Res 1996-052 - Laserfiche WebLink

Home Browse Search

L/;)f}fI that maturity arc sold to the public at such price) and the principal amount payable at maturity constitutes interest, or original issue discount, to the initial purchaser of such Discount Bonds. A portion of such interest, allocable to the holding period of such Discount Bonds by the initial purchaser, will, upon the disposition of such Discount Bonds (.including by reason of its paymc¡.t at maturity), be treated as interest excludable fÌ'am gross income, rather than as taxable gain. for federal income tax purposes. Such intc:rest is considered to be accrued actuarially in accordance with the ronstant interest method over the life of a Discount Bond, ta1cing into account the ~;Annual rompounding of accrued interest, at the yield to maturity on such Discount Bonds. Ho\1t"ever, such intc:rest may be required to be taken into account in detennining the alternative minimum taxable income of a corporation, for purposes of calculating a rorporation's alternative minimum tax imposed by the Tax Reform Act of 1986 and the environmL'!ntJlI tax imposed by the Superfund Revenue Act of 1986, and the amount of the bnuu:h profits tax applicable to certain foreign corporations doing business in the United States, even though there will not be a COITeSpODding cash payment. In addition, the accrual of such interest may result in certain other rollateral federal income tax consequences to, among others, ..- finJlnci"ll institutions, certain insuranœ companies, S COIpOrations with subchapter C earnings and profits, individual recipients \ of Social Security or Railroad Retirement benefits, and taxpayers who may be deemed to have ÏDculred or continued i indebtedness tD purchase or carry or who have paid or incuIred certain expenses allocable to tax-exempt obligations. In the event of the sale or other taxable disposition of a Discount Bond prior to maturity, the amount realized by the owner in excess of the basis of such Discount Bond in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such Discount Bond was held) is .includable in gross inrome. The federal income ~ consequences of the purcb.a.se, ownership, redemption, sale or other disposition of Discount Bonds which arc not purchased in the initial offering at the initial offering price may be determined according to nùes which differ ftom those described above. All owners of Discount Bonds should consult their own, tax advisors with respect to the determination for federal, state and local income ta.x purposes of interest accrued upon redemption, sale or other disposition of such Discount Bonds and with respect to the federal, state, local and foreign tax ronsequences of the purchase, ownership, redemption, sale or other disposition of such Discount Bonds. CONTINUING DISCLOSURE OF INFORMATION In the Ordinance, the City has made the following agreement: for the benefit of the holders and beheficial owners of the Bonds. The City is required to observe the agreement for so long as it remains obligated to advance funds to pay the Bonds. Under the agreement, the City will be obligated to provide certain updated financial infonnation and operating data annually, and timely notice of specified material events, to certain information vendors. This infonnation will be available to securities brokers and others who subscribe to receive the information ftom the vendors. Annual Reports. . . The City will provide certain updated financial infonnatiœ and opemting data to certain infixmation vendocs annually. The infClIIlatiœ to be updated includes all quantitative financial infonnatiœ and operating data with respect to the City of the general type Ïncluded in this Official Statement under the h.-Mm~ Table 1 through Table 9 and in Appendix B. The City will update and provide this infoonatiœ within six months after the end of each fiscal year ending in or after 1996. The City will provide the updated infixmation to each natiooalJ.y ~¡7M mlmicipAl securities infixmation æpœit¡xy f'NRMSIR") and to any state mflY'lnJ>til)(l ! ~t<xy ("SID") that is de.<ågJ1Att"(j by the State ofTc:xas and ~ved by the staff of the United States Securities and Exchange I Cmn-n;""';lYI (the "SEe"). ! I, The City may provide updated information in full text or may ÎD.coIpoIate by reference certain other publicly available documents, as pennitted by SEC Rule 15c2-12. The updated infonnation will include audited financial qj-Jltl"mf"T'lt, if the City commissions an audit and it is completed by the required time. If audited financial statements are not available by the required time, the City will provide financial statements when and if the audit report becomes available. hy such financial statements will be prepared in accordance with the accounting principles as the City may be required to employ fi:om time to time pursuant to state law or regulation. The City's current ßsca.I year end is September 30. Accordingly, it must provide updated information by March 31 in each year, unless the Citý changes its fiscal year. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change. Annual Audit. . . Under Texas law, including, but not limited to, Chapter 103, as JlTnPUded, Texas Local Government Code, the City must keep its fiscal records in accordance with gern:ral1y accepted accounting principles, must have its financial records audited by a certified public accountant, and must file each audit with the City Secretary within 120 days after the close of the City's fiscal year. The City's fiscal records and audit reports are available for public inspection during the regular business hours of the City Secretary. Additionally, upon the filing of these financial sWMTI"'TIts and the annual audit, these documents arc subject to the Texas Open Records Act, Chapter 552, as AJT1f"T1d~, Texas Government Code. Thereafter any person may obtain copies of these documents upon submission of a written request to the City Manager at City of San Marcos, 26