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{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 must be paid at their matm'ity from any of the mounts set forth above pledged to their payment, or any funds of the City otherwise available for their payment. ¢) During the years while th~ Notes are outstanding, there will be lea'led on ail the taxable property in the City, in addition to all other taxes, a direct tax annually, subject to tax limitations, not less than the tax that would ha~e been leviexl had the Bonds been issued without the prior issue of the Notes. The tax xnust be and is ordered to be computed, certified, levied, and extended upon the tax list and collected by the ~ame officers, ha the same manner, and at the ssxne trine that taxes for general purposes for each of those years are computed, certified, levied, extended, and collected. The tax most be placed before and in. preference to ail other items and for its full amount. The 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, when and as that Debt Service falls due. If any of the fdilowing amounts are available for the payment of the Notes and are appropriated for that purpose, the aurount 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) 13) Proceeds received from the sale of the Bonds or any notes issued to refund or renew the Notes Any other money lawhilly available to the City Section 11. Federal Tax Matters. lite City covenants that it will take those actions required to maintain the Federal Tax gtatus 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: 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, w/Il not secure or d6rive the ~noney for payment of Debt Service on the Notes by any proper~y or paymems, and will not loan the proceeds of the Notes to any person, all ha a manner as m cause the Notes to be "private activity bonds" within the meaning of Code Section 141la). 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 into account reasonable expectations at the time of the delivery of and payment for the Notes. so that the Notes will not constitute "arbiti'age bonds" within the xneaning of Code Section 148 The Director of Finance ~r any other official having responsibility for issuhag the Notes. is authorized and directed, alone or in conjunction with any other officer, employee, or consultant of the City, to sis and deliver a certificate of the City, for inclusion ha the transcript of proceedings for the Notes, setting forth the reasonable expectations of the City on the Closing Date, regarding the amount and nsc of the proceeds of the Notes in accordance with Code Section 148 If required, the City will limit the yield on any "investment property" (as defined in Code Section 148(b)(2)) acquired with the proceeds of the Notes lc) Arbitrage Rebate. Unless the gross proceeds of the Notes are expended ha accordance with one of the spending period exceptions set forth ha Treas. Reg §1.148-7, the City will pay the amounts required by Code Section 148(f)(2) to the United States at the times required by Code Section'148(f)(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 requirements