Municipality of Monroeville - PFM Municipal Bond Auction Website

Transcription

This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without notice. The Bonds may not be sold nor may offers to buy be accepted prior
to the time the Preliminary Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of the Bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction.
PRELIMINARY OFFICIAL STATEMENT DATED MARCH 2, 2010
NEW ISSUE-BOOK ENTRY ONLY
RATINGS: S&P: “AA-“ (Underlying)
(See Ratings herein)
In the opinion of Bond Counsel, under existing law and assuming continuing compliance by the Municipality with certain covenants
intended to assure continuing compliance with the Internal Revenue Code of 1986, as amended (the "Code"), and all applicable regulations
thereunder, interest on the Bonds (including any original issue discount properly allocable to the owner of a Bond) is excluded from gross income
for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals
and corporations; however, for the purpose of computing the alternative minimum tax imposed on certain corporations (as defined for federal
income tax purposes), such interest is taken into account in determining adjusted current earnings. Furthermore, in the opinion of Bond Counsel,
under existing law, the Bonds are exempt from Pennsylvania personal property taxes and the interest on the Bonds is exempt from Pennsylvania
personal income tax and corporate net income tax. For a discussion of other federal tax consequences arising with respect to the Bonds, see "Tax
Exemption and Other Tax Matters".
The Municipality will designate each of the Bonds as a “qualified tax-exempt obligation” within the meaning of Section 265(b)(3) of the
Code and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80% of that
portion of such financial institutions’ interest expense allocable to interest on the Bonds. See “Tax Exemption and other Tax Matters” herein.
$11,310,000*
Municipality of Monroeville
Allegheny County, Pennsylvania
General Obligation Bonds, Series of 2010
Dated: April 15, 2010
Interest Payable: June 1 and December 1
Principal Due: June 1, as shown on inside cover
First Interest Payment: June 1, 2010
GENERAL: The General Obligation Bonds, Series of 2010 (the “Bonds”) in the aggregate principal amount of $11,310,000* will be
issued in registered form, without coupons, in denominations of $5,000 or any integral multiple thereof. The Bonds will be registered in the name
of Cede & Co., as the registered owner and nominee of The Depository Trust Company ("DTC"), New York, New York. Beneficial ownership of
the Bonds may be acquired in denominations of $5,000 or any integral multiple thereof only under the book-entry only system maintained by DTC
through its brokers and dealers who are, or act through, DTC Participants. The purchasers of the Bonds will not receive physical delivery of the
Bonds. For so long as any purchaser is the beneficial owner of a Bond, that purchaser must maintain an account with a broker or a dealer who is, or
acts through, a DTC Participant to receive payment of principal of and interest on the Bonds. See "THE BONDS--BOOK-ENTRY ONLY
SYSTEM" herein. If, under the circumstances described herein, Bonds are ever issued in certificated form, the Bonds will be subject to registration
of transfer, exchange and payment as described herein. The principal of the Bonds will be paid to the registered owners or transferees, when due,
, Pennsylvania. Interest on the Bonds is payable
upon presentation and surrender of the Bonds at the corporate trust office of
semiannually on June 1 and December 1 of each year, beginning June 1, 2010, until the principal sum thereof is paid. Payment of interest on the
Bonds will be made by check drawn on the Paying Agent mailed to the registered owners of the Bonds as of the Record Date (as defined in the
section titled "The Bonds" herein).
REDEMPTION: The Bonds are subject to redemption, in whole or in part, prior to their stated maturity as more fully described herein.
SECURITY: The Bonds are general obligations of the Municipality, secured by the full faith, credit and taxing power of the Municipality.
The Municipality has covenanted to pay, as and when due, the principal of and interest on the Bonds, to include in its annual budget such amounts
when due, and to appropriate such amounts for such payment, and for such budgeting, appropriation and payment the Municipality has pledged
irrevocably its full faith, credit and taxing power, which taxing power presently includes the power to levy ad valorem taxes on all taxable property
within the Municipality, presently unlimited as to rate or amount for such purpose.
PURPOSE OF THE ISSUE: Proceeds from the Bonds will be used (1) to currently refund the Municipality’s outstanding General
Obligation Bonds, Series of 2003; (2) to currently refund the Municipality’s outstanding General Obligation Bonds, Series A of 2003; (3) to
currently refund the Municipality’s outstanding General Obligation Bonds, Series of 2005; and (4) to pay the costs of issuing the Bonds.
AUTHORIZATION FOR ISSUANCE: The Bonds will be executed and delivered in accordance with the Local Government Unit Debt
Act of the Commonwealth of Pennsylvania, Act of December 19, 1996, 53 Pa. Cons. Stat. Chs. 80-82, as amended (the “Debt Act”), and pursuant
to an ordinance (the “Ordinance”) duly enacted by the Council of the Municipality on March , 2010. As a condition to issuance, proceedings with
respect to the issuance of the Bonds will have been approved by the Department of Community and Economic Development of the Commonwealth
of Pennsylvania pursuant to the Debt Act.
MATURITIES, AMOUNTS, RATES AND PRICES
(As Shown on Inside Cover)
LEGAL APPROVALS: The Bonds are offered when, as and if issued, subject to withdrawal or modification of the offer without notice, and
subject to the approving legal opinion of Cohen & Grigsby, P.C., of Pittsburgh, Pennsylvania, Bond Counsel, to be furnished upon delivery of the
Bonds. Certain matters will be passed upon for the Municipality by Bruce E. Dice & Associates, of Pittsburgh, Pennsylvania, Municipality
Solicitor. Public Financial Management, Inc. will serve as Financial Advisor to the Municipality as it relates to the issuance of the Bonds. It is
expected that the Bonds will be available for delivery through DTC or its agent, on or about April , 2010.
PUBLIC FINANCIAL MANAGEMENT, INC.
Financial Advisor to the Municipality
Dated:
*Estimated, subject to change.
$11,310,000*
Dated: April 15, 2010
Interest Due: June 1 and December 1
Principal Due: June 1, and shown below
First Interest Payment: June 1, 2010
Principal
Amounts
June 1
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Interest
Rates
(A portion of the Bonds may be structured as Term Bonds. See "Invitation to Bid".)
Prices
Diane Allison. ........................................................................................................................................................................ Member
Bernhard Erb .......................................................................................................................................................................... Member
James Brown .......................................................................................................................................................................... Member
Lois Drumheller ..................................................................................................................................................................... Member
David W. Kucherer ................................................................................................................................................................ Member
Carol J. McDevitt ................................................................................................................................................................... Member
Clarence Ramsey ................................................................................................................................................................... Member
Marshall W. Bond -------------------------------------------------------------------------------------------------------------------------- Secretary *
Huntington Bank (Monroeville Office) ----------------------------------------------------------------------------------------------- Treasurer*
*Non-voting member.
MAYOR
Gregory Erosenko .................................................................................................................................................................... Mayor
David Kucherer.. .......................................................................................................................................................... Deputy Mayor
ADMINISTRATION
Marshall W. Bond ................................................................................................................................................ Municipal Manager
Susan E. Werksman ...................................................................................................................... Director of Personnel and Finance
SOLICITOR
BRUCE E. DICE & ASSOCIATES
Pittsburgh, Pennsylvania
BOND COUNSEL
COHEN & GRIGSBY, P.C.
Pittsburgh, Pennsylvania
FINANCIAL ADVISOR
PUBLIC FINANCIAL MANAGEMENT, INC.
Harrisburg, Pennsylvania
PAYING AGENT
, Pennsylvania
MUNICIPALITY ADDRESS
Municipal Building
2700 Monroeville Boulevard
Monroeville, Pennsylvania 15146-2388
No dealer, broker, salesman or other person has been authorized by the Municipality of Monroeville, Allegheny County,
Pennsylvania (the “Municipality”) to give information or to make any representations, other than those contained in this Preliminary
Official Statement. If given or made, such other information or representations must not be relied upon as having been authorized by
any of the foregoing. This Preliminary Official Statement does not constitute an offer to sell or the solicitation of an offer to buy any
security other than the Bonds, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such
person to make such offer, solicitation or sale. The information set forth in this Preliminary Official Statement has been obtained from
the Municipality and other sources which are believed to be reliable. Such information is not guaranteed as to accuracy or
completeness. The information and expressions of opinion in this Preliminary Official Statement are subject to change without notice
and neither the delivery of this Preliminary Official Statement nor any sale made under it shall, under any circumstances, create any
implication that there has been no change in the affairs of the Municipality since the date hereof.
TABLE OF CONTENTS
Page
Page
Types of Indebtedness under the Debt Act ............................. 17!
Borrowing Capacity ................................................................ 17!
Pension Plans........................................................................... 17!
Future Financing ..................................................................... 18!
INTRODUCTORY STATEMENT ................................................. 1!
AUTHORITY FOR ISSUANCE ..................................................... 1!
PURPOSE OF THE ISSUE ............................................................. 1!
LITIGATION ................................................................................... 18!
SOURCES AND USES OF BOND PROCEEDS ........................... 1!
TAX EXEMPTION AND OTHER TAX MATTERS ................... 18!
THE BONDS ..................................................................................... 2!
CONTINUING DISCLOSURE UNDERTAKING ....................... 20!
General Description ................................................................. 2!
Payment of Principal and Interest............................................ 2!
Transfer, Exchange and Registration of Bonds....................... 2!
CONTINUING DISCLOSURE STATUS ...................................... 21!
NEGOTIABILITY ........................................................................... 21!
BOOK-ENTRY ONLY SYSTEM ................................................... 3!
UNDERWRITING ........................................................................... 21!
REDEMPTION OF BONDS............................................................ 4!
RATING ............................................................................................ 21!
Mandatory Redemption ........................................................... 4!
Notice of Redemption .............................................................. 4!
Manner of Redemption ............................................................ 5!
LEGAL OPINION ........................................................................... 21!
SECURITY FOR THE BONDS ...................................................... 5!
FINANCIAL ADVISOR .................................................................. 22!
General Obligations ................................................................. 5!
Sinking Fund............................................................................ 5!
MISCELLANEOUS ......................................................................... 22!
APPENDIX A - DEMOGRAPHIC AND ECONOMIC INFORMATION
RELATING TO THE MUNICIPALITY OF MONROEVILLE
THE MUNICIPALITY .................................................................... 6!
Introduction.............................................................................. 6!
Form of Municipal Government .............................................. 6!
ECONOMY OF THE MUNICIPALITY ....................................... A-1!
Introduction ............................................................................. A-1!
Income ..................................................................................... A-6!
Commercial Activity ............................................................... A-7!
Transportation ......................................................................... A-7!
Public Utilities ......................................................................... A-7!
Health Care and Emergency Services ..................................... A-7!
Higher Education..................................................................... A-7!
Public Education ..................................................................... A-8!
Communications ...................................................................... A-8!
Parks and Recreation ............................................................... A-8!
TAXES AND TAXING POWERS ........................................................... 6!
HISTORICAL TAX LEVIES .......................................................... 7!
MUNICIPALITY FINANCES ........................................................ 7!
Accounting and Auditing Policies and Procedures ................. 7!
Basis of Presentation-Fund Accounting .................................. 8!
Basis of Accounting ................................................................ 8!
Summary and Discussion of Financial Results ....................... 8!
REVENUES AND EXPENDITURES* .......................................... 9!
STATEMENT OF REVENUES AND EXPENDITURES ............ 12!
APPENDIX B!
Bond Counsel Opinion!
REAL ESTATE TAX ............................................................................ 13!
APPENDIX C!
MUNICIPALITY OF MONROEVILLE!
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2008!
REAL ESTATE TAX COLLECTION ..................................................... 13!
Construction Permits ............................................................... 15!
EMPLOYEE RELATIONS............................................................. 16!
DEBT AND DEBT LIMITS ............................................................ 16!
i
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PRELIMINARY OFFICIAL STATEMENT
$11,310,000*
INTRODUCTORY STATEMENT
This Preliminary Official Statement, including the cover page and the Appendices hereto, is furnished in connection with the
offering of $11,310,000* aggregate principal amount of the Municipality of Monroeville, Allegheny County, Pennsylvania (the
“Municipality”) General Obligation Bonds, Series of 2010, dated as of April 15, 2010 (the "Bonds"). The Bonds are being issued
pursuant to an Ordinance of the Municipality enacted March
, 2010 (the “Ordinance”), and pursuant to the Local Government
Unit Debt Act of the Commonwealth of Pennsylvania, Act of December 19, 1996, 53 Pa. Cons. Stat. Chs. 80-82, as amended (the
“Debt Act”).
