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Home My WebLink AboutRes 2014-44RESOLUTION NO.2014-44 RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,ORDERING THE SALE OF NOT TO EXCEED $8,200,000 PRINCIPAL AMOUNT OF TOWN OF FOUNTAIN HILLS,ARIZONA GENERAL OBLIGATION BONDS,SERIES 2014. WHEREAS,the Town of Fountain Hills,Arizona (the "Town")plans toissuenot toexceed $8,200,000 of itsGeneral Obligation Bonds,Series 2014 (the "Bonds");and WHEREAS,theBondswillbesoldthroughanon-linebiddingprocesspursuant to Arizona Revised Statutes ("Ariz.Rev.Stat")Section 35-457; WHEREAS,the Town advertised an invitation forbids (DS2015-1Q2)regarding the Saguaro Boulevard reconstruction (the "Project"); WHEREAS,theTownwill revise thepar amount ofthe Bonds setforthinthe Notice(asdefinedherein)aftertheTownreceivesbidsfortheProject; NOW THEREFORE,BE IT RESOLVED BY THE MAYOR AND THE TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,as follows: Section 1.TheBondsarehereby ordered tobesoldthroughanon-linebidding process pursuant to Ariz.Rev.Stat.Title 35,Chapter 3,Article 3,as amended,andin accordance withthe Notice Inviting Bids forthe Purchase of Bonds (the "Notice")in substantially theformattachedheretoas Exhibit A.TheBondsare payable astobothprincipal and interest froman advalorem taxlevied against allofthe taxable property intheTown without limit as to rate or amount. Section 2.The Town's Finance Director orhis designee is hereby authorized to finalize the terms of the Notice andto reject allbidsor accept the lowest cost bid received forthe purchase ofthe Bonds.Such acceptance shall be subject to confirmation bythe Mayor and Town Council.No defect or error in such Notice shall affect or invalidate the sale of the Bonds. The Town's Finance Director is hereby authorized to cause a preliminary official statement tobe prepared in compliance with Section 240.15c2-12,General Rulesand Regulations,Securities and Exchange Act of 1934(the "Rule"),andis authorized todeemsuch preliminary official statement "final"for purposes of the Rule. Section 3.All bids forthe Bonds will be received through Thomson Financial's PARITY®System "on-line bidding process"as permitted in Ariz.Rev.Stat.Section 35-457. The official bid form shall be created forthe electronic bidding.The Town will assume no responsibility fortheproper functioning ofthe PARITY®System,foranyerror contained inany bid submitted electronically,or failure of anybidtobe transmitted,received or opened atthe official timefor receipt of bids. 2245517.3 PASSED AND ADOPTED BY the Mayor and Council ofthe Town of Fountain Hillson November 6,2014. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: fa M.Kavanagh,Mayor Bevelyn J.Be -^ REVIEWED BY:APPROVED AS TO FORM: Kenneth W.Buchanan,Town Manager Andrew J.McGuire,Town Attorney CERTIFICATE I,Bevelyn J.Bender,theduly appointed and acting Town Clerk ofthe Town of Fountain Hills,Arizona,do hereby certify thatthe above and foregoing Resolution No.2014-44 wasduly passed bythe Mayor and Council ofthe Town of Fountain Hills,Arizona,ata regular meetingheldonNovember6,2014,andthevotewas 7 aye'sand O nay'sandthattheMayor and (p CouncilMemberswerepresentthereat. DATED:November 6,2014. Bevelyn J. 2245517.3 EXHIBIT A $8,200,000* TOWN OF FOUNTAIN HILLS,ARIZONA GENERAL OBLIGATION BONDS, SERIES 2014 NOTICE INVITING BIDS FOR THE PURCHASE OF BONDS (Electronic Bidding Only) NOTICE IS HEREBY GIVEN thatunconditionalbidswillbereceivedtoandincluding thehourof10:00a.m.,MountainStandardTime ("M.S.T."),onDecember4,2014,bytheTownof