PRELIMINARY OFFICIAL STATEMENT DATED MARCH 23, 2015

Transcription

1 This Preliminary Official Statement and the information contained in it are subject to completion and amendment in a final Official Statement. This Preliminary Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, and there may not be any sale of the Bonds offered by this Preliminary Official Statement, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of that jurisdiction. PRELIMINARY OFFICIAL STATEMENT DATED MARCH 23, 2015 REFUNDING SERIAL BONDS RATING: See RATING herein In the opinion of Hawkins Delafield & Wood LLP, Bond Counsel to the Fire District, under existing statutes and court decisions and assuming continuing compliance with certain tax certifications described herein, (i) interest on the Bonds is excluded from gross income for Federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the Code ), and (ii) interest on the Bonds is not treated as a preference item in calculating the alternative minimum tax imposed on individuals and corporations under the Code; such interest however, is included in the adjusted current earnings of certain corporations for purposes of calculating the alternative minimum tax imposed on such corporations. In addition, in the opinion of Bond Counsel to the Fire District, under existing statutes, interest on the Bonds is exempt from personal income taxes of New York State and its political subdivisions, including The City of New York. See Tax Matters herein. The Fire District WILL designate the Bonds as qualified tax-exempt obligations pursuant to the provisions of Section 265(b)(3) of the Code. HARTSDALE FIRE DISTRICT IN THE TOWN OF GREENBURGH, WESTCHESTER COUNTY, NEW YORK $5,240,000* FIRE DISTRICT REFUNDING SERIAL BONDS 2015 (the Bonds ) Dated: Date of Delivery Maturity Dates: December 1, The Bonds are general obligations of the Hartsdale Fire District, in the Town of Greenburgh, Westchester County, New York (the Fire District ), and will contain a pledge of the faith and credit of the Fire District for the payment of the principal of and interest on the Bonds and, unless paid from other sources, the Bonds are payable from ad valorem taxes which may be levied upon all the taxable real property within the Fire District, subject to certain statutory limitations imposed by Chapter 97 of the Laws of 2011 (the Tax Levy Limit Law ). (See Tax Levy Limit Law herein). The Bonds will be issued in fully registered form, and when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company ( DTC ), New York, New York. DTC will act as securities depository for the Bonds. Individual purchases may be made in book-entry form only, in the principal amount of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their ownership interest in the Bonds. Payment of the principal of and interest on the Bonds will be paid in Federal Funds by the Fire District to Cede & Co., as nominee for DTC, which will in turn remit such principal and interest to its participants for subsequent disbursement to the beneficial owners of the Bonds as described herein. (See Book-Entry-Only System herein). The Bonds will be dated their Date of Delivery, will bear interest from such date payable June 1, 2015 and semiannually thereafter on December 1 and June 1 in each year to maturity, and will mature on December 1 in the years and amounts as set forth on the inside cover page hereof. The Bonds are subject to optional redemption prior to maturity. (See Optional Redemption herein). The Bonds are offered subject to the final approving opinion of Hawkins Delafield & Wood LLP, New York, New York, Bond Counsel, and certain other conditions. Capital Markets Advisors, LLC has served as Financial Advisor to the Fire District in connection with the issuance of the Bonds. It is expected that delivery of the Bonds in bookentry form through the offices of DTC in Jersey City, New Jersey or as otherwise agreed upon with the purchaser will be made on or about April 21, THIS OFFICIAL STATEMENT IS IN A FORM DEEMED FINAL BY THE FIRE DISTRICT FOR PURPOSES OF SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12 (THE RULE ). FOR A DESCRIPTION OF THE FIRE DISTRICT S AGREEMENT TO PROVIDE CONTINUING DISCLOSURE FOR THE BONDS AS DESCRIBED IN THE RULE, SEE DISCLOSURE UNDERTAKING HEREIN. Dated: March, 2015 *Preliminary, subject to change.

2 The Bonds mature on December 1 in each year as set forth below: Interest CUSIP Date Amount* Rate Yield Number 2015 $105, , , , , , , , , , , , , *Preliminary, subject to change. The principal amounts of the Bonds are subject to adjustment following the sale of the Bonds, pursuant to the terms of the accompanying Notice of Bond Sale.

3 HARTSDALE FIRE DISTRICT IN THE TOWN OF GREENBURGH, WESTCHESTER COUNTY, NEW YORK BOARD OF FIRE COMMISSIONERS FRED OVERING... CHAIRMAN ANTHONY FRASCA... COMMISSIONER MICHAEL GOLDSTEIN... COMMISSIONER ANDREW MENTRASTI... COMMISSIONER FRANCES L. STANLEY... COMMISSIONER ADMINISTRATION SHARON A. SPAGNOLI... SECRETARY/TREASURER COUGHLIN & GERHART, LLP...FIRE DISTRICT ATTORNEY BOND COUNSEL Hawkins Delafield & Wood LLP New York, New York FINANCIAL ADVISOR Capital Markets Advisors, LLC Hudson Valley * Long Island * Southern Tier * Western New York (845)

4 THIS PAGE INTENTIONALLY LEFT BLANK

5 No person has been authorized by the Hartsdale Fire District to give any information or to make any representations not contained in this Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, 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, estimates and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no changes in the affairs of the Fire District since the date hereof. TABLE OF CONTENTS Page THE BONDS... 1 Description... 1 Authorization and the Refunding Plan for the Bonds... 1 Sources and Uses of Proceeds... 3 Verification of Mathematical Accuracy... 3 Optional Redemption... 3 Book-Entry-Only System... 3 Nature of the Obligation... 5 MARKET FACTORS... 6 LITIGATION... 6 TAX MATTERS... 6 Opinion of Bond Counsel... 6 Certain Ongoing Federal Tax Requirements and Certifications... 7 Certain Collateral Federal Tax Consequences... 7 Original Issue Discount... 7 Bond Premium... 8 Information Reporting and Backup Withholding... 8 Miscellaneous... 8 DOCUMENTS ACCOMPANYING DELIVERY OF THE BONDS... 9 Absence of Litigation... 9 Legal Matters... 9 Closing Certificates... 9 DISCLOSURE UNDERTAKING FINANCIAL ADVISOR RATING ADDITIONAL INFORMATION APPENDIX A - THE FIRE DISTRICT THE FIRE DISTRICT... A-1 General Information... A-1 Form of Government... A-1 Elected and Appointed Officials... A-1 Page FINANCIAL FACTORS... A-1 Budget Procedure... A-1 Independent Auditor... A-2 Investment Policy... A-2 Revenues... A-3 REAL PROPERTY TAXES... A-3 Tax Levy Limit Law... A-3 Real Property Tax Rebate... A-4 Real Property Tax Assessments and Rates... A-4 Tax Levies and Collection Record... A-5 Tax Collection Procedures... A-5 Ten of the Largest Taxpayers... A-5 FIRE DISTRICT INDEBTEDNESS... A-5 Constitutional Requirements... A-5 Statutory Procedure... A-6 Remedies Upon Default... A-7 Statutory Debt Contracting Limitation... A-7 Statutory Debt Limit and Net Indebtedness... A-8 Short-Term Indebtedness... A-8 Tax Anticipation Notes... A-9 Trend of Capital Debt... A-9 Overlapping and Underlying Debt... A-10 Debt Ratios... A-10 Authorized and Unissued Debt... A-10 Debt Service Schedule... A-11 ECONOMIC AND DEMOGRAPHIC DATA... A-11 Population... A-11 Income... A-12 Employment... A-12 Financial Institutions... A-13 Communications... A-13 Utilities... A-14 Housing Data... A-14 APPENDIX B - UNAUDITED SUMMARY OF FINANCIAL STATEMENTS AND BUDGETS APPENDIX C - BASIC FINANCIAL STATEMENTS NOTES THERETO AND INDEPENDENT AUDITORS REPORT THEREON FOR THE YEAR ENDED DECEMBER 31, 2013

6 THIS PAGE INTENTIONALLY LEFT BLANK

7 OFFICIAL STATEMENT HARTSDALE FIRE DISTRICT IN THE TOWN OF GREENBURGH, WESTCHESTER COUNTY, NEW YORK relating to $5,240,000* FIRE DISTRICT REFUNDING SERIAL BONDS 2015 This Official Statement, including the cover page, inside cover page, and appendices hereto, presents certain information relating to the Hartsdale Fire District, in Westchester County, in the State of New York, (the Fire District, County, and State, respectively). It has been prepared by the Fire District in connection with the sale of $5,240,000* Fire District Refunding Serial Bonds (the Bonds ). All quotations from and summaries and explanations of provisions of the Constitution and laws of the State as well as the acts and proceedings of the Fire District contained herein do not purport to be complete and are qualified in their entirety by reference to the official compilations thereof and all references to the Bonds as well as the proceedings of the Fire District relating thereto are qualified in their entirety by reference to the definitive form of such obligations and such proceedings. Description THE BONDS The Bonds will be dated their Date of Delivery, will bear interest from such date payable June 1, 2015 and semiannually thereafter on December 1 and June 1 in each year to maturity, and will mature on December 1 in the years and amounts as set forth on the inside cover page hereof. The Bonds are subject to optional redemption prior to maturity. (See Optional Redemption herein). The Bonds will be issued in fully registered form, and when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company ( DTC ), New York, New York. DTC will act as securities depository for the Bonds. Individual purchases may be made in book-entry form only, in the principal amount of $5,000 or any integral multiples thereof. Purchasers will not receive certificates representing their ownership interest in the Bonds. Principal of and interest on the Bonds will be made by the Fire District to DTC, which will in turn remit such principal of and interest to its Participants (defined herein), for subsequent disbursement to the Beneficial Owners (defined herein) of the Bonds as described herein. The Bonds may be transferred in the manner described on the Bonds and as referenced in certain proceedings of the Fire District referred to therein. The record date for payment of principal of and interest on the bonds will be the fifteenth day of the calendar month preceding each interest payment. Authorization and the Refunding Plan for the Bonds The Bonds are issued pursuant to the Constitution, the statutes of the State, including, among others, the Town Law, the Local Finance Law and a refunding bond resolution duly adopted by the Fire District on March 9, *Preliminary, subject to change. 1