, Pennsylvania (the “Paying Agent”) will act as the Paying Agent and Sinking Fund Depository for the
Bonds.
The Bonds are general obligations of the Municipality, and the full faith, credit and taxing power of the Municipality are
pledged for the payment of the principal of and interest on the Bonds when due. The Bonds are payable from its tax and other
general revenues, including unlimited ad valorem taxes on all taxable real property in the Municipality, which taxing power is
presently without limitation as to rate or amount for such purpose (See “Security” herein).
Neither the delivery of this Preliminary Official Statement nor any sale of the Bonds made hereunder shall, under any
circumstances, create any implication that thereafter there have been no changes in the affairs of the Municipality since the date of
this Preliminary Official Statement or the earliest date as of which certain information contained herein is given.
AUTHORITY FOR ISSUANCE
The Bonds are issued in accordance with the requirements of the Debt Act and pursuant to the Ordinance. Issuance of the
Bonds will be approved by the Department of Community and Economic Development of the Commonwealth pursuant to the Debt
Act.
PURPOSE OF THE ISSUE
Proceeds from the Bonds will be used (1) to currently refund the Municipality’s outstanding General Obligation Bonds,
Series of 2003 outstanding in the aggregate principal amount of $1,285,000 (the “2003 Bonds”); (2) to currently refund the
Municipality’s outstanding General Obligation Bonds, Series A of 2003 outstanding in the aggregate principal amount of
$3,505,000 (the “2003A Bonds”); (3) to currently refund the Municipality’s outstanding General Obligation Bonds, Series of 2005
outstanding in the aggregate principal amount of $6,115,000 (the “2005 Bonds”); and (4) to pay the costs of issuing the Bonds.
Upon the issuance of the Bonds, a portion of the proceeds thereof will be deposited with Manufacturers and Traders Trust
Company, paying agent for the 2003 Bonds, for the 2003A Bonds, and for the 2005 Bonds. Such deposited proceeds will be
sufficient to redeem and pay at the redemption price of 100% of the principal amount, plus accrued interest pursuant to the
redemption dates on the 2003 Bonds and the 2003A Bonds on April 15, 2010. The 2005 Bonds will be called for optional
redemption, at a redemption price of 100% of principal amount plus accrued interest, pursuant to the optional redemption
provisions applicable to the 2005 Bonds, on June 1, 2010.
SOURCES AND USES OF BOND PROCEEDS
The following is a summary of the sources and uses of the proceeds from the issuance of the Bonds.
Source of Funds
Bond Proceeds.....................................................................................................................................................
Accrued Interest ..................................................................................................................................................
Total Source of Funds ......................................................................................................................................
Use of Funds
Amount Required to Redeem the 2003 Bonds ....................................................................................................
Amount Required to Redeem the 2003A Bonds
Amount Required to Redeem the 2005 Bonds
Costs of Issuance(1) ............................................................................................................................................
Total Use of Funds ............................................................................................................................................
(1)
Includes legal, financial advisor, printing, municipal bond insurance, rating, total bond discount, CUSIP, paying agent and miscellaneous costs.
1
THE BONDS
General Description
The Bonds will be issued in one or more series only as fully registered bonds, without coupons, in the denominations of
$5,000 and integral multiples thereof. The Bonds will be issued as one fully registered Bond for each maturity of the Bonds in the
name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), as registered owner of all
Bonds. See “THE BOND-Book-Entry Only System” herein. The Bonds will be dated as of April 15, 2010, and will mature,
subject to prior redemption as hereinafter described, in the principal amounts and on the dates, and will bear interest at the rates,
set forth on the cover of this Preliminary Official Statement. Interest on the Bonds is payable semiannually on June 1 and
December 1 of each year, commencing June 1, 2010.
Payment of Principal and Interest
Subject to the provisions described under “THE BONDS-Book-Entry Only System” below, principal of the Bonds will be
payable upon maturity or earlier redemption to the registered owner of each Bond, or assigns, upon presentation and surrender
thereof at the office of the Paying Agent,
, Pennsylvania.
Interest is payable to the registered owner of a Bond from the interest payment date next preceding the date of registration
and authentication of the Bond unless: (a) such Bond is registered and authenticated as of an interest payment date, in which event
such Bond shall bear interest from said interest payment date, or (b) such Bond is registered and authenticated after a Record Date
(hereinafter defined) and before the next succeeding interest payment date, in which event such Bond shall bear interest from such
interest payment date, or (c) such Bond is registered and authenticated on or prior to the Record Date (hereinafter defined) next
preceding June 1, 2010, in which event such Bond shall bear interest from April 15, 2010, or (d) as shown by the records of the
Paying Agent, interest on such Bond shall be in default, in which event such Bond shall bear interest from the date on which
interest was last paid on such Bond. Interest shall be paid on the Bonds semiannually on June 1 and December 1 of each year,
beginning June 1, 2010, until the principal sum is paid. Interest on each Bond is payable by check drawn on the Paying Agent,
which shall be mailed to the registered owner whose name and address shall appear, at the close of business on the fifteenth (15th)
calendar day of the month immediately preceding each interest payment date (whether or not a day on which the Paying Agent
shall be open for business) (the "Record Date"), on the registration books maintained by the Paying Agent irrespective of any
transfer or exchange of the Bond subsequent to such Record Date and prior to such interest payment date, unless the Municipality
shall be in default in payment of interest due on such interest payment date. In the event of any such default, such defaulted
interest shall be payable to the person in whose name the Bond is registered at the close of business on a special record date for the
payment of such defaulted interest established by notice mailed by the Paying Agent to the registered owners of such Bonds not
less than fifteen (15) days preceding such special record date. Such notice shall be mailed to the persons in whose names such
Bonds are registered at the close of business on the fifth (5th) day preceding the date of mailing.
If the date for payment of the principal of or interest on any Bond shall be a Saturday, Sunday, legal holiday or a day on
which banking institutions in the Municipality where the designated corporate trust office of the Paying Agent is located are
authorized by law or executive order to close, then the date for payment of such principal or interest shall be the next succeeding
day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and
payment on such date shall have the same force and effect as if made on the nominal date established for such payment.
Transfer, Exchange and Registration of Bonds
Subject to the provisions described below under “THE BONDS--Book-Entry Only System”, Bonds are transferable or
exchangeable by the registered owners thereof upon surrender of Bonds to the Paying Agent, at its designated corporate trust office
in
, Pennsylvania, accompanied by a written instrument or instruments in form, with instructions, and with guaranty of
signature satisfactory to the Paying Agent, duly executed by the registered owner of such Bond or his attorney-in-fact or legal
representative. The Paying Agent shall enter any transfer of ownership of Bonds in the registration books and shall authenticate
and deliver at the earliest practicable time in the name of the transferee or transferees a new fully registered bond or bonds of
authorized denominations of the same maturity and interest rate for the aggregate principal amount which the registered owner is
entitled to receive. The Municipality and the Paying Agent may deem and treat the registered owner of any Bond as the absolute
owner thereof (whether or not a Bond shall be overdue) for the purpose of receiving payment of or on account of principal and
interest and for all other purposes, and the Municipality and the Paying Agent shall not be affected by any notice to the contrary.
The Municipality and the Paying Agent will not be required (a) to register the transfer of or exchange any Bonds then
considered for redemption during a period beginning at the close of business on the fifteenth (15th) day next preceding any date of
selection of Bonds to be redeemed and ending at the close of the business day on which the applicable notice of redemption is
mailed, or (b) to register the transfer of or exchange any portion of any Bond selected for redemption until after the redemption
date. Bonds may be exchanged for a like aggregate principal amount of Bonds of other authorized denominations, of the same
maturity and interest rate.
2
BOOK-ENTRY ONLY SYSTEM
Portions of the following information concerning DTC and DTC's book-entry only system have been obtained from DTC.
The Municipality and the Underwriter make no representation as to the accuracy of such information.
Initially, DTC will act as Securities Depository for the Bonds. The Bonds initially will be issued solely in book-entry form
to be held under DTC's book-entry only system, registered in the name of Cede & Co. (DTC's Partnership nominee) or such other
name as may be requested by an authorized representative of DTC. One fully-registered Bond certificate will be issued for each
maturity of the Bonds, in the aggregate principal amount of the Bonds of such maturity, and will be deposited with DTC.
DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a
"banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing
corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the
provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2 million
issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 85
countries that DTC’s participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among
Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry
transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation
("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing
Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing
Corporation, (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc.,
the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also
available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations
that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect
Participants"). DTC has Standard & Poor’s highest rating: AAA. The DTC Rules applicable to its Participants are on file with the
Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. So long as the Bonds are
maintained in book-entry form with DTC, the following procedures will be applicable with respect to the Bonds.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for
the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be
recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of
their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as
well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered
into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct
and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's
nominee name, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of
Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in
beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the
identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners.
The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among
them, subject to any statutory or regulatory requirements as may be in effect from time to time. As long as the book-entry system
is used for the Bonds, redemption notices will be sent to Cede & Co. If less than all of the Bonds within an issue are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
As long as the book-entry system is used for the Bonds, principal or redemption price of, and interest payments on, the
Bonds will be made to DTC. DTC's practice is to credit Direct Participants' accounts on the payable date in accordance with their
respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on the payable date.
Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case
with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of
such Participant and not of DTC, the Paying Agent or the Municipality, subject to any statutory or regulatory requirements as may
be in effect from time to time. Payment of principal or redemption price and interest to DTC is the responsibility of the
Municipality or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments Beneficial Owners of the Bonds may wish to take certain steps to augment the transmission to
them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments
to the financing documents. For example, Beneficial Owners of the Bonds may wish to ascertain that the nominee holding the
Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may
wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
3
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds, unless authorized
by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the
Paying Agent as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to
those Direct Participants to whose accounts the Bonds are credited on the record date (identified in listing attached to the Omnibus
Proxy).
Redemption proceeds, distributions, and interest payments on the Bonds will be made to Cede & Co., or such other nominee
as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s
receipt of funds and corresponding detail information from the Municipality or the Paying Agent, on the payable date in
accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be
governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in
bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the
Paying Agent, or the Municipality, subject to any statutory or regulatory requirements as may be in effect from time to time.
Payment of redemption proceeds, distributions, and interest payments to Cede & Co. (or such other nominee as may be requested
by an authorized representative of DTC) is the responsibility of the Municipality or the Paying Agent, disbursement of such
payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners
will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice
to the Municipality and the Paying Agent. In addition, the Municipality may decide to discontinue use of the system of book-entry
transfers through DTC (or a successor Securities Depository). Under either of such circumstances, in the event that a successor
Securities Depository is not obtained, Bond certificates are required to be printed and delivered.
The Municipality and the Paying Agent will have no responsibility or obligation to any Securities Depository, any
Participants in the book-entry system, or the Beneficial Owners with respect to (i) the accuracy of any records maintained by the
Securities Depository or any Participant; (ii) the payment by the Securities Depository or by any Participant of any amount due to
any Participant or Beneficial Owner, respectively, in respect of the principal amount or redemption price of, or interest on, any
Bonds; (iii) the delivery of any notice by the Securities Depository or any Participant; (iv) the selection of the Beneficial Owners
to receive payment in the event of any partial redemption of the Bonds; or (v) any other action taken by the Securities Depository
or any Participant.
In the event of the discontinuance of the book-entry system for the Bonds, Bond certificates will be printed and delivered
and the following provisions of the Paying Agent Agreement will apply: (i) principal or redemption price of the Bonds will be
payable upon surrender of the Bonds at the designated corporate trust office of the Paying Agent located in
,
Pennsylvania as provided in the Ordinance; (ii) Bonds may be transferred or exchanged for other Bonds of authorized
denominations at the designated office of the Registrar of the Bonds, without cost to the owner thereof except for any tax or other
governmental charge; and (iii) Bonds will be issued in denominations as described above under "THE BONDS."
