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HomeMy WebLinkAbout2014-500-6 /16/20140 L Council Member introduced the following Resolution entitled "RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF $10,065,000 GENERAL OBLIGATION BONDS, SERIES 2014A, AND LEVYING A TAX TO PAY SAID BONDS, AND APPROVAL OF THE TAX EXEMPTION CERTIFICATE, CONTINUING DISCLOSURE CERTIFICATE, FUNDING TRUST AGEEEMENT" and moved that it be adopted. Council Member seconded the motion to adopt, and the roll being called thereon, the vote was as follows: AYES::fiAU-A), �QJ&Z1,A 0 NAYS: Whereupon, the Mayor declared said Resolution duly adopted as follows: Re,%",on No. X1Wff60 RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF $10,065,000 GENERAL OBLIGATION BONDS, SERIES 2014A, AND LEVYING A TAX TO PAY SAID BONDS; AND APPROVAL OF THE TAX EXEMPTION CERTIFICATE, CONTINUING DISCLOSURE CERTIFICATE, AND FUNDING TRUST AGEEEMENT WHEREAS, the Issuer is duly incorporated, organized and exists under and by virtue of the laws and Constitution of the State of Iowa; and WHEREAS, the City of Waterloo, State of Iowa, is in need of funds to pay costs of the acquisition, improvement and installation of traffic control devices, signage, fixtures, equipment and improvements, including but not limited to traffic signal, traffic safety and street light fixtures, connections, and facility improvements; the acquisition of vehicles and equipment for the Police, Fire Rescue and Street Departments; the rehabilitation and improvement of City parks and the acquisition, repair and replacement of facilities, equipment and improvements commonly found in City parks; the construction, reconstruction and repairing of street, sidewalk, alley, public ground, marketplace, bridge, pedestrian underpass and overpass repairs and reconstruction, and intersection improvements; the acquisition, construction and improvement of real and personal property useful for the protection of property from floods or high waters, including flood control, levees, embankments, waterway, storm water and drainage improvements; the removal or replacement of dead or diseased trees; the acquisition and demolition of dangerous or dilapidated buildings, structures or properties; aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa, as amended, and the Urban Renewal Plan for the NE Industrial Area Development Plan, -4- such as those costs associated with land acquisition, public infrastructure projects, including streets, streetscape, and utility improvements, including for the following projects: the downtown development plan, demolition costs, and the NE Industrial Park project; refunding of outstanding City indebtedness, including the General Obligation Bonds, Series 2006A; acquisition of vehicles for various city departments, including public works, building inspections, leisure and building maintenance; equipping various city departments, including animal control, public works, city clerk, and finance; building and infrastructure improvements for public works; and acquisition of Information Services equipment and software, including computers, productivity software and telephone system upgrades and improvements; reconstruction, renovation, remodeling, improvement, equipping and repairing of the Downtown Parking Garages, and Entertainment Area parking lot improvements; reconstruction, renovation, remodeling, improvement, equipping and repairing of various City buildings and facilities, including projects at new city facilities, various ADA compliance improvements, public library, fire station improvements; Cultural and Art projects, including at the Center for the Arts, the Youth Pavillion, and the Amphitheatre; and police department improvements, including at the training facility, evidence storage and remodeling projects; reconstruction, renovation and improvements to Sports Facility Improvement Fund, the Boating Center; acquisition of off-road maintenance equipment for the parks, golf course, and downtown departments; and chemical storage building improvements and downtown maintenance infrastructure projects; essential corporate purpose projects, and it is deemed necessary and advisable that the City issue General Obligation Bonds for such purpose to the amount of not to exceed $8,000,000, as authorized by Section 384.25 of the Code of Iowa; and WHEREAS, pursuant to notice published as required by Section 384.25 this Council has held a public meeting and hearing on May 12, 2014, upon the proposal to institute proceedings for the issuance of the Bonds, and all objections, if any, to such Council action made by any resident or property owner of the City were received and considered by the Council; and it is the decision of the Council that additional action be taken for the issuance of not to exceed $8,000,000 General Obligation Bonds for said purposes, and that such action is considered to be in the best interests of the City and the residents thereof; and WHEREAS, the City of Waterloo, State of Iowa, is in need of funds to pay costs of the aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa, as amended, and the Urban Renewal Plans for the