NOTICE OF INTENT TO SELL REVENUE BONDS - CITY OF WARSAW
July 28, 2016 at 4:25 p.m.
NOTICE OF INTENT TO SELL NOT TO EXCEED $3,375,000 CITY OF WARSAW, INDIANA, SEWAGE WORKS REVENUE BONDS OF 2008 Upon not less than twenty-four (24) hours' notice given by telephone by or on behalf of the City of Warsaw, Indiana (the "City"), prior to August 31, 2008, the City will receive sealed proposals at the office of the City's Financial Advisor, H.J.. Umbaugh & Associates Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 300, Indianapolis, Indiana 46240, and shall consider each proposal for the purchase of revenue bonds of the City designated as "City of Warsaw, Indiana, Sewage Works Revenue Bonds of 2008" (the "Bonds"), in the aggregate principal amount not to exceed Three Million Three Hundred Seventy-five Thousand ($3,375,000), bearing interest at a rate or rates not exceeding six and one-half percent (6.5%) (the exact rate or rates to be determined by bidding). Interest on the Bonds shall be calculated on the basis of twelve (12) thirty (30)-day months for a three hundred and sixty (360) day year and shall be payable semiannually on January 1 and July 1 in each year, commencing January 1, 2009. The Bonds will be issued as fully registered bonds in denominations of Five Thousand Dollars ($5,000) and any integral multiple thereof not exceeding the aggregate principal amount of such Bonds maturing in any one year, shall be numbered consecutively from 08R-1 upward, shall bear an original issue date which shall be the first day of the month in which the Bonds are delivered and shall mature serially on January 1 and July 1 in the estimated years and amounts set forth below, with the actual years and amounts to be set forth on the principal maturity schedule, which will be provided twenty-four (24) hours prior to the date and time of sale (following the receipt of bids and determination of the successful bidder, the City reserves the right to modify individual maturity amounts to achieve level debt service with respect to the Bonds): MATURITIES Date Principal Principal Amount Date Amount 7/1/2013 $155,000 1/1/2017 $180,000 1/1/2014 155,000 7/1/2017 185,000 7/1/2014 160,000 1/1/2018 185,000 1/1/2015 165,000 7/1/2018 195,000 7/1/2015 165,000 1/1/2019 195,000 1/1/2016 170,000 7/1/2019 205,000 7/1/2016 175,000 1/1/2020 205,000 7/1/2020 215,000 Principal and premium, if any, on the Bonds will be payable at the principal corporate trust office of Lake City Bank in Warsaw, Indiana, as Paying Agent for the Bonds. Interest on the Bonds will be paid by check or draft mailed or delivered to the registered owner thereof at the address as it appears on the registration books kept by the Registrar as of the fifteenth (15th) day of the month immediately preceding the interest payment date or at such other address as is provided to the Paying Agent in writing by such registered owner. Bonds maturing on or after January 1, 2018, are redeemable prior to maturity on July 1, 2017, or any date thereafter, at the option of the City, in whole or in part (only in denominations of Five Thousand Dollars ($5,000)), in amounts and maturities determined by the City and by lot within any such maturity or maturities, at a price equal to the par amount of the Bonds to be redeemed, plus accrued interest to the redemption date. At the option of the successful bidder for the Bonds, all or a portion of the Bonds may be aggregated into one or more term bonds (the 'Term Bonds") payable from mandatory sinking fund redemption payments required to be made as set forth in the ordinance authorizing the Bonds. The Term Bonds shall have a stated maturity or maturities on January 1 and July 1 in the years as set forth above, as determined by the successful bidder. The Bonds may be transferred or exchanged at the principal corporate trust office of Lake City Bank in Warsaw, Indiana, as Registrar for the Bonds, subject to the terms and conditions of the ordinance authorizing the Bonds. Any person interested in submitting a bid for the Bonds must furnish in writing to the City Clerk-Treasurer, c/o the City's Financial Advisor, H.J. Umbaugh & Associates Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 300, Indianapolis, Indiana 46240, telephone (317) 465-1500, facsimile (317) 465-1550, on or before 10:00 a.m. (local time), June 16, 2008, the person's name, address, and telephone number. The person may also furnish a telex number. The Clerk-Treasurer will cause each person so registered to be notified of (a) the date and time bids will be received and (b) the final principal maturity schedule for the Bonds not less than twenty-four (24) hours before the date and time of sale. The notification shall be made by telephone at the number furnished by such person and also by telex if a telex number has been furnished. Each bid must be for all of the Bonds and must state the rate or rates of interest therefor, not exceeding the maximum per annum interest rates hereinbefore specified. Such interest rate or rates must be in multiples of one-eighth (1/8) or one-twentieth (1/20) of one percent (1.00%). Bids specifying more than one interest rate must also specify the amount and maturities of the Bonds bearing each rate. All Bonds maturing on the same date shall bear the same rate of interest and the interest rate bid on any maturity of Bonds shall be equal to or greater than the interest rate bid on any and all prior maturities of Bonds. Subject to the provisions contained herein, the award will be made to the bidder offering the lowest interest cost, to be determined by computing the total interest on all Bonds from the date thereof to the date of maturity and deducting therefrom the premium bid, if any, or adding thereto the amount of any discount, if any. Although not a term of sale, it is requested that each bid show the net dollar cost to final maturity and the net effective average interest rate on the entire issue. No conditional bid or bids for less than ninety-nine percent (99.0%) of the par value of the Bonds, plus accrued interest at the rate or rates named to the date of delivery, will be considered. The right is reserved to reject any and all bids. If no acceptable bid is received on the date fixed for sale of the Bonds, the sale may be continued from day to day thereafter without further advertisement for a period not to exceed thirty (30) days, but if so continued, no bid will be accepted which offers an interest cost which is equal to or higher than the best bid received at the time fixed for the sale. Each of the bids for the Bonds submitted shall be sealed in an envelope marked "Bid for City of Warsaw, Indiana, Sewage Works Revenue Bonds of 2008." Each bid must be on the form approved by the City, without additions, alterations or erasures, which form may be obtained from the City's Financial Advisor at the address set forth herein. Each bid must be accompanied by a certified or cashier's check or financial surety bond in the amount of Thirty-three Thousand Seven Hundred Fifty Thousand and 00/100 Dollars ($33,750.00) (the amount of the check or the surety bond is hereinafter referred to as the "Deposit"). If a check is submitted, it must be drawn on a bank or trust company which is insured by the Federal Deposit Insurance Corporation. If a financial surety bond is used, it must be from an insurance company, and such bond must be submitted to the City prior to the opening of the bids. The financial surety bond must identify each bidder whose Deposit is guaranteed by such bond. In either case, the Deposit shall be payable to "The City of Warsaw, Indiana," to be held uncashed in the case of a check or not drawn upon in the case of the financial surety bond as a guarantee of the good faith of the bidder. If the Bonds are awarded to a bidder who has submitted a financial surety bond to the City, then such bidder must submit its Deposit to the City in the form of a certified or cashier's check (or a wire transfer consisting of immediately available funds to the City as instructed by the City) not later than 3:00 p.m. (local time) on the next business day following the award by the City. If such Deposit is not received by that time, the financial surety bond may be drawn upon by the City to satisfy the Deposit requirements. In the event the bidder to whom the Bonds are awarded shall fail or refuse to comply with the provisions of the bid and this notice, such Deposit shall become the property of the City and shall be taken and considered as liquidated damages of the City on account of such failure or refusal. The checks of unsuccessful bidders will be returned immediately following the award of the Bonds. The successful bidder will be required to make payment for the Bonds in Federal Reserve or other immediately available funds and accept delivery of the Bonds within five (5) days after being notified that the Bonds are ready for delivery, at a bank designated by the City. Any premium bid must be paid in cash at the time of delivery as a part of the purchase price for the Bonds. The Bonds will be ready for delivery within forty-live (45) days after the date on which the award is made, and if not deliverable within that period, the successful bidder will be entitled to rescind the sale and the good faith check will be returned. Any notice of rescission must be in writing. At the request of the City, the successful bidder shall furnish to the City simultaneously with or before delivery of the Bonds, a certificate in form satisfactory to the City regarding the initial public offering price of the Bonds. In addition, the successful bidder shall inform the Financial Advisor to the City of such initial public offering price within two business days after the date of sale. The Bonds will be designated "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder to accept delivery of and pay for the Bonds. The successful bidder will be responsible for paying the fees associated with securing the CUSIP identification numbers. The Bonds are being issued under the provisions of the Indiana Code to provide funding for