8 The Bonds are being issued to refund the outstanding principal of the Fire District s (Serial) Bonds, 2005, maturing in the years 2016 to 2027, inclusive, (the Refunded Bonds ). Under the Refunding Plan, the Refunded Bonds are to be redeemed on December 1, Details concerning the Refunded Bonds are presented in the table below. The net proceeds of the Bonds (after payment of the underwriting fee and other costs of issuance relating to the Bonds) will be used to purchase non-callable, direct obligations of or obligations guaranteed by the United States of America (the Government Obligations ) which, together with remaining cash proceeds from the sale of the Bonds, will be placed in an irrevocable trust fund (the Escrow Fund ) to be held by Manufacturers and Traders Trust Company (the Escrow Holder ), a bank located and authorized to do business in the State, pursuant to the terms of an escrow contract by and between the Fire District and the Escrow Holder, dated as of the delivery date of the Bonds (the Escrow Contract ). The Government Obligations so deposited will mature in amounts which, together with the cash so deposited, will be sufficient to pay the principal of, interest on and applicable redemption premium of the Refunded Bonds on the date of their redemption. The Refunding Plan requires the Escrow Holder, pursuant to the refunding bond resolution of the Fire District and the Escrow Contract, to pay the Refunded Bonds at maturity or at the earliest date on which the Refunded Bonds may be called for redemption prior to maturity. The holders of the Refunded Bonds will have a first lien on all investment income from, and maturing principal of the Government Obligations, along with other available monies held in the Escrow Fund. The Escrow Contract shall terminate upon final payment by the Escrow Holder to the paying agents/fiscal agent for the Refunded Bonds amounts from the Escrow Fund adequate for the payment, in full, of the Refunded Bonds, including interest and the redemption premium payable with respect thereto. Pursuant to the Refunding Plan, the Fire District is expected to realize, as a result of the issuance of the Bonds, cumulative dollar and present value debt service savings. The amount of Refunded Bonds set forth below may be changed by the Fire District in its sole discretion due to market or other factors considered relevant by the Fire District at the time of pricing of the Bonds and no assurance can be given that any particular maturity thereof, or the issue itself, will be refunded. $7,497,000 FIRE DISTRICT (SERIAL) BONDS, 2005 DATED: DECEMBER 1, 2005 Principal Maturity Amount Interest Redemption Date Outstanding Rate Date/Price CUSIP # December 1, 2016 $ 320, % December 1, 100% AL1 December 1, , December 1, 100% AM9 December 1, , December 1, 100% AN7 December 1, , December 1, 100% AP2 December 1, , December 1, 100% AQ0 December 1, , December 1, 100% AR8 December 1, , December 1, 100% AS6 December 1, , December 1, 100% AT4 December 1, , December 1, 100% AU1 December 1, , December 1, 100% AV9 December 1, , December 1, 100% AW7 December 1, , December 1, 100% AX5 $4,930,000 2

9 Sources and Uses of Proceeds The proceeds of the Bonds will be applied as follows: Sources: Par Amount of the Bonds Reoffering Premium Application: Deposit to Escrow Deposit Fund Underwriter s Discount Cost of Issuance and Contingency Total Verification of Mathematical Accuracy O Connor Davies, LLP will verify, from the information provided to them, the mathematical accuracy as of the date of the closing for the Bonds of (1) the computations contained in the schedules provided to them in order to determine that the anticipated receipts from the U.S. Government Obligations investment securities and cash deposits, if any, listed in the underwriter's schedules, to be held in the Escrow Deposit Fund, will be sufficient to pay, when due, the principal of and interest requirements of the Refunded Bonds, and (2) the computations of yield on both the investment securities and bonds contained in the schedules provided to Bond Counsel for its determination that the interest on the Bonds is exempt from income taxes. O Connor Davies, LLP will express no opinion on the assumptions provided to them, nor as to the exemption from taxation of the interest on the Bonds. Optional Redemption Call Provisions. The Bonds maturing on or before December 1, 2023 will not be subject to redemption prior to maturity. The Bonds maturing on or after December1, 2024 will be subject to redemption prior to maturity, on any date, at the option of the Fire District, on December 1, 2023 and thereafter, in whole or in part, at par plus accrued interest to the redemption date. Call Notification. If less than all of the Bonds of any maturity are to be redeemed, the particular bonds of such maturity to be redeemed shall be selected by lot in any customary manner of selection as determined by the Fire District. Notice of such call for redemption shall be given by mailing such notice to the registered holder not more than sixty (60) days nor less than thirty (30) days prior to such date. Notice of redemption having been given as aforesaid, the bonds so called for redemption shall, on the date for redemption set forth in such call for redemption, become due and payable together with interest to such redemption date. Interest shall cease to be paid thereon after such redemption date (See Book-Entry-Only System for additional information concerning redemptions). Book-Entry-Only System The Depository Trust Company ( DTC ), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered bonds 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 each series of the Bonds 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 DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-u.s. equity issues, corporate and municipal 3

10 debt issues, and money market instruments (from over 100 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 is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. 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 ). The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at and Purchases of the 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 the 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 partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the 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. 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 Money Market Instruments (MMI) Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Fire District 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 a listing attached to the Omnibus Proxy). Redemption notices shall be sent to DTC. 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. Principal 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 Fire District, on 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 or the Fire District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal 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 Fire District, 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. 4

11 DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Fire District. Under such circumstances, in the event that a successor depository is not obtained, bond certificates are required to be printed and delivered. The Fire District may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In such event, bond certificates will be printed and delivered as applicable. The information in this section concerning DTC and DTC s book-entry system has been obtained from sources that the Fire District believes to be reliable, but the Fire District takes no responsibility for the accuracy thereof. Source: The Depository Trust Company THE INFORMATION CONTAINED IN THE ABOVE SECTION CONCERNING DTC AND DTC'S BOOK- ENTRY SYSTEM HAS BEEN OBTAINED FROM SAMPLE OFFERING DOCUMENT LANGUAGE SUPPLIED BY DTC, BUT THE FIRE DISTRICT TAKES NO RESPONSIBILITY FOR THE ACCURACY THEREOF. THE FIRE DISTRICT CANNOT AND DOES NOT GIVE ANY ASSURANCES THAT DTC, DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC WILL DISTRIBUTE TO THE BENEFICIAL OWNERS OF THE BONDS (1) PAYMENTS OF PRINCIPAL OF OR INTEREST OR REDEMPTION PREMIUM ON THE BONDS (2) CONFIRMATIONS OF THEIR OWNERSHIP INTERESTS IN THE BONDS OR (3) OTHER NOTICES SENT TO DTC OR CEDE & CO., ITS PARTNERSHIP NOMINEE, AS THE REGISTERED OWNER OF THE BONDS, OR THAT THEY WILL DO SO ON A TIMELY BASIS, OR THAT DTC, DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS WILL SERVE AND ACT IN THE MANNER DESCRIBED IN THIS OFFICIAL STATEMENT. THE FIRE DISTRICT WILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATIONS TO DTC, THE DIRECT PARTICIPANTS, THE INDIRECT PARTICIPANTS OF DTC OR THE BENEFICIAL OWNERS WITH RESPECT TO (1) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT PARTICPANTS OR INDIRECT PARTICIPANTS OF DTC; (2) THE PAYMENT BY DTC OR ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL AMOUNT OF OR INTEREST OR REDEMPTION PREMIUM ON THE BONDS; (3) THE DELIVERY BY DTC OR ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC OF ANY NOTICE TO ANY BENEFICIAL OWNER THAT IS REQUIRED OR PERMITTED TO BE GIVEN TO OWNERS ; OR (4) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS THE REGISTERED HOLDER OF THE BONDS. Nature of the Obligation Each Bond when duly issued and paid for will constitute a contract between the Fire District and the holder thereof. The Bonds will be general obligations of the Fire District and will contain a pledge of the faith and credit of the Fire District for the payment of the principal thereof and the interest thereon. For the payment of such principal and interest the Fire District has power and statutory authorization to levy ad valorem taxes on all taxable real property in the Fire District, subject to certain statutory limitations imposed by the Tax Levy Limit Law. (See Tax Levy Limit Law herein). The Fire District is required to pledge its faith and credit for the payment of the principal of and interest on the Bonds, and the State is specifically precluded from restricting the power of the Fire District to levy taxes on real estate therefore. On June 24, 2011, the Governor signed into law Chapter 97 of the Laws of 2011 (the Tax Levy Limit Law ), imposing a limitation on the power of local governments and school districts, including the Fire District, to increase their annual tax levy. (See Tax Levy Limit Law herein.) 5

12 MARKET FACTORS The financial and economic condition of the Fire District as well as the market for the Bonds could be affected by a variety of factors, some of which are beyond the Fire District s control. There can be no assurance that adverse events in the State and in other jurisdictions, including, for example, the seeking by a municipality or large taxable property owner of remedies pursuant to the Federal Bankruptcy Code or otherwise, will not occur which might affect the market price of and the market for the Bonds. If a significant default or other financial crisis should occur in the affairs of the State or another jurisdiction or any of its agencies or political subdivisions thereby further impairing the acceptability of obligations issued by borrowers within the State, both the ability of the Fire District to arrange for additional borrowings, and the market for and market value of outstanding debt obligations, including the Bonds, could be adversely affected. There can be no assurance that the State appropriation for State aid to municipalities and school districts will be continued in future years, either pursuant to existing formulas or in any form whatsoever. State aid appropriated and apportioned to the Fire District can be paid only if the State has monies available therefor. The availability of such monies and the timeliness of such payment may also be affected by a delay in the adoption of the State budget and other circumstances, including State fiscal stress. (See State Aid herein). Should the Fire District fail to receive monies expected from the State in the amounts and at the times expected, the Fire District is permitted to issue revenue anticipation notes in anticipation of the receipt of delayed State aid. If and when a holder of any of the Bonds should elect to sell a Bond prior to its maturity, there can be no assurance that a market shall have been established, maintained and be in existence for the purchase and sale of any of the Bonds. In addition, the price and principal value of the Bonds is dependent on the prevailing level of interest rates; if interest rates rise, the price of a bond or note will decline, causing the bondholder or noteholder to incur a potential capital loss if such bond or note is sold prior to its maturity. Amendments to U.S. Internal Revenue Code could reduce or eliminate the favorable tax treatment granted to municipal debt, including the Bonds and other debt issued by the Fire District. Any such future legislation could have an adverse effect on the market value of the Bonds (See Tax Matters herein). LITIGATION The Fire District is subject to a number of lawsuits in the ordinary conduct of its affairs. In the opinion of the Fire District Attorney, such suits individually or in the aggregate, are not expected to have a material adverse effect on the financial position of the Fire District. Opinion of Bond Counsel TAX MATTERS In the opinion of Hawkins Delafield & Wood LLP, Bond Counsel to the Fire District, under existing statutes and court decisions and assuming continuing compliance with certain tax certifications described herein, (i) interest on the Bonds is excluded from gross income for Federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the Code ), and (ii) interest on the Bonds is not treated as a preference item in calculating the alternative minimum tax imposed on individuals and corporations under the Code; such interest, however, is included in the adjusted current earnings of certain corporations for purposes of calculating the alternative minimum tax imposed on such corporations. The Tax Certificate of the Fire District (the Tax Certificate ), which will be delivered concurrently with the delivery of the Bonds will contain provisions and procedures relating to compliance with applicable requirements of the Code. In rendering its opinion, Bond Counsel has relied on certain representations, certifications of fact, and statements of reasonable expectations made by the Fire District in connection with the Bonds, and Bond Counsel has assumed compliance by the Fire District with certain ongoing provisions and procedures set forth in the Tax Certificate relating to compliance with applicable requirements of the Code to assure the exclusion of interest on the Bonds from gross income under Section 103 of the Code. 6

