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6.03. Covenant. The City covenants and agrees with the holders from time to time of the <br />Bonds that it will not take or permit to be taken by any of its officers, employees or agents any <br />action which would cause the interest on the Bonds to become subject to taxation under the <br />Internal Revenue Code of 1986, as amended (the "Code'), and Regulations promulgated <br />thereunder (the "Regulations "), as such are enacted or promulgated and in effect on the date of <br />issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the <br />interest on the Bonds will not become subject to taxation under such Code and Regulations. The <br />Project consists of public improvements available for use by members of the general public on a <br />substantially equal basis. The City will not enter into any lease, use agreement or other contract <br />respecting the Project which would cause the Bonds to be considered "private activity bonds" or <br />"private loan bonds" pursuant to Section 141 of the Code. <br />6.04. Arbitrage Rebate. The City shall take such actions as are required to comply with <br />the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. <br />6.05. 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 />6.06. Qualified Tax - Exempt Obligations. The City hereby designates the Bonds as <br />"qualified tax —exempt obligations" for purpose of Section 265(b) of the Code relating to the <br />disallowance of interest expenses for financial institutions. The City represents that in calendar <br />year 2016 it does not reasonably expect to issue tax — exempt obligations which are not private <br />activity bonds (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private <br />activity bonds 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 April 28, <br />2016, prepared and distributed on behalf of the City by Ehlers & Associates, Inc., is hereby <br />approved. Ehlers & Associates, Inc., is hereby authorized on 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 />officers of the City are hereby authorized and directed to execute such certificates as may be <br />appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. <br />The officers of the City are hereby authorized and directed to execute such certificates as may be <br />appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. <br />6.08. Reimbursement. The City certifies that the proceeds of the Bonds will not be used <br />by the City to reimburse itself for any expenditure with respect to the Project which the City paid <br />or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to <br />L9 <br />