certain improvements to the City's sewage works, together with the expenses necessarily incurred in connection therewith, including the expenses incurred in connection with the issuance of the Bonds. The City will not be obligated to pay the Bonds or the interest thereon except from the net revenues of the City's sewage works (the "Net Revenues"), and the Bonds shall not constitute a debt for which the full faith and credit or taxing powers of the City will be pledged. The Bonds shall rank on a parity with: (i) the City's pledge (the "Lease Pledge") of the net revenues of the Sewage Works (and to the extent available, (a) the City's distributive share of County Economic Development Income Tax revenues and (b) tax increment revenues received by the Warsaw Redevelopment Commission from the Northern Economic Development Area made available for such purpose) for the payment of the lease rentals due under a lease between the City of Warsaw, Indiana. Building Corporation (the "Building Corporation") and the City, dated as of October 1, 2001, as amended (the "Lease"), which lease rentals are used to pay (a) debt service on the Building Corporation's Lease Rental Revenue Bonds of 2001 (the "2001 Lease Obligations") outstanding after January 15, 2008, in the aggregate principal amount of $205,000.00, and (b) debt service on the Building Corporation's Lease Rental Refunding Revenue Bonds, Series 2005, outstanding after January 15, 2008, in the aggregate principal amount of $9,860,000.00; and (ii) the City's Sewage Works Refunding and Improvement Revenue Bonds, Series 2003, dated April 15, 2003 (the "2003 Bonds" and with the Lease Pledge, the "Prior Obligations"), outstanding after January 1,2008, in the aggregate principal amount of $9,380,000.00. At the time of delivery of the Bonds the approving opinion of Baker & Daniels LLP, bond counsel, of South Bend, Indiana, as to the validity of the Bonds, together with a transcript of Bond proceedings, the printed Bonds with such legal opinion printed thereon, and closing certificates in the customary form showing no litigation, will be furnished to the successful bidder at the expense of the City. In addition, unless bond counsel is able, on the date of delivery, to render an opinion to the effect that, under existing law (I) the interest on the Bonds is excludable from gross income for federal income tax purposes and the Bonds are not "private activity bonds" under Section 141 of the Code, and (2) the interest on the Bonds is exempt from taxation in the State of Indiana for all purposes except the Indiana financial institutions tax and the Indiana inheritance tax, the successful bidder shall have the right to rescind the sale, and in such event the good faith deposit will be returned. The City has authorized the preparation of a Preliminary Official Statement, containing pertinent information relative to the City and the Bonds. Such Preliminary Official Statement will be in a form "deemed final" by the City pursuant to Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"). For copies of the Preliminary Official Statement and the Official Bid Form or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, H.J. Umbaugh & Associates Certified Pubic Accountants, LLP, H.J. Umbaugh & Associates Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 300, Indianapolis, Indiana 46240, telephone (317) 465-1500. The Preliminary Official Statement, when further supplemented by an addendum or addenda specifying the interest rates of the Bonds, and any other information referred to in paragraph (b)(l) of the Rule, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in the Rule. By awarding the Bonds to any underwriter or underwriting syndicate submitting an Official Bid Form therefor, the City agrees that, no more than seven (7) business days after the date of such award, it shall provide to the senior managing underwriter of the syndicate to which the Bonds are awarded up to one hundred (100) copies of the Final Official Statement at the City's expense, any additional copies to be at the expense of the underwriting syndicate. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that if its bid is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. In order to assist bidders in complying with paragraph (b)(5) of the Rule, the City will undertake, pursuant to the Continuing Disclosure Agreement to be executed by the City which shall be delivered to the successful bidder at the closing on the Bonds, to provide annual reports, certain financial information, and notices of certain events as required by Section (b)(5) of the Rule. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the Final Official Statement. If bids are submitted by mail, they should be addressed to the City, attention of Madeline E. Call, Clerk-Treasurer, c/o H.J. Umbaugh & Associates Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 300, Indianapolis, Indiana 46240. Dated this 30th day of May, 2008. CITY OF WARSAW, INDIANA Bv: Madeline E. Call, Clerk-Treasurer m30, j6 [[In-content Ad]]
