29-07 Bonds - Street Improvements

Home Browse Search

(3) Any money remaining from the sale of the Notes and not required for the payment of costs of the Project The Debt Service on the Notes niust be paid at their maturity from any of the amounts set forth above pledged to thek paymant, or any funds of the City otherwise available for their payment. (c) During the years wtfile the Notes are outstanding, there will be levied on all the taxable properly in the City, in addition to all other taxes, a direct tax anunally~ subject to tax limitations, not less than the tax that would have been levied had the Bonds been issued without the prior issue of the Notes. The tax must be and is ordered to be computed, certified, levied, and extended upon the tax list and colle9ted by the same officers, in the same manner, and at the same time that taxes for general purposes for each of those years are computed, certified, levied, extended, and collected The tax must be placed before and in preference to all other items and for its full amount. 2~ne money derived from that tax levy must be placed in the Bond Retirement Fund of the City and is irrevocably pledged for the payment of the Debt Service on the Notes, wben and as that Debt Service falls due. If any of the following mnounts are available for the payment of the Notes and are appropriated for that purpose, the amount of the tax levy in each year must be reduced by the amount available and appropriated' (1) Any surplus in the Bond Retirement Fund. (2) Proceeds received fi'om the sale of the Bends or any notes issued to re fired or renew the Notes. (3) Any other money lawfully available to the City Section 1L Federal Tax Matters. The City covenants that it will take those actions required to maintain the l~ederal Tax Status on the Notes and that it will not take or permit to be taken any actions that would adversely affect that Federal Tax Status. Without limiting' these covenants, the City specifically covenants as follows: (a) Private Activity Bonds. The City will apply the proceeds received from the sale of the Notes to pay costs of the Project and to pay the Financing Costs in connection with the Notes. The City will not permit the use of the Project by any person, will not secure or derive the money for payment of Debt Service on the Notes by any property or payments, and will not loan the proceeds of the Notes to any person, all in a manner as to ?arise the Notes to be "private activity bonds" within the meaning of Code Section 141(a). Co) Arbitrage. The City will restrict the use of proceeds of the Notes in the manner and to the extent as may be necessary, after taking inte account reasonable expectations at the time of the delivery of and payment for-the Notes, so that the Notes will not constitute "arbth'age bonds" wittfin the meauing of Code Section 148. The Director of Finance or any other official having responsibility for issuing the Notes, is authorized and directed, alone or in conjunction with any other officer, employee, or cousultant of the City, to sign and deliver a certificate of the City, for inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations of the City on the Closing Date, regarding the amount and use of the proceeds of the Notes in accordance with Code Section 148. If required, the City will thnit the yield on any "investment property" (as defined in Code Section 148(b)(2)) acquired with the proceeds of the Notes Arbitrage Rebate. Unless the gross proceeds of the Notes are expended in accordance with one of the spending period exceptions set forth in Treas Reg ~ 1.148-7, the City will pay the amounts required by Code Section 148(0(2) to the United States at the times required by Code Section 148(0(3) The City will maintain the books and records and make the calculations and reports that are required to comply with the Code's arbitrage rebate requh'ements