Downtown Waterloo Riverfront Urban Renewal and Redevelopment Area, the Logan Avenue Urban Renewal Area and Redevelopment Plan, the NE Industrial Area Development Plan, and the Rath Area Redevelopment Plan, such as those costs associated with land acquisition, public infrastructure projects, including streets, streetscape, and utility improvements, including for the following projects: the downtown development plan, downtown acquisitions, continuation of the Rath project, demolition costs, and the NE Industrial Park project; essential corporate urban renewal projects, and it is deemed necessary and advisable that the City issue General Obligation Bonds for such purpose to the amount of not to exceed $1,700,000, as authorized by Sections 384.25 and 403.12 of the Code of Iowa; and WHEREAS, pursuant to notice published as required by Sections 384.25 and 403.12, this Council has held a public meeting and hearing on May 12, 2014, upon the proposal to institute -5- proceedings for the issuance of the Bonds, and no petition was filed calling for a referendum thereon; and it is the decision of the Council that additional action be taken for the issuance of not to exceed $1,700,000 General Obligation Bonds for said purposes, and that such action is considered to be in the best interests of the City and the residents thereof; and WHEREAS, the City of Waterloo, State of Iowa, is in need of funds to pay costs of the refunding of outstanding City indebtedness, including the General Obligation Bonds, Series 2006A; essential corporate purpose project, and it is deemed necessary and advisable that the City issue General Obligation Bonds for such purpose to the amount of not to exceed $3,280,000, as authorized by Section 384.25 of the Code of Iowa; and WHEREAS, pursuant to notice published as required by Section 384.25 this Council has held a public meeting and hearing on May 12, 2014, upon the proposal to institute proceedings for the issuance of the Bonds, and all objections, if any, to such Council action made by any resident or property owner of the City were received and considered by the Council; and it is the decision of the Council that additional action be taken for the issuance of not to exceed $3,280,000 General Obligation Bonds for said purposes, and that such action is considered to be in the best interests of the City and the residents thereof; and WHEREAS, the City of Waterloo, State of Iowa, is in need of funds to pay costs of the acquisition of vehicles for various city departments, including public works, building inspections, leisure and building maintenance; equipping various city departments, including animal control, public works, city clerk, and finance; building and infrastructure improvements for public works; and acquisition of Information Services equipment and software, including computers, productivity software and telephone system upgrades and improvements, general corporate purpose projects, and it is deemed necessary and advisable that the City issue General Obligation Bonds for such purpose to the amount of $700,000, as authorized by Section 384.26 of the Code of Iowa; and WHEREAS, the City has a population of more than 5,000 but not more than 75,000, and the amount of bonds for these purposes is not more than $700,000; and WHEREAS, pursuant to notice published as required by Section 384.26 (5), this Council has held a public meeting and hearing on May 12, 2014, upon the proposal to institute proceedings for the issuance of not to exceed $700,000 General Obligation Bonds, and no petition was filed in the manner provided by Section 362.4 of the Code of Iowa; and it is the decision of the Council that additional action be taken for the issuance of not to exceed $700,000 General Obligation Bonds, and that such action is considered to be in the best interests of the City and the residents thereof, and WHEREAS, the City of Waterloo, State of Iowa, is in need of funds to pay costs of the reconstruction, renovation, remodeling, improvement, equipping and repairing of the Five Sullivan Brothers Center, Downtown Parking Garages, the public market, and Entertainment Area parking lot improvements, a general corporate purpose project, and it is deemed necessary and advisable that the City issue General Obligation Bonds for such purpose to the amount of $700,000, as authorized by Section 384.26 of the Code of Iowa; and -6- WHEREAS, the City has a population of more than 5,000 but not more than 75,000, and the amount of bonds for these purposes is not more than $700,000; and WHEREAS, pursuant to notice published as required by Section 384.26 (5), this Council has held a public meeting and hearing on May 12, 2014, upon the proposal to institute proceedings for the issuance of not to exceed $700,000 General Obligation Bonds, and no petition was filed in the manner provided by Section 362.4 of the Code of Iowa; and it is the decision of the Council that additional action be taken for the issuance of not to exceed $700,000 General Obligation Bonds, and that such action is considered to be in the best interests of the City and the residents thereof, and WHEREAS, the City of