|
<br /> f?q 1/ fR
<br /> TA.,X ~L.uTERS
<br />T:u E:s:emption
<br />Tne Bor.ds, ia the opi.cion of Bod CO~<è~ ""ill not be 'þri'¡~ a.::.i..-Üy oor.ds" ""itill.:J. the mt"~~;,.,~ of Sç::.ion 141(a) of ilie
<br />In~ ~W::l~ C~ of 1985 (the 'C.:ée'). .~rd¡n~ly, iat:=est on the Bonds ""ill not be t:'e.=.,e¿ a..s a prd:=::=nc.;: ite::J. t:::~
<br />the al~~'e m.i.rilinum b...'( pro~is¡on.s of th.e C~ a..s applicable to indi,idæI..s and co:-poratioLLS, exc..,"?e 6.:.e intere.:.. on the
<br />Bonds ""ill be inclUlied in the "'."jt::>-ced CtlIToJ: e:a..-ni.ngs" of c.e-...ain corporation:s for pu.r;os.es of compu~ the al~~ti,.e
<br />minimum t!.'( and the m,ironmm~ t!.'( lmfX'S<:d on such cor¡.<:ratlotJ.3. Funhcrmore, ia t.i.e opinion of Bond Counsel, interest
<br />on the Bonds ""ill be excludable fror:l <;:;os.s iacome U!l.ck:r Sð:tion 1O3(a) of the C~, Tile s-.:arutes, aDolicable re'r~htioüS
<br />oublished rulings of the fut~ Re..-:=.~ Sc.'ice and court decisioIlS on which such ooinion.s are basd ar~'su~jo::t CO ~~"e '
<br />. . , ::> .
<br />The$<: opiniOtJ.3 are dependmt in p¿=t on fuL1!re compliance by the City ""ith c..<>rta.ln post-issuance requir~:=nts of the Coë.e,
<br />including the arbitrage re:bat:: requir~ts. Failure to comply with such requiremcts may ca= the interest on the Bonds to
<br />be includable in gros.s income retr=ti,.:: co th.e date of issue. In this connection., various cov=ts and repres...--ntatioD.3 \l.ill be
<br />macL: by the City in the documcts authC4.~ the issu.a.nce of the Bonds that ar:: cksign::d to provid:: a.ssu...ë!lce of coI!:pliance
<br />""ith such requirements, a.nd for pur-:.°~ of its opinion:s, Bond Co=l ""ill assume compli~'lce by th:: City there\l.ith. In
<br />addition such opinion:s are oo-"èå upon r::pre:s.e::J.tadon:s and certwcation:s of the City pertWùng to the ll..<è, e:qxndi"-!re a:ld
<br />investInct or the pr~ orth:: Boë.ds.
<br />Exc..-pt a..s des..7Ìbd aoove, Bond Co1l.a..<è1 ::xpres...~ no opinion \l.ith r::sç~ct to a,;\y other &=dera!, s-.:ate or lç,:¿l t!.'(
<br />consequ:=nces uncL'"r pres..--nt law or propoS<:d legislation resulting from t.i.e receipt or ac...'Tlcl of interest on, or the acquisition,
<br />o\'.-nershÏp or disposition or: the Bonò,
<br />Pro~tive purch.a.sers of the Bonds should be aware that th:: ov.nershÏp of tax-exempt obligations such a..s the Bonds may
<br />result in c.oilatera! &=cL"Tcl ta.x coI15eq~,ce to, among others, financial institutions, cer:.ain insur~'1ce cornparù::s, certain foreign
<br />corporations doing busin::s.s in th:: U:1ited Stat::s, individu.al ro::i¡JÏcts of Social Security or R:1ilroad R::tlrement c<nefits,
<br />t3.:çpayers ""to may !x deem::d to h.3.'..e inCtlITed or continl.!.d indebt::dn.ess to purc~ or cany ta,x-exemçt obligations,
<br />stockholders of corporations re;;.;:iving or a.ccrcing tax-exempt int~est and S corporaticD.3 ""ith subdupter C ~....:...:gs an.d
<br />profits. Prosr:ctiv:: purchas...--rs should CO!l.>-ult their own ta,x ad~isors a..s to the apçliC:J.bi1ity to t.1::$<: and ot.i.er such coll:H::ral
<br />co=qucc.;:s to their parJcular cirCur:l.5~=. Tne form of Bond Co=l's opinion is s.et tòlJ.1'in APPENDIX A hereto.