13 In addition, in the opinion of Bond Counsel to the Fire District, under existing statutes, interest on the Bonds is exempt from personal income taxes of New York State and its political subdivisions, including The City of New York. Bond Counsel expresses no opinion regarding any other Federal or state tax consequences with respect to the Bonds. Bond Counsel renders its opinion under existing statutes and court decisions as of the issue date, and assumes no obligation to update, revise or supplement its opinion after the issue date to reflect any action hereafter taken or not taken, or any facts or circumstances that may hereafter come to its attention, or changes in law or in interpretations thereof that may hereafter occur, or for any other reason. Bond Counsel expresses no opinion on the effect of any action hereafter taken or not taken in reliance upon an opinion of other counsel on the exclusion from gross income for Federal income tax purposes of interest on the Bonds, or under state and local tax law. Certain Ongoing Federal Tax Requirements and Certifications The Code establishes certain ongoing requirements that must be met subsequent to the issuance and delivery of the Bonds in order that interest on the Bonds be and remain excluded from gross income under Section 103 of the Code. These requirements include, but are not limited to, requirements relating to use and expenditure of gross proceeds of the Bonds, yield and other restrictions on investments of gross proceeds, and the arbitrage rebate requirement that certain excess earnings on gross proceeds be rebated to the Federal government. Noncompliance with such requirements may cause interest on the Bonds to become included in gross income for Federal income tax purposes retroactive to their issue date, irrespective of the date on which such noncompliance occurs or is discovered. The Fire District, in executing the Tax Certificate, will certify to the effect that the Fire District will comply with the provisions and procedures set forth therein and that it will do and perform all acts and things necessary or desirable to assure the exclusion of interest on the Bonds from gross income under Section 103 of the Code. Certain Collateral Federal Tax Consequences The following is a brief discussion of certain collateral Federal income tax matters with respect to the Bonds. It does not purport to address all aspects of Federal taxation that may be relevant to a particular owner of a Bond. Prospective investors, particularly those who may be subject to special rules, are advised to consult their own tax advisors regarding the Federal tax consequences of owning and disposing of the Bonds. Prospective owners of the Bonds should be aware that the ownership of such obligations may result in collateral Federal income tax consequences to various categories of persons, such as corporations (including S corporations and foreign corporations), financial institutions, property and casualty and life insurance companies, individual recipients of Social Security and railroad retirement benefits, individuals otherwise eligible for the earned income tax credit, and taxpayers deemed to have incurred or continued indebtedness to purchase or carry obligations the interest on which is excluded from gross income for Federal income tax purposes. Interest on the Bonds may be taken into account in determining the tax liability of foreign corporations subject to the branch profits tax imposed by Section 884 of the Code. Original Issue Discount Original issue discount ( OID ) is the excess of the sum of all amounts payable at the stated maturity of a Bond (excluding certain qualified stated interest that is unconditionally payable at least annually at prescribed rates) over the issue price of that maturity. In general, the issue price of a maturity means the first price at which a substantial amount of the Bonds of that maturity was sold (excluding sales to bond houses, brokers, or similar persons acting in the capacity as underwriters, placement agents, or wholesalers). In general, the issue price for each maturity of Bonds is expected to be the initial public offering price set forth in this Official Statement. Bond Counsel further is of the opinion that, for any Bonds having OID (a Discount Bond ), OID that has accrued and is properly allocable to the owners of the Discount Bonds under Section 1288 of the Code is excludable from gross income for Federal income tax purposes to the same extent as other interest on the Bonds. In general, under Section 1288 of the Code, OID on a Discount Bond accrues under a constant yield method, based on periodic compounding of interest over prescribed accrual periods using a compounding rate determined by reference to the yield on that Discount Bond. An owner s adjusted basis in a Discount Bond is increased by accrued 7

14 OID for purposes of determining gain or loss on sale, exchange, or other disposition of such Discount Bond. Accrued OID may be taken into account as an increase in the amount of tax-exempt income received or deemed to have been received for purposes of determining various other tax consequences of owning a Discount Bond even though there will not be a corresponding cash payment. Owners of Discount Bonds should consult their own tax advisors with respect to the treatment of original issue discount for Federal income tax purposes, including various special rules relating thereto, and the state and local tax consequences of acquiring, holding, and disposing of Discount Bonds. Bond Premium In general, if an owner acquires a Bond for a purchase price (excluding accrued interest) or otherwise at a tax basis that reflects a premium over the sum of all amounts payable on the Bond after the acquisition date (excluding certain qualified stated interest that is unconditionally payable at least annually at prescribed rates), that premium constitutes bond premium on that Bond (a Premium Bond ). In general, under Section 171 of the Code, an owner of a Premium Bond must amortize the bond premium over the remaining term of the Premium Bond, based on the owner s yield over the remaining term of the Premium Bond, determined based on constant yield principles (in certain cases involving a Premium Bond callable prior to its stated maturity date, the amortization period and yield may be required to be determined on the basis of an earlier call date that results in the lowest yield on such Bond). An owner of a Premium Bond must amortize the bond premium by offsetting the qualified stated interest allocable to each interest accrual period under the owner s regular method of accounting against the bond premium allocable to that period. In the case of a tax-exempt Premium Bond, if the bond premium allocable to an accrual period exceeds the qualified stated interest allocable to that accrual period, the excess is a nondeductible loss. Under certain circumstances, the owner of a Premium Bond may realize a taxable gain upon disposition of the Premium Bond even though it is sold or redeemed for an amount less than or equal to the owner s original acquisition cost. Owners of any Premium Bond should consult their own tax advisors regarding the treatment of bond premium for Federal income tax purposes, including various special rules relating thereto, and state and local tax consequences, in connection with the acquisition, ownership, amortization of bond premium on, sale, exchange, or other disposition of Premium Bonds. Information Reporting and Backup Withholding Information reporting requirements apply to interest on tax-exempt obligations, including the Bonds. In general, such requirements are satisfied if the interest recipient completes, and provides the payor with, a Form W-9, Request for Taxpayer Identification Number and Certification, or if the recipient is one of a limited class of exempt recipients. A recipient not otherwise exempt from information reporting who fails to satisfy the information reporting requirements will be subject to backup withholding, which means that the payor is required to deduct and withhold a tax from the interest payment, calculated in the manner set forth in the Code. For the foregoing purpose, a payor generally refers to the person or entity from whom a recipient receives its payments of interest or who collects such payments on behalf of the recipient. If an owner purchasing a Bond through a brokerage account has executed a Form W-9 in connection with the establishment of such account, as generally can be expected, no backup withholding should occur. In any event, backup withholding does not affect the excludability of the interest on the Bonds from gross income for Federal income tax purposes. Any amounts withheld pursuant to backup withholding would be allowed as a refund or a credit against the owner s Federal income tax once the required information is furnished to the Internal Revenue Service. Miscellaneous Tax legislation, administrative actions taken by tax authorities, or court decisions, whether at the Federal or state level, may adversely affect the tax-exempt status of interest on the Bonds under Federal or state law or otherwise prevent beneficial owners of the Bonds from realizing the full current benefit of the tax status of such interest. In addition, such legislation or actions (whether currently proposed, proposed in the future, or enacted) and such decisions could affect the market price or marketability of the Bonds. For example, the Fiscal Year 2016 Budget proposed by the Obama Administration recommended a 28% limitation on all itemized deductions, as well as other 8

15 tax benefits including tax-exempt interest. The net effect of such a proposal, if enacted into law, would be that an owner of a tax-exempt obligation with a marginal tax rate in excess of 28% would pay some amount of Federal income tax with respect to the interest on such tax-exempt obligation, regardless of issue date. Prospective purchasers of the Bonds should consult their own tax advisors regarding the foregoing matters. Absence of Litigation DOCUMENTS ACCOMPANYING DELIVERY OF THE BONDS Upon delivery of the Bonds, the Fire District shall furnish a certificate of the Fire District Attorney, dated the date of delivery of the Bonds, to the effect that there is no controversy or litigation of any nature pending or threatened to restrain or enjoin the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any of the proceedings taken with respect to the issuance and sale thereof or the application of moneys to the payment of the Bonds, and further stating that there is no controversy or litigation of any nature now pending or threatened by or against the Fire District wherein an adverse judgment or ruling could have a material adverse impact on the financial condition of the Fire District or adversely affect the power of the Fire District to levy, collect and enforce the collection of taxes or other revenues for the payment of its Bonds, which has not been disclosed in this Official Statement. Legal Matters Legal matters incident to the authorization, issuance and sale of the Bonds will be subject to the final approving opinion of the law firm of Hawkins Delafield & Wood LLP, Bond Counsel to the Fire District with respect to the Bonds, which will be available at the time of delivery of the Bonds. Said opinion will be to the effect that the Bonds are valid and legally binding general obligations of the Fire District for which the Fire District has validly pledged its faith and credit and, unless paid from other sources, all the taxable real property within the Fire District is subject to the levy of ad valorem real estate taxes to pay the Bonds and interest thereon, subject to the limitations imposed by the Tax Levy Limit Law. (See The Tax Levy Limit Law herein). The opinion shall also discuss the treatment of interest on the Bonds under applicable tax laws, as further described in the section entitled Tax Matters and shall contain further statements to the effect that (a) the enforceability of rights or remedies with respect to the Bonds may be limited by bankruptcy, insolvency, or other laws affecting creditors' rights or remedies heretofore or hereafter enacted, and (b) said law firm gives no assurances as to the adequacy, sufficiency or completeness of the Official Statement of the Fire District relating to the Bonds, or any proceedings, reports, correspondence, financial statements or other documents, containing financial or other information relative to the Bonds which have been or may be furnished or disclosed to purchasers of the Bonds. Closing Certificates Upon the delivery of the Bonds, the Purchasers will be furnished with the following items: (i) a Certificate of the Treasurer of the Fire District to the effect that as of the date of this Official Statement and at all times subsequent thereto, up to and including the time of the delivery of the Bonds, this Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements herein, in the light of the circumstances under which they were made, not misleading, and further stating that there has been no adverse material change in the financial condition of the Fire District since the date of this Official Statement to the date of issuance of the Bonds; and having attached thereto a copy of this Official Statement; (ii) a Certificate signed by an officer of the Fire District evidencing payment for the Bonds; and (iii) a Signature Certificate evidencing the due execution of the Bonds, including statements that (a) no litigation of any nature is pending or, to the knowledge of the signers, threatened, restraining or enjoining the issuance and delivery of the Bonds or the collection of revenues to pay the principal of and interest thereon, nor in any manner questioning the proceedings and authority under which the Bonds were authorized or affecting the validity of the Bonds thereunder, (b) neither the corporate existence or boundaries of the Fire District nor the title of the signers to their respective offices is being contested, and (c) no authority or proceedings for the issuance of the Bonds have been repealed, revoked or rescinded, and (iv) a Tax Certificate executed by the chief fiscal officer of the Fire District, as described under Tax Matters herein. 9