Waterloo, State of Iowa, is in need of funds to pay costs of reconstruction, renovation, remodeling, improvement, equipping and repairing of various City buildings and facilities, including projects at new city facilities, various ADA compliance improvements, public library, fire station improvements; Cultural and Art projects, including at the Center for the Arts, the Youth Pavillion, and the Amphitheatre; and police department improvements, including at the training facility, evidence storage and remodeling projects, general corporate purpose projects, and it is deemed necessary and advisable that the City issue General Obligation Bonds for such purpose to the amount of $700,000, as authorized by Section 384.26 of the Code of Iowa; and WHEREAS, the City has a population of more than 5,000 but not more than 75,000, and the amount of bonds for these purposes is not more than $700,000; and WHEREAS, pursuant to notice published as required by Section 384.26 (5), this Council has held a public meeting and hearing on May 12, 2014, upon the proposal to institute proceedings for the issuance of not to exceed $700,000 General Obligation Bonds, and no petition was filed in the manner provided by Section 362.4 of the Code of Iowa; and it is the decision of the Council that additional action be taken for the issuance of not to exceed $700,000 General Obligation Bonds, and that such action is considered to be in the best interests of the City and the residents thereof, and WHEREAS, the City of Waterloo, State of Iowa, is in need of funds to pay costs of the reconstruction, renovation and improvements to City golf courses, Riverfront Stadium, Sports Facility Improvement Fund, the Boating Center; acquisition of off-road maintenance equipment for the parks, golf course, and downtown departments, and for Young Arena; chemical storage building improvements and downtown maintenance infrastructure projects, general corporate purpose projects, and it is deemed necessary and advisable that the City issue General Obligation Bonds for such purpose to the amount of $700,000, as authorized by Section 384.26 of the Code of Iowa; and WHEREAS, the City has a population of more than 5,000 but not more than 75,000, and the amount of bonds for these purposes is not more than $700,000; and -7- WHEREAS, pursuant to notice published as required by Section 384.26 (5), this Council has held a public meeting and hearing on May 12, 2014, upon the proposal to institute proceedings for the issuance of not to exceed $700,000 General Obligation Bonds, and no petition was filed in the manner provided by Section 362.4 of the Code of Iowa; and it is the decision of the Council that additional action be taken for the issuance of not to exceed $700,000 General Obligation Bonds, and that such action is considered to be in the best interests of the City and the residents thereof; and WHEREAS, pursuant to notice published as required by law, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of not to exceed $717,500 General Obligation Bonds, for the essential corporate purposes of paying costs of remediation, replacement and improvement of property, buildings, equipment, and public facilities that have been damaged by a disaster as defined in Section 29C.2 and that are located in an area that the President of the United States has declared a major disaster (FEMA -DR -1763), including the relocated Public Works building/Central Garage Facilities Centralization project, and has considered the extent of objections received from residents or property owners as to the proposed issuance of bonds; and, accordingly the following action is now considered to be in the best interests of the City and residents thereof; and WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is deemed appropriate that the various General Obligation Bonds hereinabove described be combined for purposes of issuance and sale in a single issue of corporate purpose bonds as hereinafter set forth; and WHEREAS, pursuant to the provisions of Chapter 75 of the Code of Iowa, the above mentioned bonds were heretofore sold at public sale and action should now be taken to issue said bonds conforming to the terms and conditions of the best bid received at the advertised public sale: NOW, THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF WATERLOO, STATE OF IOWA: Section 1. Definitions. The following terms shall have the following meanings in this Resolution unless the text expressly or by necessary implication requires otherwise: "Authorized Denominations" shall mean $5,000 or any integral multiple thereof. • "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant or such person's subrogee. • "Blanket Issuer Letter of Representations" shall mean the Representation Letter from the Issuer to DTC, with respect to the Bonds. "Bond Fund" shall mean the fund created in Section 3 of this Resolution. • 'Bonds" shall mean $10,065,000 General Obligation Bonds, Series 2014A, authorized to be issued by this Resolution. • "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. • "Continuing Disclosure Certificate" shall mean that certain Continuing Disclosure Certificate