Ordinance 536-78 - Laserfiche WebLink

Obligations as provided in this section. The appropriate of fti- cials of the City are hereby authorized and directed to enter into an agreement with the Refunding Trustee in substantially the form of Exhibit A attached hereto and incorporated by this reference herein. The City reserves the right to substitute higher yield Acquired Obligations in the event it may do so pursuant to Section 103 (c) of the Internal Revenue Code and applicable regu- lations thereunder provided any substituted obligation shall not cause the rating of the Refunded Bonds to be reduced by Moody' s Investors Service, Inc. and that at all times the moneys and Acquired Obligations in the bond redemption funds or refunding accounts for the Refunded Bonds shall be sufficient to accomplish the refunding of the Refunded Bonds in accordance with this section. Prior to each such substitution the City shall obtain (1) a verification by the Refunding Trustee which shall be satisfactory to Bond Counsel to the City that the amounts on deposit after such substitution will be sufficient to effect such refunding of the Refunded Bonds and (2) an opinion from Bond Counsel that such substitution shall not cause any of the Bonds to lose their tax exempt status under Section 103 (c) of the Internal Revenue Code of 1954 , as amended, and the applicable regulations promulgated thereunder. G. Determination of Savings. The City Council hereby finds and determines that the refunding of the Refunded Bonds will be of substantial benefit to the City by permitting a con- solidation of the water and sewer utilities of the City, consoli- dating all outstanding indebtedness of the water and sewer utility systems into a single lien position and permitting the issuance of future water and sewer revenue bonds on a parity of lien therewith. The City Council hereby further finds and determines that the issuance and sale of the Refunding Bonds at this time -10-