Bill No. 49-23 Revenue Bonds Authorizing the Acquisition & Construction of the Municipal Waterworks

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including the works herein acquired and constructed and all additions and improvements thereto and replacements thereof subsequently constructed or acquired. If the bonds herein authorized will be sold to the IFA Program, such terms shall also be construed to mean the Drinking Water System,as defined in the Financial Assistance Agreement to be entered into, in such case,between the City and the Authority through the IFA Program. The Project shall be constructed in accordance with the plans and specifications heretofore mentioned,which plans and specifications are hereby approved. The Project shall be constructed and the bonds and/or BANs herein authorized shall be issued pursuant to and in accordance with the Act. The City reasonably expects to reimburse expenditures incurred by the City for the Project with proceeds of the BANs or the Bonds and this Ordinance constitutes a declaration of Official Intent pursuant to Treasury Regulation 1.150-2(e) and the provisions of I.C. 5-1-14-6(c). In the event the bonds herein authorized or the BANs are purchased by the Authority as part of the IFA Program, on behalf of the City, the Common Council hereby (i) agrees to own, operate and maintain the waterworks and the Project for the duration of their useful life and(ii)represents and warrants to the Authority that the Common Council has no intent to sell, transfer or lease the waterworks or the Project for the duration of their useful life. SECTION III. Issuance of BANs and Bonds. (a)The City shall issue, if necessary, its BANs for the purpose of procuring interim financing to apply to the cost of the Project and capitalized interest, if any. The City shall issue its BANs, in one or more series, in an amount not to exceed Forty-Seven Million Seven Hundred Ninety-one Thousand Dollars($47,791,000) to be designated "Waterworks Revenue Bond Anticipation Notes, Series to be completed with the year in which issued and appropriate series designation, if any). Each series of BANs shall be numbered consecutively from_R-1 upward (with such blank to be filled in based on the year of issuance of the BANs), shall be sold at a price not less than 99% of their par value, shall be in denominations of One Dollar ($1) or integral multiples thereof(or such higher minimum denomination as the Controller of the City (the "Controller") shall determine prior to the sale of the BANs and as set forth in the Bond Anticipation Note Agreement(as hereinafter defined)),shall be dated as of the date of delivery thereof, and shall bear interest at a rate not to exceed 5.00%per annum (the exact rate or rates to be determined through bidding or negotiation with the purchaser of the BANs) payable upon maturity. The City may receive payment on the BANs in installments. Each series of BANs will mature no later than five (5) years after their date of delivery. The BANs are subject to renewal or extension at an interest rate or rates not to exceed 5.00% per annum (the exact rate or rates to be negotiated with the purchaser of the BANs). The term of the BANs and all renewal BANs may not exceed five years from the date of delivery of the initial BANs. The BANs shall be registered in the name of the purchasers thereof. Notwithstanding anything in this Ordinance to the contrary, any series of BANs issued hereunder may bear interest that is taxable and included in the gross income of the owners thereof. If any such BANs are issued on a taxable basis, the designated name shall include the term "Taxable"as the first word in the designated name. The BANs shall be issued pursuant to the provisions of IC § 5-1.2-1 through IC § 5-1.2-4, IC § 5-1.2-10, IC § 5-1.2-14 and/or IC § 5-1.2-14.5 if sold to the Authority or pursuant to the provisions of I.C. § 5-1-14-5,as amended,and the Act, if sold to a financial institution or any other purchaser. The principal of and interest on the BANs shall be payable solely from the issuance of revenue bonds pursuant to and in the manner prescribed by the Act (or, with respect solely to interest, from a pledge of the Net Revenues). The City may also use other revenues or funds of 4 -