approved under the terms of this Resolution and to be executed by the Issuer and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. • "Current Refunded Portion" shall mean $3,280,000 of the Bonds to refund the Refunded Bonds. • "Depository Bonds " shall mean the Bonds as issued in the form of one global certificate for each maturity, registered in the Registration Books maintained by the Registrar in the name of DTC or its nominee. • "DTC" shall mean The Depository Trust Company, New York, New York, which will act as security depository for the Bond pursuant to the Representation Letter. "Issuer" and "City" shall mean the City of Waterloo, State of Iowa. • "New Money Portion" shall mean $6,785,000 of the Bonds issued to pay the costs of the acquisition, improvement and installation of traffic control devices, signage, fixtures, equipment and improvements, including but not limited to traffic signal, traffic safety and street light fixtures, connections, and facility improvements; the acquisition of vehicles and equipment for the Police, Fire Rescue and Street Departments; the rehabilitation and improvement of City parks and the acquisition, repair and replacement of facilities, equipment and improvements commonly found in City parks; the construction, reconstruction and repairing of street, sidewalk, alley, public ground, marketplace, bridge, pedestrian underpass and overpass repairs and reconstruction, and intersection improvements; the acquisition, construction and improvement of real and personal property useful for the protection of property from floods or high waters, including flood control, levees, embankments, waterway, storm water and drainage improvements; the removal or replacement of dead or diseased trees; the acquisition and demolition of dangerous or dilapidated buildings, structures or properties; aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa, as amended, and the Urban Renewal Plan for the NE Industrial Area Development Plan, such as those costs associated with land acquisition, public infrastructure projects, including streets, streetscape, and utility improvements, including for the following projects: the downtown development plan, demolition costs, and the NE Industrial Park project; acquisition of vehicles for various city departments, including public works, building inspections, leisure and building maintenance; equipping various city departments, including animal control, public works, city clerk, and finance; building -9- and infrastructure improvements for public works; and acquisition of Information Services equipment and software, including computers, productivity software and telephone system upgrades and improvements; reconstruction, renovation, remodeling, improvement, equipping and repairing of the Downtown Parking Garages, and Entertainment Area parking lot improvements; reconstruction, renovation, remodeling, improvement, equipping and repairing of various City buildings and facilities, including projects at new city facilities, various ADA compliance improvements, public library, fire station improvements; Cultural and Art projects, including at the Center for the Arts, the Youth Pavillion, and the Amphitheatre; and police department improvements, including at the training facility, evidence storage and remodeling projects; reconstruction, renovation and improvements to Sports Facility Improvement Fund, the Boating Center; acquisition of off-road maintenance equipment for the parks, golf course, and downtown departments; and chemical storage building improvements and downtown maintenance infrastructure projects. • "Participants" shall mean those broker-dealers, banks and other financial institutions for which DTC holds Bonds as securities depository. • "Paying Agent" shall mean Bankers Trust Company, or such successor as may be approved by Issuer as provided herein and who shall carry out the duties prescribed herein as Issuer's agent to provide for the payment of principal of and interest on the Bonds as the same shall become due. • "Project Fund" shall mean, as to the New Money Portion, the fund established under this Resolution for the deposit of a portion of the proceeds to pay the costs thereof. As to the Current Refunded Portion, "Project Fund" shall mean the portion of the proceeds that will be used, together with interest earnings thereon, to pay the principal, interest and redemption premium, if any, on the Refunded Bonds. • "Rebate Fund" shall mean the fund so defined in and established pursuant to the Tax Exemption Certificate. • "Refunded Bonds" shall mean $3,310,000 of the $8,200,000 General Obligation Bonds, Series 2006A, dated June 1, 2006. • "Registrar" shall mean Bankers Trust Company of Des Moines, Iowa, or such successor as may be approved by Issuer as provided herein and who shall carry out the duties prescribed herein with respect to maintaining a register of the owners of the Bonds. Unless otherwise specified, the Registrar shall also act as Transfer Agent for the Bonds. "Resolution" shall mean this resolution authorizing the Bonds. • "Tax Exemption Certificate" shall mean the Tax Exemption Certificate approved