Subject: 20990/Bonds/Series 1996 Gen.Obligation Municipal Improvement Date: Tue, 14 May 1996 13:59:03 -0500 RESOLUTION NO. 20990 A RESOLUTION AWARDING THIRTEEN MILLION DOLLARS ($13,000,000) PRINCIPAL AMOUNT OF THE CITY OF CHATTANOOGA, TENNESSEE, GENERAL OBLIGATION MUNICIPAL IMPROVEMENT BONDS, SERIES 1996. _________________________ WHEREAS, pursuant to notice heretofore duly published in the Bond Buyer, a financial journal published in the City of New York, State of New York, and in the Chattanooga-News Free Press and the Chattanooga Times, newspapers of general circulation published in the City of Chattanooga, for the sale of $13,000,000 City of Chattanooga, Tennessee General Obligation Municipal Improvement Bonds, Series 1996, the following proposals have been received: BIDDER TRUE COST Merrill-Lynch 5.5947 J. C. Bradford Co. 5.604591 First Union Bank 5.612286 First Tennessee Bank 5.543452 and WHEREAS, the proposal of First Tennessee Bank (the "Purchaser"), offering to pay the principal sum of $12,870,000, 0C together with accrued interest, bearing an average interest rate of 5.5434% per annum, referred to above, is the lowest and most advantageous bid for said Bonds as determined in the manner provided in said Notice of Sale, and in all other respects complies with said Notice of Sale form attached hereto as Exhibit A; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE: SECTION 1. That the proposal of said Purchaser, referred to in the preamble hereof, is accepted, and said $13,000,000 City of Chattanooga, Tennessee General Obligation Municipal Improvement Bonds, Series 1996, dated May 1, 1996, bearing interest and maturing as described below, be and the same hereby are awarded to said Purchaser in accordance with the terms of said Purchaser's proposal. YEAR OF MATURITY TOTAL PRINCIPAL AMOUNT INTEREST RATE 1997 $ 410,000 4.50% 1998 425,000 4.50% 1999 445,000 4.50% 2000 460,000 4.75% 2001 480,000 4.75% 2002 505,000 4.80% 2003 525,000 4.90% 2004 550,000 5.00% 2005 575,000 5.10% -2- 0C 2006 605,000 5.20% 2007 630,000 5.30% 2008 665,000 5.40% 2009 700,000 5.40% 2010 735,000 5.50% 2011 770,000 5.50% 2012 815,000 5.60% 2013 855,000 5.60% 2014 900,000 5.60% 2015 950,000 5.70% 2016 1,000,000 5.70% SECTION 2. That the Mayor and City Finance Officer of the City of Chattanooga be and are hereby authorized and directed to execute said City of Chattanooga, Tennessee General Obligation Municipal Improvement Bonds, Series 1996, and to deliver said Bonds to the Purchaser and to receive payment therefor without further authority from the City Council. SECTION 3. That the City Finance Officer be and is hereby authorized and directed to return forthwith the good faith checks of all unsuccessful bidders. SECTION 4. That the Official Statement, dated May 16, 1996, and the information contained therein to be used in connection with the offering and sale of said Bonds is hereby approved and further, that the City hereby ratifies, confirms and approves the distribution of the Preliminary Official -3- 0C Statement and Notice of Sale of the City, both dated May 10, 1996, in connection with the offering and sale of said Bonds. The Official Statement may be modified in a manner not inconsistent with the substance thereof as shall be deemed advisable by the City or the Financial Advisor to the City and by bond counsel to the City. The Mayor or any proper officer of the City is hereby authorized and directed to sign the Official Statement and any supplement thereto, in the name of and on behalf of the City and deliver same and any such amendment or supplement. SECTION 5. That First Tennessee Bank N.A., Memphis, Tennessee, is hereby appointed paying agent for said Bonds. SECTION 6. That this Resolution shall take effect from and after its adoption, the public welfare requiring it. ADOPTED: May 16, 1996 RLN.tlm -4-