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