under the terms of this Resolution and to be executed by the Treasurer and delivered at the time of issuance and delivery of the Bonds. -10- • "Treasurer" shall mean the Finance Officer or such other officer as shall succeed to the same duties and responsibilities with respect to the recording and payment of the Bonds issued hereunder. • "Trustee" shall mean Bankers Trust Company of Des Moines, Iowa, or such successor as may be approved by the Issuer who shall carry out the duties under the Funding Trust Agreement approved herein in Section 4. Section 2. Levy and Certification of Annual Tax; Other Funds to be Used. (a) Levy of Annual Tax. That for the purpose of providing funds to pay the principal and interest of the Bonds hereinafter authorized to be issued, there is hereby levied for each future year the following direct annual tax on all of the taxable property in Waterloo, Iowa, to -wit: AMOUNT FISCAL YEAR (JULY 1 TO JUNE 30) YEAR OF COLLECTION $1,455,790.53* 2014/2015 $1,034,256.26 2015/2016 $1,038,056.26 2016/2017 $1,026,456.26 2017/2018 $1,009,756.26 2018/2019 $1,008,056.26 2019/2020 $1,011,056.26 2020/2021 $ 549,956.26 2021/2022 $ 546,906.26 2022/2023 $ 543,556.26 2023/2024 $ 539,906.26 2024/2025 $ 540,956.26 2025/2026 $ 541,556.26 2026/2027 $ 541,706.26 2027/2028 $ 541,406.26 2028/2029 *Payable available cash on hand. (NOTE: For example the levy to be made and certified against the taxable valuations of January 1, 2013 will be collected during the fiscal year commencing July 1, 2014.) (b) Resolution to be Filed With County Auditor. A certified copy of this Resolution should be filed with the County Auditor of Black Hawk County, State of Iowa, and said Auditor is hereby instructed in and for each of the years as provided, to levy and assess the tax hereby authorized in Section 2 of this Resolution, in like manner as other taxes are levied and assessed, and such taxes so levied in and for each of the years aforesaid be collected in like manner as other taxes of the City are collected, and -11- when collected be used for the purpose of paying principal and interest on said Bonds issued in anticipation of said tax, and for no other purpose whatsoever. (c) Additional City Funds Available. Principal and interest coming due at any time when the proceeds of said tax on hand shall be insufficient to pay the same shall be promptly paid when due from current funds of the City available for that purpose and reimbursement shall be made from such special fund in the amounts thus advanced. Section 3. Bond Fund. Said tax shall be collected each year at the same time and in the same manner as, and in addition to, all other taxes in and for the City, and when collected they shall be converted into a special fund within the Debt Service Fund to be known as the "GENERAL OBLIGATION BOND FUND 2014 NO. 1" (the 'Bond Fund"), which is hereby pledged for and shall be used only for the payment of the principal of and interest on the Bonds hereinafter authorized to be issued; and also there shall be apportioned to said fund its proportion of taxes received by the City from property that is centrally assessed by the State of Iowa. Section 4. Application of Bond Proceeds. Proceeds of the Bonds, other than accrued interest except as may be provided below, shall be credited to the Project Fund and expended therefrom for the purposes of issuance as outlined more fully below. Any amounts on hand in the Project Fund shall be available for the payment of the principal of or interest on the Bonds at any time that other funds shall be insufficient to the purpose, in which event such funds shall be repaid to the Project Fund at the earliest opportunity. Any balance on hand in the Project Fund and not immediately required for its purposes may be invested not inconsistent with limitations provided by law or this Resolution. $6,821,740.45 of the Proceeds of the Bonds shall be credited to the Project Fund and expended therefrom for the New Money Portion. $3,323,699 of the Proceeds of the Bonds shall be placed with Bankers Trust Company as Trustee pursuant to the Funding Trust Agreement attached hereto as Exhibit A, which is hereby approved. Mayor and City Clerk are directed to execute the same on behalf of the City. Said proceeds shall be held by Trustee and invested pursuant to thereto. Investments shall mature before the date on which the moneys are required for payment of principal and interest on the Refunded Bonds. Accrued interest, if any, shall be deposited in the Bond Fund. Section 5. Investments of Bond Fund Proceeds. All moneys held in the Bond Fund, provided for by Section 3 of this Resolution shall be invested in investments permitted by Chapter 12B, Code of Iowa, 2013, as amended, or deposited in financial institutions which are members of the Federal Deposit Insurance Corporation and the deposits in which are insured thereby and all such deposits exceeding the maximum amount insured from time to time by FDIC or its equivalent successor in any one financial institution shall be continuously secured in compliance with Chapter 12C of the Code of Iowa, 2013, as amended, or otherwise by a valid pledge