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PRELIMINARY OFFERING MEMORANDUM'DATED APRIL lO, 1984
<br />
<br />NEW ISSUE
<br />
<br /> In the opinion of Bond Counsel, interest on the Bonds is exempt from all present Federal
<br />income taxes and from State of California personal income taxes under existin9 statutes,
<br />regulations and court decisions, and the Bonds are exempt from all California taxes except
<br />franchise taxes. Interest, however, may become federally taxable upon any Bond during any
<br />period in which the Bond owned by a substantial user of the facilities financed by the Bond
<br />proceeds, or by a related person, within the meaning of Section 103(D) of the Internal
<br />Revenue Code.
<br /> $18,488,000
<br /> CITY OF PLEASANTON IMPROVEMENT BONDS
<br /> ASSESSMENT DISTRICT NO. 1984-1, HOPYARD ROAD
<br /> (ALAMEDA COUNTY, CALIFORNIA)
<br />
<br />Dated: May 2, 1984 Due: July 2 as shown below
<br />
<br /> All of the acquisition of improvements shall be undertaken as provided by the Municipal
<br />Improvement Act of 1913 (Division 12 of the California Streets and Highways Code). The Bonds
<br />are issued pursuant to provisions of the Improvement Bond Act of 1915 (Division lO of the
<br />California Streets and Highways Code).
<br /> The Bonds are issued only as fully registered Bonds in denominations of $5,000 or any
<br />integral multiple thereof except for one Bond in an odd amount due in 1985. Principal of and
<br />premiums, if any, on the Bonds are payable at the Bank of America N.T. & S.A., Corporate
<br />Agency Division, San Francisco, California, Paying Agent, Register and Transfer Agent.
<br />Interest (other than the final pa3~nent of interest) is payable by check or draft mailed to
<br />the registered owners thereof semi-annually on January 2 and July 2 commencin9 January 2,
<br />1985.
<br /> The Bonds are subject to redemption on any January 2 or July 2 in advance of maturity at
<br />the option of the Finance Director of the City upon giving 60 days prior notice and upon
<br />payment of the principal and interest accrued thereon to the date of redemption or earlier
<br />surrender, plus a redemption premium of five percent (5%) of the principal amount of the
<br />Bonds to be redeemed.
<br /> Under the provisions of the Improvement Bond Act of 1915, installments of principal and
<br />interest sufficient to meet annual Bond debt service are included on the regular county tax
<br />bills to owners of property against which there are unpaid assessments. These annual
<br />installments are to be paid into the Redemption Fund, to be held by the Finance Director of
<br />the City and used to pay debt service on the Bonds as it becomes due.
<br /> if a delinquency occurs in the payment of any assessment installment, the City, at the
<br />end of the fiscal year of delinquency, has a duty to transfer into the Redemption Fund the
<br />amount of the delinquency out of available funds of the City. Available funds consist of the
<br />balance in the Reserve Fund together with any surplus funds of the City not required for
<br />lawful municipal obligations. This duty of the City is continuing during the period of
<br />delinquency, until reinstatement, redemption or sale of the delinquent property. There is no
<br />assurance that funds will be available for this purpose and if, during the period of
<br />delinquency, there are insufficient available funds, a delay may occur in payments to the
<br />owners of the bonds.
<br /> To provide funds for payment of the Bonds and the interest thereon as a result of any
<br />delinquent installments, the City will establish a special Reserve Fund and deposit therein
<br />bond proceeds in the original amount of six percent (6%) of the aggregate principal amount of
<br />the Bonds. Additionally, the City has covenanted to initiate judicial foreclosure in the
<br />event of a delinquency and to commence the procedure within 150 days following such
<br />delinquency.
<br /> Neither the faith and credit nor the taxing power of the City, the State of California or
<br />any political subdivision thereof is pledged to the payment of the Bonds.
<br /> The information set forth in this Offering Memorandum, including information under the
<br />heading "Bondowners'Risks" should be read in its entirety.
<br />
<br />MATURITY SCHEDULE*
<br />
<br /> Interest
<br />Due Amount* Rate Yield Due Amount*
<br />1985 $158,000 1995 $ 835,000
<br />1986 385,000 1996 920,000
<br />1987 415,000 1997 1,010,000
<br />1988 450,000 1998 1,115,000
<br />1989 485,000 1999 1,225,000
<br />1990 530,000 2000 1,350,000
<br />19gl 580,000 2001 1,490,000
<br />1992 630,000 2002 1,645,000
<br />1993 695,000 2003 1,BlO,O00
<br />1994 760,000 2004 2,000,000
<br />
<br />Interest
<br /> Rate Yield
<br />
<br /> The Bonds are offered when, as and if issued and delivered to the Underwriters subject to
<br />the approval of Sturgis, Ness, Brunse11 & Sperry a professional corporation of Erneryville,
<br />California, Bond Counsel and certain other conditions. Certain legal matters will be passed
<br />upon for the Underwriters by Jones Hall Hill & White, A Professional Law Corporation, San
<br />Francisco, California. It is expected that the Bonds in definitive form will be available
<br />for delivery in San Francisco, California on or about May 2, 1984.
<br />
<br />*Preliminary. Subject to change.
<br />
<br /> STONE & YOUNGBERG
<br />April , 1984
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