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

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City reasonably expects to reimburse expenditures for the Refunding with the proceeds of the 2015 Bonds and this constitutes a declaration of official intent to reimburse expenditures under Treas. Reg. 1.150-2(e) and Indiana Code 5-1-14-6(c). The 2015 Bonds shall rank on parity for all purposes with the Prior Bonds. The 2015 Bonds shall be issued in denominations of Five Thousand Dollars ($5,000) or any integral multiple thereof, or if issued as a private placement in denominations of $100,000 with integral multiples of$1,000 thereafter, numbered consecutively from 1 upward, and dated the date of delivery. The 2015 Bonds shall bear interest at a rate or rates not exceeding three percent (3.00%) per annum, and interest shall be payable semiannually on June 1 and December 1 in each year, 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, or any acting, assistant or deputy controller of the City (the "Fiscal Officer"), with the advice of the City's financial advisor, as evidenced by delivery of the executed initial issue of the 2015 Bonds to the Registrar for authentication. Interest on the BANs and the 2015 Bonds shall be calculated according to a 360-day calendar year containing twelve 30-day months. The 2015 Bonds shall mature on December 1 of each year beginning in the year and in such amounts as is deemed appropriate by the Executive and the Fiscal Officer, with the advice of the City's financial advisor, as evidenced by delivery of the executed initial issue of the 2015 Bonds to the Registrar for authentication, and over a period ending not later than December 1, 2027. All or a portion of the 2015 Bonds may be 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 2015 Bonds, relative to the form of 2015 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 Refunding. 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 2015 Bonds and any bonds ranking on a parity therewith, as to principal, premium and interest, shall be payable from and are hereby secured by an irrevocable pledge of and shall constitute a charge upon all the Net Revenues, herein defined as the gross revenues of the Sewage Works after deduction only for payment of the reasonable expenses of operation, repair and maintenance but not including depreciation and payments in lieu of taxes (the "Net Revenues") of the Sewage Works of the City, which bonds constitute a first charge on said Net Revenues. The City shall not be obligated to pay said bonds or the interest or premium, if any, thereon except from the Net -4 -