<br />CO~'-TTh-UTh"G DISCLOSù-ro: OF Th'FOR:.\L-\.TION
<br />In the Orcfuu:¡ce, the City has ma..::: t:.:: tòilowing agr=<:nt for the !xnefit of the holders and !xn::lìcial owners of th:: Bonds.
<br />Tne City is requir~d to obs.erve th:: ag:-e=::-::lt for so long a..s it r=ins obligated to ad'la.:1.c:: funds to pay the Bonds. Uc¿er t.'1e
<br />agreemmt, the City ""ill !x obligated CO pro~ide c..~:.ain updated financial i."'üò=tion and OpèT3.tÏr.g data a!'Jl.u.ally, arld timely
<br />notice of sr:cwd material evcts, to c.e-..2Ìrl inrò~tion vodors. This intòrm:ltlon ""ill be avaibble to securities brok~ and
<br />oth~s who su~s..."'ric~ to rec::i v:: th.: Î.:!1~¡-;;ution from the v:=n¿ors.
<br />Annual R<:ports
<br />Tn:: City ""ill pro~ide c..-r"c3.Ìn uV~o'~'¡ Œ.r.-:2.!lcial infomution and op::r:lting rot:! to c..-"TtJirJ. illfo=tion vendors anmr3.ily. Tne
<br />inròrmation to be updated includes all q~titative financia1 in[o=tion and Opaä.ti;¡g data wi6 r::sp<:ct to the City or t.'1e
<br />genera! t]ï=~ irlclud::d in this Priva::: ?l~->;:J.:::c.t Memorandum U!I.~ the h<2dings 'TrlE SYSTEM - Table 1. Wata Usag::
<br />(Thousands of Gallons): Table 2. 1'<:::1 I2rgest Wata Cuscom~ (Galion.sXS::ptemk 30, 1995): Table 3. Monthly Water
<br />Rates: Table 4. Wa..stewakr Tre.=.ted; Tabl:: 5. :.fonÜuy Wilt:=: Rates;" 'flN,~'iCL-\L l},?OR.\t-\.TION - Table 6. Cond..""D.Sèd
<br />St3.temmt of ()pçTations: Table 7. C:¡verage arld Fund Balances;" '1NVESTh[ÐrrS - Table S. Curr<:nt bv::stmcts;" a.'1d;
<br />'DEBT I},"FOR..\í.-\TION - Table 9. Authorize::! But Uni5.>-ueå Rev:=nue Boads," Tn:: City ""ill update a.'1d çro~i¿e this
<br />infonnation ""ithin six months af:er i11e od of e.=.ch fi~ ye.=.r ~d.ing in or aft~ 199ó. Tn<:: City ""ill provi¿:: th:: u;xi:1ted
<br />information to each nationally r=~ r:J.t:llÎcipal =urities inròrtnation re-;ository ('!'-<'1e,íSIR') a.'1d to any ~te inrò=..:¡tion
<br />d<::pository ('SID') .that is ciesig:"zted by i11:: St.?t:: of l' <::xa..s and approved by L¡"e suIT of th:: Unit::d St.?tes Securici~s a.'1d
<br />Exchange Commis.síon (th<:: "SECn).
<br />Tne City œ.:.y provide updated i¡:.f;:'-::-2.tion in full text or auy incorporate by refer<:nc.: c..-r-ûin oth:::r publicly a~'ailabk
<br />docUffiQts, as p.=rmit'.::d by SEC Rul:: 15c2-12. The u;:6:<:d L.".lòr:-'..:ltioa \l.ill inclu¿:= au.:!i:::d financial S".:ate:n:=nt, if t.'1.e City
<br />ccrnmission.s a:l audit and it is compI:::::d by ~e r::quÏr.:d r.i.-;¡e. If audit.:d fU'.ancial state:ne:\t3 are noe avai!:lbl:: by t.i.:: r::quir::d
<br />tim::, th.<:: City will pro\id:: ii¡u..'1cial >'û:""""-".c-..ts wh:=n and if t..1e a~it r::port !xcom::s available. Any such fi.ru:1.cial >,û:=::nts
<br />""ill Ix: pr:::--a:<:d in accorc!a.nce \l.1L'1 L'::: ~ot:.ating principks a..s L'1:: City may Ix: r::c¡uir::d to e:nploy from tim:: to tim:= ?L:..'"3ua.'1t
<br />to S'"ût:= law or r::guIatioa.
<br /> 13
<br />
|