REDEMPTION OF BONDS
Mandatory Redemption
Bidders may elect to structure the issue to include term Bonds, which term Bonds, if selected by the bidder, will be subject to
mandatory redemption prior to maturity, in the years and amounts as shown in the Invitation to Bid, upon payment of the principal
amount of Bonds to be redeemed, together with accrued interest to the date fixed for redemption, or upon maturity, as applicable.
Bonds to be redeemed shall be selected by lot by the Paying Agent.
Optional Redemption
The Bonds stated to mature on or after June 1, 2016 are subject to redemption prior to maturity, at the option of the
Municipality, in whole or in part, from time to time on June 1, 2015, or on any date thereafter, and, if in part, in such order of
maturity as selected by the Municipality, in either case upon payment of a redemption price of 100% of the principal amount plus
accrued interest to the redemption date. In the event less than all Bonds of any particular maturity are to be redeemed, the Bonds
to be redeemed shall be drawn by lot by the Paying Agent.
Notice of Redemption
Notice of any redemption of Bonds shall be given by depositing a copy of the redemption notice by first class mail, postage
prepaid not more than sixty (60) days and not less than thirty (30) days prior to the date fixed for redemption, addressed to each of
the registered owners of Bonds to be redeemed, in whole or in part, at the addresses shown on the registration books kept by the
Paying Agent as of the date such Bonds are selected for redemption. Neither the failure to mail notice of redemption nor any
defect therein or in the mailing thereof shall affect the validity of any proceeding for redemption of other Bonds called for
redemption as to which proper notice has been given.
4
On the date designated for redemption, notice having been provided as aforesaid, and money for payment of the principal
and accrued interest being held by the Paying Agent, interest on the Bonds and portions thereof so called for redemption shall
cease to accrue and such Bonds and portions thereof so called for redemption shall cease to be entitled to any benefit or security
under the Ordinance, and registered owners of such Bonds shall have no rights with respect to such Bonds, except to receive
payment of the principal of and accrued interest on such Bonds to the date fixed for redemption.
If at the time of mailing of such notice of redemption, the Municipality shall not have deposited with the Paying Agent funds
sufficient to redeem all of the Bonds called for redemption, such notice may state that it is conditional in that it is subject to the
deposit of redemption moneys with the Paying Agent no later than the redemption date and that such notice will be of no effect
unless such moneys are so deposited.
If the date fixed for redemption of a Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions
in the municipality where the designated corporate trust office of the Paying Agent is located are authorized by law or executive
order to close, then the date for payment of such principal or interest upon such redemption shall be the next succeeding day which
is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized by law or executive order to
close, and payment on such day shall have the same force and effect as if made on the nominal date established for such payment.
Manner of Redemption
If a Bond is of a denomination larger than $5,000, a portion of such Bond may be redeemed. For the purposes of
redemption, a Bond shall be treated as representing that number of Bonds which is obtained by dividing the principal amount
thereof by $5,000, each $5,000 portion of such Bond being subject to redemption. In the case of partial redemption of a Bond,
payment of the redemption price shall be made only upon surrender of such Bond in exchange for Bonds of authorized
denominations in aggregate principal amount equal to the unredeemed portion of the principal amount thereof.
SECURITY FOR THE BONDS
General Obligations
The Bonds will be general obligations of the Municipality, payable from its tax and other general revenues, which taxing
power presently includes ad valorem taxes which may be levied on all taxable real property within the Municipality presently
without limitation as to rate or amount. The Municipality has covenanted that it will provide in its budget for each year, and will
appropriate from its general revenues in each such year, the amount of the debt service on the Bonds for such year, and will duly
and punctually pay or cause to be paid from its Sinking Fund, as hereinafter defined, or any other of its revenues or funds, the
principal of every maturity of the Bonds and the interest thereon at the dates and place and in the manner stated on the Bonds, and
for such budgeting, appropriation and payment the Municipality irrevocably has pledged its full faith, credit and taxing power.
Sinking Fund
A sinking fund created under the Ordinance (the "Sinking Fund") shall be held by Manufacturers and Traders Trust
Company, Harrisburg, Pennsylvania, (the “Sinking Fund Depository”). The Municipality shall deposit in the Sinking Fund not
later than each date when interest or principal is to become due on the Bonds, a sum which together with any other available funds
on deposit in the Sinking Fund, shall be sufficient to pay in full interest and principal then due and payable on the Bonds.
5
The Sinking Fund shall be secured and may be invested by the Sinking Fund Depository in securities or deposits authorized
by the Debt Act, upon direction of the Municipality. Such deposits and securities, if any, shall be in the name of the Municipality
but subject to withdrawal or collection only by the Sinking Fund Depository, and such deposits and securities, together with
interest thereon shall be a part of the Sinking Fund.
The Sinking Fund Depository is authorized, without further order from the Municipality, to pay from the Sinking Fund the
principal of and interest on the Bonds when due and payable.
THE MUNICIPALITY
Introduction
The Municipality of Monroeville, Allegheny County, Pennsylvania (the “Municipality”), was incorporated as the Borough
of Monroeville on January 25, 1951. On January 5, 1976, the Municipality became a Home Rule Charter Municipality pursuant to
the provisions of its Home Rule Charter, dated March 5, 1974 (the “Charter”); the Charter was subsequently approved by the
electorate of the Municipality on May 2, 1974.
The Municipality is located approximately ten miles east of the City of Pittsburgh, Allegheny County, Pennsylvania (the
“City”), which is the county seat of Allegheny County, Pennsylvania (the “County”). The Municipality is bordered to the north by
the Municipality of Plum, to the south by the Townships of North Huntingdon and North Versailles, to the east by the Municipality
of Murrysville and the Township of Penn, and to the west by the Municipality of Penn Hills and the Township of Wilkins.
The Municipality was originally a rural and agricultural area. Tremendous development began with the extension of the
Pennsylvania Turnpike in the early 1950’s. Today, the Municipality encompasses a total land area of 19.5 square miles, of which
approximately 97% is now developed. According to the Pennsylvania State Tax Equalization Board, the land use assessment of
the Municipality is classified approximately 53% residential, 42% commercial, 1.61% lots, and 3.4% industrial. Rapid and
significant growth in both the residential and commercial real estate composition of the Municipality has occurred over the last
fifteen years.
The population of the original Municipality of Monroeville was 8,000; the 2000 population of the Municipality was 29,349.
This represents a population increase of some 21,349 people, or 272.6% over the last forty-three years.
The Municipality is the home of several major employers representing such diverse industries health care, research and retail
services. Forbes Regional Hospital-West Penn is currently the largest employer, operating a Health Care and Emergency Services
Hospital. Cedars of Monroeville is the second largest employer operating a Nursing Facility. Westinghouse Electric Company is
currently the third largest employer operating a facility known as Westinghouse Energy Center. Westinghouse Electric Company is
in the process of moving its facility out of the Municipality. This moving process should be complete by the beginning of 2012.
Numerous full-time and part-time jobs are provided to area residents by Monroeville Mall, Expo Mart and Miracle Mile Shopping
Center.
Form of Municipal Government
Pursuant to the provisions of the Charter, the Municipality is governed by a Mayor and a seven-member Municipal Council.
Each of the seven members of the Municipal Council are elected by ward throughout the Municipality to serve four-year terms of
office. The terms of office of the Council members are staggered so that the members representing the odd-numbered wards are
elected two years apart from members representing the even-numbered wards. One of the seven members of the Municipal
Council is designated as the Deputy Mayor. The Charter further stipulates that the Mayor is permitted to cast a vote relating to
legislative matters only in the event of a tie.
The daily operations of the Municipality are delegated by the Mayor and Municipal Council to the Municipal Manager.
According to the Organizational Structure for Monroeville Municipal Government, contained in the Municipality’s 2007 Budget,
the Municipal Manager is responsible for the following major government functions: General Government Services, Public Safety,
Cable Television, Public Works, Community Development, Library Services, Recreation, Parks, and Human Services. The
Municipal Manager is also responsible for the services provided by the Municipal Solicitor, Municipal Engineer, and Municipal
Treasurer.
Taxes and Taxing Powers
General
The Municipality has the power to levy and collect annually a tax for general municipality purposes not exceeding 30 mills
on taxable real estate, and in addition, a tax sufficient (that is without limit) for the purpose of paying debt service charges on the
indebtedness of the Municipality. Various additional millage rates for specific purposes are likewise provided for.
6
Pursuant to the Act of December 31, 1965, as amended, the “Local Tax Enabling Act”, the Municipality may levy various
taxes, including the following, at the following limited rate:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Per Capita or other similar head tax, not over $10.00. This tax was replaced and repealed with the Local Services Tax
(“LCS”) of $52.00 per year collected per resident and will become effective January 1, 2008.
Gross receipts tax on wholesale dealers, not over 1 mill.
Gross receipts tax on retail dealers and restaurant proprietors, not over 1.5 mills.
On wages, salaries, commissions and other earned income of individuals, not over 1%.
On admissions to amusements, except motion picture theaters, not over 10%.
On retail sales of tangible personal property, not over 2%.
Flat rate occupation taxes, not over $10.00.
Occupational privilege taxes, not over $10.00. This tax was eliminated and replaced by an Emergency and Municipal
Services Tax in the amount of $52.00. Name changed to Local Services Tax (see above).
On transfer of real property, not over 1%.
In addition, the Municipality may levy an additional real property transfer tax not in excess of 1% on certain real estate
transfers pursuant to the Act of May 5, 1981, as amended by Act No. 77 of 1986, the “State Realty Transfer Tax Act”. Currently,
the Municipality does not levy a tax under this Act.
When two political subdivisions impose any one of the above taxes on the same person, subject, business, transaction or
privilege, located within both political subdivisions, then the tax levied during the time of such duplication shall be one-half of the
rate above limited.
The aggregate amount of all taxes imposed under this Act shall not exceed 2.2 mills times the total fair market value of real
estate in the Municipality as certified by the State Tax Equalization Board.
HISTORICAL TAX LEVIES
Shown below are the taxes levied during the past ten years by the Municipality.
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Real Estate
(mills)
12.25(1)
12.25(1)
12.25(2)
2.20(2)
2.20(1)
2.20(2)
2.20(2)
2.20(2)
2.20(2)
2.20(2)
2.20(2)
Real Estate
Transfer
(%)
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
Wage and
Income
(%)
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Occupational
Privilege
($)
10.00
10.00
10.00
10.00
10.00
10.00
n/a(3)
n/a(3)
n/a(3)
n/a(3)
n/a(3)
Mechanical Device
License Fee
(per device)
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
$100/200 of $400/500
Mercantile
(mills)
2/2.5
2/2.5
2/2.5
2/2.5
2/2.5
2/2.5
2/2.5
2/2.5
2/2.5
2/2.5
2/2.5
Business
Privilege(4)
(mills)
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
Local
Services
($)
n/a(3)
n/a(3)
n/a(3)
n/a(3)
n/a(3)
n/a(3)
10.00(3)
10.00(3)
10.00(3)
10.00(3)
10.00(3)
(1)
Since 1995, the Municipality has received an estimated $600,000 in proceeds from the Allegheny County Regional Assets
District (ARAD) 1% sales tax. As mandated by Commonwealth law, two thirds of those proceeds must be used to reduce
municipal taxes.
(2)
Due to reassessment and a change in the reassessment formula to provide for a current fair market value of assessment.
(3)
Local Services Tax replaced Emergency Municipal Services Tax.
(4)
Beginning in 2009, Council approved a tax calculation of 80% of gross receipts rather than 100% of gross receipts in an effort to
induce new business in to the community.
Source: Municipality Officials.
MUNICIPALITY FINANCES
Accounting and Auditing Policies and Procedures
Hosack, Specht, Muetzel & Wood LLP, of Pittsburgh, Pennsylvania, currently serves as the independent auditor for the
Municipality (the “Auditor”). The accounting policies of the Municipality conform to GAAP. Additionally, the Governmental
Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles.
7
Basis of Presentation-Fund Accounting
The accounts of the Municipality are organized on the basis of funds and account groups, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that
comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are
allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which
spending activities are controlled.