FountainHills,Arizona(the "Town"),forthe purchase ofall,butnotlessthanall,of$8,200,000* aggregateprincipalamountofthe Town's GeneralObligationBonds,Series2014(the "Bonds").Abid maybesubmittedonlythroughthefacilitiesofPARITY®("PARITY').Submissionofbidsisfurther discussed below.Through PARITY,the Town's Finance Director or Wedbush Securities Inc.,the Town's financialadvisor(the "Financial Advisor"),willelectronicallyreceivethebidsatsuchtime.TheMayor andCouncilwillmeetatthehourof6:30p.m.onDecember4,2014,forthepurposeofconsideringbids receivedand,ifanacceptablebidisreceived,awardingthecontractforthepurchaseoftheBondstothe winning bidder. TheTownreservestherightto continue thedateforreceiptofbids.Ifthedateforreceipt ofbidsiscontinued,priorto10:00a.m.M.S.T.onDecember4,2014,orpriorto10:00a.m.,M.S.T.,onthe daypriortothedatetowhichreceiptofbidshasbeencontinued,theTownwillgivenoticeofthe continuance through PARITY at www.ipreo.com. The Bonds willbedatedasofthedateofinitial delivery,andwillbear interest fromtheir datetothematurityofeachoftheBondsatarateorratesperannumofnottoexceedeightpercent(8%). InterestontheBondsispayable semiannually on January 1andJuly1duringthetermoftheBonds commencing January1,2016.TheBondswillmatureonJuly1intheyearsandintheprincipalamounts as follows: Maturity Date (July 1) Principal Amount* 2016 $1,475,000 2017 1,620,000 2018 1,650,000 2019 1,700,000 2020 1,755,000 TIME FOR RECEIPT OF BIDS:Bids willbe received toand including thehourof 10:00 a.m.,M.S.T.,unlessthesaleis postponed.The time maintained by PARITY shall constitute the official time. *Subject to change.The Town reserves the right to adjust the maturity schedule prior to the sale date to reflect the actual construction bid awarded. 2245517.3 A-l ELECTRONIC BIDDING PROCEDURES:Allbidsmustbe submitted onlythrough the facilities of PARITY in accordance withthisNotice Inviting Bidsforthe Purchase of Bonds (the "Notice").Thenormalfeefortheuse of PARITY maybeobtainedfrom PARITY andsuchfeewillbethe responsibility ofthebidder.Allbidsmustbe submitted onthe official bidformthat resides onthe PARITYsystem(the "OfficialBid Form"),withoutalterationorinterlineation.Subscriptiontothe Ipreo LLC's BiDCOMP Competitive BiddingSystemisrequiredinordertosubmitabid.TheTownwillneither confirmany subscription norberesponsibleforthefailureofanyprospectivebiddertosubscribe.The Townisusing PARITY asa communication media,andnotasthe Town's agent,to conduct electronic bidding forthe Bonds. Allbidsmadethroughthe facilities of PARITY shallbe deemed irrevocable offersto purchasetheBondsonthetermsprovidedinthisNoticeandshallbebindingupontheentitymakingthe bid,asifmadebya signed,sealed bid delivered tothe Town.The Town andthe Financial Advisor assume no responsibility orliabilityforbidssubmittedthroughPARITY.NeithertheTownnortheFinancial Advisorshallbe responsible forany malfunction ormistakemadeby,orasresultoftheuseofthe electronic bidding facilitiesprovidedandmaintainedby,PARITY.Theuseof PARITY isatthesolerisk ofthe prospective bidders. IfanyprovisionsofthisNoticeshallconflictwithinformationprovidedbyPARITY,asthe approved provider of electronic bidding services,thisNoticeshallcontrol.Further information about PARITY,includinganyfeecharged,maybeobtainedfrom BiDCOMP/PARITY,c/oIpreo,1359 Broadway,2nd Floor,New York,New York 10018,Attn:Customer Support (212.849.5021). Bidders arerequestedtostateintheirbidsthenetinterestcosttotheTown,asdescribed under "AWARD AND DELIVERY"herein.All electronic bidsshallbe deemed to incorporate the