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For purposes of complying with the requirements of Section <br /> 148(f)(4)(C) of the Code relating to the exemption of certain small governmental <br /> units from the rebate requirements of the Code, the City represents that: <br /> (i) the City is a governmental unit with general taxing powers; <br /> (ii) the Bonds are not "private activity bonds" as defined in Section <br /> 141 of the Code (Private Activity Bonds); <br /> (iii) ninety-five percent of the net proceeds of the Bonds are to be <br /> used for the local governmental purposes of the City; and <br /> (iv) the aggregate face amount of all tax-exempt bonds (other than <br /> Private Activity Bonds) issued by the City in calendar year in <br /> which the Bonds are to be issued is not reasonably expected to <br /> exceed $5,000,000. <br /> Therefore, pursuant to the provisions of Section 148(f)(4)(c) of the Code, the City <br /> shall not be required to comply with the arbitrage rebate requirements of paragraphs <br /> (2) and (3) of Section 148(f) of the Code. <br /> 6.04. Investment of Money on Deposit in the Bond Fund. <br /> The Finance Director shall ascertain monthly the amount on deposit in the Bond <br /> Fund. If the amount on deposit therein ever exceeds the aggregate amount of <br /> principal and interest due and payable from the Bond Fund through the next <br /> following February 1 plus a reasonable carryover as permitted by the Regulations, <br /> 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 <br /> interest rates on their date of issue, computed by the actuarial method. The City <br /> reserves the right to amend the provisions of this Section at any time, whether prior <br /> to or after the delivery of the Bonds, if and to the extent that this Council <br /> determines that the provisions of this Section are not necessary in order to ensure <br /> that the Bonds are not "arbitrage bonds" within the meaning of Section 148 of the <br /> Code and Regulations. <br /> 6.05. Arbitrage Certification. The Mayor and the City Manager, being <br /> the officers of the City charged with the responsibility for issuing the Bonds <br /> pursuant to this resolution, are authorized and directed to execute and deliver to the <br /> Purchaser a certification in accordance with the provisions of Section 148 of the <br /> Code, and the Regulations, stating the facts, estimates and circumstances in existence <br /> on the date of issue and delivery of the Bonds which make it reasonable to expect <br /> that the proceeds of the Bonds will not be used in a manner that would cause the <br /> Bonds to be arbitrage bonds within the meaning of the Code and Regulations. <br /> -16- <br />