Authorizing Issuance of Revenue Bonds concerning construction of Improvements to Waterworks, not to exceed $2,050,000

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and are hereby incorporated by reference as if set forth in full at this place, two copies of which are on file and available for public inspection in the office of the City Clerk pursuant to I.C. §36-1-5-4. The actions of the Board of Directors of the Department of Waterworks (the "Board") of the City taken in connection with the Proj ect are hereby approved, ratified, and confirmed. The Proj ect shall be constructed and the bonds herein authorized shall be issued pursuant to and in accordance with the Act. The terms "works" and "utility" and other like terms where used in this Ordinance shall be construed to mean the Drinking Water System, as defined in the Financial Assistance Agreement and includes all structures and property of the City's waterworks utility. SECTION 2. Authorization of Obli atg_ions. (a) The City shall issue its "Waterworks Revenue Bonds of 1999" (the "1999 Bonds"), in one or more series, in an original principal amount not to exceed Two Million Fifty Thousand Dollars ($2,050,000) (the "Authorized Amount"), as negotiable, fully registered bonds, for the purpose of procuring funds to be applied to the costs of the Project, including without limitation reimbursement ofpreliminary expenses related thereto and all incidental expenses incurred in connection therewith (all of which are deemed to be a part of the Project), and the costs of selling and issuing the 1999 Bonds and funding a debt service reserve as described herein. The 1999 Bonds shall rank on a parity for all purposes with the Prior Bonds. The 1999 Bonds shall be issued in denominations of One Dollar ($1.00) or integral multiple thereof, numbered consecutively from 1 upward, and dated as of the first day of the month in which they are sold, or the date of delivery if sold to the State of Indiana or Indiana Bond Bank, and shall bear interest at a rate or rates not to exceed 2.90% per annum (the exact rate or rates to be determined by bidding or through negotiation with the Indiana B and B ank). Interest shall be payable semiannually on January 1 and July 1 in each year, beginning on the first interest payment date after 2 years from the date of issuance of the 1999 Bonds if the 1999 Bonds are sold to the Indiana Bond Bank or the State of Indiana, as set forth in the Financial Assistance Agreement to be entered into between the City and the State of Indiana (the "Financial Assistance Agreement") in substantially the form attached hereto as Exhibit B. In the event the 1999 Bonds are sold by public sale pursuant to I.C. 5-1-11, the first interest payment date shall be the first January 1 or July 1 following the date of issuance of the 1999 Bonds. Interest on the BANS and the 1999 Bonds shall be calculated according to a 360-day calendar year containing twelve 30-day months. The 1999 Bonds shall mature beginning the first January 1 following the date of substantial completion ofthe Project, and on January 1 of each year thereafter over a period ending no later than 20 years after substantial completion of the Project and in such amounts that will produce as level annual debt service as practicable, substantially as set forth on the schedule on Exhibit C, with such changes as are finally determined by the Mayor as the executive of the City (the "Executive") and the Controller as the fiscal officer of the City (the "Fiscal Officer"), as evidenced by delivery of the executed initial issue of the 1999 Bonds to the Registrar for authentication. All or a portion of the 1999 Bonds may be aggregated into and issued as one or more term bonds. The term bonds will be subj ect 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 -3-