provisions ofthis Notice andthe Official BidForm. PURPOSE:TheBondsarebeingissuedtoprovidefundstodesign,improve,construct, reconstructandrehabilitateSaguaroBoulevard;andtopaythecostsofissuanceoftheBonds. BOOK-ENTRY-ONLY SYSTEM:TheBondswillbe initially issued to,and registered inthenameof,Cede&Co.,as nominee ofThe Depository Trust Company,NewYork,NewYork ("DTC").DTCwillactasthesecurities depository oftheBondsfora book-entry-only system(the "Book- Entry-Only System").Underthe Book-Entry-Only System,beneficialownershipinterestsintheBondswill beavailableinbook-entryformonlythroughdirectorindirectDTC participants. OwnershipinterestsintheBondsmaybepurchasedindenominationsof$5,000of principalamountdueonaspecificmaturitydateorintegralmultiplesthereof. TransfersofbeneficialownershipinterestintheBondswillbeaccomplishedbybook entriesmadebyDTCandtheDTCParticipantsorIndirectDTCParticipantswhoactonbehalfofthe beneficialowners(the "Beneficial Owners").Foreverytransferandexchangeofabeneficialinterestinthe Bonds,theBeneficialOwnermaybechargedasumsufficienttocoveranytaxorother governmental charge thatmaybe imposed inrelationthereto. DTCmaydeterminetodiscontinueprovidingitsserviceswithrespecttotheBondsatany timebygivingnoticetotheTownand discharging its responsibilities withrespecttheretounder applicable law.Undersuchcircumstances(ifthereisnotasuccessorsecuritiesdepository),physicalcertificates representingtheBondswillbeexecutedanddelivered.Inaddition,theTownmaydetermineto discontinue the Book-Entry-Only System of transfers through DTC(ora successor securities depository). Insuchevent,physicalcertificatesrepresentingtheBondswillberegisteredinthenamesoftheBeneficial Ownersandexecutedanddelivered.Uponregistration of BondsintheBeneficial Owner's name,the 2245517.3 A-2 Beneficial OwnerswillbecometheownersoftheBonds(the "Owners ofthe Bonds")forall purposes, includingthereceiptofprincipalandinterestpaymentsandnoticeswithrespecttotheBonds. ForamoredetaileddescriptionoftheBook-Entry-OnlySystem,seetheinformationinthe officialstatementrelatingtotheBondsentitled"Book-Entry-OnlySystem." OPTIONAL REDEMPTION:TheBondsarenotsubjecttocallforredemptionpriorto maturity. REGISTRATION AND TRANSFER:Zions First National Bank will serve as bond registrarandpayingagentwithrespecttotheBonds(the "Registrar").Ifthe Book-Entry-Only Systemis discontinued,the Registrar will administer registration and transfer ofthe Bonds andthe Bonds willbe transferableonlyuponthebondregistertobemaintainedbythe successor Registrarupon surrender tothe Registrar.The Registrar maybe changed without noticetoany owner or beneficial owner oftheBonds. PAYMENT OF BONDS:Solongasthe Bonds areheldunderthe Book-Entry-Only System,all payments of principal and interest shall bepaidtoDTC.Ifthe Book-Entry-Only System is discontinued,interest ontheBondsshallbe payable bycheckmailedonorpriortothe interest payment datetothe Owners ofthe Bonds atthe addresses ofsuch owners asthey appear onthe books ofthe Registrar ontherecorddate(as described hereafter).Principal of,and premium,ifany,ontheBondsshall bepaidwhendueupon surrender ofsuch Bonds atthe designated corporate trust office ofthe Registrar (unless the Owner oftheBondsis eligible for payment bywire transfer).Ifthe Book-Entry-Only Systemis discontinued,principal oftheBondswillbe payable,whendue,onlyupon presentation and surrender ofthe Bondatthe designated corporate trust office ofthe Paying Agent (as defined hereafter).Uponwritten requestofa registered ownerofatleast $1,000,000 in principal