16 DISCLOSURE UNDERTAKING At the time of the delivery of the Bonds, the Fire District will provide an executed copy of its Undertaking to Provide Limited Disclosure (the Undertaking ). Said Undertaking will constitute a written agreement or contract of the Fire District for the benefit of holders of and owners of beneficial interests in the Bonds, to provide, or cause to be provided to the Electronic Municipal Market Access ( EMMA ) System implemented by the Municipal Securities Rulemaking Board established pursuant to Section 15B(b)(1) of the Securities Exchange Act of 1934, or any successor thereto or to the functions of such Board contemplated by the Undertaking: (1) annual financial information or operating data with respect to the Fire District which is customarily prepared by the Fire District and is publicly available. Such information shall be provided not later than the end of the fiscal year following the fiscal year which is the subject of such information. Such information shall be of the general type contained in Appendices B and C of the final Official Statement, and may consist of the annual update document filed with the State Comptroller unless an audit is prepared, in which case such audit shall be provided on or prior to the later of either the end of the sixth month of each such succeeding fiscal year or, if an audited financial statement is not available at that time, within sixty days following receipt by the Fire District of its audited financial statement for the preceding fiscal year, but, in any event, not later than the last business day of each such succeeding fiscal year; and provided further, in the event that the audited financial statement for any fiscal year is not available by the end of the sixth month following the end of any such succeeding fiscal year, unaudited financial statements in the form provided to the State, if available, will be provided no later than said date. The Fire District is an issuer with less than $10,000,000 in outstanding municipal securities (including the Bonds and excluding exempt municipal securities). (2) (a) in a timely manner, not in excess of ten (10) business days after the occurrence of such event, notice of any of the following events with respect to the Bonds: (i) principal and interest payment delinquencies; (ii) non-payment related defaults, if material; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure to perform; (vi) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices of determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (vii) modifications to rights of Bonds holders, if material; (viii) Bond calls, if material, and tender offers; (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the Bonds, if material; (xi) rating changes; (xii) bankruptcy, insolvency, receivership or similar event of the Fire District; Note to clause (xii): For the purposes of the event identified in clause (xii) above, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Fire District in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or government authority has assumed jurisdiction over substantially all of the assets or business of the Fire District, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Fire District; (xiii) the consummation of a merger, consolidation, or acquisition involving the Fire District or the sale of all or substantially all of the assets of the Fire District, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (xiv) appointment of a successor or additional trustee or the change of name of a trustee, if material. (b) in a timely manner, notice of a failure to provide the annual financial information by the date specified in the Undertaking. The Fire District may from time to time choose to provide notice of the occurrence of certain other events, in addition to those listed above, if the Fire District determines that any such other event is material with respect to the Bonds; but the Fire District does not undertake to commit to provide any such notice of the occurrence of any event except those events listed above. The Fire District s Undertaking shall remain in full force and effect until such time as the principal of, redemption premiums, if any, and interest on the Bonds shall have been paid in full or in the event that those portions of the 10

17 Rule which require the Undertaking, or such provision, as the case may be, do not or no longer apply to the Bonds. In addition, the Fire District reserves the right to terminate its obligation to provide the information described above, if and when the Fire District no longer remains an obligated person with respect to the Bonds within the meaning of the Rule. The Fire District acknowledges that its undertaking pursuant to the Rule described under this heading is intended to be for the benefit of the holders of the Bonds (including holders of beneficial interests in the Bonds). The sole and exclusive remedy for breach or default under the Undertaking is an action to compel specific performance of the undertakings of the Fire District, and no person or entity, including a Holder of the Bonds, shall be entitled to recover monetary damages thereunder under any circumstances. Any failure by the Fire District to comply with the Undertaking will not constitute a default with respect to the Bonds. The Fire District reserves the right to amend or modify the Undertaking under certain circumstances set forth therein; provided that any such amendment or modification will be done in a manner consistent with Rule 15c2-12, as amended. Since 2007, there have been in excess of 50 rating actions reported by Moody s Investors Service, Standard & Poor s Rating Corporation and Fitch Ratings affecting the municipal bond insurance companies, some of which had insured bonds previously issued by the Fire District. Due to widespread knowledge of these rating actions, material event notices were not filed by the Fire District in each instance. FINANCIAL ADVISOR Capital Markets Advisors, LLC, Hopewell Junction, New York, (the Financial Advisor ) has served as the independent financial advisor to the Fire District in connection with this transaction. In preparing the Official Statement, the Financial Advisor has relied upon governmental officials, and other sources, who have access to relevant data to provide accurate information for the Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information. The Financial Advisor is not a public accounting firm and has not been engaged by the Fire District to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities and therefore will not participate in the underwriting of the Bonds. RATING The Fire District has applied to Moody s Investors Service, Inc. ( Moody s ), for a rating of the Bonds. Such application is pending at this time. The Fire District s underlying rating by Moody s is currently Aa2. Such rating reflects only the views of such organization and any desired explanation of the significance of such rating should be obtained from Moody s at the following address: Moody s Investors Service, Inc., 7 World Trade Center, 250 Greenwich Street, New York, New York There can be no assurance that such rating will not be revised or withdrawn, if in the judgment of Moody's circumstances so warrant. Any such change or withdrawal of the Fire District's rating may have an adverse effect on the market price of the Bonds or the availability of a secondary market for the Bonds. 11

18 ADDITIONAL INFORMATION Additional information may be obtained upon request from the Fire District Treasurer, 300 Hartsdale Avenue, Hartsdale, New York, or from Capital Markets Advisors, LLC, 1075 Route 82 Suite 4, Hopewell Junction, New York 12533, telephone (845) and is also available at Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so stated, are intended as such and not as representations of fact. No representation is made that any of such statements will be realized. This Official Statement is not to be construed as a contract or agreement between the Fire District and the original purchasers or holders of any of the Bonds. Capital Markets Advisors, LLC may place a copy of this Official Statement on its website at Unless this Official Statement specifically indicates otherwise, no statement on such website is included by specific reference or constitutes a part of this Official Statement. Capital Markets Advisors, LLC has prepared such website information for convenience, but no decisions should be made in reliance upon that information. Typographical or other errors may have occurred in converting original source documents to digital format, and neither the Fire District nor Capital Markets Advisors, LLC assumes any liability or responsibility for errors or omissions on such website. Further, Capital Markets Advisors, LLC and the Fire District disclaim any duty or obligation either to update or to maintain that information or any responsibility or liability for any damages caused by viruses in the electronic files on the website. Capital Markets Advisors, LLC and the Fire District also assume no liability or responsibility for any errors or omissions or for any updates to dated website information. This Official Statement is submitted only in connection with the sale of the Bonds by the Fire District and may not be reproduced or used in whole or in part for any other purpose HARTSDALE FIRE DISTRICT, WESTCHESTER COUNTY, NEW YORK By: Sharon A. Spagnoli Secretary/Treasurer of the Hartsdale Fire District DATED: March,

19 APPENDIX A THE FIRE DISTRICT

20 THIS PAGE INTENTIONALLY LEFT BLANK

21 THE FIRE DISTRICT General Information The Fire District was established in The Fire District, comprising approximately 4.5 square miles is geographically situated in the Town of Greenburgh, Westchester County, in the unincorporated area of the Town known as Hartsdale. Assessed and full valuations of that portion of the Town comprising the Hartsdale Fire District are shown in the Real Property Taxes section. Hartsdale is suburban residential in nature with an extensive commercial base. Most residential development consists of single family homes. Commercial facilities mainly include professional buildings and suburban shopping centers. Residents of the Fire District are served by the Harlem Division of the Metro North Railroad. Highways serving the Fire District include the State Thruway (I-87), Cross Westchester Expressway (I-287), U.S. Route 9 and the Sprain Brook Parkway (which links the Taconic State Parkway and the Bronx River Parkway). Population in the Town was 89,419 according to the 2013 U.S. census data. Fire District population is currently estimated at 12,000. For 2000, the Town's per capita money income was $43,778 which was 19.2% higher than the level for all County residents and 87.2% higher than the per capita money income for the entire State. Residents are employed throughout the County and also commute to New York City for employment. The unemployment rate for Town residents is less than the rate for the County as a whole and substantially below State and national levels. See Economic and Demographic Data herein. The Fire District operates with nine pieces of apparatus including three pumpers, an aerial ladder truck, a line truck with 35 boom and four command vehicles, and responds to approximately 915 calls annually. Form of Government The Fire District was established as a municipal district by the State pursuant to Article 11 of the Town Law, and is vested with such powers and has the responsibilities inherent in the operation of such fire district including the adoption of rules and regulations to govern its affairs. In addition, the Fire District may tax real property situated within its boundaries and incur debt subject to the provision of the State's Local Finance Law. Government operations of the Fire District are subject to the various statutes affecting municipal fire districts including the Town Law and the Local Finance Law. Real property assessment, collection, and enforcement procedures are determined by the Real Property Tax Law. Elected and Appointed Officials The Board of Fire Commissioners is the governing and policy determining body of the Fire District and consists of five members, all of whom are elected to five-year terms on a staggered basis. The Chairman of the Board is elected by the Commissioners to a one-year term. The number of terms which may be served is not limited. The Board appoints a secretary and a treasurer, who is the chief fiscal officer of the Fire District, and an attorney. Budget Procedure FINANCIAL FACTORS The Fire District prepares an annual budget of revenue to be received and expenditures to be made during the following year. Such budget is not subject to referendum unless the operating portion exceeds limitations provided by law. On or before the 21 st day prior to the budget hearing, the Fire District must adopt a proposed budget. All New York State fire districts must conduct a budget hearing on or prior to the third Tuesday in October. A final budget must be adopted no later than November 4. The Fire District must file the final budget with the Town within three days of adoption. The full amount of Fire District tax specified in its annual budget is levied by the Town of Greenburgh. A-1

22 Independent Auditor Each year the Fire District submits an annual financial report to the State Comptroller who periodically audits the financial affairs of the Fire District. The Fire District also retains a firm of independent auditors. The most recent audit is for the year ended December 31, 2013 and may be found in Appendix C hereto. The financial information presented in Appendix B hereto has been compiled from audited financial statements for the fiscal years ended December 31, , however, such presentation has not been audited. In addition, a summary of the adopted budgets for fiscal year 2014 and 2015 may be found in Appendix B. Investment Policy Pursuant to Section 39 of the State's General Municipal Law, the Fire District has an investment policy applicable to the investment of all moneys and financial resources of the Fire District. The responsibility for the investment program has been delegated by the Board to the Chief Financial Officer who was required to establish written operating procedures consistent with the Fire District's investment policy guidelines. According to the investment policy of the Fire District, all investments must conform to the applicable requirements of law and provide for: the safety of the principal; sufficient liquidity; and a reasonable rate of return. Authorized Investments. The Fire District has designated three banks or trust companies located and authorized to conduct business in the State to receive deposits of money. The Fire District is permitted to invest in special time deposits or certificates of deposit. In addition to bank deposits, the Fire District is permitted to invest moneys in direct obligations of the United States of America and obligations guaranteed by agencies of the United States where the payment of principal and interest are further guaranteed by the United States of America and obligations of the State. Other eligible investments for the Fire District include: revenue and tax anticipation notes issued by any municipality, school district or district corporation other than the Fire District (investment subject to approval of the State Comptroller); obligations of certain public authorities or agencies; obligations issued pursuant to Section 109(b) of the General Municipal Law (certificates of participation) and certain obligations of the Fire District, but only with respect to moneys of a reserve fund established pursuant to certain sections of the General Municipal Law. The Fire District may also utilize repurchase agreements to the extent such agreements are based upon direct or guaranteed obligations of the United States of America. Repurchase agreements are subject to the following restrictions, among others: all repurchase agreements are subject to a master repurchase agreement; trading partners are limited to banks or trust companies authorized to conduct business in the State or primary reporting dealers as designated by the Federal Reserve Bank of New York; securities may not be substituted; and the custodian for the repurchase security must be a party other than the trading partner. All purchased obligations, unless registered or inscribed in the name of the Fire District, must be purchased through, delivered to and held in the custody of a bank or trust company located and authorized to conduct business in the State. Reverse repurchase agreements are not permitted under State law. Collateral Requirements. All Fire District deposits in excess of the applicable insurance coverage provide by the Federal Deposit Insurance Act must be secured in accordance with the provisions of and subject to the limitations of Section 10 of the General Municipal Law of the State. Such collateral must consist of the eligible securities, eligible surety bonds or eligible letter of credit as described in the law. Eligible securities pledged to secure deposits must be held by the depository or third party bank or trust company pursuant to written security and custodial agreements. The Fire District s security agreements provide that the aggregate market value of pledged securities must equal or exceed the principal amount of deposit, the agreed upon interest, if any, and any costs or expenses arising from the collection of such deposits in the event of a default. Securities not registered or inscribed in the name of the Fire District must be delivered, in a form suitable for transfer or with an assignment in blank, to the Fire District or its designated custodial bank. The custodial agreements used by the Fire District provide that pledged securities must be kept separate and apart from the general assets of the custodian and will not, under any circumstances, be commingled with or become part of the backing for any other deposit or liability. The custodial agreement must also provide that the custodian shall confirm the receipt, substitution or release of the collateral, the frequency of revaluation of eligible securities and the substitution of collateral when a change in the rating of a security may cause ineligibility. A-2

