About this bond issuance
The purpose of this Official Statement, which includes the cover page and appendices hereto, is to set forth certain information concerning the East Bay Municipal Utility District (the "District"), the water supply, treatment and distribution system owned by the District (the "Water System" or the "System"), and System finances, in connection with the sale of the District's $185,355,000 Water SystemRevenue Bonds, Series 2017A (Green Bonds) (the "Series 2017A Bonds") and its $309,665,000 Water System Revenue/Refunding Bonds, Series 2017B (the "Series 2017B Bonds" and, together with the Series 2017A Bonds, the "Series 2017 Bonds"). The Series 2017 Bonds are being issued pursuant to the Water System Subordinated Revenue Bond Indenture, dated as of April 1, 1990, by and between the District and First Interstate Bank of California, which has been succeeded by The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), as amended and supplemented, including as amended and supplemented by the Twenty-Eighth Supplemental Indenture, dated as of June 1, 2017, by and between the District and the Trustee, relating to the Series 2017 Bonds (as so amended and supplemented, the "Indenture").
The Series 2017 Bonds are being issued for the purpose of (i) providing moneys to finance and/or reimburse the District for certain costs of improvements to the Water System of the District, (ii) refunding all or a portion of various series of the District's outstanding Water System revenue bonds, and (iii) paying costs incidental to the issuance of the Series 2017 Bonds.
ObligorThe obligor is the organization that holds ultimate responsibility for the bond issuance, and will ensure that investors get repaid.
East Bay Municipal Utility District
IssuerOften the obligor. However, sometimes issuers partner with an authorized conduit financing non-profit within their state or city to issue the bonds.
East Bay Municipal Utility District
AuthorityBefore an issuer can raise money for a project, they must first have the legal authority to do so. This authority is sometimes preceded by a general election, and awarded after the successful passing of a bond measure.
The Series 2017 Bonds are authorized for issuance pursuant to the Municipal Utility District Act and laws of the State amendatory thereof or supplemental thereto, including the Revenue Bond Law of 1941, as made applicable by Article 6a of Chapter 6 of Division 6 of the Municipal Utility District Act, and with respect to any portion of the Series 2017 Bonds issued to refund outstanding bonds of the District, Article 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State (collectively, the "Act"), resolutions adopted by the District and the Indenture.
SecurityThe security section is a breakdown of the funds an issuer is planning to use to repay its investors. This repayment can come from a variety of sources, including local taxes.
The Series 2017 Bonds are special obligations of the District, payable solely from and secured by a pledge of the Subordinated Water Revenues of the District, as defined in the Indenture. Subordinated Water Revenues generally consist of the District's Water Revenues (adjusted for deposits to and withdrawals from the Rate Stabilization Fund) remaining after the payment of (a) all Water Operation and Maintenance Costs and (b) all amounts required to be paid under the District's Senior Water Bond Resolution for principal, interest, reserve fund and any other debt service requirements on the Senior Water Bonds. There are no Senior Water Bonds currently outstanding and the District has covenanted pursuant to the Eighteenth Supplemental Indenture, dated as of September 15, 2010 (the "Eighteenth Supplemental Indenture") that it will not issue any Senior Water Bonds in the future. Prior to the date of execution and delivery of the Eighteenth Supplemental Indenture, all Water System revenue bonds of the District issued under the Indenture were designated "Water System Subordinated Revenue Bonds." Pursuant to the Eighteenth Supplemental Indenture, any Water System revenue bonds of the District issued (or remarketed or otherwise reoffered) under the Indenture following the execution and delivery of the Eighteenth Supplemental Indenture are designated "Water SystemRevenue Bonds" in order to reflect that the lien of the Senior Water Bonds has been closed. All Outstanding Water System revenue bonds issued under the Indenture (howsoever designated), together with any additional Water System revenue bonds hereafter issued under the Indenture are secured on parity by Subordinated Water Revenues and are collectively referred to herein as the "Water System Revenue Bonds." See "SECURITY FOR THE SERIES 2017 BONDS - Pledge of Subordinated Water Revenues."
The Series 2017 Bonds are secured on a parity with the District's other Water System Revenue Bonds to be Outstanding upon the delivery thereof, together with any additional Water System Revenue Bonds hereafter issued, with certain scheduled payments that are payable by the District with respect to certain interest rate swap agreements as described under "SECURITY FOR THE SERIES 2017 BONDS - Outstanding Water System Revenue Obligations - Interest Rate Swap Agreements" and with certain outstanding State Loans as described in APPENDIX A - "THE EAST BAY MUNICIPAL UTILITY DISTRICT (THE WATER SYSTEM) - WATER SYSTEM FINANCES - Outstanding Debt," and with any other Parity Debt heretofore or hereafter incurred in accordance with the Indenture. See "SECURITY FOR THE SERIES 2017 BONDS - Outstanding Water System Revenue Obligations," and "- Issuance of Additional Water System Revenue Bonds and Parity Debt; Junior and Subordinate Obligations." As of May 1, 2017, the District had Outstanding $2,271,510,000 aggregate principal amount of Water System Revenue Bonds.