amountofBondsnotlessthantwenty(20) dayspriortoan interest payment date,all payments of interest and,if adequate provision for surrender is made,principal shallbepaidbywiretransferin immediately available fundstoan account withinthe United States of America designated bysuch Owner.Notwithstanding any other provision,payment of principal ofand interest onanyBondthatisheldbya securities depository or Bonds subject toaBook- Entry-Only SystemmaybepaidbythePayingAgentbywire transfer in "same dayfunds". RECORD DATE:The record datefor determination of ownership for payment of interest shallbethefifteenth calendar daypriortoaninterest payment date.TheRegistrarshallpayinteresttothe Owners ofrecordontherecorddate notwithstanding that transfers of ownership may occur onanyBond betweentherecorddateandthenext interest payment date. SECURITY:PrincipalofandinterestontheBondsaresecuredbyacontinuing,direct advaloremtaxleviedagainstallofthetaxablepropertylocatedwithintheboundariesoftheTownwithout limit as to rate or amount. INTEREST RATES:BidsforthepurchaseoftheBondsmuststatetherateorratesof interest tobepaidandnobidatapricelessthantheparvalueoftheBonds,together withall accrued interestthereonatthedateofdeliveryoftheBonds,willbeconsidered.AllBondsofthesamematurity mustbearthesamerateofinterest.Thehighestratebidshallnotexceedthelowestratebidbymorethan oneandonehalfpercent (1.5%)per annum.Bidsmustbe expressed in multiples of one-eighth (1/8)or one-tenth (1/10)ofone percent.Interestwillbecalculatedonthebasisofayearcomprisedof360days consistingoftwelve(12)monthsofthirty(30)dayseach. Anyinterestratebidwhichwouldresultinaninterestpaymentamounthaving fractional centswillbedeemedawaiveroftherighttopaymentofsuchfractionalcents.Nofractionalcentswillbe paidoraccumulatedforpaymentonanyBond. 2245517.3 A-3 STATE LAW PREMIUM LIMIT ON BONDS:The Bonds maynotbe reoffered to produceaNetPremium(ashereinafterdefined)associatedwiththeBondsinexcessoffivepercent(5%)of theparvalueoftheBonds.REOFFERING THE BONDS AT A NET PREMIUM IN EXCESS OF $410,000t WILL CAUSETHEBONDSTOBE INVALID.Theterm"Net Premium"meansthe difference between thepar amount ofthe Bonds andtheissuepriceofthe Bonds determined pursuant to United States Treasury Regulations.Theissuepriceofthe Bonds isthe aggregate oftheissuepriceofeach maturity ofthe Bonds.Theissuepriceofeach maturity oftheBondsisthatinitial offering pricetothe public (excluding bondhouses,brokersand similar persons or organizations acting inthe capacity of underwritersor wholesalers)atwhichasubstantialamountofBondsofthatmaturity(atleasttenpercent (10%)ofsuchmaturity)arereasonablyexpectedtobesoldasofthesaledate (December 4,2014).Ifthe offering prices certified bythe winning bidder(as described below)causetheNet Premium toexceedfive percent (5%)ofthe principal amount ofthe Bonds,theawardwillbe cancelled andthe Bonds willnotbe delivered tothe winning bidder.The issue price of the Bonds maynot exceed theirfair market value asof the sale date. INFORMATION TO BE PROVIDED BY WINNING BIDDER.Thewinningbidder willberequiredtofurnishtotheTown,atorbeforetheclosing,acertificateinaformacceptabletoGust Rosenfeld,P.L.C.