01-26-15 Agenda, Packet and Committee Meeting Notice

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OFFICIAL STATEMENT $5,580,000 CITY OF SOUTH BEND, INDIANA Economic Development Income Tax Bonds of 2015 INTRODUCTORY STATEMENT The purpose of this Official Statement, including the cover page, Notice of Intent to Sell and the Appendices, is to provide information relating to the $5,580,000 City of South Bend, Indiana Economic Development Income Tax Bonds of 2015 (the "Bonds ") to be issued by the City of South Bend, Indiana (the "City "). All financial and other information presented in this Official Statement has been provided by the City from their records, except for information expressly attributed to other sources. The presentation of information concerning the City including financial statements and tax tables shows recent historic information and does not indicate or project future or continuing trends in the financial position or other affairs of the City. Property tax information provided herein is for illustrative purposes only, the Bonds are not payable from property taxes. Past experiences shown by financial and other information may not necessarily continue in the future. References to provisions of Indiana law or the Indiana Constitution are references to current provisions which may be amended, repealed or supplemented. PURPOSE OF THE BOND ISSUE The Bonds are being issued pursuant to Indiana law, including, without limitation, Indiana Code 6- 3.5 -7, as amended and as in effect on the issue date of the Bonds (the "Acts ") and pursuant to Ordinance No. approved by the Common Council of the City on January 26, 2015 (the "Ordinance'). Proceeds from the Bonds will be used to (i) fund the cost of various capital improvements to the City's parks (the "Project "), (ii) fund a debt service reserve fund for the Bonds, if necessary, and (iii) pay expenses incidental to the issuance of the Bonds. The Project is more particularly described in Exhibit A of the Ordinance attached as Appendix D hereto. SECURITY AND SOURCES OF PAYMENT FOR THE BONDS The Bonds are payable solely from and secured exclusively by a pledge of the City's distributive share of the St. Joseph County (the "County ") County Economic Development Income Tax Revenues (the " CEDIT Revenues'). The Bonds shall not constitute a general obligation of the City and the City shall not be obligated to pay the Bonds or the interest thereon except from the CEDIT Revenues. The City has not pledged its full faith and credit nor its property taxing power to the payment of the principal of or the interest on the Bonds. The Bonds, and any bonds ranking on a parity therewith, including the City's County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 A (the "2006 A Bonds ") and the City's Taxable County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 B (the "2006 B Bonds') (collectively, the "Prior Bonds'), as to principal and interest are a special revenue obligation of the city and shall be payable solely from and are secured by an irrevocable pledge of and shall constitute a first charge upon the City's distributive share of the CEDIT Revenues. The CEDIT Revenues that are pledged to the payment of the Bonds are more fully described in the Ordinance. -1-