Details for TOWN OF MUNSTER - LEGALS - Ad from 2019-11-08

NOTICE OF BOND SALE $985,000
TOWN OF MUNSTER, INDIANA GENERAL OBLIGATION BONDS OF 2019
NOTICE IS HEREBY GIVEN that on November 26, 2019, separate electronic and
sealed bids will be received by the Clerk-Treasurer (the “Clerk-Treasurer”) of the Town
of Munster, Indiana (“Town”), at the Town’s Municipal Center, located at 1005 Ridge
Road, Munster, Indiana 46321, (219) 836-6945 (telephone), (219) 836-8350 (facsimile),
dshafer@munster.in.gov (e-mail), until 11:00 a.m. (Central time), in the manner as set
forth herein for the purchase of the bonds of the Town designated as “Town of Munster,
Indiana, General Obligation Bonds of 2019” (the “Bonds”), in the aggregate principal
amount of Nine-Hundred Eighty-Five Thousand Dollars ($985,000), bearing interest at
a rate or rates not to exceed six percent (6.00%) per annum. It is anticipated that the
Bonds will be ready for delivery on or about December 12, 2019.
TYPES OF BIDS ALLOWED. Bidders shall submit bids in sealed envelopes addressed to
the Town at the address described above, or via facsimile or e-mail as described above,
not later than 11:00 a.m. (Central time) on November 26, 2019.
FORM, MATURITY AND PAYMENT OF BONDS. 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 semi-annually on June 30 and December 31 in each
year, commencing June 30, 2020. The Bonds will be issued as fully registered bonds,
in either certificated form or in book-entry-only form (as selected by the successful
bidder), in denominations of $100,000, plus integral multiples of $250 in excess thereof
(or such different denominations as may be requested by the purchaser thereof and
as shall be acceptable to the Town), not exceeding the aggregate principal amount of
such Bonds maturing in any one year, and when issued, will be registered in the name
of the successful bidder.
The Bonds shall be numbered consecutively from R-1 upward, shall bear an original
issue date which shall be the date the Bonds are delivered, and shall mature on the
dates and in the amounts as follows:
MATURITY SCHEDULE
Maturity Date
Principal Amount*
June 30, 2020
$123,250
December 31, 2020
$123,250
June 30, 2021
$123,250
December 31, 2021
$123,250
June 30, 2022
$123,000
December 31, 2022
$123,000
June 30, 2023
$123,000
December 31, 2023
$123,000
*estimated, subject to change
The Town reserves the right to adjust principal amounts within maturities of the Bonds
to achieve approximate level annual debt service levies of the Town based upon (i)
the rates bid by the successful bidder, (ii) the Town’s current debt service levy and (iii)
the Town’s anticipated debt service levy during the term of the Bonds. The Town also
reserves the right to reduce the principal amount of the Bonds to be issued in order
to receive no more than $985,000 in proceeds from the sale of the Bonds, and in the
event of such principal amount reduction to adjust principal amounts within maturities
of the Bonds.
As an alternative to part or all of the above series of maturities, the Town will consider
bids for a term bond or bonds, subject to mandatory sinking fund redemption by lot
prior to maturity consistent with the dates and the amounts set forth above at a price
equal to the principal amount thereof, plus accrued interest to the date of redemption
without premium.
All payments of interest on the Bonds will be paid by check or draft mailed one business
day prior to each interest payment date, to the registered owners of the Bonds as
of the fifteenth (15th) day of the month in which such interest is payable (each, a
“Record Date”) at the address as it appears on the registration books kept by the
Clerk-Treasurer of the Town, as the registrar and paying agent or by such financial
institution as may be appointed by the Clerk-Treasurer of the Town to serve as registrar
and paying agent (the “Registrar” and “Paying Agent”) as of the Record Date or at such
other address as is provided to the Registrar and/or Paying Agent in writing by such
registered owner. Each registered owner of $1,000,000 or more in principal amount
of Bonds shall be entitled to receive interest payments by wire transfer by providing
written wire instructions to the Paying Agent before the Record Date for any payment.