("Bond Counsel"),Phoenix,Arizona,statingthatitdidofferall of theBondstothe publicinabonafidepublicofferinganditreasonablyexpectedthatasubstantialamountoftheBondsof thatmaturity(i.e.atleasttenpercent(10%)ofeachmaturityoftheBonds)wouldbesoldbyit,asofthe saledate,attheinitialofferingpricessetforthinthecertificate,togetherwithsuchadditional representationsasBondCounselmayrequiretoverifythatitisreasonabletorelyonthewinningbidder's certification aboutthe reasonably expectedinitialpublicofferingprice,includingthattheissuepriceofthe Bondssetforthinthecertificatedidnotexceedtheirfairmarketvalueasofthesaledate.The"public" doesnotincludebondhouses,brokersorsimilarpersonsor organizations actinginthecapacityof underwritersandwholesalers.TheinitialofferingpricestobecertifiedshallbefurnishedtotheTown within 24 hours after the award of the Bonds. FORM OFBIDANDGOOD FAITH DEPOSIT:Theprescribedformofbidforthe Bondswillbe available onthe PARITY systemandallbidsmustbe submitted onthat form.The winning biddershalldeliveragoodfaithdepositintheamount of $164,000(the "Deposit"),intheform of eitherof the following:(i)acertifiedorcashier'scheckpayabletotheTownor(ii)awiretransfertotheTown, delivered tothe Town within 24 hours of notification ofthe award.Such bidder shallbe solely responsible forthetimelydeliveryoftheirDepositwhetherbycheckorwiretransfer.NeithertheTownnorthe Financial Advisorhasanyliabilityfordelaysinthe transmission ofthe Deposit. TheDepositmadeby certified orcashier'scheck should bemadepayabletotheTownand deliveredtoTownofFountainHills,Attn:FinanceDirector,16705E.AvenueoftheFountains,Fountain Hills,Arizona 85268. instructions: The Deposit sentvia wiretransfer should besenttothe Town according tothe following ABA Number ;Account number ;For Further Credit to:,Reference:Name of Bidder -General Obligation Bonds,Series 2014.] Contemporaneously withsuchwire transfer,the bidder shallsendane-mailtothe Town's Finance Director (e-mail address:crudolphv@fh.az.gov)andtothe Financial Advisor (e-mail addresses: iim.stricklin@wedbush.com and bicei@wedbush.com).including the following information;(i)indication +Subject to change;the State law premium limit on bonds will be adjusted in conjunction with any change to the principal amount of the Bonds. 2245517.3 A-4 thatawiretransferhasbeenmade,(ii)theamountofthewiretransfer,(iii)theissuetowhichitapplies, and(iv)federal reference number,if available. The Deposit received fromthe winning bidder,the amount ofwhichwillbe deducted at settlement,willbe deposited bytheTownandnointerestwillaccruetothe winning bidder.Intheevent the winning bidderfailstocomplywiththeacceptedbid,saidamountwillberetainedbytheTownas liquidated damages. CUSIP NUMBERS:CUSIP numberswillbeplacedontheBonds,butneitherfailureto placesuchnumbersonanyBondnoranyerrorwithrespecttheretoshall constitute causeforafailureor refusalbythewinningbidder thereof toacceptdeliveryofandpayfortheBondsinaccordancewiththe termsofthesale.NoCUSIPnumberwillbedeemedtobepartofanyBondorofthe contract evidenced thereby.All expenses of printing CUSIP numbersontheBondswillbepaidbytheTown,buttheCUSIP ServiceBureauchargeforthe assignment ofCUSIPnumberswillbepaidbythe winning bidderofthe Bonds. RIGHT OF REJECTION:The Town reserves therightinits discretion torejectanyand allbids received andtowaiveany irregularity or informality inthebids,exceptthatthetimeforreceiving bids shall be of the essence. COST OF BOND FORMS:The Town shallbearthecostof printing ofthe Bonds and willfurnishfully executed Bonds,registered inthenameofthe winning bidder or nominees,tothe winning bidder upon payment therefor. AWARD AND DELIVERY:Unless allbidsare rejected,the Bonds will be awarded to the bidder who complies withthe provisions of this Notice and whose bid results inthe lowest net interest costtotheTown.Thenet interest costwillbe determined by computing the aggregate amount ofinterest payable onthe Bonds fromtheirdateto their respective