There are two major fund types; and two account groups which comprise the accounting system of the Municipality. The
two major fund types are the Governmental Funds and the Fiduciary Funds. The Governmental Funds include the General Fund,
Special Revenue Fund, Debt Service Fund, and the Capital Projects Fund. Fiduciary Funds are comprised primarily of the Pension
Trust Funds and the Agency Fund. The two groups include the General Fixed Assets Account Group and the General Long-Term
Debt Account Group.
Basis of Accounting
The modified accrual basis of accounting is used by all governmental fund types and the agency fund. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). “Measurable” means the amount of the transaction can be determined, and “available” means collectible within the
current period or soon enough thereafter to be used to pay liabilities of the current period.
Summary and Discussion of Financial Results
A summary of the Balance Sheet (Governmental Funds) and the General Fund Balances is presented on the following
tables. The budget for 2010, as adopted December 28, 2009, provides for a balanced budget of $26,104,836. The 2010 budget did
not increase real estate taxes for property remaining at 2.20 mills.
8
MUNICIPALITY OF MONROEVILLE
2010 GENERAL FUND BUDGET
REVENUES AND EXPENDITURES*
2010
Revenues
Taxes
Licenses and Permits
Fines and Forfeits
Interest, Rents and Royalties
Intergovernmental
Charges for Services
Miscellaneous
$19,258,400.00
$ 525,905.00
$
98,000.00
$ 170,000.00
$ 1,607,877.00
$ 440,861.00
$ 3,351,571.00
Total Revenues
$25,452,614.00
Cable TV Expenditure
$
242,522.00
Hotel/Motel Expenditures
$
409,700.00
TOTAL
$26,104,836.00
Expenditures
General Government
Debt Service
Public Safety
Public Works
Human Services
Planning Services
Sanitary Sewage/Transfer
$ 3,882,432.00
$ 2,551,437.00
$10,368,899.00
$ 6,015,150.00
$ 2,056,428.00
$ 487,659.00
$
89,200.00
Interfund Transfers
$
1,409.00
Total Expenditures
$25,452,614.00
Cable TV Expenditure
$
242,522.00
Hotel/Motel Expenditures
$
409,700.00
TOTAL
$26,104,836.00
Source: Municipality and budget report.
*May not add due to rounding.
9
2009 ESTIMATED GENERAL FUND
REVENUES AND EXPENDITURES*
2009
Estimated
REVENUES:
Taxes ....................................................................................................................
Interest Revenues .................................................................................................
Finance and Personnel..........................................................................................
Liquid Fuels .........................................................................................................
Other Departments ...............................................................................................
Cable TV Revenue ...............................................................................................
Fire/Building/Code Enforcement .........................................................................
leisure Learning....................................................................................................
Community Development ....................................................................................
Recycling .............................................................................................................
Police Patrol .........................................................................................................
Municipal Library ................................................................................................
Monroeville Community Pool ..............................................................................
Total Revenues ....................................................................................................
EXPENDITURES:
General Government ............................................................................................
Public Safety ........................................................................................................
Public Works: .......................................................................................................
Debt Service: ........................................................................................................
Human Services ...................................................................................................
Planning Services .................................................................................................
MMA/CVB Gas ...................................................................................................
TOTAL EXPENDITURES .................................................................................
.............................................................................................................................
Excess (Deficiency) of Revenues
Over Expenditures .............................................................................................
Source: Municipality and budget report.
*May not add due to rounding.
10
$23,303,700
3,276,940
1,765,652
555,000
250,813
169,493
180,500
113,700
126,200
105,000
98,000
75,030
66,650
$30,086,678
$8,137,737
10,496,623
6,102,003
2,562,707
2,143,139
504,528
139,942
$30,086,679
($1)
BALANCE SHEET
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31*
ASSETS
Cash and Cash Equivalents ..............................
Investments ......................................................
Restricted Cash & Cash Equivalent ................
Restricted Investments .....................................
Taxes Receivable (net)
...............................
Due from Other Funds......................................
Due from Other Governments ..........................
Other Receivables (net, where applicable for allowance
for uncollectible)
Other Current Assets ........................................
TOTAL ASSETS ............................................
LIABILITIES AND FUND BALANCES
Liabilities
Due to Other funds ........................................
Accounts Payable ...........................................
Contracts Payable ..........................................
Accrued Salaries and Benefits........................
Returnable Deposits ......................................
Unearned Revenues .......................................
Deferred Revenue...........................................
Total Liabilities ................................................
Fund Balances
Reserve for Encumbrances .............................
Reserve for Retiree Health Insurance benefits
Reserve for Fiscal Emergency.......................
Reserve for Capital Projects ...........................
Unreserved-Designated for Future Capital Projects
Unreserved-Undesignated ..............................
General Fund ...............................................
Special Revenue Fund .................................
Capital Projects Fund ..................................
Total Fund Balances .........................................
.........................................................................
TOTAL LIABILITIES AND FUND BALANCES
2005
2006
2007
2008
$15,253,046
3,979,295
343,186
5,819,583
2,248,249
1,115,216
24,488
$14,795,042
2,768,301
1,606,238
4,793,587
2,246,650
3,108,579
90,719
$20,310,364
1,903,609
931,154
5,583,673
2,420,110
1,977,458
390,418
$15,528,136
1,668,424
2,460,802
4,277,942
2,481,735
1,915,093
204,027
707,469
433,747
$29,924,279
752,286
$30,161,402
380,881
5,711
$33,903,378
256,977
5,551
$28,798,687
$1,115,216
1,084,051
395,078
403,768
168,827
2,240,099
$3,108,579
784,523
386,057
213,995
2,707,433
$1,977,458
1,362,266
375,284
318,742
2,586,960
$1,915,093
1,344,923
227,431
86,248
2,661,114
5,407,039
7,200,587
6,620,710
6,234,809
$490,808
6,162,769
83,417
5,155,171
3,735,482
$655,291
6,399,825
83,417
3,721,413
2,899,448
$686,111
6,514,827
83,417
8,413,715
2,343,481
$885,733
6,738,744
83,417
4,230,068
2,540,377
8,359,289
765,877
(235,573)
$24,517,240
8,391,832
809,589
$22,960,815
8,373,585
867,522
$27,282,658
7,149,666
935,873
$22,563,878
$29,924,279
$30,161,402
$33,903,368
$28,798,687
Source: Municipality Financial Statements
*May not add due to rounding
11
The following table shows the Statement of Revenues and Expenditures and Changes in Fund Balance, Governmental Funds
at December 31, 2004 through December 31, 2008:
STATEMENT OF REVENUES AND EXPENDITURES
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31*
REVENUES:
Taxes ...............................................................................................
Licenses and Permits.......................................................................
Fines and forfeits ............................................................................
Interest Rents and Royalties ...........................................................
Intergovernmental ...........................................................................
Charges for Services .......................................................................
Interest and Rent .............................................................................
Miscellaneous .................................................................................
Other................................................................................................
Total Revenues
2004
2005
2006
2007
2008
$18,416,948
1,179,309
120,904
$19,122,033
1,093,704
120,656
$20,565,999
1,055,011
150,222
1,798,854
1,017,658
358,990
2,149
$22,894,812
2,695,881
908,030
763,746
61,482
$24,765,532
1,716,888
877,220
1,234,063
11,134
$25,610,537
$20,861,746
1,176,854
158,759
1,203,292
1,987,942
888,780
51,790
$26,329,163
$20,861,100
1,078,265
146,335
909,950
1,708,639
841,872
57,634
$25,603,795
$3,718,128
8,682,700
$3,875,424
9,914,915
$3,918,294
9,403,266
$3,978,115
10,566,677
$3,739,361
10,310,515
EXPENDITURES:
General Government .......................................................................
Public Safety ...................................................................................
Public Works:
Sanitation ...................................................................................
Highways ...................................................................................
Culture and Recreation ...................................................................
Conservation and development.......................................................
Insurance Premiums ........................................................................
Capital Outlay .................................................................................
Debt Service: ...................................................................................
Tax Anticipation Note/Principal ...................................................
Tax Anticipation Note/Interest .....................................................
Principal .....................................................................................
Interest ........................................................................................
Reserve ............................................................................................
Bond issue costs ..............................................................................
TOTAL EXPENDITURES ............................................................
959,148
2,835,702
2,890,997
492,765
895,783
2,495,056
954,687
2,877,094
2,908,233
480,279
943,860
9,515,543
937,142
3,475,994
2,973,726
443,707
941,605
2,877,887
1,014,532
2,941,222
3,559,372
461,409
951,513
3,885,834
1,081,621
3,055,005
3,440,371
460,014
767,909
5,106,678
850,000
633,804
$24,454,083
1,390,000
632,302
$33,492,337
1,425,000
770,341
$27,166,962
1,460,000
739,807
$29,558,481
1,515,000
997,711
$30,474,185
Over Expenditures .......................................................................
(1,559,271)
(8,726,805)
(1,556,425)
(3,229,318)
(4,870,390)
Other Financing Sources (uses) ......................................................
Bond Proceeds ................................................................................
Refunding bonds issued ..................................................................
Bond discount .................................................................................
Payments to refunded bond escrow agent ......................................
Bond premium ................................................................................
Proceeds from sale of sewer system ...............................................
Sale of Fixed Assets ........................................................................
Transfer of sewer fund net assets....................................................
Residual equity transfer in ..............................................................
Residual transfer out .......................................................................
Operating transfers in......................................................................
Operating transfers out ...................................................................
Total Other Financing Sources (uses) ............................................
0
6,135,000
7,520,000
(85,837)
(7,317,087)
6,152,652
(6,152,652)
6,252,076
377,863
(377,863)
0
7590000
(38,829)
160,555
(160,555)
7,551,171
151,600
172,358
(172,358)
151,600
and Other Financing Sources Over
Expenditures and Other Financing Uses .....................................
(1,559,271)
(2,474,729)
(1,556,425)
4,321,853
(4,718,790)
Fund Balances - January 1, .......................................................
28,551,240
26,991,969
24,517,240
22,960,815
27,282,668
Fund Balances - December 31, ...................................................
$26,991,969
$24,517,240
$22,960,815
$27,282,668
$22,563,878
Source: Municipality Financial Statements
*May not add due to rounding
12
The largest sources of revenue for estimated 2008 are the real estate taxes, which account for 20.2 percent of total revenue,
charges for services, which represents 3.8 percent total revenues, and the Intergovernmental revenues, which represents 6.6 percent
of total revenue. Between 2004 and 2008, receipts increased by a compound average annual percent of 2.3 percent and
expenditures increased by a compound average annual percent of 4.5 percent.
Real Estate Tax
The Municipality levies a real estate tax of 2.20 mills for general purposes. The following tables summarize recent trends in
real estate tax rates for the Municipality and overlapping jurisdictions, and in real estate assessment and tax collections. The ten
largest real estate taxpayers for 2008 are shown on an accompanying table. These ten taxpayers account for approximately 17.7
percent of the aggregate assessed value of Municipality property. The last countywide assessment in Allegheny County became
effective in 2001.
COMPARATIVE REAL ESTATE TAX RATES
(Mills on Assessed Value)
2004
2.20
18.41
4.69
Municipality of Monroeville ........................................................
Gateway School District ..............................................................
Allegheny County ........................................................................
2005
2.20
19.41
4.69
2006
2.20
19.41
4.69
2007
2.20
19.41
4.69
2008
2.20
19.41
4.69
2009
2.20
19.41
4.69
Source: Municipal Officials
Real Estate Tax Collection
Real estate tax billings are mailed on March 1 and are due at face from April 30 to June 30 each year. Taxes are paid at a
2% discount until April 30 and at face value until June 30. Taxes paid after July 1 are assessed a 10% penalty. If the taxes remain
unpaid, the accounts are turned over to the Municipality's Liened Tax Collection Office on January 15 of the following year. The
Municipality’s Liened Tax Collection Office will proceed with collection efforts and sell the property at tax sale if necessary to
satisfy the lien.
REAL PROPERTY TAX COLLECTION DATA
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Total Tax
Current
Collections
Levy
$3,923,000
3,931,000
4,055,000
4,092,000
4,286,000
4,473,000
4,298,000
4,324,000
4,392,000
4,228,000
4,614,311
4,591,529
Amount
$3,801,000
3,638,000
3,880,000
3,805,000
4,164,000
4,213,333
4,205,000
4,298,000
4,087,000
4,150,892
4,497,058
4,223,527
Current Year
Collections
as Percent
of Total Tax
Levy
96.89%
92.55%
95.68%
92.99%
97.15%
94.19%
97.84%
99.40%
93.06%
98.18%
97.46%
93.40%
Source: Municipal financial statements.
