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(iii) ninety-five percent of the net proceeds of the Bonds are to be used for the local <br /> governmental purposes of the City; and <br /> (iv) the aggregate face amount of all'tax-exempt bonds(other than Private Activity <br /> Bonds)issued by the City in calendar year in which the Bonds are to be issued is <br /> not reasonably expected to exceed$5,000,000. <br /> Therefore,pursuant to the provisions of Section 148(f)(4)(C)of the Code,the City shall <br /> not be required to comply with the arbitrage rebate requirements of paragraphs(2)and(3)of <br /> Section 148(f) of the Code. <br /> 6.05. Investment of Mone own Deposit in the Bond Fund. The Finance Director shall <br /> ascertain monthly the amount on deposit in the Bond Fund. If the amount on deposit therein ever <br /> exceeds the aggregate amount of principal and interest due and payable from the Bond Fund <br /> through the next following February 1 plus a reasonable carryover as permitted by the <br /> Regulations, such excess shall be used to prepay and redeem Bonds or be invested at a yield less <br /> than or equal to the yield on the Bonds,based upon their amounts,maturities and interest rates <br /> on their date of issue, computed by the actuarial method. The City reserves the right to amend <br /> the provisions of this Section at any time,whether prior to or after the delivery of the Bonds, if <br /> and to the extent that this Council determines that the provisions of this Section are not necessary <br /> in order to ensure that the Bonds are not"arbitrage bonds"within the meaning of Section 148 of <br /> the Code and Regulations. <br /> ® 6.06. Arbitrage Certification. The Mayor and the City Manager,being the officers of the <br /> City charged with the responsibility for issuing the Bonds pursuant to this resolution, are <br /> authorized and directed to execute and deliver to the Purchaser a certification in accordance with <br /> the provisions of Section 148 of the Code,and the Regulations, stating the facts,estimates and <br /> circumstances in existence on the date of issue and delivery of the Bonds which make it <br /> reasonable to expect that the proceeds of the Bonds will not be used in a manner that would <br /> cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. <br /> 6.07. Interest Disallowance. The City hereby designates the Bonds as"qualified tax— <br /> exempt obligations"for purpose of Section 265(b)of the Code relating to the disallowance of <br /> interest expenses for financial institutions. The City represents that in calendar year 2008 it does <br /> not reasonably expect to issue tax—exempt obligations which are not private activity bonds (not <br /> treating qualified 501(c)(3)bonds under Section 145 of the Code as private activity bonds for <br /> purposes of this representation)in an amount in excess of$10,000,000. <br /> 6.08. Official Statement. The Official Statement relating to the Bonds, dated May 1, <br /> 2008,prepared and distributed on behalf of the City by Ehlers &Associates, Inc.,is hereby <br /> approved. Ehlers&Associates,Inc.,is hereby authorized of behalf of the City to prepare and <br /> distribute to the Purchaser a supplement to the Official Statement listing the offering price,the <br /> interest rates,other information relating to the Bonds required to be included in the Official <br /> Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission under the <br /> Securities Exchange Act of 1934. Within seven business days from the date hereof,the City <br /> shall deliver to the Purchaser 30 copies of the Official Statement and such supplement. The <br /> -15- <br />