Principal on the Bonds will be payable at the designated office of the Paying Agent.
Notwithstanding the foregoing, if DTC or its nominee is the registered owner of the
Bonds, principal of and interest on the Bonds will be paid directly by the Paying Agent
to DTC as provided hereinabove.
REDEMPTION PROVISIONS. The Bonds are not subject to optional redemption prior
to maturity.
INTEREST RATES AND STATUS OF BANK QUALIFICATION. 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 rate hereinbefore specified. Such interest rate or
rates must be in multiples of one-eighth (1/8), one-twentieth (1/20), or one-hundredth
(1/100) 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. Although not a term of sale, it is requested that each bid show
the net dollar cost to final maturity and the net effective interest rate on the entire issue.
The Bonds are “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of
the Internal Revenue Code of 1986, as amended.
BIDDING DETAILS. No conditional bid or bids for less than one-hundred percent
(100%) of the par value of the Bonds will be considered. The Town reserves the right
to reject any and all bids and to waive any informality in any bid. 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 shall (i) if mailed, be sealed in an envelope addressed to
the Town and marked “Bid for Town of Munster, Indiana, General Obligation Bonds of
2019,” (ii) must be on the form approved by the Town, without additions, alterations or
erasures, which form may be obtained from the Town’s Clerk-Treasurer at the address
set forth herein, and (iii) delivered to the Clerk-Treasurer as required hereinabove.
AMENDMENTS. The Town reserves the right to amend any information contained in
this Notice of Bond Sale. The Town also reserves the right to postpone, from time to
time, the date established for the receipt of bids on the Bonds. Any such amendment or
postponement will be announced via publication at any time prior to the date and time
established for the receipt of bids.
BASIS FOR AWARD. The sale of the Bonds will be awarded to the bidder making a bid
that conforms to the specifications herein and which produces the lowest net interest
cost to the Town. The lowest net interest cost is determined by computing the total
interest on all of the Bonds to their maturities based upon the schedule provided herein
and adding thereto the discount bid, if any, and deducting therefrom the premium bid,
if any. In the event of a bidder’s error in interest cost calculations, the interest rates,
premium, if any, set forth or incorporated by reference in the Official Bid Form will be
considered as the intended bid.
GOOD FAITH DEPOSIT. The successful bidder will be required to deliver to the ClerkTreasurer a certified or cashier’s check, wire transfer consisting of immediately
available funds to the Town as instructed by the Clerk-Treasurer, or a financial surety
bond in the amount of 1% of the principal amount of the Bonds (the amount of such
check or financial surety bond being referred to hereinafter as the “Deposit”) within 24
hours after the bid is accepted. 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. In either case,
the Deposit must be submitted to the Town within 24 hours after the bid is accepted
in order to qualify the bid and shall be made payable to “Town of Munster, Indiana,” to
be held uncashed (in the case of a check) or not drawn upon (in the case of a financial
surety bond) as a guarantee of the good faith of the bidder. The checks of unsuccessful
bidders will be returned immediately following the award of the Bonds. No interest will
be allowed on any checks. If the Bonds are awarded to a bidder who has submitted a
financial surety bond to the Town, then such bidder must submit its Deposit to the Town
in the form of a certified or cashier’s check (or a wire transfer consisting of immediately
available funds to the Town as instructed by the Clerk-Treasurer) not later than 3:30
p.m. (local time) on the next business day following the award by the Town. If such
check or wire transfer is not received by that time, the financial surety bond may be
drawn upon by the Town 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 Town and shall be taken and considered as liquidated damages of the Town on
account of such failure or refusal.
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 Town. Any premium bid must be paid in cash at the time of delivery
as a part of the purchase price of the Bonds. The Bonds will be ready for delivery within
forty-five (45) days after the date on which the award is made, 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.
It is anticipated that CUSIP identification numbers will NOT be printed on the Bonds.