13
Delinquent
Tax
Collections
$121,000
91,000
120,000
56,000
67,000
71,000
139,000
137,000
59,756
78,878
42,659
65,182
Total
Tax Collections
To Total
Total to
Outstanding
Delinquent
Collections
$3,922,000
3,729,000
4,000,000
3,861,000
4,231,000
4,284,333
4,344,000
4,435,000
4,146,756
4,229,770
4,539,717
4,288,709
Total Tax Levy
99.97%
94.86%
98.64%
94.35%
98.72%
95.78%
101.07%
102.57%
94.42%
100.04%
98.38%
93.40%
Taxes
$459,000
554,000
506,000
453,000
549,000
558,000
419,000
308,000
553,224
551,504
626,098
928,918
REAL PROPERTY ASSESSMENT DATA
Market
Value
1,974,718,000
1,890,962,287
1,917,449,876
1,926,494,576
1,957,590,946
1,990,369,279
Year
2003
2004
2005
2006
2007
2008
Assessed
Value
1,974,718,000
1,890,962,287
1,917,449,876
1,926,494,576
1,957,590,946
1,990,369,279
Ratio
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Source: Pennsylvania State Tax Equalization Board.
ASSESSMENT BY LAND USE
Residential ....................
Lots ...............................
Industrial .......................
Commercial ...................
Agriculture ....................
Land ..............................
Trailers ..........................
Total ..............................
2004
$1,017,475,460
32,927,555
58,594,100
781,252,172
713,000
0
0
$1,890,962,287
2005
$1,009,354,940
30,779,605
58,594,100
817,223,131
698,000
800,100
0
$1,917,449,876
2006
$1,020,697,740
31,047,605
58,594,100
814,720,631
698,000
736,500
0
$1,926,494,576
2007
$1,030,547,840
27,828,475
58,591,600
839,198,631
689,000
735,400
0
$1,957,590,946
2008
$1,036,245,040
24,543,815
58,021,600
870,009,221
698,000
571,600
280,000
$1,990,369,276
Source: Pennsylvania State Tax Equalization Board.
SUMMARY OF FINANCIAL FACTORS
Population:
2000 Census ..........................................................................................................................
1990 Census ..........................................................................................................................
Market Value of Taxable Real Property, 2008 ................................................................................
Assessed Valuation of Taxable Real Property, 2008 ......................................................................
Ratio of Assessed to Market Valuation ...........................................................................................
2008 Market Valuation Per Capita ..................................................................................................
2008 Assessed Valuation Per Capita ...............................................................................................
Source: Municipal officials.
14
29,349
29,169
$2,031,303,000
$2,031,303,000
100.00%
$69,212.00
$69,212.00
The ten largest taxpayers within the Municipality and their 2010 assessed valuation are shown below:
TEN LARGEST REAL PROPERTY TAXPAYERS, 2010(1)
Taxable
Assessed
Valuation
Taxpayer
CBL Monroeville Partners
Westinghouse Electric Corporation-HUB Properties
PZ Miracle Mile
Anne V. Lewis
Eagle Ridge Apartments
Cochran, RELP
Monroeville SCLP
OFEWLP
Walnut Ivanhoe Partners
Monroeville Dept. Investor
$
161,580,500
42,000,000
37,772,800
19,415,100
18,293,800
17,774,100
17,481,700
17,000,000
15,582,500
14,000,000
$
360,900,500
Rank
Percentage of
Total Municipal
Taxable
Assessed Value
1
2
3
4
5
6
7
8
9
10
7.76%
2.02%
1.81%
0.93%
0.88%
0.85%
0.84%
0.82%
0.75%
0.67%
17.33%
(1)
A number of these properties may be the subject of an assessment appeal due to the change in assessment.
Source: Municipal Officials.
Construction Permits
The following table sets forth a history of construction in the Municipality by the number and value of permits issued in the
last ten years.
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009(1)
PROPERTY
VALUE
$1,948,323
2,033,591
1,974,718
1,965,716
1,996,151
2,041,057
2,107,649
2,031,303
2,082,263
EXEMPTIONS
$355,537
356,884
356,884
349,465
350,460
350,279
365,157
365,157
365,371
TOTAL
$2,303,860
2,390,475
2,331,602
2,315,181
2,346,611
2,391,336
2,472,806
2,396,460
2,447,634
Note: All properties in Allegheny County, Pennsylvania have been reassessed during 2001.
(1)
As of February 18, 2010.
15
CONSTRUCTION
NUMBER OF
UNITS
VALUE
363
25,427
391
31,267
418
41,374
412
67,622
332
42,041
243
31,458
312
40,256
234
35,434
231
38,742
EMPLOYEE RELATIONS
There are presently 288 employees of the Municipality which consist of 152 full-time employees and 127 part-time
employees and elected officials. The clerical employees are currently working under a contract which expires on December 31,
2009, the PSSU Public Works employees are working under a contract which expires August 31, 2011. The Refuse Collection
Division is working under a contract which expires May 31, 2012, and the Police employees are working under a contract which
expires on December 31, 2011.
DEBT AND DEBT LIMITS
The Table which follows shows the debt of the Municipality as of March 2, 2010, taking into account the issuance of the
Bonds.
DEBT STATEMENT
(As of March 2, 2010)*
DIRECT DEBT
Nonelectoral Debt
General Obligation Bonds, Series of 2010 (last maturity 2019).....................................................................
General Obligation Bonds, Series of 2007 (last maturity 2022).....................................................................
General Obligation Bonds, Series A of 2005 (last maturity 2016) .................................................................
Total Nonelectoral Debt .................................................................................................................................
Gross
Outstanding
$11,310,000
7,585,000
7,420,000
26,315,000
Lease Rental Debt ..........................................................................................................................................
$0
TOTAL DIRECT & LEASE RENTAL DEBT .............................................................................................
$52,630,000
OVERLAPPING DEBT
Allegheny County, General Obligation(1) .......................................................................................................
Gateway School District(2) .............................................................................................................................
TOTAL OVERLAPPING DEBT ..................................................................................................................
$22,111,067
46,947,384
$69,058,451
$121,688,451
TOTAL DIRECT AND OVERLAPPING DEBT
DEBT RATIOS
Per Capita .......................................................................................................................................................
Percent 2010 Assessed/Market Value ............................................................................................................
$4,146.26
5.99%
*Includes the estimated Bonds being offered through this Preliminary Official Statement. Excludes the 2003 Bonds, the 2003A
Bonds, and the 2005 Bonds being refunded herein.
(1)
Pro rata 3.4 percent of $648,467,500 outstanding general obligation debt.
(2)
Pro rata 97.4 percent of $48,200,680 outstanding general obligation debt, giving effect to expected estimated future
reimbursement of sinking fund payments based on current State Aid Ratio.
16
Types of Indebtedness under the Debt Act
The Debt Act establishes three forms of debt for a local government unit: (i) electoral debt (debt incurred with the approval
of the electors for which there is no limitation on the amount that may be so incurred), (ii) nonelectoral debt (debt of a local
government unit not being electoral or lease rental debt for which the limitation on all such net debt which may be incurred is 250
percent of the borrowing base for the Municipality), and (iii) lease rental debt (the principal amount of municipal authority debt or
debt of another local government unit to be repaid by the local government unit pursuant to a lease, subsidy contract guarantee or
other form of agreement where such debt is or may be payable out of the tax revenues and other general revenues; the limitation on
all such net debt which may be incurred, including any net nonelectoral debt incurred, is 350 percent of the borrowing base for the
Municipality). Any debt which is approved by the Pennsylvania Department of Community and Economic Development as
subsidized or self-liquidating may be deducted or excluded from the determination of any such debt incurred in determining the net
debt of the local government unit to which such limitations are applicable. Certain other deductions are allowed in determining net
debt.
Borrowing Capacity
The Debt Act establishes debt limits for local government units. The basis for determining nonelectoral borrowing capacity
is related to adjusted revenues received over the most recent three fiscal years. The following is a calculation of the current
“borrowing base,” which is the arithmetic average of the total revenues of the Municipality after adjustments by the exclusion of
certain subsidies, reimbursements, pledged revenues and non-recurring items:
Total Revenues for 2006
Total(1)
$
$
$
$
23,473,862
24,032,523
25,529,940
73,036,325
Annual Arithmetic Average (Borrowing Base)
The following is a calculation of the Municipality’s current net debt limitations.
$
24,345,442
Net Nonelectoral Debt Limit:
Borrowing Base ..................................................................................................................................
Multiplier ...........................................................................................................................................
Net Nonelectoral Debt Limit ...................................................................................................................
$24,345,442
250%
$60,863,605
Combined Net Nonelectoral Debt and Net Lease Rental Debt Limit:
Borrowing Base ..................................................................................................................................
Multiplier ...........................................................................................................................................
Combined Net Nonelectoral Debt and Net Lease Rental Debt Limit.....................................................
$24,345,442
350%
$85,209,047
(1)
Excluding trust and agency funds.
Pension Plans
The Municipality has two defined benefit pension plans covering full-time employees, the Police Pension Plan, and the NonUniform Pension Plan. Both Plans operate under the authority of various municipal ordinances. The Police Pension Plan is a
single employer plan, and the Non-Uniform Pension Plan is an agent multiple-employer plan. Plan provisions are established by
municipal ordinance with the authority for municipal contributions required by Act 205 of the Commonwealth (the Act). Both
receive bi-annual actuarial valuations.
Any member of the police force employed on a full-time basis by the Municipality is eligible to participate in the Police
Pension Plan. A police officer has a vested right to pension benefits upon having completed 12 years of service. Eligibility for the
normal retirement benefit is the later of attainment of age 55 or 25 years of service. The monthly pension benefit is 50% of the
participant’s average monthly earnings during the highest 36-month period of employment prior to retirement. The Police Pension
Plan also provides for disability benefits, for total and permanent disablement, following the completion of one year of service.
The monthly disability benefit is a percentage of the final average wage at the date of disablement based on years of service. If the
disablement is service related, the benefit is 50% of the final average wage. In the event of death before retirement eligibility,
contributions are refunded with credited interest.
Employees of the Municipality who are permanent and not covered by another pension plan are eligible to participate in the
Non-Uniform Pension Plan after six months of continuous service. Pension benefits become vested after the completion of 10
years of service. Eligibility for the normal retirement benefit is age 65, or 20 years of service regardless of age. The pension
benefit formula is based upon 2% per year of service of the Final Average Salary (FAS – average salary for last three years). The
maximum benefit is limited to 50% of FAS. A member may select a reduced joint annuitant benefit at retirement. Otherwise, the
present value of the accrued benefit will be paid to the beneficiary if an active member is eligible for retirement at the time of
17
death. A disability benefit is provided in the Plan. If the disability is service related, the benefit is 50% of FAS. For non-service
related disability with ten years of service, the benefit is 30% of FAS.
Under the terms of the Plans, police employees are required to contribute 5% of their total earnings; the non-uniform
employees are required to contribute 6% of their total earnings. As of January 1, 2007, the combined total of the assets available
for benefits at market value for the two plans was $47,450,768.
Future Financing
The Municipality does not anticipate issuing additional long term debt in the near future.
Other Post Employment Benefits (OPEB)
The Municipality has developed a plan to address costs associated with OPEB which became part of the Municipality’s
financial statements starting in 2008. The Municipality had previously funded the OPEB liability and set aside $6 million to fund
retiree’s benefits out of general fund appropriations. During 2009, the OPEB Committee funded the OPEB Trust in the amount of
$2,230,547 which is the Municipality’s Annual Required Contribution to OPEB from these reserved funds.
LITIGATION
Municipality officials and the Municipality Solicitor will deliver a certificate upon issuance of the Bonds to the effect that
there is no litigation of any nature now pending or threatened, restraining or enjoining the issuance, sale, execution or delivery of
the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the Municipality taken with
respect to the issuance or sale thereof.
TAX EXEMPTION AND OTHER TAX MATTERS
Pennsylvania Tax Exemption
In the opinion of Bond Counsel, under existing law, the Bonds are exempt from personal property taxes in Pennsylvania and
the interest on the Bonds is exempt from Pennsylvania personal income tax and corporate net income tax.
