10963-23-Ordinance Authorizing the Acquisition and Construction of Certain Additions and Improvements to the Municipal Waterworks of the City of South Bend

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provided, however, that no funds other than proceeds from the issuance and sale of the Bonds, if and when issued,are pledged to the payment of principal of the BANs. Notwithstanding any other provision of this Ordinance,if the BANs are sold to a purchaser that so agrees,the City may receive payment for the BANs in installments, and principal shall not be payable and interest shall not accrue on the BANs until such principal amount has been advanced pursuant to requests made by the City to such purchaser. In the event that the total principal amount of the BANs sold to such purchaser is not advanced to the City, the principal amount of the BANs shall be reduced accordingly. The revenue bonds will be payable solely out of and constitute a first charge upon all the Net Revenues of the waterworks of the City, including the works herein acquired and constructed and all additions and improvements thereto and replacements thereof subsequently constructed or acquired. (b)The City shall issue its waterworks revenue bonds,in one or more series,in an aggregate principal amount not to exceed Forty-Seven Million Seven Hundred Ninety-one Thousand Dollars ($47,791,000)to be designated"Waterworks Revenue Bonds, Series ,"with the blank to be completed with the year in which issued and the appropriate series designation, if any (the "Bonds"), for the purpose of procuring funds to be applied to the cost of the Project, the payment of costs of issuance, refunding the BANs, if issued, capitalized interest, if any, and all other costs related to the Project. Each series of Bonds shall be sold at a price of not less than 99% of the par amount of the Bonds and shall be issued in authorized denominations of One Dollar ($1) each if sold to the Authority as part of the IFA Program and in the denomination of Five Thousand Dollars ($5,000) each or integral multiples thereof if sold to another purchaser (or such higher minimum denomination as the Controller may determine prior to the sale of other Bonds with the advice of Baker Tilly Municipal Advisors, LLC(the"Municipal Advisor"))if sold to another purchaser, and any integral multiple thereof not exceeding the aggregate principal amount of the Bonds maturing in any one (1) year. The Bonds shall be numbered consecutively from R-1 upward (with such blank to be completed with the year of issuance of the Bonds and the appropriate series designation, if any), dated as of their date of delivery, and shall bear interest at a rate or rates not exceeding 5.00% per annum (the exact rate or rates to be determined by negotiation with the IFA Program, or by bidding, as the case may be),payable semiannually on January 1 and July 1 in each year, beginning no earlier than January 1, 2024, as determined by the Controller, with the advice of the Municipal Advisor. The Bonds shall be payable in lawful money of the United States of America, at the principal office of the Paying Agent (as hereinafter defined). The Bonds shall mature annually,or shall be subject to mandatory sinking fund redemption if term bonds are issued, on January 1 of each year, through January 1, 2033, and shall mature semiannually, or shall be subject to mandatory sinking fund redemption if term bonds are issued, on January 1 and July 1 thereafter, over a period ending no later than January 1, 2048, in such amounts as deemed appropriate by the Controller, upon the advice of the Municipal Advisor; provided, however, that any Bonds sold to the Authority as part of its IFA Program shall mature annually on January 1, or be subject to mandatory sinking fund redemption on January 1 through January 1, 2033, and shall mature semiannually, or shall be subject to mandatory sinking fund redemption if term bonds are issued, on January 1 and July 1 thereafter, over a period ending no later than thirty-five(35)years from the date of issuance of the Bonds, and in such amounts as will allow the City to meet the coverage and/or amortization requirements of the IFA Program, with such debt service schedules to be finalized and set forth in the Financial Assistance Agreement. The Bonds will be payable solely out of and constitute a first charge against the Net Revenues (as hereinafter defined) of the City's Waterworks, inclusive of System Development Charges (as hereinafter defined), on parity with the Prior Bonds. All or a portion of the Bonds may be issued as one or more term bonds, upon election of the purchaser thereof. Such term bonds shall have a stated maturity or maturities consistent with the maturity schedule determined in accordance with the preceding paragraph, in the years as determined by the purchaser thereof, but in no event later than the last serial maturity date of the Bonds as determined in the preceding paragraph. The term bonds shall be subject to mandatory sinking fund redemption and final payment(s)at maturity at 100%of the principal amount thereof, plus accrued interest to the redemption date, on principal payment dates which are hereafter determined in accordance with the preceding paragraph. Each series of Bonds shall rank on a parity basis with any other series issued hereunder and the Prior Bonds for all purposes, including the pledge of Net Revenues under this Ordinance. -4 -