maturity dates andby deducting therefrom any premium.Delivery ofthe Bonds willbemadetothe winning bidder upon payment infederalor immediately available fundsatthe offices of Bond Counsel,or,atthe winning bidder's request and expense,atanyotherplace mutually agreeable toboththe Town andthe winning bidder. CANCELLATION:Bidders aretotakenoticethat,pursuant to Arizona law,if,within three(3)yearsfromtheawardofthe contract topurchasetheBonds,anypersonwhowassignificantly involvedininitiating,negotiating,securing,draftingor creating the contract forthepurchaseoftheBonds on behalf oftheTown becomes an employee or agent ofthe winning bidder inany capacity ora consultant tothe winning bidderwithrespecttothe contract forthe purchase oftheBonds,theTownmaycancelthe contractwithoutpenaltyorfurtherobligationbytheTown.Inadditiontosuch cancellation,theTownmay recoupanyfeesorcommissionspaidorduetoanypersonwhowassignificantlyinvolvedininitiating, negotiating,securing,draftingorcreatingthecontractforthepurchaseoftheBondsonbehalfoftheTown. LEGAL OPINION:The Bonds aresoldwiththe understanding thattheTownwill furnishthewinningbidderwiththeapprovingopinionofGustRosenfeld,P.L.C.,servingasBondCounsel. Anundatedcopyofsuchopinioncanbefoundinthepreliminaryofficialstatement(the "Preliminary Official Statement").SaidattorneyshavebeenretainedbytheTownasBondCounselandinsuchcapacity aretorendertheiropiniononlyuponthelegalityoftheBondsunderArizonalawandontheexemptionof the interest income on such Bonds from federal and State of Arizona income taxes (see "Tax-Exempt Status"below).Fees of BondCounselforservicesrenderedinconnectionwithsuchapprovingopinionare expected tobepaidfromBond proceeds.Excepttotheextent necessary toissueitsapprovingopinionas tovalidityoftheBonds,BondCounselhasnotbeenrequestedtoexamineorreviewandhasnot examined orreviewedany financial documents,statementsormaterialsthathavebeenormaybe furnished in connectionwiththeauthorization,issuanceormarketingoftheBondsandaccordinglywillnotexpressany 2245517.3 A-5 opinionwithrespecttotheaccuracyorcompletenessofanysuchfinancialdocuments,statementsor materials.InsubmittingabidfortheBonds,thebidderagreestotherepresentationoftheTownbyBond Counsel. TAX-EXEMPT STATUS:In the opinion ofBond Counsel under existing laws, regulations,rulingsandjudicialdecisions,andassuming continuing compliance withcertainrestrictions, conditions and requirements bythe Town,interest income ontheBondsis excluded fromgrossincomefor purposesof calculating federalincometaxes.IntheopinionofBondCounsel,interestincomeontheBonds is exempt from Arizona incometaxes. Should changes inthelaw cause Bond Counsel's opinion to change priorto delivery ofthe Bondstothe winning bidder,thewinningbidderwillnotbeobligatedtopickupandpayfortheBonds, andthe winning bidder's Deposit willbe returned. QUALIFIED TAX-EXEMPT OBLIGATIONS:TheBondswillbe"qualifiedtax-exempt obligations"forpurposesofSection265(b)(3)oftheInternalRevenueCodeof1986,asamended(the "Code"). PRELIMINARY OFFICIAL STATEMENT DEEMED FINAL.DELIVERY OF FINAL OFFICIAL STATEMENT:TheTown,actingthroughitsFinanceDiretor,willdeemthe Preliminary Official Statement provided in connection withthesaleofthe Bonds tobefinalasofitsdate, asrequiredbySection240.15c2-12,GeneralRulesandRegulations,SecuritiesExchangeCommissionAct of 1934 (the "Rule"),exceptfortheomission of offeringprices,sellingcompensation,deliverydates,terms tobespecifiedinthewinningbidder'sbid,ratings,othertermsdependingonsuchmattersandtheidentity