23 An eligible irrevocable letter or credit may be issued, in favor of the Fire District, by a qualified bank other than the depository bank. Such letters may have a term not to exceed 90 days and must have an aggregate value equal to 140% of the deposit obligations and the agreed upon interest. Qualified banks include those with commercial paper or other unsecured or short-term debt ratings within one of the three highest categories assigned by at least one nationally recognized statistical rating organization or a bank that is in compliance with applicable Federal minimum risk-based capital requirements. An eligible surety bond must be underwritten by an insurance company authorized to do business in the State which has claims paying ability rated in the highest rating category for claims paying ability by at least two nationally recognized statistical rating organizations. The surety bond must be payable to the Fire District in an amount equal to 100% of the aggregate deposits and the agreed interest thereon. Revenues The Fire District derived 99.3% and 98.3% its revenue from real property taxes for the year ended December 31, 2012 and 2013, respectively. See Appendix B hereto. Tax Levy Limit Law REAL PROPERTY TAXES Prior to the enactment of Chapter 97 of the Laws of 2011 (the Tax Levy Limit Law ) on June 24, 2011, all the taxable real property within the Fire District had been subject to the levy of ad valorem taxes to pay the bonds and notes of the Fire District and interest thereon without limitation as to rate or amount. However, the Tax Levy Limit Law imposes a tax levy limitation upon the Fire District for any fiscal year without providing an exclusion for debt service on obligations issued by the Fire District. As a result, the power of the Fire District to levy real estate taxes on all the taxable real property within the Fire District, is subject to statutory limitations, and according to the formulas set forth in Tax Levy Limit Law. The following is a brief summary of certain relevant provisions of the Tax Levy Limit Law. The summary is not complete and the full text of the Tax Levy Limit Law should be read in order to understand the details and implications thereof. The Tax Levy Limit Law imposes a limitation on increases in the real property tax levy of the Fire District, subject to certain exceptions. The Tax Levy Limit Law permits the Fire District to increase its overall real property tax levy over the tax levy of the prior year by no more than the Allowable Levy Growth Factor, which is the lesser of one and two-one hundredths or the sum of one plus the Inflation Factor; provided, however that in no case shall the levy growth factor be less than one. The "Inflation Factor" is the quotient of: (i) the average of the 20 National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the coming fiscal year minus the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the prior fiscal year, divided by: (ii) the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the prior fiscal year, with the result expressed as a decimal to four places. The Fire District is required to calculate its tax levy limit for the upcoming year in accordance with the provision above and provide all relevant information to the New York State Comptroller prior to adopting its budget. The Tax Levy Limit Law sets forth certain exclusions to the real property tax levy limitation of the Fire District, including exclusions for certain portions of the expenditures for retirement system contributions and tort judgments payable by the Fire District. The governing board of the Fire District may adopt a budget that exceeds the tax levy limit for the coming fiscal year, only if the governing board of the Fire District first enacts, by a vote of at least sixty percent of the total voting power of the governing board of the Fire District, a local law to override such limit for such coming fiscal year. The Tax Levy Limit Law does not contain an exception from the levy limitation for the payment of debt service on either outstanding general obligation bonds or notes of the Fire District or such indebtedness incurred after the effective date of the Tax Levy Limit Law. As such, there can be no assurances that the Tax Levy Limit Law will not A-3

24 come under legal challenge for violating (i) Article VIII, Section 12 of the State Constitution for not providing an exception for debt service on obligations issued prior to the enactment of the Tax Levy Limit Law, (ii) Article VIII, Section 10 of the State Constitution by effectively eliminating the exception for debt service to general real estate tax limitations, and (iii) Article VIII, Section 2 of the State Constitution by limiting the pledge of its faith and credit by a municipality or school district for the payment of debt service on obligations issued by such municipality or school district. Real Property Tax Rebate Chapter 59 of the Laws of 2014 ( Chapter 59 ), a recently adopted State budget bill, includes provisions which provide a refundable personal income tax credit to real property taxpayers in school districts and certain municipal units of government. Real property owners in school districts are eligible for this credit in the 2014 and 2015 taxable years of those property owners. Real property taxpayers in certain other municipal units of government are eligible for this credit in the 2015 and 2016 taxable years of those real property taxpayers. The eligibility of real property taxpayers for the tax credit in each year depends on such jurisdiction s compliance with the provisions of the Tax Levy Limit Law. School districts budgets must comply in their and fiscal years. Other municipal units of government must have their budgets in compliance for their 2015 and 2016 fiscal years. Such budgets must be within the tax cap limits set by the Tax Levy Limit Law for the real property taxpayers to be eligible for this personal income tax credit. The affected jurisdictions include counties, cities (other than any city with a population of one million or more and its counties), towns, villages, school districts (other than the dependent school districts of New York City, Buffalo, Rochester, Syracuse and Yonkers, the latter four of which are indirectly affected by applicability to their respective city) and independent special districts. Certain additional restrictions on the amount of the personal income tax credit are set forth in Chapter 59 in order for the tax cap to qualify as one which will provide the tax credit benefit to such real property taxpayers. The refundable personal income tax credit amount is increased in the second year if compliance occurs in both taxable years. For the second taxable year of the program, the refundable personal income tax credit for real property taxpayers is additionally contingent upon adoption by the school district or municipal unit of a state approved government efficiency plan which demonstrates three year savings and efficiencies of at least one per cent per year from shared services, cooperation agreements and/or mergers or efficiencies. Municipalities, school districts and independent special districts must provide certification of compliance with the requirements of the new provisions to certain state officials in order to render their real property taxpayers eligible for the personal income tax credit. While the provisions of Chapter 59 do not directly further restrict the taxing power of the affected municipalities, school districts and special districts, they do provide an incentive for such tax levies to remain within the tax cap limits established by the Tax Levy Limit Law. The implications of this for future tax levies and for operations and services of the Fire District are uncertain at this time. Real Property Tax Assessments and Rates Assessments, Equalization and Full Values Assessed Valuations $67,918,817 $67,459,397 $66,541,058 $65,820,761 $65,306,599 State Equalization Rate 3.64% 3.37% 3.36% 3.51% 3.33% Full Valuations $1,865,901,566 $2,001,762,522 $1,980,388,631 $1,875,235,356 $1,961,159,129 Source: Town assessor s office and ORPTS. A-4

25 Tax Levies and Collection Record Tax Levies and Collections Tax Levy $9,315,872 $9,956,003 $10,393,454 $10,932,283 $11,130,050 Amount Uncollected (1) None None None None None Tax Rate Per $1,000 $ $ $ $ $ (1) See Tax Collection Procedures below. Tax Collection Procedures Real property taxes for the Fire District are levied and billed with taxes for County and Town purposes. Fire District taxes are collected by the Town beginning on April 1. Such taxes may be paid without interest during the month of April. Thereafter, tax payments must include interest computed at 1% per month or fraction thereof from April 1. The Fire District tax levy is satisfied from the first tax moneys received by the Town. Accordingly, the Fire District receives 100% of its tax levy each year (on or about May 5 th ). The Town is responsible for collection and enforcement of the tax levy. Ten of the Largest Taxpayers Largest Taxpayers 2011 Assessment Roll % of Total Nature of Assessed Assessed Taxpayer's Name Business Valuation Valuation (1) Highpoint Coops $ 3,135, % Consolidated Edison Utility 2,968, Heritage SPE, LLC Shopping Center 1,747, Stone Oaks Condominiums 1,600, The Classic Condominiums 1,352, Dalewood Gardens Apartments 1,175, Central West Tenants Co. Apartments 1,083, The Colony Condominiums 1,067, Hampshire Mang co No 20 Apartments 893, Homestead Owners Apartments 770, $15,793, % (1) 2015 assessed values $65,306,599 Constitutional Requirements FIRE DISTRICT INDEBTEDNESS Constitutional Requirements. The New York State Constitution (Article VIII, Section 2) does not directly address the power of fire districts, including the Fire District, to contract indebtedness and the levy of taxes upon real estate A-5