Federal Tax Exemption
As of the date of closing, Bond Counsel will issue an opinion to the effect that under existing law, the interest on the Bonds
(including any original issue discount properly allocable to the owner of a Bond) is excluded from gross income for federal income
tax purposes. Furthermore, interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum
tax imposed on individuals and corporations; however, with respect to certain corporations (as defined for federal income tax
purposes), such interest is taken into account in determining "adjusted current earnings" for the purpose of computing the
alternative minimum tax imposed on such corporations. For the purpose of rendering the opinion set forth in this paragraph, Bond
Counsel has assumed compliance by the Municipality with requirements of the Internal Revenue Code of 1986, as amended (the
"Code"), that must be met subsequent to the issuance of the Bonds in order that interest thereon be and remain excluded from gross
income for federal income tax purposes. Failure to comply with such requirements could cause the interest on the Bonds to be
included in gross income retroactive to the date of issuance of the Bonds. The opinion of Bond Counsel delivered on the date of
issuance of the Bonds is conditioned on compliance by the Municipality with such requirements, and Bond Counsel has not been
retained to monitor compliance with requirements such as described above subsequent to the issuance of the Bonds. Bond Counsel
expresses no opinion regarding other federal tax consequences arising with respect to the Bonds.
Qualified Tax-exempt Obligations
The Municipality has designated the Bonds as "qualified tax-exempt obligations" within the meaning of "Section 265(b)(3)
of the Code and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is
allowed for 80% of that portion of such financial institutions' interest expense allocable to interest on the Bonds.
18
Original Issue Discount
In the opinion of Bond Counsel, under existing law, the original issue discount in the selling price of any Bond sold at an
original issue discount (an "OID Bond"), to the extent properly allocable to each owner of such OID Bond, is excluded from gross
income for federal income tax purposes with respect to such holder. The original issue discount is the excess of the stated
redemption price or principal due at maturity of such OID Bond over the initial offering price to the public, excluding underwriters
and other intermediaries, at which price a substantial amount of such OID Bonds were sold.
Under Section 1288 of the Code, original issue discount on tax-exempt bonds accrues on a compound basis. The amount of
original issue discount that accrues to an owner of an OID Bond during any accrual period generally equals (i) the issue price of
such OID Bond plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (ii) the yield to
maturity of such OID Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for
the length of the accrual period), less (iii) any interest payable on such OID Bond during such accrual period. The amount of
original issue discount so accrued in a particular accrual period will be considered to be received ratably on each day of the accrual
period, will be excluded from gross income for federal income tax purposes and will increase the owner's tax basis in such OID
Bond. Any gain realized by an owner from a sale, exchange, payment or redemption of an OID Bond would be treated as gain
from the sale or exchange of such OID Bond. Owners of OID Bonds should consult their tax advisors as to the determination for
federal income tax purposes of original issue discount accrued or accredited upon purchase, sale or redemption of such OID Bonds.
Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax
consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies,
individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income,"
foreign corporations subject to the branch profits tax and taxpayers who may be deemed to have incurred or continued
indebtedness to purchase or carry the Bonds. Bond Counsel will express no opinion as to any collateral federal income tax
consequences. Prospective purchasers of the Bonds should consult their tax advisers as to collateral federal income tax
consequences.
Original Issue Premium.
An amount equal to the excess of the purchase price of the Bonds over its stated redemption price or principal due at
maturity constitutes a premium on such Bonds. Those maturities of the Bonds sold at such a premium are referred to herein as
“OIP Bonds.” A purchaser of an OIP Bond must amortize any premium over such OIP Bond’s term using constant yield
principles, based on the OIP Bond’s yield to maturity. As premium is amortized, the purchaser’s basis in such OIP Bond
and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to
such purchaser. This will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax
purposes on sale or disposition of such OIP Bond prior to its maturity. Even though the purchaser’s basis is reduced, no federal
income tax deduction is allowed. Purchasers of any bond at a premium, whether at the time of initial issuance or subsequent
thereto, should consult their tax advisors with respect to the determination and treatment of premium for federal income tax
purposes, and with respect to state and local tax consequences of owning such Bonds.
Other Tax Matters
Except as expressly stated above, Bond Counsel will express no opinion regarding any other state or federal income tax
consequences of acquiring, carrying, owning or disposing of the Bonds. Owners of the Bonds should consult their tax advisors
regarding the applicability of any collateral tax consequences of owning the Bonds, which may include original issue discount,
original issue premium, purchase at a market discount or premium, taxation upon sale, redemption or other disposition and various
withholding requirements and which may apply to certain taxpayers, including, without limitation, financial institutions, property
and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations
with "excess net passive income," foreign corporations subject to the branch profits tax and taxpayers who may be deemed to have
incurred or continued indebtedness to purchase or carry the Bonds.
19
Information Reporting
Prospective purchasers should be aware that interest paid on tax-exempt obligations will be subject to information
reporting in a manner similar to interest paid on taxable obligations. This reporting requirement does not in and of itself affect or
alter the excludability of such interest from gross income for federal tax purposes or any other federal tax consequence of
purchasing, holding or selling tax-exempt obligations. The Paying Agent on behalf of the Municipality will report annually (or
more frequently if required) to owners of record and to the Internal Revenue Service in respect of interest paid on the Bonds.
Backup Withholding
Payments of interest on the Bonds may under certain circumstances, be subject to “backup withholding” at a rate
equal to the fourth lowest rate of tax applicable under Section 1(c) of the Code, the rates applicable to unmarried individuals
(currently at 28%), for payments made up until December 31, 2010 and at the rate of 31% thereafter. This withholding
generally applies if the owner (i) fails to furnish the Paying Agent such owner’s social security number or other taxpayer
identification number (“TIN”), (ii) furnishes to the Paying Agent an incorrect TIN, (iii) fails to properly report interest,
dividends or other “reportable payments” as defined in the Code, or (iv) under certain circumstances, fails to provide the Paying
Agent or such owner’s securities broker with a certified statement, signed under penalties of perjury, that the TIN is correct and
that such owner is not subject to backup withholding. Prospective purchasers of the Bonds should consult their own tax advisors
as to their qualification for exemption for backup withholding and the procedures for obtaining the exemption."
THE FOREGOING IS NOT INTENDED AS AN EXHAUSTIVE LIST OF THE PROVISIONS OF FEDERAL TAX
LAW WHICH MAY HAVE AN EFFECT OF INDIVIDUALS AND CORPORATIONS HOLDING THE BONDS OR
RECEIVING INTEREST THEREON. PROSPECTIVE PURCHASERS SHOULD CONSULT WITH THEIR TAX ADVISORS
REGARDING THE EFFECT OF HOLDING THE BONDS OR RECEIVING INTEREST THEREON ON THEIR AFFAIRS,
INCLUDING, BUT NOT LIMITED TO, THE EFFECT OF STATE AND LOCAL TAX LAWS.
CONTINUING DISCLOSURE UNDERTAKING
In accordance with the requirements of Rule 15c2-12 (the “Rule”) promulgated by the Securities and Exchange
Commission, the Municipality (being an “obligated person” with respect to $10,000,000 or more of outstanding securities,
including the Bonds, within the meaning of the Rule) will agree:
(i) to file annually with the Municipal Securities Rulemaking Board (the “MSRB”) through its Electronic Municipal Market
Access (EMMA) System, not later than 180 days following the end of each fiscal year of the Municipality, beginning
with the fiscal year ending December 31, 2010, the following financial information and operating data with respect the
Municipality.
!
the financial statements for the most recent fiscal year, prepared in accordance with generally accepted
accounting principles for local government units and audited in accordance with generally accepted auditing
standards
!
a summary of the budget for the current fiscal year
!
the assessed value and market value of all taxable real estate for the current fiscal year
!
the taxes and millage rates imposed for the current fiscal year
!
the real property tax collection results for the most recent fiscal year, including (1) the real estate levy imposed
(expressed both as a millage rate and an aggregate dollar amount), (2) the dollar amount of real estate taxes
collected that represented current collections (expressed both as a percentage of such fiscal year’s levy and as an
aggregate dollar amount), (3) the amount of real estate taxes collected that represented taxes levied in prior
years (expressed as an aggregate dollar amount), and (4) the total amount of real estate taxes collected
(expressed both as a percentage of the current year’s levy and as an aggregate dollar amount)
!
a list of the ten (10) largest real estate taxpayers and, for each, the total assessed value of real estate for the
current fiscal year
(ii) in a timely manner, to file with MSRB through EMMA, notice of the occurrence of any of the following events with
respect to the Bonds, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3)
unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit
enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform;
(6) adverse tax opinions or events affecting the tax-exempt status of the Bonds; (7) modifications to rights of holders of
the Bonds; (8) bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the
Bonds; and (11) rating changes.
(iii) in a timely manner, to provide to the MSRB through EMMA, notice of a failure to provide required annual financial
information, on or before the date specified above.
20
The Municipality may from time to time choose to provide notice of the occurrence of certain other events, in addition to
those listed above, but the Municipality does not commit to provide any such notice of the occurrence of any events except those
specifically listed above.
The Municipality reserves the right to modify from time to time the specific types of information provided or the format
of the presentation of such information, to the extent necessary or appropriate as a result of a change in legal requirements or
change in the nature of the Municipality, provided that the Municipality agrees that any such modification will be done in a
manner consistent with the Rule and will not in the opinion of the paying agent (who may rely on an opinion of counsel)
substantially impair the interest of the holder of the Bonds.
The Municipality reserves the right to terminate its obligation to provide annual financial information and notices of
material events, as set forth above, if and when the Municipality no longer remains an “obligated person” with respect to the Bonds
within the meaning of the Rule. The Municipality acknowledges that its undertaking pursuant to the Rule described under this
heading is intended to be for the benefit of the holders or beneficial owners of the Bonds and shall be enforceable by the holders or
beneficial owners of such Bonds; provided that the Bondholders’ right to enforce the provisions of this undertaking shall be limited
to a right to obtain specific enforcement of the Municipality’s obligations hereunder and any failure by the Municipality to comply
with the provisions of this undertaking shall not be an event of default with respect to the Bonds.
Effective as of July 1, 2009, any filing with the MSRB maybe made solely by transmitting such filing to the MSRB
through its Electronic Municipal Market Access (EMMA) System.
CONTINUING DISCLOSURE STATUS
The Municipality has complied with its filing obligations with respect to continuing disclosure for its prior issue of bonds for
fiscal years 1999 through and including 2008.
NEGOTIABILITY
The Bonds are investment securities under Article 8 of the Pennsylvania Uniform Commercial Code and are negotiable
instruments to the extent provided therein.
UNDERWRITING
The Underwriter has agreed to purchase the Bonds from the Municipality, subject to certain conditions precedent, and will
purchase all of the Bonds if any of such Bonds are purchased. The Bonds will be purchased at a total net discount of $
(consisting of the underwriter’s discount of $
and the original issue discount of $
) from the initial public offering
prices set forth on the cover page hereof.
RATING
Standard & Poor’s Ratings Group has assign its underlying municipal Bond rating of "AA-" to this issue of Bonds. Such
rating reflects only the view of such organization and any desired explanation of the significance of such rating should be obtained
from the rating agency furnishing the same, at the following address: 55 Water Street, 38th Floor, New York, New York 10041.
Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and
assumptions of its own. There is no assurance that any such rating will continue for any given period of time or that it will not be
revised downward or withdrawn entirely by the rating agency, if circumstances so warrant. Any such downward revision or
withdrawal of such rating may have an adverse effect on the market price of the Bonds.
LEGAL OPINION
The Bonds are offered subject to the receipt of the unqualified approving legal opinion of Cohen & Grigsby, P.C., Bond
Counsel, of Pittsburgh, Pennsylvania. Certain legal matters will be passed upon for the Municipality by Bruce E. Dice &
Associates, of Pittsburgh, Pennsylvania, Municipality Solicitor.
