MEDIA PRESS RELEASE - for immediate release
August 23rd, 2010 | For details and information concerning this release, please contact pjoseph@gautier-ms.gov.
Notice of Bond Sale
NOTICE OF BOND SALE
$7,000,000
GENERAL OBLIGATION BONDS
SERIES 2010
OF THE
CITY OF GAUTIER, MISSISSIPPI
Sealed proposals will be received by the City Clerk of the City of Gautier, Mississippi (the “City”) at her office in the City Hall of the City until 4:00 o’clock p.m. on September 9, 2010, for subsequent presentation to the Mayor and City Council (the “Governing Body”) of the City, in their meeting place in the City Hall in the City at 6:30 o’clock p.m. on said date, at which time said bids will be publicly read, for the purchase in its entirety, at not less than par and accrued interest to the date of delivery thereof, of an issue of Seven Million Dollars ($7,000,000) principal amount General Obligation Bonds, Series 2010, of the City (the “Bonds”).
The Bonds will be dated August 1, 2010, will be delivered in the denomination of Five Thousand Dollars ($5,000) each, or integral multiples thereof up to the amount of a single maturity, will be numbered from one upward; will be issued in fully registered form; and will bear interest from the date thereof at the rate or rates offered by the successful bidder in its bid, payable on February 1 and August 1 in each year (each an “Interest Payment Date”), commencing August 1, 2011. The Bonds will mature serially on August 1 in each year and in the principal amounts as follows:
YEAR AMOUNT
2011 $235,000
2012 250,000
2013 265,000
2014 275,000
2015 285,000
2016 305,000
2017 320,000
2018 325,000
2019 335,000
2020 355,000
2021 370,000
2022 385,000
2023 405,000
2024 390,000
2025 400,000
2026 405,000
2027 415,000
2028 420,000
2029 425,000
2030 435,000
Bonds maturing on August 1, 2021 and thereafter, are subject to redemption prior to their stated dates of maturity, at par, plus accrued interest to the date of redemption, either in whole at any time on or after August 1, 2020, or in part, in inverse order of maturity and by lot within a maturity on August 1, 2020, or on any Interest Payment Date thereafter.
The City will appoint the Paying and Transfer Agent for the Bonds after receiving the recommendation of the successful bidder subject to the following conditions. The Paying and Transfer Agent shall be a bank or trust company located within the State of Mississippi. The Paying Agent and/or Transfer Agent shall be subject to change by order of the Governing Body under the conditions and in the manner provided in the Bond Resolution under which the Bonds are issued.
The successful bidder must deliver to the Transfer Agent within thirty (30) days of the date of sale, or at such other later date as may be designated by the City, the names and addresses of the Registered Owners of the Bonds and the denominations in which the Bonds of each maturity are to be issued. If the successful bidder fails to submit such information to the Transfer Agent by the required time, one bond may be issued for each maturity in the full amount maturing on that date registered in the name of the successful bidder.
Both principal of and interest on the Bonds will be payable by check or draft mailed on the Interest Payment Date to Registered Owners of the Bonds as of the 15th day of the month preceding the maturity date for such principal or interest payment at the addresses appearing in the registration records of the City maintained by the Transfer Agent. Payment of principal at maturity shall be conditioned on the presentation and surrender of the Bonds at the principal office of the Transfer Agent.
The Bonds will be transferable only upon the records of the City maintained by the Transfer Agent.
The Bonds shall not bear a greater overall maximum interest rate to maturity than eleven percent (11%) per annum, and shall mature in the amounts and on the dates hereinabove set forth; no Bond shall bear more than one (1) rate of interest; each Bond shall bear interest from its date to its stated maturity date at the interest rate or rates specified in the bid; all Bonds of the same maturity shall bear the same rate of interest from date to maturity. The lowest interest rate specified shall not be less than seventy percent (70%) of the highest interest rate specified; each interest rate specified must be an even multiple of one-eighth of one percent (1/8 of 1%) or one-tenth of one percent (1/10 of 1%) and a zero rate cannot be named. The interest rate for any one maturity shall not exceed eleven percent (11%) per annum.