26 in support thereof (although Article VIII, Section 3 thereof excludes, inter alia, fire districts from limitations imposed therein upon municipal or other corporations possessing the power to contract indebtedness or to levy or require the levy of taxes or benefit assessments upon real estate). Such constitutional certain limitations include the following, in summary form, and are generally applicable to the Fire District and its obligations. Local Finance Law Requirements. The New York State Local Finance Law limits the power of the Fire District (and municipalities, school and other fire districts of the State) to issue obligations and contract indebtedness. Such limitations include the following, in summary form, and are generally applicable to the Fire District and the Bonds. Purpose and Pledge. Subject to certain enumerated exceptions, the Fire District shall not give or loan any money or property to or in aid of any individual or private corporation or give or loan its credit to or in aid of any of the foregoing or any public corporation. The Fire District may contract indebtedness only for a Fire District purpose and shall pledge its faith and credit for the payment of principal of and interest thereon. Payment and Maturity. Except for certain short-term indebtedness contracted in anticipation of taxes or to be paid within three fiscal year periods, indebtedness shall be paid in annual installments commencing no later than two years after the date such indebtedness shall have been contracted and ending no later than the expiration of the period of probable usefulness of the object or purpose as determined by statute or, in the alternative, the weighted average period of probable usefulness of the several objects or purposes for which it is contracted. No installment may be more than fifty per centum in excess of the smallest prior installment, unless the Fire District determines to issue a particular debt obligation on the basis of substantially level or declining annual debt service. The Fire District is required to provide an annual appropriation for the payment of interest due during the year on its indebtedness and for the amounts required in such year for amortization and redemption of its serial bonds and such required annual installments on its notes. Debt Limit. The Fire District has the power to contract indebtedness for any Fire District purpose so long as the principal amount thereof shall not exceed three percentum of the average full valuation of taxable real estate of the Fire District (unless approved by the voters up to five percentum by 2/3 affirmation and with the approval of the State Comptroller) and subject to certain enumerated exclusions and deductions such as water and certain sewer facilities and cash or appropriations for current debt service. The method for determining full valuation is by taking the assessed valuation of taxable real estate for the last completed assessment roll and applying thereto the rate which such assessed valuation bears to the full valuation as determined by the State Office of Real Property Tax Services (the ORPTS ). The State Legislature is required to prescribe the manner by which such rate shall be determined. Average full valuation is determined by taking the sum of the full valuations of such last completed assessment roll and the four preceding assessment rolls and dividing such sum by five. Statutory Procedure In general, the State Legislature has authorized the powers and procedure for the District to borrow and incur indebtedness by the enactment of the Local Finance Law, subject, of course, to the provisions set forth above. The power to spend money, however, generally derives from other law, including specifically the General Municipal Law and Town Law. Pursuant to the Local Finance Law, the Fire District authorizes the issuance of bonds by the adoption of a bond resolution, approved by at least three-fifths of the members of the Board of Fire Commissioners, the finance board of the Fire District. The Local Finance Law requires that the bond resolution be submitted to the voters of the District for approval. Customarily, the Fire District delegates to the Fire District Treasurer, as chief fiscal officer of the Fire District, the power to authorize and sell bond anticipation notes in anticipation of authorized bonds. The Local Finance Law also provides for an estoppel procedure which provides that where a bond resolution is published with a statutory form of notice, the validity of the bonds authorized thereby, including bond anticipation notes issued in anticipation of the sale thereof, may be contested only if: 1) Such obligations are authorized for a purpose for which the District is not authorized to expend money, or A-6

27 2) There has not been substantial compliance with the provisions of law which should have been complied with in the authorization of such obligations and an action contesting such validity is commenced within twenty days after the date of such publication, or 3) Such obligations are authorized in violation of the provisions of the Constitution. The Fire District has complied with the estoppel procedure. Each bond resolution usually authorizes the construction, acquisition or installation of the object or purpose to be financed, sets forth the plan of financing and specifies the maximum maturity of the bonds or notes, subject to the legal (Constitution, Local Finance Law and case law) restrictions relating to the period of probable usefulness with respect thereto. Statutory law in the State permits bond anticipation notes to be renewed each year provided annual principal installments are made in reduction of the total amount of such notes outstanding, commencing no later than two years from the date of the first of such notes, and provided that such renewals do not extend more than five years beyond the original date of borrowing. (See Payment and Maturity under Constitutional Requirements herein.) In general, the Local Finance Law contains provisions providing the District with the power to issue certain other short-term general obligation indebtedness including revenue and tax anticipation notes and budget notes. Remedies Upon Default Under current law, provision is made for contract creditors (including the Bondholders) of the Fire District to enforce payments upon such contracts, if necessary, through court action, although the present statute limits interest on the amount adjudged due to creditors to nine per centum per annum from the date due to the date of payment. As a general rule, property and funds of a district corporation serving the public welfare and interest have not been judicially subjected to execution or attachment to satisfy a judgment, although judicial mandates have been issued to officials to appropriate and pay judgments out of current funds or the proceeds of a tax levy. Remedies for enforcement of payment are not expressly included in the Fire District s contract with holders of its bonds and notes, although any permanent repeal by statute or constitutional amendment of a bondholder or noteholder s remedial right to judicial enforcement of the contract should, in the opinion of Bond Counsel, be held unconstitutional. The State has consented that any municipality in the State may file a petition with any United States district court or court of bankruptcy under any provision of the laws of the United States, now or hereafter in effect for the composition or adjustment of municipal indebtedness. Subject to such State consent, under the United States Constitution, Congress has jurisdiction over such matters and has enacted amendments to the existing federal bankruptcy statute, generally to the effect and with the purpose of affording municipal corporations, under certain circumstances, with easier access to judicially approved adjustment of debts including judicial control over identifiable and unidentifiable creditors. Certain events and legislation affecting remedies on default have resulted in litigation. While courts of final jurisdiction have generally upheld and sustained the rights of bondholders, such courts might hold that future events, including financial crises as they may occur in the State and in municipalities of the State, require the exercise by the State of its emergency and police powers to assure the continuation of essential public services. No principal or interest payment on Fire District indebtedness is past due. The Fire District has never defaulted in the payment of the principal of and interest on any indebtedness. Statutory Debt Contracting Limitation The Real Property Services Board annually establishes State Equalization Rates for all localities in the State, which are determined by statistical sampling of market sales/assessments studies. The equalization rates are used by municipalities and fire districts in the calculation of debt contracting and real property taxing limitations. The Fire A-7

28 District is subject to a debt contracting limitation equal to three percent of full valuation by section (e) of the Local Finance Law. In addition, the Fire District is subject to a taxing limit that is determined in part from full valuations as well as expenditure classifications set forth in the Town Law. (See also Tax Levy Limit Law herein.) The Town determines the assessed valuation for taxable real properties. The Office of Real Property Tax Services ( ORPTS ) determines the assessed valuation of special franchises and the taxable ceiling of railroad property. Special franchises include assessments on certain specialized equipment of utilities under, above, upon or through public streets or public places. Assessments are made on certain properties which are taxable for District purposes but which the Town exempts for general municipal purposes. The following table sets forth the debt-contracting limitation of the Fire District. Computation of Constitutional Debt Contracting Limitation As of March 16, 2015 State Assessed Equalization Full Town: Valuation (a) Rate (b) Valuation Greenburgh $65,306, % $1,961,159,129 Total Full Valuation $1,961,159,129 Debt Contracting Limitations: 3% of Full Valuation $ 58,834,774 (a) (b) District. ORPTS. Statutory Debt Limit and Net Indebtedness Statutory Debt Limit and Net Indebtedness As of March 16, 2015 Amount Percentage Short-Term Indebtedness Debt Contracting Limitation: $58,834, % Gross Direct Debt: Bonds 5,675, Exclusions and Deductions: Budgetary Appropriations 525, Net Indebtedness 5,150, Debt Contracting Margin $53,684, % Pursuant to the Local Finance Law, the Fire District is authorized to issue short-term indebtedness, in the form of notes as specified by such statute, to finance both capital and operating purposes. A-8

29 Bond anticipation notes may be sold to provide moneys for capital projects once a bond resolution has been adopted. Generally, bond anticipation notes are issued in anticipation of the sale of bonds at some future date and may be renewed from time to time up to five years from the date of the first note. Notes may not be renewed after the second year unless there is a principal payment on such notes from a source other than the proceeds of bonds. In no event, may bond anticipation notes be renewed after the sale of bonds in anticipation of which the notes were originally issued. The Fire District currently has no bond anticipation notes outstanding. The Fire District is also authorized by law to issue tax anticipation notes and revenue anticipation notes to provide cash to pay operating expenditures. Borrowings for these purposes are restricted by formulas contained in the Local Finance Law and Regulations issued under the U.S. Internal Revenue Code. Such notes may be renewed from time to time generally not beyond three years in the case of revenue anticipation notes and five years for tax anticipation notes. Budget notes may be issued to finance current operating expenditures for which there is no appropriation or the amount so appropriated is not sufficient. Generally, the amount of budget notes issued may not exceed 5% of the budget and must be redeemed in the next fiscal year. The Fire District has not issued revenue anticipation notes or budget notes. Tax Anticipation Notes The following table presents a history of tax anticipation note issuances during the past five fiscal years. Trend of Capital Debt Fiscal Amount Date Maturity Year Issued Issued Date 2011 $ 2,200,000 February 1, 2011 May 31, ,300,000 February 1, 2012 May 31, ,400,000 January 15, 2013 May 31, ,400,000 January 15, 2014 May 30, ,450,000 January 15, 2015 May 29, 2015 The following table sets forth the capital indebtedness outstanding at the end of each of the last five fiscal years. Fiscal Year Ended December Bonds $6,350,000 $7,140,000 $6,670,000 $6,180,000 $5,675,000 Total Outstanding Indebtedness $6,350,000 $7,140,000 $6,670,000 $6,180,000 $5,675,000 A-9

30 Overlapping and Underlying Debt Statement of Direct and Overlapping Indebtedness As of March 16, 2015 District Gross Direct Indebtedness $5,675,000 District Exclusions and Deductions 525,000 District Net Direct Indebtedness $5,150,000 Date of Percent Total Applicable Overlapping Units Report Applicable Net Debt Net Debt County of Westchester % $862,898,027 $ 10,786,225 Town of Greenburgh ,493,000 6,194,608 Greenburgh #7 Central School District ,838,728 (a) 2,058,078 Totals $19,038,911 (a) Excludes estimated state school building aid. Debt Ratios Debt to Debt Per Estimated Amount Capita (a) Full Value (b) Net Direct Debt $5,150,000 $ % Net Direct & Overlapping Debt 24,188,911 2, (a) The population of the Fire District is estimated at 12,000. (b) The full valuation of taxable property within the Fire District for fiscal year 2015 is $1,961,159,129. Authorized and Unissued Debt After the issuance of the Bonds, the Fire District will have no authorized and unissued debt. Fire District officials do not anticipate the need for any major capital expenditures in the near future. A-10

31 Debt Service Schedule The following table shows the annual debt service requirements on all outstanding Fire District bonds, exclusive of the Bonds. Year % Principal Ending Total Debt Paid December 31 Principal Interest Service $ 525,000 $ 218,559 $ 743, % , , , , , , , , , , , , , , , , , , , , , ,000 97, , ,000 80, , ,000 61, , ,000 42, , ,000 21, ,630 Totals $5,675,000 $1,627,627 $7,302,627 (a) As of March 16, 2015 the Fire District has paid $0 in principal and $0 in interest on serial bonds for the fiscal year ending December 31, ECONOMIC AND DEMOGRAPHIC DATA The smallest area for which economic and demographic information is available, which includes the Fire District, is the Town of Greenburgh. It should not be construed, however, that the economic and demographic information presented in the following tables for the Town as a whole is necessarily representative of the Fire District or vice versa. Population The population of the Fire District is estimated to be 12,000. Population trends for the Town, County and State are presented in the following table. Population Trends Year Town County State , ,459 18,976, , ,113 19,378, , ,802 19,651,127 Source: U.S. Department of Commerce, Bureau of the Census. A-11

32 Income * 2000 Per Capita Value Source: U.S. Department of Commerce, Bureau of the Census. Per Capita Money Income % Increase Town 43,778 * 58, % County 47,814 47, State 30,948 32, Median Income of Families 2013 Median Income Groups - % of Families Family Under $25,000 $50,000 $75,000 $100,000 Income $25,000-49,999-74,999-99,999 Or More County $105, % 13.7% 12.9% 11.1% 52.3% State 70, Source: The American Community Survey 5-Year Estimate (U.S. Department of Commerce, Bureau of the Census). Employment Average Employed Civilian Labor Force % Change County 448, , ,500 (1.6) 1.0 State 8,751,400 8,766,800 8,898, Source: New York State Department of Labor. Average Unemployment Rates (%) United Year Town County State States % 7.3% 8.6% 9.6% (1) Jan A-12