Bond Counsel’s opinions are based on existing law, which is subject to change. Such opinions are further based on factual
representations made to Bond Counsel as of the date thereof. Bond Counsel assumes no duty to update or supplement its opinions
to reflect and facts or circumstances that may be thereafter come to Bond Counsel’s attention, or to reflect any changes in law that
may thereafter occur or become effective. Moreover, Bond Counsel’s opinions are not a guarantee of a particular result and are
not binding on the IRS or the courts; rather, such opinions represent Bond Counsel’s professional judgment based on its review of
existing law and in reliance on the representations and covenants that it deems relevant to such opinions.
21
FINANCIAL ADVISOR
The Municipality has retained Public Financial Management, Inc., Harrisburg, Pennsylvania, as financial advisor (the
"Financial Advisor") in connection with the preparation, authorization and issuance of the Bonds. The Financial Advisor is not
obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for the accuracy,
completeness, or fairness of the information contained in the Preliminary Official Statement. Public Financial Management is an
independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other
public securities.
MISCELLANEOUS
This Preliminary Official Statement has been prepared under the direction of the Municipality by Public Financial
Management, Inc., Harrisburg, Pennsylvania, in its capacity as Financial Advisor to the Municipality. The information set forth in
this Preliminary Official Statement has been obtained from the Municipality and from other sources believed to be reliable.
Insofar as any statement herein includes matters of opinion or estimates about future conditions, it is not intended as representation
of fact, and there is no guarantee that it is, or will be, realized. Summaries or descriptions of provisions of the Bonds, the
Ordinance, and all references to other materials not purporting to be quoted in full are only brief outlines of some of the provisions
thereof. Reference is hereby made to the complete documents, copies of which will be furnished by the Municipality or the
Financial Advisor upon request. The information assembled in this Preliminary Official Statement is not to be construed as a
contract with holders of the Bonds.
The Municipality has authorized the distribution of this Preliminary Official Statement.
By: /s/ Gregory Erosenko, Mayor
22
APPENDIX A
Demographic and Economic Information
Relating to the Municipality of Monroeville
ECONOMY OF THE MUNICIPALITY
Introduction
The Municipality is the home of several major employers representing such diverse industries as health care, research and retail
services. Forbes Regional Hospital-West Penn is currently the largest employer, operating a Health Care and Emergency Services
Hospital. Cedars of Monroeville is the second largest employer operating a Nursing Facility. Westinghouse Electric Company is
currently the third largest employer operating a facility known as Westinghouse Energy Center. Westinghouse Electric Company is in
the process of moving its facility out of the Municipality. This moving process should be complete by the beginning of 2012.
Numerous full-time and part-time jobs are provided to area residents by Monroeville Mall, Expo Mart and Miracle Mile Shopping
Center. The following table depicts the major employers which are located both in and around the Municipality.
Percentage of
Employees
Rank
Total Municipal
Employment
1,869
1,315
876
657
1
2
3
4
0.93%
0.66%
0.44%
0.33%
Respironics
Cochran Pontiac Incorporated
Community College of Allegheny County
Compunetix Inc.
455
354
322
310
5
6
7
8
0.18%
0.16%
0.16%
Giant Eagle
PPG
307
270
9
10
0.13%
HealthSouth of Pittsburgh, Inc.
206
Lazarus/Macy's
245
Employer
Westinghouse Electric Co., LLC
Forbes Regional Hospital
Bechtel Plant Machinery, Incorporated
Gateway School District
0.10%
Venturi Staffing Partners
Kaufmann's Department Store
J. C. Penny Company
Olsten Staffing Services
135
5,453
Source: Municipality.
2.15%
Due to the close proximity of the Municipality to the Greater Metropolitan Area many residents of the Municipality are
employed throughout the region. The following table depicts the 25 largest employers located throughout the Greater Pittsburgh
Metropolitan Area.
EMPLOYER
UPMC Health System
US Government
Commonwealth of Pennsylvania
Giant Eagle, Inc.
West Penn Allegheny Health System
University of Pittsburgh
Wal-Mart Stores, Inc.
PNC Financial Services Group
Allegheny County
Bank of New York Mellon Corp.
FedEx Corporation
Pittsburgh Board of Education
Eat 'n Park Hospitality Group, Inc.
Excela Health
Highmark Inc.
United States Steel Corp.
Carnegie Mellon University
Rite Aid Corp.
Sears Holdings
Verizon Communications
Westinghouse Electric Co.
Heritage Valley Health System
SERVICE
Health Care
Government
Government
Retail
Health Care
Education
Retail
Financial Services
Government
Financial Services
Transportation & Logistics
Education
Restaurants & Food Service
Health Care
Financial Services
Metals Manufacturing
Education
Retail
Retail
Telecommunications
Energy Manufacturing and
Engineering
Health Care
APPROXIMATE NO.
OF EMPLOYEES
43,000
18,600
16,200
14,300
11,600
11,000
10,000
8,800
7,200
6,900
6,000
5,800
5,300
5,000
5,000
4,900
4,700
4,300
4,000
4,000
4,000
Source: Greater Pittsburgh Chamber of Commerce website: http://www.alleghenyconference.org/PRA/RegionalData
A number of the above employers have announced cost-cutting measures which could lead to reductions
in employees.
A-2
3,500
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Personal
Income
Per Capita
(thousands
Personal
Median
of dollars)
Income
Age (3)
(1)
Population
29,349
29,349
$
$
$
$
$
$
$
$
$
$
492,771,600
493,472,200
522,551,100
560,173,700
564,403,000
567,526,700
572,339,200
610,927,800
642,198,700
659,969,600
$
$
$
$
$
$
$
$
$
$
28,827
30,610
31,544
32,208
32,987
34,685
37,145
39,605
40,318
41,044
School
Enrollment
37
43
43
43
43
43
43
43
43
43
Unemploymen
Rate (2)
5,306
4,301
4,301
4,301
4,301
4,301
4,301
4,301
4,301
4,301
4.60%
4.40%
4.70%
5.70%
5.90%
5.70%
5.20%
4.90%
4.40%
4.40%
Data Sources:
(1)
(2)
(3)
(4)
Bureau of Census-Partial Statistics for 2000 Census released by Bureau of Census during 2001
Department of Labor
Allegheny County Planning Department
Gateway School District
TABLE A-1
RECENT POPULATION TRENDS
Area
Municipality of Monroeville .................
Allegheny County .................................
Pennsylvania .........................................
1990
29,169
1,336,449
11,881,643
2000
29,349
1,281,666
12,281,054
Compound Average Annual
Percentage Change
1990-2000
0.06
-0.41
0.33
Source: US Bureau of the Census, Decennial Census and Pennsylvania State Data Center, 1990 & 2000 General Population and
Housing Characteristics: Pennsylvania.
TABLE A-2
AGE COMPOSITION
Allegheny County ...........................................................
Pennsylvania ...................................................................
Under
18
21.9
23.8
65 &
Over
17.8
15.6
Source: Pennsylvania State Data Center, 2000 General Population and Housing Characteristics: Pennsylvania.
A-3
Average
Household
2.3
2.5
TABLE A-3
Pittsburgh Metropolitan Statistical Area
DECEMBER 2009
NONFARM JOBS
(Allegheny, Armstrong, Beaver, Butler, Fayette
Washington, and Westmoreland counties*
Industry Employment
ESTABLISHMENT DATA
Dec 2009
Nov 2009
Oct 2009
Net Change From:
Dec 2008
Nov 2009
Dec 2008
1,123,100
1,128,300
1,128,000
1,146,100
-5,200
-23,000
Total Private
996,100
999,300
1,000,000
1,017,000
-3,200
-20,900
Goods Producing
Mining and Logging
144,800
147,400
148,800
157,700
-2,600
-12,900
5,400
5,500
5,500
5,400
-100
0
51,800
54,300
55,600
55,600
-2,500
-3,800
29,100
30,800
31,300
33,200
-1,700
-4,100
87,600
87,600
87,700
96,700
0
-9,100
63,500
63,400
63,500
71,500
100
-8,000
12,100
12,100
12,100
13,400
0
-1,300
6,800
6,800
6,800
7,300
0
-500
24,100
24,200
24,200
25,200
-100
-1,100
SERVICE-PROVIDING
978,300
980,900
979,200
988,400
-2,600
-10,100
PRIVATE SERVICE-PROVIDING
851,300
851,900
851,200
859,300
-600
-8,000
Trade, Transportation, and Utilities
Wholesale trade
221,200
218,800
216,000
224,500
2,400
-3,300
48,300
48,500
48,500
48,800
-200
-500
Retail trade
130,200
128,000
125,400
131,900
2,200
-1,700
-7,220
Total Nonfarm
Construction
Speciality trade contractors
Manufacturing
Durable Goods
Primary metal mfg.
Iron and steel mills & ferroalloy mfg.
Non Durable Goods
Building material and supplies dealers
780
7,900
7,900
8,000
-7,120
26,900
26,700
26,200
27,000
200
-100
122,003
11,600
10,900
12,900
110,403
109,103
General merchandise stores
25,200
24,700
23,500
26,100
500
-900
Department stores
13,400
13,000
11,900
14,200
400
-800
42,700
42,300
42,100
43,800
400
-1,100
Food and beverage stores
Clothing and clothing accessories stores
Transportation, Warehousing and Utilities
Utilities
5,800
5,800
5,700
5,800
0
0
Transportation and Warehousing
36,900
36,500
36,400
38,000
400
-1,100
Trucking, couriers& messengers& warehouse
-400
21,100
20,800
20,700
21,500
300
Information
19,500
19,400
19,400
20,300
100
-800
Financial Activities
Finance and Insurance
65,200
65,500
65,500
67,400
-300
-2,200
52,800
52,800
52,800
53,600
0
-800
26,400
26,400
26,400
27,000
0
-600
22,900
22,900
23,000
23,300
0
-400
19,600
19,700
19,700
19,900
-100
-300
156,200
157,100
157,000
159,600
-900
-3,400
69,100
69,200
69,300
70,400
-100
-1,300
17,100
17,100
17,100
17,300
0
-200
Scientific research & development services
6,200
6,200
6,100
6,300
0
-100
Management of companies and enterprises
32,800
32,800
32,700
33,100
0
-300
Administrative and waste services
54,300
55,100
5,500
56,100
-800
-1,800
Administrative and support services
51,200
52,100
51,900
53,100
-900
-1,900
Employment services
15,700
15,900
16,000
17,800
-200
-2,100
Credit intermediation and related activities
Depository credit intermediation
Insurance carriers and related activities
Professional and Business Services
Professional and technical services
Architectural and engineering services
A-4
Pittsburgh Metropolitan Statistical Area*
DISTRIBUTION OF EMPLOYMENT*
Pittsburgh Metropolitan Statistical Area
(Allegheny, Beaver, Butler, Fayette, Washington and Westmoreland Counties)
(continued)
Educational and Health Services
Educational services
Colleges and universities
237,100
238,000
236,900
235,500
-900
1,600
52,900
54,000
53,400
53,900
-1,100
-1,000
38,200
39,100
38,500
39,100
-900
-900
Health care and social assistance
184,200
184,000
183,500
181,600
200
2,600
Ambulatory health care services
60,900
60,700
60,600
59,800
200
1,100
Offices of physicians
25,000
25,000
25,000
24,500
0
500
Hospitals
General medical and surgical hospitals
57,900
57,900
57,900
58,000
0
-100
52,800
52,800
52,800
52,900
0
-100
Nursing and residential care facilities
35,900
35,900
35,800
35,300
0
600
Social assistance
29,500
29,500
29,200
28,500
0
1,000
100,600
101,800
104,800
99,800
-1,200
800
88,500
88,100
88,200
88,500
400
0
479,400
79,300
79,300
890,400
400,100
-411,000
Full-service restaurants
39,000
38,800
38,900
40,100
200
-1,100
Limited-service eating places
28,500
28,300
28,300
29,300
200
-800
51,500
51,300
51,600
52,200
200
-700
Government
Federal Government
127,000
129,000
128,000
129,100
-2,000
-2,100
18,200
18,300
18,300
18,700
-100
-500
State Government
15,400
16,100
16,000
16,100
-700
-700
Local Government
93,400
94,600
93,700
94,300
-1,200
-900
Local government educational services
57,600
58,700
57,700
58,500
-1,100
-900
Other Local Government
35,800
35,900
36,000
35,800
-100
0
Leisure and Hospitality
Accommodation and food service
Food services and drinking places
Other Services
Data benchmarked to March 2008
***Data changes of 100 may be due to rounding***
*Non-Agricultural Wage and Salary Employment; establishment data.