of direct obligations of the United States Government having an equivalent market value. -12- All such interim investments shall mature before the date on which the moneys are required for payment of principal of or interest on the Bonds as herein provided. Section 6. Bond Details, Execution and Redemption. (a) Bond Details. General Obligation Bonds of the City in the amount of $10,065,000, shall be issued pursuant to the provisions of Sections 384.25, 384.26, and 384.28 of the Code of Iowa for the aforesaid purposes. The Bonds shall be designated "GENERAL OBLIGATION BOND, SERIES 2014A", be dated June 27, 2014, and bear interest from the date thereof, until payment thereof, at the office of the Paying Agent, said interest payable on December 1, 2014, and semiannually thereafter on the 1st day of June and December in each year until maturity at the rates hereinafter provided. The Bonds shall be executed by the manual or facsimile signature of the Mayor and attested by the manual or facsimile signature of the Clerk, and impressed or printed with the seal of the City and shall be fully registered as to both principal and interest as provided in this Resolution; principal, interest and premium, if any, shall be payable at the office of the Paying Agent by mailing of a check to the registered owner of the Bond. The Bonds shall be in the denomination of $5,000 or multiples thereof. The Bonds shall mature and bear interest as follows: Principal Interest Maturity Amount Rate June 1 sc $1,225,000 2.000% 2015 $ 810,000 2.000% 2016 $ 830,000 2.000% 2017 $ 835,000 2.000% 2018 $ 835,000 2.000% 2019 $ 850,000 2.000% 2020 $ 870,000 3.000% 2021 $ 435,000 3.000% 2022 $ 445,000 3.000% 2023 $ 455,000 3.000% 2024 $ 465,000 3.000% 2025 $ 975,000 3.000% 2027* $ 510,000 3.000% 2028 $ 525,000 3.125% 2029 *Term Bonds (b) Redemption. (i) Optional Redemption. Bonds maturing after June 1, 2022, may be called for optional redemption by the Issuer on that date or any date thereafter, from any funds regardless of source, in whole or from time to time in part, in any order of -13- maturity and within an annual maturity by lot. The terms of redemption shall be par, plus accrued interest to date of call. Thirty days' written notice of redemption shall be given to the registered owner of the Bond. Failure to give written notice to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds. All Bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment. Written notice will be deemed completed upon transmission to the owner of record. If less than all of a maturity is called for redemption, the Issuer will notify DTC of the particular amount of such maturity to be redeemed prior to maturity. DTC will determine by lot the amount of each Participant's interest in such maturity to be redeemed and each Participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. (ii) Mandatory Payment and Redemption of Term Bonds. All Term Bonds are subject to mandatory redemption prior to maturity at a price equal to 100% of the portion of the principal amount thereof to be redeemed plus accrued interest at the redemption date on June 1 st of each of the years in the principal amount set opposite each year in the following schedule: Term Bond #1 Principal Interest Maturity Amount Rate June 1 st $480,000 3.000% 2026 $495,000 3.000% 2027* *Final Maturity The principal amount of Term Bonds may be reduced through the earlier optional redemption, with any partial optional redemption of the Term Bonds credited against future mandatory redemption requirements for such Term Bonds in such order as the City shall determine. Section 7. Issuance of Bonds in Book -Entry Form; Replacement Bonds. (a) Notwithstanding the other provisions of this Resolution regarding registration, ownership, transfer, payment and exchange of the Bonds, unless the Issuer determines to permit the exchange of Depository Bonds for Bonds in Authorized Denominations, the Bonds shall be issued as Depository Bonds in denominations of the entire principal amount of each maturity of Bonds (or, if a portion of said principal amount is prepaid, said principal amount less the prepaid -14- amount). The Bonds must be registered in the name of Cede & Co., as nominee for DTC. Payment of semiannual interest for any Bonds registered in the name of Cede & Co. will be made by wire transfer or New York Clearing House or equivalent next day funds to the account of Cede & Co. on the interest payment date for the Bonds at the address indicated or in the Representation Letter. (b) The Bonds will be initially issued in the form of separate single authenticated fully registered bonds in the amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of the Bonds will be registered in the registry books of the Bankers Trust Company kept by the Paying Agent and Registrar in the name of Cede & Co., as nominee of DTC. The Paying Agent and Registrar and the Issuer may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal or redemption price of or interest on the Bonds, selecting the Bonds or portions to be redeemed, giving any notice permitted or required to be given to registered owners of Bonds