9603-05 Authorizing the Issuance of Revenue Bonds - Concerning the Construction of Improvements to the Municipal Waterworks - not to exceed $4,710,000

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SECTION 2. Authorization of Obligations. (a) The City shall issue its "Waterworks Revenue Bonds of 2005" (the "2005 Bonds"), in one or more series, in an original principal amount not to exceed Four Million Seven Hundred Ten Thousand Dollars ($4,710,000) (the "Authorized Amount"), as negotiable, fully registered bonds, for the purpose of procuring funds to be applied to the costs of the Project, including without limitation reimbursement of preliminary expenses related thereto and all incidental expenses incurred in connection therewith (all of which are deemed to be a part of the Project), and the costs of selling and issuing the 2005 Bonds and funding a debt service reserve as described herein. The 2005 Bonds shall rank on parity for all purposes with the Prior Bonds. The 2005 Bonds shall be issued in denominations of Five Thousand Dollars ($5,000) or any integral multiple thereof, numbered consecutively from 1 upward, and dated as of the first day of the month in which they are sold. The 2005 Bonds shall bear interest at a rate or rates not exceeding eight percent (8%) per annum (the exact rate or rates to be determined by bidding), and interest shall be payable semiannually on January 1 and July 1 in each year, beginning not earlier than January 1, 2006, with the beginning date of interest payments being finally determined by the Mayor as the executive of the City (the "Executive") and the Controller as the fiscal officer of the City (the "Fiscal Officer"), as evidenced by delivery of the executed initial issue of the 2005 Bonds to the Registrar for authentication. Interest on the BANs and the 2005 Bonds shall be calculated according to a 360-day calendar year containing twelve 30-day months. The 2005 Bonds shall mature beginning not earlier than January 1, 2007 and on January 1 of each year thereafter over a period ending not later than January 1, 2027, substantially as set forth on the schedule on Exhibit B, with such changes as are finally determined by the Executive and the Fiscal Officer, as evidenced by delivery of the executed initial issue of the 2005 Bonds to the Registrar for authentication. All or a portion of the 2005 Bonds maybe aggregated into and issued as one or more term bonds. The term bonds will be subject to mandatory sinking fund redemption with sinking fund payments and final maturities corresponding to the serial maturities described above. Sinking fund payments shall be applied to retire a portion of the term bonds as though it were a redemption of serial bonds and, if more than one term bond of any maturity is outstanding, redemption of such maturity shall be made by lot. Sinking fund redemption payments shall be made in a principal amount equal to such serial maturities, plus accrued interest to the redemption date, but without premium or penalty. For all purposes of this Ordinance, such mandatory sinking fund redemption payments shall be deemed to be required payments of principal which mature on the date of such sinking fund payments. Appropriate changes shall be made in the definitive form of 2005 Bonds, relative to the form of 2005 Bonds contained in this Ordinance, to reflect any mandatory sinking fund redemption terms. (b) The City shall issue, if necessary, BANS for the purpose of procuring interim financing for the Project. Any such issuance shall be in accord with the provisions of Section 25 of this Ordinance. SECTION 3. Pledge of Net Revenues; Payment of Principal and Interest. The 2005 Bonds, and any bonds ranking on a parity therewith, including the Prior Bonds, as to principal, premium, if any, and interest, shall be payable solely from and are hereby secured by an -4-