with certain covenants and
<br />requirements described hereIn, interest on the Bonds is excludable from gross income for federal income tax purposes and is not
<br />an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations.
<br />In the further opinion of Bond Counsel, interest on the Bonds is exempt from State of California personal income tax. See "OTHER
<br />INFORM A TION Tax Matters" herein with respect to tax consequences with respect to the Bonds.
<br />
<br />$
<br />
<br />CITY OF REDWOOD CITY PUBLIC FINANCING AUTHORITY
<br />
<br />WATER REVENUE BONDS
<br />
<br />SERIES 2006A
<br />Dated: Date of Delivery Due: February 1, as shown on the inside front cover
<br />
<br />Authority for Issuance. The bonds captioned above (the "Bonds") are being issued by the City of Redwood City Public
<br />Financing Authority (the "Authority") under an Indenture of Trust, dated as of February 1, 2006, by and between the Authority and
<br />The Bank of New York Trust Company, N.A., as trustee (the "Trustee"). See "THE BONDS - Authority for Issuance."
<br />
<br />Use of Proceeds. The Bonds are being issued to (i) finance a water recycling project (as more fully described herein, the
<br />"Project") for the City's water system (the "Enterprise"), (ii) fund a reserve fund for the Bonds, and (iii) pay certain costs incurred in
<br />connection with issuing the Bonds. See "FINANCING PLAN."
<br />
<br />Security for the Bonds. The Bonds are payable from and secured by the Authority's pledge of revenues under the Indenture,
<br />consisting primarily of installment payments to be made by the City of Redwood City (the "City") under an Installment Purchase
<br />Contract dated as of February 1, 2006, by and between the Authority and the City, under which the Authority will acquire the Project
<br />and sell the Project to the City. The Bonds are also secured by moneys on deposit in the funds and accounts established under
<br />the Indenture (other than the Project Fund and the Rebate Fund). The Installment Purchase Contract permits the City to issue
<br />bonds or incur other obligations payable from and secured by a pledge of and lien upon any of the Net Revenues on a parity with
<br />the Installment Payments if the conditions contained in the Installment Purchase Contract are satisfied. The City's obligation to
<br />make installment payments under the Installment Purchase Contract is on a parity with its obligation to make installment
<br />payments under an installment purchase contract entered into in connection with the issuance of the Authority's $35,790,000
<br />Water Revenue Bonds, Series 2005A. See "SECURITY FOR THE BONDS - Additional Debt."
<br />
<br />Bond Terms; Book-Entry Only. The Bonds will bear interest at the rates shown below, payable semiannually on February 1
<br />and August 1 of each year, commencing August 1, 2006, and will be issued in fully registered form in the denomination of $5,000 or
<br />any integral multiple of $5,000. The Bonds will be issued In book-entry only form, initially registered in the name of Cede & Co., as
<br />nominee of The Depository Trust Company, New York, New York ("DTC"). Purchasers of the Bonds will not receive certificates
<br />representing their interests in the Bonds.
<br />
<br />Redemption. Prior to their maturity, the Bonds are subject to optional redemption, mandatory redemption from insurance
<br />or condemnation proceeds, and mandatory sinking fund redemption, as described in this Official Statement. See "THE
<br />BONDS - Redemption."
<br />
<br />MATURITY SCHEDULE
<br />
<br />(See inside front cover)
<br />
<br />THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY AND ARE PAYABLE SOLELY FROM REVENUES
<br />DERIVED UNDER THE INDENTURE AS DESCRIBED HEREIN. NEITHER THE BONDS NOR THE OBLIGATION TO PAY
<br />PRINCIPAL OF OR INTEREST ON THE BONDS CONSTITUTES A DEBT OR A LIABILITY OF THE AUTHORITY, THE CITY,
<br />THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY
<br />CONSTITUTIONAL LIMITATION ON INDEBTEDNESS. IN NO EVENT WILL THE BONDS BE PAYABLE OUT OF ANY
<br />FUNDS OR PROPERTIES OTHER THAN THOSE OF THE AUTHORITY AS DESCRIBED IN THIS OFFICIAL STATEMENT.
<br />
<br />This cover page contains certain information for quick reference only. It is not a summary of this issue of Bonds. Investors
<br />must read the entire Official Statement to obtain information essential to the making of an informed investment decision with
<br />respect to the purchase of the Bonds.
<br />
<br />The Bonds are being sold pursuant to competitive sale on [February 8,] 2006, as more fully described in the Official Notice of
<br />Sale relating to the Bonds.
<br />
<br />The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to the approval as to their legality by
<br />Nossaman, Guthner, Knox & Elliott, LLP, Irvine, California, Bond Counsel. Certain legal matters will be passed upon for the
<br />Authority and the City by the City Attorney. Jones Hall, A Professional Law Corporation, San Francisco, California, is serving as
<br />
<br />. Preliminary, subject to change.
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