The Bonds are being issued for the purpose of providing funds for financing certain capital projects and improvements which shall consist of constructing, improving or paving streets, including, but not all inclusive, Martin Bluff Road, sidewalks, driveways, parkways, walkways or public parking facilities, and purchasing land therefor; constructing bridges and culverts; purchasing fire-fighting equipment and apparatus, and providing housing for same, and purchasing land therefor; repairing, improving and extending the sanitary, storm, drainage or sewerage systems; repairing, improving and extending the waterworks distribution system; erecting municipal buildings and purchasing buildings or land therefor, and for repairing, improving, adorning and equipping the same; and for other authorized purposes under Sections 21-33-301 et seq., Mississippi Code of 1972, as amended, including paying for the cost of such borrowing (the “Project”).
The Bonds will be general obligations of the City payable as to principal and interest out of and secured by an irrevocable pledge of the avails of a direct and continuing tax to be levied annually without limitation as to time, rate or amount upon the taxable property within the geographical limits of the City; provided, however, that such tax levy for any year shall be abated pro tanto to the extent the City on or prior to September 1 of that year has transferred money to the bond fund of the Bonds, or has made other provisions for funds, to be applied toward the payment of the principal of and interest on the Bonds due during the ensuing fiscal year of the City, in accordance with the provisions of the Bond Resolution. The City, when necessary, will levy annually a special tax upon all taxable property within the geographical limits of the City adequate and sufficient to provide for the payment of the principal of and the interest on the Bonds as the same falls due.
The City will designate the Bonds as qualified tax-exempt obligations within the meaning and for the purposes of Section 265(b)(3) of the Code.
Proposals should be addressed to the Mayor and City Council and should be plainly marked “Proposal for General Obligation Bonds, Series 2010, of the City of Gautier, Mississippi,” and should be filed with the Clerk of the City on or prior to the date and hour hereinabove named.
Each bid must be accompanied by a cashier’s check, certified check, or exchange, issued or certified by a bank located in the State of Mississippi, payable to the City of Gautier, Mississippi, in the amount of One Hundred Forty Thousand Dollars ($140,000) as a guaranty that the bidder will carry out its contract and purchase the Bonds if its bid be accepted. If the successful bidder fails to purchase the Bonds pursuant to its bid and contract, then the amount of such good faith check shall be retained by the City as liquidated damages for such failure. No interest will be allowed on the amount of the good faith deposit. All checks of unsuccessful bidders will be returned immediately on award of the Bonds. All proposals shall remain firm for three hours after the time specified for the opening of proposals and an award of the Bonds, or rejection of proposals, will be made by the City within said period of time.
The award, if any, will be made to the bidder complying with the terms of sale and offering to purchase the Bonds at the lowest net interest cost to the City. The net interest cost will be determined by computing the aggregate interest on the Bonds over the life of the issue at the rate or rates of interest specified by the bidder, less premium offered, if any. It is requested that each proposal be accompanied by a statement of the net interest cost (computed to six decimal places), but such statement will not be considered a part of the proposal.
The Governing Body reserves the right to reject any and all bids submitted and to waive any irregularity or informality.
