RES 20-042 AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $3,000,000 GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, SERIES 2020A

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SECTION 3. GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, SERIES 2020A CONSTRUCTION FUND. There is hereby established on the official books and records of the City a General Obligation Street Reconstruction Bonds, Series 2020A Construction Fund (the "Construction Fund"). The City Manager shall maintain the Construction Fund until payment of all costs and expenses incurred in connection with the construction of the Projects have been paid. To the Construction Fund there shall be credited from the proceeds of the Bonds an amount equal to $3,080,026.00. From the Construction Fund there shall be paid all construction costs and expenses incurred by the City in construction of the Projects $(3,029,050.00) and costs of issuance of the Bonds ($50,976.00). Prepaid assessments in the amount of $126,760.00 will also be credited to the Construction Fund. After payment of all construction costs and costs of issuance of the Bonds, the Construction Fund shall be discontinued and any Bond proceeds remaining therein received shall be credited to the Bond Fund described in Section 4.01 hereof. SECTION 4. GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, SERIES 2020A BOND FUND; PLEDGE OF TAXING POWER. 4.01. General Obligation Street Reconstruction Bonds, Series 2020A Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the City Manager shall maintain a separate debt service fund on the official books and records of the City to be known as the General Obligation Street Reconstruction Bonds, Series 2020A Bond Fund (the "Bond Fund"), and the principal of and interest on the Bonds shall be payable from the Bond Fund. The City irrevocably appropriates to the Bond Fund (i) the amount of $52,220.00 representing capitalized interest; (ii) the amounts specified in Section 3 above, after payment of all costs of the Projects; (iii) all taxes levied and collected in accordance with this resolution; and (iv) all other moneys as shall be appropriated by the Council to the Bond Fund from time to time. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." As set forth in the previous paragraph, there shall initially be deposited into the Debt Service Account upon the issuance of the Bonds the amount of $52,220.00. Thereafter, during each bond year (each twelve month period commencing on February 2 and ending on the following February 1, a "Bond Year"), as monies are received into the Bond Fund, the City Manager shall first deposit such monies into the applicable subaccount within the Debt Service Account until an amount has been appropriated thereto sufficient to pay all principal and interest due on the Bonds through the end of the Bond Year. All subsequent monies received in the Bond Fund during the Bond Year shall be appropriated to the Surplus Account. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Account when the balance therein is sufficient, and the City covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. 4852-6958-9943\5 7