For the first time in its history, the City of Parkwood is offering tax-free Micro-Bonds. Available only to Parkwood residents, these unique investment offerings are the fulfillment of a Build a Better Parkwood bond election approved by Parkwood voters in 2015.Proceeds from these bonds will be used to complete the final phases of Build a Better Parkwood projects, particularly improvements and renovations to the city’s Children’s Central Park.
*Limit 400 bonds ($10,000 purchase price) per registered owner.
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Most municipal bonds are available in denominations of $5,000 or more, and are typically purchased by large institutions such as banks and bond funds. Parkwood Mini-Bonds are affordable general obligation municipal bonds, available for $25, and can only be purchased by individuals who are California residents.
Municipal bonds are bonds issued by state or local governments generally to raise funds for public capital projects.
The 2019 Parkwood Micro-Bonds are structured similar to U.S. Savings Bonds. Each Parkwood Micro-Bond is purchased for $25, and through the compounding of interest over the life of the bond, it matures to the full face value.
There are two options for the 2019 Parkwood Micro-Bonds:
1. Pay $25 for a Parkwood Micro-Bond that grows to $37.50 at maturity in 2028 (9 years).
4.38% Tax-Free Yield*
2. Pay $25 for a Parkwood Micro-Bond that grows to $50 at maturity in 2033 (14 years).
4.89% Tax-Free Yield*
*For most initial purchasers, interest on the bonds (the difference between the initial purchase price of $25 and the $37.50 or $50 payable at maturity) is totally free of federal and Coalifornia income taxes. See the Official Statement section titled “TAX MATTERS” for a detailed explanation.
No, there are no fees or commissions associated with these bonds.
Once you enter your purchase information on the online order screen, click the “Submit”button and you will be taken to a secure site where you will enter your bank account information for a one-time electronic debit to your account.
If your order is filled, you will receive one bond certificate per maturity electronically within a few minutes through our platform. You will be able to log onto your profile through our platform and view your bonds.
It’s a good idea to keep your password in a safe place. If you lose your password you can press the ‘Lost Password’ button on the platform sign-in page and a password reset email will be sent to your primary email.
Download and review the Official Statement, which provides essential details of the bonds.
Interest is accrued semi-annually beginning December 15, 2019 and on every June 15 and December 15 until maturity, based on a 360 day year with twelve 30 day months. On these dates the interest for the previous 6 months will be paid to the bank account provided by the participant.
Yes. A toll-free telephone number will be provided with your Micro-Bond certificate so you can contact the bond registrar and request a transfer packet. See the “Transfer and Exchange” section on page 5 of the Official Statement.
Yes, they can be bought back by the city to be resold to a party on a price agreed upon by the two parties. This process will take place on the ‘Sell your Bonds’ section of the platform.
Yes, interest is paid directly to the provided bank accounts of all participants every 6 months.
Proceeds from the 2019 Parkwood Micro-Bonds will be applied to complete the final phases of Build a Better Parkwood projects, particularly improvements and renovations to the city’s Children’s Central Park. Since voters approved the bond issue in 2015, the City has invested more than $500 million in restoring, refurbishing, and replacing city infrastructure.
Parkwood Micro-Bonds may be purchased by individual investors who are California residents.
No, this is the first time the city has issued Micro-Bonds.
Bond purchases are limited to 400 per registered bond owner ($10,000).
Yes. There are $6 million in Micro-Bonds available in each maturity. Once those are sold, no more will be available.
Parkwood’s general obligation bonds carry the highest investment-quality bond rating from national rating agencies—Aaa by Moody’s and AAA by Fitch and Standard & Poor’s.
The Parkwood Micro-Bonds will be available for purchase ONLY October 4 – 8, 2019. These bonds are limited in quantity, and may sell out prior to the close of the order period. Ordering early is recommended.
Because these bonds are limited in quantity, ordering online is recommended. Order online now. (Link to platform)*Note that Parkwood Micro-Bonds are limited, and they may sell out before the close of the order period. Ordering early is recommended—and the fastest way is online.
Initial registration must be in one of the three options provided: Individual Name, Joint Tenants (with right of survivorship) or as Custodian for a Minor. Once you receive your Micro-Bond electronic certificate you can have it transferred into any other name or into a trust. See the “Transfer and Exchange” section on page 5 of the Official Statement.
No. Brokerages only hold securities that are book-entry, have an identifying number known as a CUSIP number, and which are able to be traded or have a secondary market. These are physical bond certificates which have none of these characteristics.