9712-06 Authorizing the Issuance and Sale of CED Income Tax Rev Bonds to Previously issued and current Outstanding CED Bonds

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Based upon information provided by Crowe Chizek and Company (the "Financial Advisor"), the City has determined that savings will be generated through the refunding of the outstanding Prior Bonds. The City has determined that in order to generate such savings, there exists a necessity for issuing and selling refunding bonds for the purpose of advance refunding the Prior Bonds, together with expenses incidental thereto, including expenses incurred in connection with the issuance of such refunding bonds. The City desires to provide for the advance refunding prior to maturity of the Prior Bonds in order to achieve savings over the remaining term. In order to accomplish such refunding of the Prior Bonds and to secure the payment of the principal of, premium, if any, and interest on the Prior Bonds through the redemption date thereof, this Common Council has determined that all or a portion of the net proceeds from the sale of county economic development income tax refunding revenue bonds in two (2) series to be designated as (i) the "City of South Bend, Indiana, County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 A" in an aggregate principal amount not to exceed $4,600,000 (the "Series A Refunding Bonds") and (ii) the "City of South Bend, Indiana, Taxable County Economic Development Income Tax Refunding Revenue Bonds, Series 2006 B" in an aggregate principal amount not to exceed $4,100,000 (the "Series B Refunding Bonds" and with the Series A Refunding Bonds, the "Refunding Bonds") will be paid to an escrow agent to be selected by the City (the "Escrow Agent"), and held in separate accounts and applied pursuant to an irrevocable escrow deposit agreement (the "Escrow Agreement") between the City and the Escrow Agent providing for amounts on deposit thereunder to be used to pay the principal of, premium, if any, and interest on the Prior Bonds to and on their redemption date. This Common Council now finds that all conditions precedent to the adoption of an ordinance, authorizing the issuance of the Series A Refunding Bonds and the Series B Refunding Bonds and providing the necessary funds to be applied to the refunding of the Prior Bonds and the authorized costs relating thereto, have been complied with in accordance with the provisions of the Act and the Refunding Law. This Common Council consequently seeks to authorize the issuance of the Series A Refunding Bonds and the Series B Refunding Bonds to refund the outstanding Prior Bonds pursuant to the Act and the Refunding Law and the sale of such revenue bonds by negotiation to the underwriter as set forth herein, pursuant to the provisions of the Refunding Law, subject to and dependent upon the terms and conditions hereinafter set forth. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: SECTION 1. In accordance with the Act and the Refunding Law and for the purpose of providing funds to effect the refunding of the Prior Bonds, and paying authorized expenses relating thereto, the City shall issue and sell (i) the Series A Refunding Bonds in an BDDBOI 4539793v1 -2-