33 Major Non-Government Employers in the Town (225+ Employees) Number of Name of Employer Industry Employees (a) Bayer Lab Instruments 829 Mercy College Higher Education 600 St. Cabrini Nursing Home, Inc. Health Care 450 Children s Village Social Services 436 Ken-Cal Maintenance Building Cleaning & Maintenance 425 CIBA Chemicals & Pharmaceutical 400 Nextel Communications 400 U.S. Home Care Health Care 400 Kraft Foods Food Products 375 Westchester Marriott Hotel Hotel 369 Ikon Office Solutions Business Equipment 358 United Parcel Service, Inc. Delivery Services 323 AKZO Chemicals, Inc. Chemicals 300 Fuji Photo Film, USA, Inc. Film & Cameras 300 Petals Catalog & Mail Order House 300 Sam s Club Food 300 San-Mar Labs, Inc. Sanitation Products 300 Xerox Corp. Business Machines 275 Coca Cola Bottling Beverage Bottling 260 M&H Sales & Marketing Groceries 255 Community Hospital Health Care 250 CROMPTON Corp. Chemical Products 250 Emisphere Technologies Physical and Biological Research 241 Marymount College Higher Education 230 Tarrytown House Conf. Center Hotel/Conference Center 230 Belway Electrical Contracting Electrical Contractors 225 (a) Includes full and part-time employment. Source: County Planning Department (2004). Financial Institutions There are twelve commercial banks and three savings institution within the Town. Commercial banks include branches of: Bank of America, The Bank of New York, Citibank, HSBC Bank USA, Hudson Valley Bank, Independence Community Bank, JPMorgan Chase, M&T Bank, Sleepy Hollow National Bank, Trustco Bank, Union State Bank and Wachovia Bank. The savings banks are Apple Bank for Savings, Astoria Federal Savings & Loan Association, Community Mutual Savings Bank and Sunnyside Federal Savings & Loan Association. Total deposits compiled by the Federal Deposit Insurance Corporation for banks located in the Town were $2.5 billion as of June 30, Communications The Town is served by the New York metropolitan newspapers, radio and television stations. In addition, the Town has various local newspapers including the Journal News and two local radio stations, WFAS-AM and FM. Cablevision of Westchester provides cable television service for residents of the Town. A-13

34 Utilities The residents of the Town receive electric and natural gas services from the Consolidated Edison Company. Under an agreement with the Power Authority of the State of New York, this agency supplies electricity to meet the operational needs of Town government. Verizon is the primary provider of local telephone service in the Town. The Town is a part of the County Refuse District No. 1 which operates a mass-burn resource recovery facility located in the City of Peekskill in the northwest corner of the County. Properties located in the County Refuse District are subject to annual assessments to pay service charges for processing solid waste as well as operating and capital expenses of such district. The Town operates a water system to service residents outside the various villages. The system is comprised of 160 miles of water mains and its source of water is the Delaware Aqueduct, which passes through the Town. Water is purchased from New York City which maintains the aqueduct and its reservoirs. The Town also owns and operates its own sewer collection system, which is comprised of 148 miles of sewer mains. The main trunk lines empty into a County sewage treatment plant in Yonkers. In addition, part of the Town is provided sewer service by five special improvement districts established and maintained by the County. Housing Data Comparative Housing Stock Number of Units % Change County 349, , , (0.2) State 7,679,307 8,108,103 8,102, (0.1) Source: U.S. Department of Commerce, Bureau of the Census (American FactFinder). Median Housing Values and Rentals 2012 % Median Value Median Rent Occupancy Status Constructed Owner Renter Owner Renter Occupied Units Occupied Units Occupied Occupied Vacant County ,300 1, State ,300 1, Source: U.S. Department of Commerce, Bureau of the Census (American FactFinder). END OF APPENDIX A A-14

35 APPENDIX B UNAUDITED SUMMARY OF FINANCIAL STATEMENTS AND BUDGETS

36 THIS PAGE INTENTIONALLY LEFT BLANK

37 HARTSDALE FIRE DISTRICT GENERAL FUND (1) INDEPENDENTLY AUDITED BALANCE SHEETS YEARS ENDED DECEMBER 31: ASSETS: Cash and Cash Equivalents $ 1,586,552 $ 1,746,974 Prepaid Expenditures 202, ,651 Total Assets 1,789,087 1,982,625 LIABILITIES AND FUND BALANCE Accounts Payable 23,389 36,965 Retainage Payable 0 0 Total Liabilites 23,389 36,965 Fund Balance Reserved for Capital Improvements, repairs and equipment purchases 458, ,839 Reserved for Prepaid Expenditures 202, ,651 Unreserved Designated for subsequent year's expenditures 400, ,000 Undesignated 704, ,170 Total Fund Balance 1,765,698 1,945,660 Total Liabilities and Fund Balance 1,789,087 1,982,625 Beginning with the fiscal year ending June 30, 2011, GASB Statement # 54 required a new catagorization of Fund Equity. Please see following page for balance sheet. The financial data presented on this page has been excerpted from the District's unaudited annual report of the Fire Summary itself is not audited. B-1

38 HARTSDALE FIRE DISTRICT GENERAL FUND (1) INDEPENDENTLY AUDITED BALANCE SHEETS YEARS ENDED DECEMBER 31: ASSETS: Cash and Cash Equivalents $ 1,456,331 $ 1,325,990 $ 1,313,230 Prepaid Expenditures 265, , ,786 Total Assets 1,722,216 1,652,943 1,687,016 LIABILITIES AND FUND BALANCE Accounts Payable 42,146 88,936 89,080 Retainage Payable Total Liabilites 42,146 88,936 89,080 Fund Balance Nonspendable 265, , ,786 Restricted 628, , ,417 Assigned 400, , ,000 Unassigned 386, , ,733 Total Fund Balance 1,680,070 1,564,007 1,597,936 Total Liabilities and Fund Balance $ 1,722,216 $ 1,652,943 $ 1,687,016 Beginning with the fiscal year ending June 30, 2011, GASB Statement # 54 required a new catagorization of Fund Equity. Please see prior page for balance sheets. The financial data presented on this page has been excerpted from the District's unaudited annual report of the Fire Summary itself is not audited. B-2

39 HARTSDALE FIRE DISTRICT GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEARS ENDED DECEMBER 31: CASH RECEIPTS: Real Property Taxes - Town of Greenburgh$ 9,187,612 $ 9,162,954 $ 8,187,565 $ 9,820,840 $ 10,347,528 Use Of Money And Property 22,306 20,640 16,780 9,638 8,500 Sale of Property and Compensation For Loss 61, ,589 53,639 96,839 14,115 State and Federal Aid 3,256 68, , ,026 Miscellaneous 63,092 1,304 58,705 63,762 58,478 Total Revenues 9,337,632 9,468,904 8,316,689 10,025,457 10,531,647 EXPENDITURES General Government Support 116, ,521 27,356 34, ,478 Public Safety 6,064,924 6,148,314 6,231,575 6,319,024 6,209,090 Employee Benefit 2,145,218 2,469,877 2,842,278 3,045,974 3,455,534 Debt Service 549, , , , ,067 Total Expenditures 8,875,532 9,288,942 9,632,279 10,141,520 10,518,169 Excess (Deficiency) of Revenues Over Expenditures 462, ,962 (1,315,590) (116,063) 13,478 OTHER FINANCING SOURCES (USES): Insurance Recoveries Bonds Issued 0 0 1,050, Operating Transfers - In ,451 Operating Transfers - Out (a) Total Other Financing Sources (Uses) 0 0 1,050, ,451 Total Change in Fund Balance 462, ,962 (265,590) (116,063) 33,929 FUND BALANCE Fund Balance - Beginning of Year 1,303,598 1,765,698 1,945,660 1,945,660 1,680,070 Adjustments (b) Beginning of the Year, Restated 1,303,598 1,765,698 1,945,660 1,680,070 1,564,007 Fund Balance - End of Year $ 1,765,698 $ 1,945,660 $ 1,680,070 $ 1,564,007 $ 1,597,936 (a) Transfers to Capital And Reserve Funds. (b) Reserved for capital improvements The financial data presented on this page has been excerpted from the District's unaudited annual report of the Fire District Treasurer filed with the State Comptroller for the years ended December 31, 2007 through B-3

40 HARTSDALE FIRE DISTRICT OPERATING BUDGETS General General Fund Fund ESTIMATED REVENUES: Real Property Taxes $ 10,893,283 $ 11,130,050 Other Revenues 59,000 59,401 Total Estimated Revenues 10,952,283 11,189,451 APPROPRIATIONS: Current: Public Safety 6,739,011 7,158,231 Employee Benefits 3,691,338 3,470,732 Debt Service 756, ,559 Total Appropriations 11,187,283 11,388,522 OTHER FINANCING SOURCES (USES): Operating Transfers - Out 0 0 Total Other Financing Sources (Uses) 0 0 Revenues Over Appropriations (235,000) (199,071) APPROPRIATED FUND BALANCE $ 235,000 $ 199,071 B-4

41 APPENDIX C BASIC FINANCIAL STATEMENTS NOTES THERETO AND INDEPENDENT AUDITORS REPORT THEREON FOR THE YEAR ENDED DECEMBER 31, 2013 * Such Financial Statements and opinion are intended to be representative only as of the date thereof. O Connor Davies, LLP has not been requested by the Fire District to further review and/or update such Financial Statements or opinion in connection with the preparation and dissemination of this Official Statement.

42 THIS PAGE INTENTIONALLY LEFT BLANK

43 Hartsdale Fire District, New York Financial Statements and Supplementary I nformation December 31,2013 TABLE OF CONTENTS Page lndependent Auditors' Repod 1-3 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - Modified Accrual Basis 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Modified Accrual Basis 5 Notes to Financial Statements - Modified Accrual Basis 6-18 INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES General Fund Balance Sheets - Modified Accrual Basis 19 Schedules of Revenues Expenditures and Changes in Fund Balance - Budget and Actual - Modified Accrual Basis 20 Schedules of Expenditures Compared to Budget - Modified Accrual Basis 21 Capital Projects Fund Balance Sheets - Modified Accrual Basis 22 Statements of Revenues, Expenditures and Changes in Fund Balance - Modified Accrual Basis 23 Report on lnternal Control Over Financial Repoding and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 24-25

44 THIS PAGE INTENTIONALLY LEFT BLANK

45 TKTI\INÛR ÞAV Ë5 PKfl Board of Fire Commissioners Hartsdale Fire District, New York lndepend ent A uditors' Report Report on the Financial Statements We have audited the accompanying regulatory financial statements of Hartsdale Fire District, New York (the "District") as of and for the year ended December 31,2013, as listed in the table of contents, and the related notes to these f inancial statements. M a n age m enf 's Respo n s i b i I íty fo r th e F i n a n c i a I State m ents Management is responsible for the preparation and fair presentation of these financial statements in accordance with the regulatory basis of accounting prescribed and permitted by the New York State Office of the State Comptroller, which includes determining that this regulatory basis of accounting is an acceptable basis for the preparation of the financial statements. Management is also responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of fìnancial statements that are free from material misstatement, whether due to fraud or error. Auditors' Respo nsi b i I ity Our responsibility is to express opinions on these regulatory financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, íncluding the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. ln making these risk assessments, the auditor considers internal control relevant to the District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. O'CONNOR DAVIES, LLP 500 MamaroneckAvenue, Suite 30L, Harrison, NY I Tel: I Fax: I inactions on the part of anv other ndívidual member firm or firms.