The successful bidder may, at its own expense, arrange for CUSIP numbers for 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 in accordance with the terms of its bid. No
CUSIP identification number shall be deemed to be a part of any Bond or the contract
evidenced thereby and no liability shall hereafter attach to the Town or any of its officers
or agents because of or on account of such numbers. All expenses in relation to the
printing or typing of CUSIP numbers on the Bonds shall be paid for by the successful
bidder, and any CUSIP Service Bureau charge for the assignment of said numbers shall
be the responsibility of, and shall be paid for by, the successful bidder. The successful
bidder will also be responsible for any other fees or expenses it incurs in connection
with its purchase or the resale of the Bonds.
AUTHORITY, PURPOSE AND SOURCE OF SECURITY. The Bonds are being issued
under the provisions of the Indiana Code for the purpose of procuring funds to pay
all or any portion of the costs of (a) the planning, design, construction, development,
installation, equipping and/or improvements to various public works and infrastructure,
including, but not limited to, (i) general street replacement, sealing, resurfacing and
reconstruction projects, including curbs and sidewalks, and design, engineering and
construction supervision related thereto, (ii) various maintenance, improvement and
equipping projects for buildings and related facilities, including painting, roofing,
lighting, security system upgrades and/or information technology equipment and
related infrastructure improvements, and/or (iii) utility system upgrades, equipment
and improvements, (b) purchasing, updating and/or replacing certain public safety and
maintenance equipment, including defibrillators, portable radios, traffic intersection
cameras, protective vests and other police and firefighting equipment, and a tandem
dump truck, loader, wing-mower and garbage truck, (c) miscellaneous projects or
costs related to the foregoing, and (d) costs of the issuance and sale of the Bonds. The
principal of and interest on the Bonds will be payable as a general obligation of the
Town from ad valorem property taxes to be levied on all taxable property in the Town,
and the Bonds will constitute an indebtedness of the Town within the provisions and
limitations of the Constitution of the State of Indiana. However, the Town’s collection of
the property tax levy may be limited by operation of Indiana Code 6-1.1-20.6, which
provides taxpayers with credits against property tax liability for property taxes levied
against certain classes of property in an amount that exceeds certain percentages of
the gross assessed value of that property. The Town is required by law to fully fund the
payment of debt service on the Bonds in an amount sufficient to pay the principal of
and interest on the Bonds, regardless of any reduction in property tax collections due to
the application of such tax credits under Indiana Code 6-1.1-20.6. The Town may not be
able to levy or collect additional property taxes to make up any deficiency. The Town is a
municipal corporation under the laws of the State of Indiana, duly created and existing
under Indiana Code 36-5, as amended.
INVESTMENT LETTER. Simultaneously with or before the delivery of the Bonds,
the successful bidder will be required to execute an investment letter or certificate
at closing, in a form satisfactory to the Town and Bond Counsel (as defined herein),
certifying, among other things, that it is purchasing the Bonds for its own account and
not with the current intent to resell all or any portion of the Bonds.
BOND DELIVERY. At the time of delivery of the Bonds, the approving opinion of Barnes
& Thornburg LLP, Indianapolis, Indiana, bond counsel (“Bond Counsel”), as to the
validity of the Bonds, together with a transcript of bond proceedings, the printed Bonds
and closing certificates in the customary form showing no litigation, will be furnished
to the successful bidder at the expense of the Town. In addition, unless Bond Counsel
is able, on the date of delivery, to render an opinion to the effect that (1) under existing
laws, regulations, judicial decisions and rulings, interest on the Bonds is excludable
from gross income for federal income tax purposes under Section 103 of the Internal
Revenue Code of 1986, as amended and in effect on the date of issuance of the Bonds,
and the regulations thereunder (collectively, the “Code”), and (2) the interest on the
Bonds is exempt from income taxation in the State of Indiana (the “State”) for all
purposes, except the State financial institutions tax, the successful bidder shall have
the right to rescind the sale, and in such event the Deposit will be returned.
Dated this 8th day of November, 2019.
/s/ David F. Shafer
Clerk-Treasurer, Town of Munster, Indiana
11/8, 15 -28462-hspaxlp

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