CC RES 12-093 RESOLUTION RELATING TO $1,400,000 GENERAL OLIGATION WATER AND SEWER REFUNDING BONDS, SERIES 2013A; AWARDING THE SALE, FIXING THE FORM AN DETAILS AND PROVIDING FOR THE SECURITY THEREFOR AND LEVYING AS VALOREM TAXES FOR THE PAYMENT THEREOF

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respect to such Bond, only to Cede & Co. in accordance with the Representation Letter, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (d) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (d) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (d) hereof. (d) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. Section 4. Use of Proceeds; Security Provisions. 4.01. Use of Proceeds. Upon payment for the Bonds by the Purchaser, the City Manager shall deposit proceeds of the Bonds in the amount of$1,450,000 in the sinking fund established for the Prior Bonds to be applied to the payment of the principal amount of the Prior Bonds on the Redemption Date, the accrued interest on the Bonds paid by the Purchaser shall be deposited in the Bond Fund created in Section 4.02 hereof and the remaining proceeds of the Bonds shall be used to pay costs of issuance of the Bonds and costs of refunding the Prior Bonds. 4.02. 2013 Water and Sewer Utility Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the City Finance Director shall maintain on its books and records a separate and special bookkeeping fund designated "2013 Water and Sewer Utility Bond Fund" (the "Bond Fund") to be used for no purpose other than the payment of the principal of and interest on the Bonds and any additional obligations of the City payable therefrom pursuant to Section 4.03 hereof. If the balance in the Bond Fund is ever insufficient to pay all principal and interest then due on bonds payable therefrom, the City Finance Director shall nevertheless provide sufficient money from any other funds of the City which are available for that purpose, and such other funds shall be reimbursed from subsequent receipts of net revenues of the Utility appropriated to the Bond Fund and, if necessary, from the -13-