31-07 Issue/Sale of notes to pay Sidewalk Program

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(3) The proceeds to be received from the sale of any notes issued to ref'and the Notes and of the Bonds in anticipation of wttich the Notes ere issued. (4) Any money remaining from the sale of fue Notes a,nd not required for the payment of costs of the Projcet. The Debt Service on the Notes must}be paid at their maturity from any of the mounts set forth above pledged to their pa3nnent, or any funds of the City otherwise available for their payment. (c) During the years while the Notes are outstanding, there will be levied on all the taxable property in the City, in addition to all other taxes, a direct tax annually, subject to tax li~nitatinns, not less than the tax that would have been levied had the Bonds been issued without the prior issue of the Notes. The tax mnst be and is ordered to be computed, certified, levied, and extended upon the tax ilst and collected by the stane officers, in the same manner, and at the same time that taxes for general purposes for each of those years ere computed, certified, levied, extended, and collected. ~'tte tax must be placed before and in preference to all other items and for its full amount. The money derived from that tax levy mnst 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 fails due. If any 0fthe following amounts ere available for the payment of the Notes and ere appropriated for that purpose, the amount of the tax levy in each yeer must be reduced by the amount available and appropriated: (1) The special assessments levied for the costs of the Project. (2) Any surplus in the Bond Retirement Fund. (3) Proceeds received from the sale of the Bonds or any notes issued to refund or renew the Notes. (4) Any other money lawfully available to the City Section 11. Federal Tax Matters. The City covenants that it will take those actions required to maintain the Federal 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 the~e 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 ofthe Project by any person, will not secure or derive the money for payment of Deht Service on the Notes by any property or payments, and will not loan the proceeds of the Notes to any person, ali in a manner as to cause the Notes to be "private activity bonds" within the meaning of Code Section 141 (a). 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 ea~d payment for the Notes~ so that the Notes will not constitute "erbllrage bonds" within the meaning of Code Section 148. The Director of Finance or any other official having responsibility for issuing the Notes, is author/zed and directed, alone or in conjunction with any other officer, employee, or consultant of the City, to sign and deliver a certificate of the City, for inclusion in the transcript of proceedings for tile 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 limit the yield on any "investment propbrty" (as defined in Code Section 148(b)(2)) aeqnired with the proceeds of the Notes (c) 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.