Refunding of Outstanding Sewage Works Revenue Bonds of 2006, 2007B in the Principal Amount not to Exceed $28,000,000

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parity with the 2015 Bonds when due, available moneys shall be applied, after payment of all costs and expenses associated therewith, to the 2015 Bonds and any such parity bonds as follows: to the payment to the persons entitled thereto of all unpaid installments of interest then due on, and the unpaid principal of,the 2015 Bonds and any such parity bonds, including interest on any past due principal of any 2015 Bond or such parity bonds at the rate borne by such 2015 Bond or such parity bonds, in the order of the maturity of the installments of such interest and the due dates of such principal and, if the amount available shall not be sufficient to pay in full any particular installment of interest or maturity of principal, then to such payment ratably, according to the amounts so due, to the persons entitled thereto, without any discrimination or privilege or any preference of or priority of interest over principal or principal over interest. During the continuance of any default in the payment of either principal of or interest or premium on any 2015 Bonds or bonds ranking on parity with the 2015 Bonds, no payment shall be made with respect to any subordinate obligations issued pursuant to Section 21(e). Moneys available for payment to holders of such subordinate obligations shall, in the event of an insufficient amount being available to pay all debt service with respect to the subordinate obligations when due, be applied to the subordinate obligations in accordance with the sequence and other terms set forth above with respect to payments regarding 2015 Bonds and such parity bonds unless otherwise provided in the ordinance authorizing the subordinate obligations. SECTION 34. Additional Appropriation. In order to provide a portion of the financing for the Refunding that will not be paid for from the proceeds of the 2015 Bonds, the Council hereby makes an additional appropriation in an amount not to exceed Three Million Two Hundred Thousand Dollars ($3,200,000) from the Reserve Account (City Fund No. 653) (the "Additional Appropriation"), which sum shall be transferred to the Refunding Fund to pay for the remainder of the costs of the Refunding. SECTION 35. Actions and Agreements. Each of the Executive, the Fiscal Officer and any other officer or employee of the City is hereby authorized and directed to execute any instruments or agreements or take any other actions necessary or desirable to effect the transactions contemplated by this Ordinance, such necessity or desirability to be conclusively evidenced by the execution of such instruments or agreements or the taking of such action. - 23 -