Notice for Bids - County Tech Bond Bids
OFFICIAL NOTICE OF INTENT TO SELL BONDS
COUNTY OF LAGRANGE, INDIANA
GENERAL OBLIGATION TECHNOLOGY BONDS OF 2012
Upon not less than twenty‑four (24) hours notice given prior to the ninetieth (90th) day after this notice is first published, the County of LaGrange, Indiana (the "County") will receive and consider bids for the purchase of the Bonds described below. Any person interested in submitting a bid for the Bonds must furnish in writing to the County, ℅Peters Municipal Consultants, LTD, P.O. Box 542 Greenwood, Indiana 46142; (317) 535-6168, (317) 886-7013 (facsimile) or by e‑mail to petersja@aol.com before 10:00 a.m. (Indianapolis Time), August 27, 2012, the person's name, address, and telephone number. Interested persons may also furnish a facsimile number or an e‑mail address. The undersigned Auditor will notify (or cause to be notified) each person so registered of the date and time bids will be received 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 or by facsimile or electronic e‑mail, if a facsimile number or an e‑mail address has been received. It is anticipated that the sale will occur at 11:00 a.m. (Indianapolis Time) on August 28, 2012.
At the time designated for the sale, the County will receive at the offices of Peters Municipal Consultants, LTD, P.O. Box 542 Greenwood, Indiana 46142, petersja@aol.com, (317)886-7013 and consider bids for the purchase of the following described Bonds:
County of LaGrange, Indiana, General Obligation Technology Bonds of 2012 (the "Bonds"), an Indiana political subdivision, in the principal amount not to exceed One Million Two Hundred Thousand Dollars ($1,200,000.00).
The Bonds shall be in fully registered form; denomination $5,000 and integral multiples thereof; originally dated the date of delivery of the Bonds; bearing interest at a rate or rates to be determined by bidding, and payable on January 15 and July 15 of each year beginning not earlier than July 15, 2013; interest shall be calculated on the basis of a three hundred sixty (360) day year comprised of twelve (12) thirty (30) day months; interest payable by check mailed one (1) business day prior to the interest payment date or by wire transfer to depositories on the interest payment date to the person or depository in whose name each bond is registered with the Registrar as of the first day of the month of each interest payment date; maturing or subject to mandatory redemption on January 15 and July 15 beginning on July 15, 2013, through and including January 15, 2020, on the dates and amounts as provided by the County prior to the sale. The County reserves the right to adjust the maturity schedules following the sale to accomplish approximately level annual debt service as practicable based upon the rates bid by the successful bidder.
A bid may designate that a given maturity or maturities of the Bonds shall constitute a term bond, and the semi‑annual amounts set forth in the schedules provided for the Bonds shall constitute the mandatory sinking fund redemption requirements for such term bond or bonds. For purposes of computing net interest cost, the mandatory redemption amounts shall be treated as maturing on the dates set forth in the schedules provided for the Bonds. The Bonds are not subject to optional redemption prior to their respective stated maturities.
Each bid must be for all of the Bonds and must state the rate of interest which each maturity of the Bonds is to bear, stated in multiples of 1/8th or 1/20th of 1%. The maximum interest rate of the Bonds shall not exceed 7.00% per annum. All Bonds maturing on the same date shall bear the same rate, and the rate of interest bid for each maturity must be equal to or greater than the rate bid on the immediately preceding maturity. Bids shall set out the total amount of interest payable over the term of the Bonds and the net interest cost on the Bonds covered by the bid. No bid for less than 98% of the face value of the Bonds will be considered. The Bonds will be awarded to the highest qualified bidder who has submitted a bid in accordance herewith. The highest bidder will be the one who offers the lowest net interest cost to the County, to be determined by computing the total interest on all of the Bonds to their maturities based upon the schedules provided by the County prior to the sale and deducting therefrom the premium bid, if any, and adding thereto the discount bid, if any. No conditional bids will be considered. The right is reserved to reject any and all bids. If an acceptable bid is not received for the Bonds on the date of sale hereinbefore fixed, the sale may be continued from day to day thereafter, during which time no bids for less than the highest bid received at the time of the advertised sale will be considered.