ofthewinningbidder,allasmaybenecessaryfortheTowntocompleteafinalofficialstatement. Withintwenty-four(24)hoursaftertheawardoftheBonds,thewinningbiddermust providetheTownwithallnecessaryofferingpriceinformation,sellingcompensationinformation,allother termsofthesalewhichdependonsuchmattersandany underwriter information,allasmaybe necessary fortheTownto complete thefinalofficial statement. Withinseven(7)businessdaysaftertheawardoftheBonds,theTownwillprovidethe winningbidderwiththefinalofficialstatementinanelectronic format asprescribedbytheMSRBatno cost.Thefinalofficialstatementwillbein substantially thesameformasthe Preliminary Official Statementwithsuchadditions,deletionsorrevisionsastheTowndeemsnecessary. TheTownwilldeliveratclosinganexecutedcertificatestatingthatasofthedateof delivery the information contained inthe final officialstatement,including any supplement,relating tothe TownandtheBondsistrueandcorrectinallmaterialrespectsandthatsuchfinalofficialstatementdoes notcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethe statementstherein,inlightofthe circumstances underwhichtheyweremade,not misleading. CONTINUING DISCLOSURE:InconnectionwiththeissuanceoftheBonds,theTown willdeliveracontinuingdisclosurecertificateforpurposesoftheRuleashereinafterdescribedandas described inthefinalofficial statement.For purposes oftheRule,theTownistheonly"obligated person" with respect tothe Bonds.The Town will agree,as described inthe final official statement,to provide or causetobe provided (i)certain annual financial information and operating data(the "Annual Information") forthe preceding fiscal year,(ii)theTown's audited financial statements,(iii)timely notice,notin excess of ten business days after the occurrence of certain listed events with respect tothe Bonds,and (iv)timely notice of any failure bythe Town to provide its Annual Information within the time specified in that certificate.Seethemorecompletedescriptionofthecertificateinthefinalofficialstatement. 2245517.3 A-6 TheAnnualInformationwhichwasdueonFebruary1,2010throughandincluding2014 withrespecttopast undertakings enteredintobytheTownwerenottimelyfiledincompliancewiththe Rule.However,theTowntimelyfileditsauditedfinancialstatementsineachofthoseyears.TheTown filedthisAnnualInformationonAugust1,2014. TheAnnualInformationwhichwasdueonFebruary1,2010throughandincluding2014 withrespecttopast undertakings enteredintobytheTownofFountainHillsMunicipalProperty Corporation,inwhichtheTownisthe"obligatedperson"withrespondtothosebonds,werenottimely filedin compliance withtheRule.However,theTowntimelyfileditsauditedfinancial statements ineach ofthoseyears.TheTownfiledthisAnnualInformationonAugust1,2014. TheTownhas established procedures toensuretimelyandproperfilingofitsAnnual Information. NO LITIGATION AND NON-ARBITRAGE:The Town will deliver a certificate to the effect,exceptas otherwise describedinthe Preliminary Official Statement orthefinalofficialstatement, thatnolitigationis pending affecting the issuance andsaleoftheBonds.TheTownwillalsodeliveran arbitragecertificate covering itsreasonable expectations concerning theBonds. ADDITIONAL INFORMATION:Copies ofthisNoticeandthe Preliminary Official Statement relating totheBondswillbefurnishedtoanybidderuponrequestmadetotheFinanceDirector ofFountainHills,Arizona;16705E.AvenueoftheFountains,FountainHills,Arizona85268,telephone 480-816-5162 orto Wedbush Securities Inc.,3200 E.Camelback Road,Suite 290,Phoenix,Arizona 85018,telephone 602-952-6852,Financial Advisor totheTownwithrespecttotheBonds. TOWN OF FOUNTAIN HILLS,ARIZONA 2245517.3 A-7