21-09 Anticipation Notes $4,321,000 capital improvements

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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 collected by the same officers, in the same manner, and at the same time that taxes for general purposes for each of those yeazs aze computed, certified, levied, extended, and collected. The tax must be placed before and in preference to all 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 following amounts are available for the payment of the Notes and aze appropriated for that purpose, the amount of the tax levy in each year must be reduced by the amount available and appropriated: (1) The special assessments levied to pay the costs of the Sidewalk 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. Secfion 12. 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 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 Projects, to retire the Outstanding Notes, and to pay the Financing Costs in connection with the Notes. The City will not pernvt the use of the Projects 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 cause the Notes to be "private activity bonds" within the meaning of Code Section 141(a). (b) 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 "azbitrage bonds" within the meaning 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 consultant 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, regazding 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 property" (as defined in Code Section 148(b)(2)) acquired with the proceeds of the Notes. 10