RES 02047 - Laserfiche WebLink

gross receipts more than 25% of which constitute passive investment income: and (iv) Section 86 of the Code requires recipients of certain social security and certain railroad retirement benefits to take into account, in determining gross income, receipts or accruals of interest on the Bonds. Certain agreements, requirements and procedures contained or referred to in the Indenture and other relevant documents may be changed and certain actions may be taken or omined under the circumstances and subject to the terms and conditions set forth in those docu- ments, upon the advice or with the approving opinion of nationally recognized bond counsel. Bond Counsel expresses no opinion as to any Bond or the interest payable with respect thereto if any change occurs or action is taken or omined upon the advice or approval of counsel other than Bond Counsel. Although Bond Counsel has rendered an opinion that interest on the Bonds is excluded from federal gross income, and that the interest on the Bonds is exempt from State of California personal income taxes, the ownership or disposition of the Bonds, and the accrual or receipt of interest on the Bonds may otherwise affect an Owner's state or federal tax liability. The nature and extent of these other tax consequences will depend upon each Owner's particular tax status and the Owner's other items of income or deduc- tion, Bond Counsel expresses no opinion regarding any such other tax consequences, Legislation Legislation affecting municipal bonds is regularly under consideration by the United States Congress, In addition. the Internal Revenue Service has established an expanded audit program for tax-exempt bonds. There can be no assurance that legislation enacted or proposed or an audit initiated by the Internal Revenue Service involving the Bonds will not have an adverse effect on the tax-exempt status or rnarket price of the Bonds or that an audit initiated by the Internal Revenue Service involving other tax-exempt bonds will not have an adverse affect on the market price of the Bonds. Professional Fees In connection with the execution and delivery of the Bonds, fees payable to bond counsel and the trustee are contingent upon the execution and delivery of the Bonds. Financial Advisor The City has retained Bartle Wells Associates of Berkeley. California as financial advisor in connection with the preparation of this official statement and with respect to the issuance of the Bonds, The financial advisor is paid a fee: 20 percent is contingent upon the sale of the Bonds, The financial advisor is an independent financial advisory firm and is not engaged in the business of underwriting. trading. or distributing municipal securities or other public securities. 21