46 Board of Fire Gommissioners Hartsdale Fire District, New York Page 2 Basís for Qualified Opinion As more fully described in Note 2, the District has not recorded fixed assets in the General Fixed Assets Account Group. ln our opinion, the modified accrual basis of accounting as prescribed by the Uniform System of Accounts set forth by the Office of the New York State Comptroller requires that fixed assets be recorded in the General Fixed Assets Account group. Quantification of the effect on the financial statements of the preceding practice is not practicable. Qualified Opinion ln our opinion, except for the effect of the matter discussed in the Basis for Qualified Opinion paragraph, the financial statements of the District referred to above present fairly, in all material respects, the respective financial position of the General Fund, Capital Projects Fund, and General Long Term Debt Obligations of the District, as of December 31,2013 and its changes in the General Fund's financial position for the year then ended in accordance with the regulatory basis of accounting as described in Note 2. Basrs of Accountìng We draw attention to Note 2 to the financial statements, which describes the basis of accounting. As described in Note 2, these financial statements were prepared in conformity with the financial statements practices prescribed or permitted by the Office of the State Comptroller of the State of New York, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the State Comptroller of the State of New York. Our opinion is not modified with respect to this matter. Other Matters Required S upplementary I nformation Management has omitted Management Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although no part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. Our opinion on the basic financial statements is not affected by this missing information.

47 Board of Fire Commissioners Hartsdale Fire District, New York Page 3 Reporl on S upplementary I nformation Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District's basic financial statements. The combining and individual financial statements are the responsibility of management and were derived from and related directly to the underlying accounting and other records used to prepare the basic financial statements. The individual fund financial statements and schedules included in this report are not a required part of the financial statements under the regulatory basis of accounting described in Note 2. Such information has been subjected tothe auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. ln our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole on the basis of accounting described in Note 2. Other Reporting Required by Government Auditing Standards ln accordance with Government Auditing Standards, we have also issued our reportdated June 25,2014 on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Sfandards in considering the District's internal control over f inancial reporting and compliance. Restriction of Use Our report is intended solely for the information and use of the Board of Fire Commissioners of the District and the Office of the State Comptroller of the State of New York and is not intended to be and should not be used by anyone other than these specified parties. û '(or,t* àarlt^, Lt P Harrison, New York June 25,2014

48 Hartsdale Fire District, New York Combined Balance Sheet - Modified Accrual Basis December 31,2013 ASSETS Cash and equivalents Prepaid expenditures Amount to be provided for general long-term debt Account Group General Long-Term General Debt Totals $ 1,313, ,786 6,180,000 $ 1,313, ,786 6,180,000 TotalAssets $ 1,687,016 $ 6,180,000 $ 7,867,016 LIABILITIES AND FUND BALANCES Liabilities Accounts payable Noncurrent liabilities Due within one year Due in more than one year $ 89, ,000 5,675,000 89, ,000 5,675,000 Total Liabilities Fund Balances Nonspendable Restricted Assigned Unassigned Total Fund Balances 89, , , , ,733 1,597,936 6,180,000 6,269, , , , ,733 '1,597,936 Total Liabilities and Fund Balances $ 1,687,016 $ 6,180,000 $ 7,867,016 See notes to financial statements

49 Hartsdale Fire District, New York Combined Statement of Revenues, Expenditures and Changes in Fund Balance Modified Accrual Basis Year Ended December 31,2013 REVENUES Real property taxes Use of money and property Sale of property and compensation for loss State aid Federalaid Miscellaneous General Fund $ 10,347,528 8,500 14,115 24,303 78,723 58,478 Capital Projects Fund Totals $ 10,347,528 8,500 14,115 24,303 78,723 58,478 Total Revenues 10,531,647 10,531,647 EXPENDITURES General government support Public safety Employee benefits Debt Service Principal lnterest 103,478 6,209,090 3,455, , , ,478 6,209,090 3,455, , ,067 Total Expenditures 10,518,169 10,518,169 Excess of Revenues Over Expenditures 13,478 13,478 other F NANGTNG SOURCES (USES) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balance 20,451 20,451 33,929 eo,qsi,73:,121, (20,451), (20,451) 13,478 FUND BALANCE Beginning of Year End of Year 1.564,007 $ 1,597,936 20,451 '1,584,458 $ :- $---1'59ZPgq See notes to financial statements

50 Hartsdale Fire District, New York Notes to Financial Statements - Modified Accrual Basis December 31, Organization Hartsdale Fire District, New York (the "District") operates in accordance with various applicable laws of the State of New York. The Board of Fire Commissioners is the legislative body responsible for the overall operation of the District. The members of the Board are elected by the taxpayers of the District. The primary function of the District is to provide fire protection services to residents of the District. 2. Summary of Significant Accounting Policies The accounting policies of the District conform to generally accepted accounting principles as applicable to governmental units and the Uniform System of Accounts as prescribed by the State of New York. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the District's more significant accounting policies. F i n anci a I Repo Éi ng Entity The financial reporting entity consists of the primary government which is the District, organizations for which the District is financially accountable and other organizations for which the nature and significance of their relationship with the District are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete as set forth by GASB. ln evaluating how to define the District, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the District's reporting entity was made by applying the criteria set forth by GASB, including legal standing, fiscal dependency and financial accountability. Based upon the application of these criteria, there are no other entities which would be included in the District's reporting entity. Basrs of Presentation The accounts of the District are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts which comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances, revenues and expenditures/expenses. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. The District maintains the minimum number of funds consistent with legal and managerial requirements. The District's resources are reflected in the fund financial statements in one generic fund type within one broad fund category, in accordance with generally accepted accounting principles as follows:

51 Hartsdale Fire District, New York Notes to Financial Statements - Modified Accrual Basis December 31, Summary of Significant Accounting Policies (continued) Fund Categories Governmental Funds - Governmental Funds are those through which most general government functions are financed. The acquisition, use and balances of expendable financial resources and the related liabilities are accounted for through governmental funds. The following are the District's governmental funds: General Fund - The General Fund constitutes the primary operating fund of the District and is used to account for and report all financial resources not accounted for and reported in another fund. Capital Projects Fund - The Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays including the acquisition or construction of major capital facilities and other capital assets. Account Groups An account group is used to establish accounting control and accountability for the District's generalfixed assets and long term debt. General Long Term Debt Account Group - This account group is established to account for all long-term obligations. Measurement Focus/Basis of Accounting and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basls of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Property taxes are considered to be available if collected within sixty days of the fiscal year end. A ninety day availability period is used for revenue recognition for all other governmental fund revenues. Property taxes associated with the current fiscal period as well as charges for services and intergovernmental revenues are considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Fees and other similar revenues are not susceptible to accrual because generally they are not measurable until received in cash. lf expenditures are the prime factor for determining eligibility, revenues from Federal and State grants are accrued when the expenditure is made. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and other post employment benefit obligations are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. lssuance of longterm debt and acquisitions under capital leases are reported as other financing sources.

52 Hartsdale Fire District, New York Notes to Financial Statements - Modified Accrual Basis December 31, Summary of Significant Accounting Policies (continued) Assefs, Liabilities, Deferred Outflows/lnflows of Resources and Fund Balances Deposifs and Risk Disclosure Cash and Equivalents - Cash and equivalents consist of funds deposited in demand deposit accounts, time deposit accounts and certificates of deposit with original maturities of less than three months. The District's deposit and investment policies are governed by State statutes. The District has adopted its own written investment policy which provides for the deposit of funds in FDIC insured commercial banks or trust companies located within the State. The District is authorized to use demand deposit accounts, time deposit accounts and certificates of deposit. Permissible investments include obligations of the U.S. Treasury, U.S. Agencies, repurchase agreements and obligations of New York State or its political subdivision. Collateral is required for demand deposit accounts, time deposit accounts and certificates of deposit a 100% of all deposits not covered by Federal deposit insurance. The Distríct has entered into custodial agreements with the various banks which hold their deposits. These agreements authorize the obligations that may be pledged as collateral. Such obligations include, among other instruments, obligations of the United States and its agencies and obligations of the State and its municipal and school district subdivisions. Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. GASB Statement No. 40 directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by depository insurance and the deposits are either uncollateralized, collateralized by securities held by the pledging financial institution or collateralized by securities held by the pledging financial institution's trust department but not in the District's name. The District's aggregate bank balances that were not covered by depository insurance were not exposed to custodial credit risk at December 31,2013. The District was invested only in the above mentioned obligations and, accordingly, was not exposed to any interest rate risk or credit risk. Taxes Receivable - Real property taxes attach as an enforceable lien on real property and are levied on January 1st. The Town collects the District's taxes which are due April 1st and payable without penalty by April 30th. The Town remits the entire levy to the District in accordance with a mutually agreed upon payment schedule. lnventory - There are no inventory values presented in the balance sheets of the respective funds of the District. Purchases of inventoriable items are recorded as expense/expenditures at the time of purchase and year-end balances are not material.

53 Hartsdale Fire District, New York Notes to Financial Statements - Modified Accrual Basis December 31, Summary of Significant Accounting Policies (continued) Assefs, Liabilities, Deferred Oulflows/lnflows of Resources and Fund Balances (continued) Prepaid Expenses/Expenditures - Certain payments to vendors reflect costs applicable to future accounting periods, and are recorded as prepaid items using the consumption method in the fund financial statements. Prepaid expenses/expenditures consist of employee retirement and other costs which have been satisfied prior to the end of the fiscal year, but represent items whích have been provided for in the subsequent year's budget and will benefit such periods. Reported amounts equally offset by nonspendable fund balance, which indicates that these amounts do not constitute "available spendable resources" even though they are a component of current assets. Fixed Assets - Fixed assets used in governmental fund type operations (general fìxed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds and are valued at historical cost or estimated historical cost if actual cost is not available. Donated assets are recorded at their fair value on the date donated. No provision for depreciation is made on general fixed assets. lnterest incurred during construction is not capitalized on general fixed assets. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not included in the General Fixed Assets Account Group. The District has not recorded fixed assets in the General Fixed Assets Account Group. The modified accrual basis of accounting as prescribed by the Uniform System of Accounts set forth by the Office of the New York State Comptroller requires that fixed assets be recorded in the General Fixed Assets Account Group. The amount by which this departure would affect the General Fixed Assets Account Group is not reasonably determinable. Deferred Outflows/lnflows of Resources - ln addition to assets, the balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. ln addition to liabilities, the balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) untilthat time. As of December 31, 2013, no amounts were required to be reported as deferred outfl ows/infl ows of resou rces. Long-Term Liabilities - The District records long-term debt of governmental funds at face value in the General Long-Term Debt Account Group. Certain other governmental fund obligations not expected to be fínanced with current available financial resources are also reported in the General Long-Term Debt Account group.