Each bid must be submitted on a customary bid form, addressed to the County, and marked "Bid for LaGrange County, Indiana, General Obligation Technology Bonds of 2012". The successful bidder (the "Purchaser") will be notified and instructed to submit a good faith deposit ("Deposit") in the form of cash, certified or cashier's check or wire transfer in the amount of one percent of the aggregate principal amount of the Bonds. If a check is submitted, it shall be drawn on a bank or trust company which is insured by the Federal Deposit Insurance Corporation and shall be submitted to the County (or wire transfer such amount as instructed by the County) by the Purchaser not later than 3:30 p.m. (EST) on the next business day following the award. If such Deposit is not received by that time, the County may reject the bid. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Bonds. In the event the Purchaser fails to honor its accepted bid, the Deposit will be retained by the County as liquidated damages. The Purchaser shall make payment for the Bonds in Federal Reserve funds to the registrar (the "Registrar") for the Bonds and accept delivery thereof from the Registrar within five (5) days after being notified that the Bonds are ready for delivery. It is anticipated that the Bonds will be ready for delivery within thirty (30) days after the date of sale. If the County fails to have the Bonds ready for delivery prior to the close of banking hours on the forty‑fifth (45th) day after the date of sale, the bidder may secure the release of his bid upon request in writing, filed with the County. The Purchaser is expected to apply to a securities depository registered with the SEC to make such Bonds depository‑eligible. At the time of delivery of the Bonds to the Purchaser, the Purchaser will be required to certify to the County the initial reoffering price to the public of a substantial amount of each maturity of the Bonds.
Upon election of the Purchaser, the Bonds will be initially issued in a Book Entry Only system with no physical distribution of bond certificates made to the public. In this case, one bond certificate in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), and immobilized in its custody. The Purchaser, as a condition of delivery of the Bonds, may be required to deposit the bond certificates with DTC, registered in the name of Cede & Co., nominee of DTC.
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the Purchaser therefor to accept delivery of and pay for the Bonds in accordance with the terms of its bid. No CUSIP identification number shall be deemed to be a part of any Bond or a part of the contract evidenced thereby and no liability shall hereafter attach to the County or any of its officers or agents because of or on account of such numbers. All expenses in relation to the printing of CUSIP identification numbers on the Bonds shall be paid for by the County; provided, however, that 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 Purchaser will also be responsible for any other fees or expenses it incurs in connection with the resale of the Bonds.
The approving opinion of Beers Mallers Backs & Salin, LLP, bond counsel of LaGrange, Indiana, together with a transcript of the proceedings relating to the issuance of the Bonds and closing papers in the usual form showing no litigation questioning the validity of the Bonds, will be furnished to the Purchaser at the expense of the County.
The Bonds are being issued under the provisions of I.C. §36‑2-6. The Bonds are being issued for the purpose of paying the costs of the acquisition, construction, and equipping of certain communications and technology projects and the related incidental expenses to be incurred in connection therewith and on account of the issuance of the Bonds. The Bonds will be direct obligations of the County payable out of ad valorem taxes to be collected on the taxable property within the County; however, the County’s collection of the levy may be limited by operation of I.C. §6-1.1-20.6, which provides taxpayers with tax credits for property taxes attributable to different classes of property in an amount that exceeds certain percentages of gross assessed value of that property. The County is required by law to fully fund the payment of debt service on the Bonds in an amount sufficient to pay the debt service, regardless of any reduction in property tax collections due to the application of such tax credits. The County may not be able to levy or collect additional property taxes to make up this short fall. In the opinion of bond counsel, under the federal statutes, decisions, regulations and rulings existing on this date, the interest on the Bonds is excludable from gross income for purposes of federal income taxation.
The Bonds constitute an indebtedness only of the County. The Bonds are subject to the Internal Revenue Code of 1986 as in effect on the date of their issuance (“Code”) which imposes limitations on the issuance of obligations like the Bonds under federal tax law. The County has covenanted to comply with those limitations to the extent required to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes, The County has designated the Bonds for purposes of Section 265(b)(3) of the Code to qualify for the $10,000,000 annual exception from 100% disallowance, in the case of banks and other financial institutions, of the deduction for interest expense allocable to tax-exempt obligations.
The County has prepared an Official Statement relating to the Bonds which it has deemed to be a nearly final official statement. A copy of the Official Statement may be obtained from Jeff Peters at petersja@aol.com, (317)535-6168 or in limited quantities prior to submission of a bid by request from the County's financial advisor. Within seven (7) business days of the sale, the County will provide the Purchaser with up to twenty-five (25) copies of the final Official Statement at the County's expense. Additional copies, at the Purchaser's expense, must be requested within five (5) business days of the sale. Inquiries concerning matters contained in the nearly final Official Statement must be made and pricing and other information necessary to complete the final Official Statement must be submitted by the Purchaser within two (2) business days following the sale to be included in the final Official Statement.
The County has agreed to enter into a Continuing Disclosure Undertaking in order to permit the successful purchaser to comply with the SEC Rule 15(c)2‑12. A description of this undertaking is set forth in the near final Official Statement and will also be set forth in the final Official Statement. The Continuing Disclosure Undertaking will be executed and delivered by the County at the closing of the issuance of the Bonds.
Further information relative to said issue and a copy of the nearly final Official Statement may be obtained upon application to Peters Municipal Consultants, LTD, P.O. Box 542 Greenwood, Indiana 46142, petersja@aol.com, financial advisor to the County.
Dated this 30th day of July, 2012.
Kay M. Myers, LaGrange County Auditor
64426v3
LC 163 S6,13/N10,17
