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

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The Prior Ordinances permit the issuance of additional revenue bonds ranking on a parity basis with the Prior Bonds for the purpose of financing the complete or partial refunding of any of the Prior Bonds, so long as certain conditions are met. Crowe Horwath LLP, Financial Advisor to the City (the "Financial Advisor"), has been employed by the Board for the purpose of analyzing the records and finances of the Sewage Works, and has submitted preliminary evidence and findings demonstrating compliance with the conditions set forth in the Prior Ordinances for the issuance of additional revenue bonds payable out of the revenues of the Sewage Works and ranking on a parity with the Prior Bonds. The remaining portion of the cost of the Refunding shall be paid through an additional appropriation from the Reserve Account (defined herein) (City's Fund No. 653). The City desires to authorize the issuance of a bond anticipation note or notes hereunder, if necessary, payable from the proceeds of the revenue bonds authorized herein (the `BANS"), and to authorize the refunding of said BANs, if issued. The Council now finds that all conditions precedent to the adoption of an ordinance authorizing the issuance of revenue bonds and BANs have been complied with in accordance with the applicable provisions of the Act. NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,AS FOLLOWS: SECTION 1. Refunding the 2006 Bonds, 2007 Bonds and 2007B Bonds. The Council hereby determines, after being duly advised, that it is beneficial to refund the Refunded Bonds to enable the City to obtain a reduction in interest payments and effect a savings to the City. The City may proceed with the Refunding, the costs of which are not expected to exceed $250,000, without further authorization from the Council. The terms "works" and "utility" and other like terms where used in this Ordinance shall be construed to mean and include all structures and property of the City's sewage works utility. The 2006 Project, 2007 Project and 2007B Project have all been constructed in accordance with the plans and specifications heretofore mentioned, which plans and specifications have previously been approved. A portion of the cost of the Refunding will be paid with the proceeds of the 2015 Bonds to be issued pursuant to the provisions of this Ordinance and the Act. The City may also use other legally available funds on hand to pay for the remainder of the cost of the Refunding, including the Additional Appropriation (defined herein). SECTION 2. Authorization of Obligations. (a) The City shall issue its "Sewage Works Refunding Revenue Bonds of 2015" or such other designation as the Executive (as defined below) or the Fiscal Officer (as defined below) shall determine at the time of issuance of any series of bonds (the "2015 Bonds"), in one or more series (as designated by the City, a "Series"), in an original principal amount not to exceed Twenty-Eight Million Dollars ($28,000,000) (the "Authorized Amount"), as negotiable, fully registered bonds, for the purpose of procuring funds to be applied to the costs of the Refunding, and all incidental expenses incurred in connection therewith (all of which are deemed to be a part of the Refunding), and the costs of selling and issuing the 2015 Bonds. The - 3 -