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OFFICIAL NOTICL Ur SALE
<br />$6 _`'i~ 000
<br />CITY OF YARtS, TL}CAS
<br />WATERWORKS & SEWER SYSTEM REVENi1E BONDS
<br />SELLING• Wednesday, January 10, 1973, at 2:00 P. M., C.S.T.
<br />PLACE AND TIME OF SALE: The City Council of the City of Paris,Paris, Texas, will receive
<br />sealed bids at the City Hall, Paris, Texas, until 2:00 P.M., C.S.T.,
<br />WPdnesday, January 10, 1973, for the above bonds, more completely described
<br />in the following pages.
<br />ADDRESS OF BIDS: Sealed bids, plainly marked "Bid for Bonds" should be addressed to
<br />the 'lionorable James W. Farris, Mayor, Paris, Texas". All bids must be
<br />submitted on the "Official Bid Form", copies of which are attached.
<br />TYPES OF BIDS INTEREST RATES AND BASIS OF AWARD: These bonds will be divided into
<br />two blocks upon which bids are to be received:
<br />Block Number One will consist of the Principal amount of $295,000, maturing
<br />on July 1, in the years and in the amounts as follows: $15,000 each year
<br />1973 to 1983, inclusive,$20,000 each year 1984 thru 1989, inclusive, and
<br />$10,000 in 1990.
<br />Block Number Tao will consist of the Principal amount of$355,000 maturing
<br />on July 1, in the years and in the amounts as follows: $10,000, 1973 to
<br />1975, inclusive; $15,000, 1976 to 1989, inclusive; $25,000 in 1990; $40,000
<br />in 1991 and $50,000 in 1992.
<br />Bonds of Block One and Block 'I~ao maturing on or after July 1, 1983, shall
<br />be optional for prior redemption at par and accrued interest on July 1, 1982
<br />or on any interest payment date thereafter.
<br />Bids will be received on the bonds, all or none, or on Block One alone and
<br />shall be submitted on the of£icial bid form without interlineation or altera-
<br />tion. Bidders should specify the rate or rates of interest the bonds will
<br />bear, but a bid of less than par and accrued interest will not be considered;
<br />coupons must be in multiples of 1/20th of 1% or 1/8th of 1% and no rate in
<br />excess of 10% will be considered. There is no established maximum number of
<br />coupon rates which a bidder may name; however, a maximum of 22% will be
<br />allowed between the highest and lowest coupon bid.
<br />Bonds represented in Block One will be awarded to the bidder whose bid
<br />produces the lowest interest cost to the City, computed by determining at the
<br />rate or rates specified, the total dollar value of all interest on the bonds
<br />frocn date thereof to their respective maturities and deducting therefrom any
<br />premium bid.
<br />Bonds represented in Block T~ao are proposed to be issued and sold to the
<br />Texas Water Quality Board and Texas Water Development Fund under the provisions
<br />of Article III, Sec. 40-d-1 State Constitution. Under this method the City
<br />will thereby receive an additional grant from the Environmental Protection
<br />Administration equal to $353,500, or 25% of the cost of the sewer project pro-
<br />posed to be constructed with proceeds from this issue of bonds. The bonds
<br />sold to the State Boards will bear interest at 5% and be sold at par and
<br />accrued interest plus a premium in an amount sufficient'to reduce the net
<br />effective interest rate to 4.9533 Any bidder bidding for Block One and
<br />Block Tao, all or none, must quote an interest cost (total dollars) which will
<br />equal $353,500 less than the Texas Water Quality Boards' interest cost for
<br />Block Two figured at 4.9533 %($212,864.25), since this is the amount of the
<br />additional grant the City will obtain under Public Law 660 by selling Block
<br />Two to the Texas Water Quality Board.
<br />GOOD FAITH DEPOSIT: Each bid must be accompanied by a Cashier's or Certified Check,
<br />payable to "City of Paris,Paris, Texas",.-in the amount equal to 2% of the par
<br />value amount of bonds bid upon. This check will be considered as a Good Fuith
<br />Deposit. The check of the succesaful bidder will be retained
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