56-89 Anticipation Notes $240K Sidewalk Improvements

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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 Noto~ mre 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 - 1989 Renewal are being issued in anticipation of the bonds in the principal amount of $940,000 for the purpose of making improvements to the City's sewage treatment and disposal works and its ancillary systems, and to retire outstanding notes. 2. The Foster Pool Improvement Bond Anticipation Notes - 1989 Renewal are being issued in anticipation of the bonds in the principal amount of $1,020,000 for the purpose of paying the costs of improving swimming pool facilities at Foster Fool by rehabilitating and equipping the existing bath house, replacing the pool drainage system, pool decking, wzdlzg ~ccl and filtration system and improving the site thereof, and to retire outstanding notes. 3. The Traffic Signalization Bond Anticipation Notes - 1989 Renewal are being issued in anticipation of the bonds in the principal amount of $32,000 for the purpose of paying costs of acquiring and installing traffic signal devices and necessary appurtenances thereto, and to retire outstanding notes. 4. The 1988 Sidewalk Improvement Bond Anticipation Notes - Series B - 1989 Renewal are being issued in anticipation of the bonds in the principal amount of $240,000 for the purpose of paying the property owners' portion, in anticipation of the levy and collection of special assessments, and the City's portion of the cost of reconstructing and repairing certain concrete sidewalks in the City of Lakewood, Ohio, and to retire outstanding notes. 5. The 1989 Motorized Equipment Bond Anticipation Notes are being issued in anticipation of the bonds in the principal amount of $280,500 for the purpose of purchasing motorized equipment. 6. The 1989 Sewer Improvement Bond Anticipation Notes are being issued in anticipation of the bonds in the principal amount of $260,000 for the purpose of reconstructing sanitary and storm sewer lines and any neces- sary appurtenances thereto. -2-