Source: Pennsylvania State Employment Service – www.paworkstats.state.pa.us.
A-5
Table A-4 shows recent trends in labor force, employment and unemployment for Allegheny County and the State. The
unemployment rate for Allegheny County has been lower than the statewide average.
TABLE A-4
RECENT TRENDS IN LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT*
(Allegheny County)
2004
2005
2006
2007
Allegheny County
Civilian Labor Force (000)
Employment (000)
Unemployment (000)
Unemployment Rate
635.5
601.7
33.7
5.3%
630.0
599.5
31.4
5.0%
632.0
603.0
29.0
4.6%
Pennsylvania
Civilian Labor Force (000)
Employment (000)
Unemployment (000)
Unemployment Rate
6,229.0
5,890.0
339.0
5.4%
6,279.0
5,966.0
313.0
5.0%
6,306.0
6,010.0
396.0
4.7%
2007(1)
Compound
Average
Annual %
Rate
2008
2009(1)
629.0
603.3
25.8
4.1%
638.6
607.6
31.0
4.9%
628.6
581.5
47.1
7.5%
-100.00%
-100.00%
-100.00%
6,297.0
6,023.0
274.0
4.4%
6,395.0
6,051.0
344.0
5.4%
6,310.0
5,751.0
560.0
8.9%
-100.00%
-100.00%
-100.00%
*Residence data.
(1)
As of December 2009.
Source: Pennsylvania State Employment Service.
Income
The data on Table A-5 shows recent trends in per capita income for the Municipality, the County and the State over the 19902000 period. Per capita income in the Municipality is higher than average per capita income in the County and the State.
TABLE A-5
RECENT TRENDS IN PER CAPITA INCOME*
Municipality of Monroeville .................
Allegheny County .................................
Pennsylvania .........................................
2000
$24,034
22,491
20,880
1990
$17,753
15,115
14,068
Percentage Change
1990-00
3.08
4.05
4.03
*Income is defined by the Bureau of the Census as the sum of wage and salary income, non-farm self-employment income, net selfemployment income, Social Security and Railroad retirement income, public assistance income, interest, dividends, pensions, etc.
before deductions for personal income taxes, Social Security, etc.
Source: 2000 Census, Pennsylvania State Data Center, 1990 General Income Characteristics: Pennsylvania.
A-6
Commercial Activity
Table A-6 shows trends for retail sales in Allegheny County, the MSA, and the State.
TABLE A-6
TOTAL RETAIL SALES
(Millions of Dollars)
Allegheny County ................
MSA.....................................
Pennsylvania .......................
2005
$18,338,285
32,107,121
166,183,066
2006
$20,138,092
35,500,050
185,507,879
2007
$19,833,556
35,628,716
195,558,005
2008
$18,394,979
32,473,060
n/a
2009
$18,971,934
34,796,085
n/a
Source: Sales and Marketing Management Magazine
Transportation
The Municipality is traversed by State Route 22, which is accessible from the Monroeville Interchange of the Penn-Lincoln
Parkway, which is also known as the Parkway East. The Pittsburgh/Monroeville Interchange (Exit #6) of the Pennsylvania Turnpike is
located close to the eastern border of the Municipality, and Pittsburgh International Airport is located less than thirty miles west of the
area. Rapid public transportation to Pittsburgh is now provided via frequent bus service on the Martin Luther King Busway, which is
operated by the Port Authority of Allegheny County (“PAT”). Additionally, Greyhound Bus Company maintains a small bus depot on
State Route 22 in the Municipality. Rail service is provided by Conrail and Union Railroad. Numerous trucking companies serve the
area, and freight service is provided by such major carriers as Federal Express, Airborne, and UPS.
Public Utilities
Residents of the Municipality are provided services by the following public utilities: Duquesne Light Company; Equitable Gas;
Dominion Peoples Natural Gas; Verizon; Alltell Telephone Company; Allegheny County Sanitary Authority (“ALCOSAN”); and
Monroeville Municipal Authority.
Health Care and Emergency Services
West Penn Allegheny Health System Forbes Regional Campus is a 433-bed acute-care and medical-surgical facility, which was
dedicated in 1978; an addition was completed in 1982. A professional office building with some fifty medical offices is attached to the
main building, and parking is available for some 500 cars. Eight nursing homes are also located in the Municipality, one of which is
immediately adjacent to AUH Forbes Regional Hospital
Municipality residents also enjoy easy access to the other major health care institutions located throughout the City of
Pittsburgh. The University of Pittsburgh Medical Center is located in the Oakland section of the City and encompasses Braddock
General Hospital, McKeesport Hospital, Presbyterian-University Hospital, Montefiore Hospital, Children’s Hospital of Pittsburgh,
Shadyside Hospital, the South Side Hospital, Western Psychiatric Institute & Clinic, Eye & Ear Hospital, and Magee Women’s
Hospital. Other major hospitals which are located throughout the area include Mercy Hospital, the Western Pennsylvania Hospital and
Allegheny General Hospital. All are also within close distance to the Municipality.
Police protection is provided to Municipality residents by a police force of some fifty-two full-time officers. Five volunteer fire
companies provide fire protection, and ambulance/EMT services are provided by the Municipality. Additionally, access to “LifeFlight” and “Stat-Medvac” helicopter services are available as needed to the major Pittsburgh hospitals.
Higher Education
Two institutions of higher education are located in the Municipality. These are the Boyce Campus of Community College of
Allegheny County and the Monroeville Extension Branch of Indiana University of Pennsylvania (IUP).
Due to the close proximity of the Municipality to the City of Pittsburgh, residents enjoy easy access to numerous institutions
of higher education. These include Carnegie-Mellon University, University of Pittsburgh, Duquesne University, Point Park College,
Carlow College, Robert Morris University, Chatham College, LaRoche College, and the Pittsburgh Theological Seminary. Two
branch campuses of the Pennsylvania State University are also located within reasonable commuting distance of the Municipality. In
addition, numerous business and technical schools are available in the Pittsburgh region.
A-7
Public Education
The Gateway School District, together with the School District of Pitcairn, Allegheny County, Pennsylvania, comprise
Gateway School District, Allegheny County, Pennsylvania (the "School District"). The School District is a School District of the
second class, on the basis of population, and operates under and pursuant to the Public School Code of the Commonwealth of
Pennsylvania, Act of March 10, 1949, P.L. 30, as amended and supplemented. The School District serves an estimated enrollment of
4,134 students and currently operates six elementary and two secondary school building facilities. The annual budget of the School
District is approximately $61,000,000. Additionally, the School District is a participating School District of the Forbes Road East
Area Vocational-Technical School and the Eastern Area Special Schools.
Communications
The Greater Pittsburgh Metropolitan Area is served by numerous television stations, including KDKA (CBS), WPXI (NBC),
WTAE (ABC), and WQED (Educational); cable television, offering numerous regular and premium programming channels, is
provided to the area by TCI of Pennsylvania, Inc. on a subscription basis. Numerous AM and FM radio stations are received
throughout the area, and both the Pittsburgh Post-Gazette and Pittsburgh Tribune Review are widely circulated on a daily basis.
Additionally, the Times Express is circulated throughout the area on a weekly basis.
Parks and Recreation
The Municipality is responsible for the maintenance and improvement of more than 600 acres of park land and developed
facilities. The park maintenance staff maintains some twenty playing fields, eight picnic pavilions, twelve children's play areas,
eighteen tennis courts, fifteen basketball courts, five ice hockey courts, three sand volleyball courts, seven hiking trails, and a fitness
trail.
Additionally, the Municipality offers a variety of fitness and leisure programs for youth, teens, and adults. These include the
Instructional-Fitness Program, Youth Sports Leagues, and Leisure Programs. The Department of Human Services of the Municipality
offers three programs which are largely free of charge. These include Camp Chipewee, Summer Parks Program, and Special Events.
The Municipality owns and operates the Bel Aire Municipal Pool and Recreation Center. This all-inclusive aquatic center
includes instructional programs, concession operations, facility rentals, and special events.
Boyce Park which is owned and operated by the County, is located in the Municipality. This 1,000-acre park offers
numerous facilities for picnicking, softball, volleyball, tennis, biking, walking/jogging, and soccer. The park also features a wave pool
swimming complex, nature center, ski slopes, cross-country ski trails, and bridle trails.
A-8
APPENDIX B
Bond Counsel Opinion
[FORM OF OPINION OF COHEN & GRIGSBY, P.C., BOND COUNSEL]
__________, 2010
TO THE HOLDERS OF THE BELOW-REFERENCED BONDS
Re:
$__________ Municipality of Monroeville (Allegheny County, Pennsylvania)
Ladies and Gentlemen:
We have acted as Bond Counsel in connection with the issuance by the Municipality of
Monroeville, Allegheny County, Pennsylvania (the "Issuer") of $_________ aggregate principal amount
of its General Obligation Bonds, Series of 2010 (the "Bonds"). The Bonds have been issued pursuant to
an Ordinance duly adopted by the Issuer on March ___, 2010 (the "Ordinance") and pursuant to the
procedures contained within the Local Government Unit Debt Act, constituting Title 53, Subpart B, Part
VII of the Pennsylvania Consolidated Statutes (the "Debt Act").
In such capacity, we have examined the Ordinance, the Debt Act, the Constitution of the
Commonwealth of Pennsylvania (the “Commonwealth”) and such law and such certified proceedings and
other documents as we deem necessary to render this opinion.
As to questions of fact material to our opinion, we have relied upon the certified proceedings and
other certifications of public officials furnished to us without undertaking to verify the same by
independent investigation.
Based upon the foregoing, we are of the opinion, under existing law, as follows:
1.
The Bonds are valid and binding general obligations of the Issuer.
2.
The Bonds are secured by a pledge of the full faith, credit and available taxing power of
the Issuer. The Issuer has covenanted in the Ordinance to include the amount of the debt service on the
Bonds for each fiscal year in which such sums are due in its budget for that year, to appropriate such
amounts to the payment of debt service, and to punctually pay or cause to be paid the principal of the
Bonds and the interest thereon at the dates and places and in the manner stated in the Bonds.
3.
Interest on the Bonds (including any original issue discount properly allocable to an
owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax
preference for purposes of the federal alternative minimum tax imposed on individuals and corporations;
it should be noted, however, that, for the purpose of computing the alternative minimum tax imposed on
certain corporations (as defined for federal income tax purposes), such interest is taken into account in
determining adjusted current earnings. The opinion set forth in the preceding sentence is subject to the
condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended,
that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue
to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply
with all such requirements. Failure to comply with certain of such requirements may cause interest on the
Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance
of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the
Bonds.
4.
The Issuer has designated the Bonds as "qualified tax-exempt obligations" within the
meaning of Section 265(b)(3) of the Code, and, in the case of certain "financial institutions" (within the
meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80% of that portion of such
financial institution's interest expense allocable to interest on the Bonds.
5.
The Bonds are exempt from personal property taxes in Pennsylvania and interest on the
Bonds is exempt from Pennsylvania personal income tax and from Pennsylvania corporate net income
tax.
It is to be understood that the rights of the owners of the Bonds and the enforceability of the
Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting creditors’ rights generally and by equitable principles, whether considered at law or in equity;
their enforcement also may be subject to the exercise of judicial discretion in appropriate cases.
We are members of the Bar of the Commonwealth of Pennsylvania and do not purport to be
experts as to the laws of any jurisdiction other than Pennsylvania and the United States of America. The
opinions expressed in this letter are therefore limited to the laws of Pennsylvania (excluding conflict of
laws rules) and the United States of America, all as in effect on the date hereof, and no opinion is
expressed with regard to the laws of any other jurisdiction.
The opinions set forth herein are given solely for the benefit of the addressees and may not be
relied on by any other person or entity without our express prior written consent. The opinions set forth
herein are given solely as of the date hereof, and we do not undertake to update or supplement this
opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in
law that may hereafter occur. We express no opinion herein as to the accuracy, adequacy or completeness
of the Official Statement or other offering materials relating to the Bonds.
Very truly yours,
COHEN & GRIGSBY, P.C.
APPENDIX C
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2008

Municipality of Monroeville - PFM Municipal Bond Auction Website

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