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• (iii) ninety-five percent of the net proceeds of the Bonds are to be used for the <br /> local governmental purposes of the City; and <br /> (iv) the aggregate face amount of all tax-exempt bonds (other than Private <br /> Activity Bonds) issued by the City in calendar year in which the Bonds are <br /> to be issued is 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 not be <br /> required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section <br /> 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 Fund. If the <br /> amount on deposit therein ever exceeds the aggregate amount of principal and interest due and <br /> payable from the Bond Fund through the next following February 1 plus a reasonable carryover <br /> as permitted by the Regulations, such excess shall be used to prepay and redeem Bonds or be <br /> invested at a yield less than or equal to the yield on the Bonds, based upon their amounts, <br /> maturities and 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 to or after the <br /> delivery of the Bonds, if and to the extent that this Council determines that the provisions of this <br /> Section are not necessary in order to ensure that the Bonds are not "arbitrage bonds" within the <br /> • meaning of Section 148 of the Code and Regulations. <br /> 6.05. Arbitrage Certification. The Mayor and the City Manager, being the <br /> officers of the City charged with the responsibility for issuing the Bonds pursuant to this <br /> resolution, are authorized and directed to execute and deliver to the Purchaser a certification in <br /> accordance with the provisions of Section 148 of the Code, and the Regulations, stating the facts, <br /> estimates and circumstances in existence on the date of issue and delivery of the Bonds which <br /> make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that <br /> would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. <br /> 6.06. Interest Disallowance. The City hereby designates the Bonds as "qualified <br /> tax-exempt obligations" for purpose of Section 265(b) of the Code relating to the disallowance <br /> of interest expenses for financial institutions. The City represents that in calendar year 1998 it <br /> does not reasonably expect to issue tax-exempt obligations which are not private activity bonds <br /> (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds <br /> for purposes of this representation) in an amount in excess of$10,000,000. <br /> 6.07. Official Statement. The Official Statement relating to the Bonds, dated <br /> February 24, 1998, prepared and distributed on behalf of the City by Springsted Incorporated, is <br /> hereby approved. Springsted Incorporated, is hereby authorized of behalf of the City to prepare <br /> and distribute to the Purchaser a supplement to the Official Statement listing the offering price, <br /> • -20- <br />