The obligation of the purchaser to purchase and pay for the Bonds is conditioned on the delivery, at the time of settlement of the Bonds, of the following: (1) the approving legal opinions of Butler, Snow, O’Mara, Stevens & Cannada, PLLC, and Page, Mannino, Peresich & McDermott, PLLC, the Co-Bond Counsel, (a) to the effect that the Bonds constitute valid and legally binding obligations of the City payable from and secured by an irrevocable pledge of the avails of a direct and continuing tax to be levied annually without limitation as to time, rate or amount upon all the taxable property within the geographical limits of the City; provided, however, that such tax levy for any year shall be abated pro tanto to the extent the City on or prior to September 1 of that year has transferred money to the bond fund of the Bonds, or has made other provisions for funds, to be applied toward the payment of the principal of and interest on the Bonds due during the ensuing fiscal year of the City, in accordance with the provisions of the Bond Resolution and (b) to the effect that the interest on the Bonds is exempt from Federal and Mississippi income taxes under existing laws, regulations, rulings and judicial decisions with such exceptions as shall be required by the Internal Revenue Code of 1986; and (2) the delivery of certificates in form and tenor satisfactory to Co-Bond Counsel evidencing the proper execution and delivery of the Bonds and receipt of payment therefor, including a statement of the City, dated as of the date of such delivery, to the effect that there is no litigation pending or, to the knowledge of the signer or signers thereof, threatened relating to the issuance, sale and delivery of the Bonds. A copy of said approving legal opinion will appear on or accompany the Bonds.
It is anticipated that CUSIP identification numbers will be printed on the Bonds unless specifically declined by the purchaser, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City; the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the purchaser.
The City has covenanted in its Bond Resolution that under SEC Rule 15c2-12, the City will deliver or cause to be delivered annually, commencing with the fiscal year of the City ending after January 1, 2010, to (i) (a) the Municipal Securities Rulemaking Governing Body (the “MSRB”) through MSRB’s Electronic Municipal Market Access system at www.emma.msrb.org (“EMMA”), in the electronic format then prescribed by the Securities and Exchange Commission (the “SEC”) (the “Required Electronic Format”) pursuant to Rule 15c2-12, as amended from time to time (the “Rule”) of the SEC, and (b) in the future, any successor repository or repositories prescribed by the SEC for the purpose of serving as repository under the Rule (together (a) and (b) are the “National Repository”); and (ii) any public or private repository or entity designated by the State as a State repository, if any, for the purposes of the Rule (the “State Repository” and together with the National Repository, the “Repositories”), together with any identifying information or other information then required to accompany the applicable filing (the “Accompanying Information”): (1) annual financial information and operating data relating to the City, including audited financial statements of the City and (2) notice of certain events, if any, relating to the Bonds and the City, if the City deems such events to be material, as set forth in the Rule. Anyone requesting information under the continuing disclosure requirements of the Rule should contact the City Clerk, City Hall, 3330 Hwy 90, Gautier, Mississippi 39553, Telephone Number: (228) 497-8014.
The Preliminary Official Statement, dated August 17, 2010, has been “deemed final” as of such date by the City with permitted omissions, subject to change without notice and to completion or modification in a final Official Statement (the “Official Statement”). The City will make available to the successful bidder a reasonable number of Official Statements within seven (7) business days (excluding Saturdays, Sundays and national holidays) of the award of the Bonds. The successful bidder shall conform to the requirements of SEC Rule 15c2-12, including an obligation, if any, to update the Official Statement and shall bear all costs relating thereto. During the period from the delivery of the Official Statement to and including the date which is twenty-five (25) days following the end of the underwriting period for the Bonds (as described below) the City shall notify the successful bidder if any event of which it has knowledge shall occur which might or would cause the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
The successful bidder shall file the Official Statement with the National Repository at the earliest practicable date after the date of delivery of the Bonds. The end of the underwriting period shall mean the earlier of (a) the date of the Closing unless the City has been notified in writing to the contrary by the representative of the successful bidder on or prior to such date, or (b) the date on which the “end of the underwriting period” for the Bonds has occurred under SEC Rule 15c2-12. The successful bidder shall notify the City of the date which is the “end of the underwriting period” within the meaning of the SEC Rule 15c2-12.
For additional information concerning the sale and issuance of the Bonds, please contact the City Clerk of the City or Government Consultants, Inc., Jackson, Mississippi, as Financial Advisor, at 601-982-0005.
By order of the Mayor and City Council of the City of Gautier, Mississippi, on August 17, 2010.
/s/ Adrienne Howell
CITY CLERK
PUBLISH: August 26 and September 2, 2010
