63-88 Foster Pool BAN $1,080,000

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The Notes will bear interest (computed on a 360-day per year basis) from their date payable at maturity; will be issued in such denominations as requested by the original purchaser; and will be payable at banks or trust companies, as determined by the Director of Finance, without deduction for exchange, collection or service charges. On August 15, 1988, the Director of Finance will consider the proposals submitted and will award the Notes on the basis of the proposal resulting in the sale of the Notes at the lowest net interest cost to the stated maturity. The lowest net interest cost will be determined by taking the amount of interest from the date of the Notes to the stated maturity date and deducting therefrom the amount of any premium. In the event of tie proposals based on the lowest net interest cost to the stated maturity, the Director of Finance will award the Notes to the bidder submitting the tie proposal who bids the lowest interest rate after maturity, and if such an award would result in tie proposals, the successful proposal will be selected by lot in a manner determined by the Director of Finance. Any informality or failure to conform to the instructions herein contained may be waived by the Director of Finance, and the Director of Finance may reject any or all of the proposals presented. Legal matters incident to the issuance of the Notes and with regard to the tax-exempt status of the interest thereon are subject to the approv- ing legal opinion of Calfee, Halter & Griswold, Bond Counsel, which will be furnished without cost to the original purchaser at the time the Notes are delivered to it. That opinion will include an opinion, based upon and assuming compliance with covenants and the accuracy of repre- sentations and certifications of the City, that under the existing law (a) the interest on the Notes (i) is excluded from gross income for federal income tax purposes under the Internal Revenue Code of 1986,. as amended (the "Code"), (ii) is not treated as an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations by the Code, and (iii) is exempt from the Ohio personal income tax and excluded from the net income base of the Ohio corporate franchise tax, and (b) the Notes are not: "private activity bonds" as defined in the Code. Under the Code, the interest may be subject to alternative minimum, environmental, and branch profits taxes imposed on certain corporations, and to a tax imposed on excess net passive income of certain S corporations. For a more complete discussion of tax aspects, see the enclosed Preliminary Official Statement. The Notes are to be issued in anticipation of bonds for the following purposes: 1. The Sewer System Improvement Bond Anticipation Notes - 1988 Renewal are being issued in anticipation of the bonds in the principal amount of $1,540,000 for the purpose of making improvements to the City's sewage treatment and disposal works and its ancillary systems. 2. The Foster Pool Improvement Bond Anticipation Notes - 1988 Renewal are being issued in anticipation of the bonds in the principal amount of $1,080,000 for the purpose of paying the .costs of improving swimming pool facilities at Foster Pool by rehabilitating and equipping the -2-