2021-008 - Authorizing the Issuance of Combination Tax and Surplus Revenue Certificates of Obligation Series 2021 - wastewater treatment plant

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elections, on behalf of the Issuer, that may be permitted by the Code as are consistent with the purpose for the issuance of the Certificates. Section 11. SALE OF THE CERTIFICATES; APPROVAL OF OFFICIAL STATEMENT; APPLICATION OF PROCEEDS. (a) The Certificates are hereby sold and shall be delivered to Hilltop Securities Inc. (the "Purchaser"), at a price of $46,321,650.47, representing the par amount of $43,855,000.00, plus a net premium of $2,914,188.90, less a purchaser discount of $488,301.83 and plus accrued interest in the amount of $40,763.40. The Certificates shall initially be registered in the name of the Purchaser. (b) It is hereby officially found, determined and declared that the Certificates have been sold at public sale to the bidder offering the lowest interest cost, after receiving sealed bids pursuant to an Official Notice of Sale and Bidding Instructions. It is further officially found, determined and declared that the Certificates have been offered pursuant to a Preliminary Official Statement dated April 5, 2021, prepared and distributed in connection with the sale of the Certificates. Said Preliminary Official Statement, the Official Statement dated April 12, 2021, and any addenda, supplement or amendment thereto, have been and are hereby approved by the governing body of the Issuer, and its use in the offer and sale of the Certificates is hereby approved. It is further officially found, detennined and declared that the statements and representations contained in said Official Statement are true and correct in all material respects, to the best knowledge and belief of the City Council. (c) The net premium received from the sale of the Certificates, in the amount of $2,914,188.90, shall be applied as follows: the amount of $2,210,000.00 plus the principal amount of the issue ($43,855,000.00) shall be deposited to the Issuer's construction fund and used to acquire or construct the Project; the amount of $488,301.83 shall be applied to pay the Purchaser discount; and the amount of $215,887.07 shall be applied to pay the costs of issuing the Certificates. Section 12. ALLOCATION OF CERTIFICATE PROCEEDS. The Issuer covenants to account for the expenditure of sale proceeds and investment earnings to be used for the construction and acquisition of the Project on its books and records by allocating proceeds to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Project is completed. The foregoing notwithstanding, the Issuer shall not expend proceeds of the sale of the Certificates or investment earnings thereon more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Certificates, or (2) the date the Certificates are retired, unless the Issuer obtains an opinion of nationally -recognized bond counsel that such expenditure will not adversely affect the status, for federal income tax purposes, of the Certificates or the interest thereon. For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. Section 13. DISPOSITION OF PROJECT. The Issuer covenants that the Project will not be sold or otherwise disposed of in a transaction resulting in the receipt by the Issuer of cash or other compensation, unless any action taken in connection with such disposition will not adversely affect 20