under the Resolution of the Issuer, registering the transfer of Bonds, obtaining any consent or other action to be taken by registered owners of the Bonds and for other purposes. The Paying Agent, Registrar and the Issuer have no responsibility or obligation to any Participant or Beneficial Owner of the Bonds under or through DTC with respect to the accuracy of records maintained by DTC or any Participant; with respect to the payment by DTC or Participant of an amount of principal or redemption price of or interest on the Bonds; with respect to any notice given to owners of Bonds under the Resolution; with respect to the Participant(s) selected to receive payment in the event of a partial redemption of the Bonds, or a consent given or other action taken by DTC as registered owner of the Bonds. The Paying Agent and Registrar shall pay all principal of and premium, if any, and interest on the Bonds only to Cede & Co. in accordance with the Representation Letter, and all payments are valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum paid. DTC must receive an authenticated Bond for each separate stated maturity evidencing the obligation of the Issuer to make payments of principal of and premium, if any, and interest. Upon delivery by DTC to the Paying Agent and Registrar of written notice that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to the new nominee in accordance with this Section. (c) In the event the Issuer determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds certificates, the Issuer may notify DTC and the Paying Agent and Registrar, whereupon DTC will notify the Participants, of the availability through DTC of Bonds certificates. The Bonds will be transferable in accordance with this Section. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the Issuer and the Paying Agent and Registrar and discharging its responsibilities under applicable law. In this event, the Bonds will be transferable in accordance with this Section. (d) Notwithstanding any other provision of the Resolution to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal of and premium, if any, and interest on the Bond and all notices must be made and given, respectively to DTC as provided in the Representation letter. -15- (e) In connection with any notice or other communication to be provided to Bondholders by the Issuer or the Paying Agent and Registrar with respect to a consent or other action to be taken by Bondholders, the Issuer or the Paying Agent and Registrar, as the case may be, shall establish a record date for the consent or other action and give DTC notice of the record date not less than 15 calendar days in advance of the record date to the extent possible. Notice tc DTC must be given only when DTC is the sole Bondholder. (f) The Representation Letter is on file with DTC and sets forth certain matters with respect to, among other things, notices, consents and approvals by Bondholders and payments on the Bonds. The execution and delivery of the Representation Letter to DTC by the Issuer is ratified and confirmed. (g) In the event that a transfer or exchange of the Bonds is permitted under this Section, the transfer or exchange may be accomplished upon receipt by the Registrar from the registered owners of the Bonds to be transferred or exchanged and appropriate instruments of transfer. In the event Bond certificates are issued to holders other than Cede & Co., its successor as nominee for DTC as holder of all the Bonds, or other securities depository as holder of all the Bonds, the provisions of the Resolution apply to, among other things, the printing of certificates and the method or payment of principal of and interest on the certificates. Any substitute depository shall be designated in writing by the Issuer to the Paying Agent. Any such substitute depository shall be a qualified and registered "clearing agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended. The substitute depository shall provide for (i) immobilization of the Depository Bonds, (ii) registration and transfer of interests in Depository Bonds by book entries made on records of the depository or its nominee and (iii) payment of principal of, premium, if any, and interest on the Bonds in accordance with and as such interests may appear with respect to such book entries. (h) The officers of the Issuer are authorized and directed to prepare and furnish to the purchaser, and to the attorneys approving the legality of Bonds, certified copies of proceedings, ordinances, resolutions and records and all certificates and affidavits and other instruments as may be required to evidence the legality and marketability of the Bonds, and all certified copies, certificates, affidavits and other instruments constitute representations of the Issuer as to the correctness of all stated or recited facts. Section 8. Registration of Bonds; Appointment of Registrar; Transfer; Ownership; Delivery; and Cancellation. (a) Registration. The ownership of Bonds may be transferred only by the making of an entry upon the books kept for the registration and transfer of ownership of the Bonds, and in no other way. Bankers Trust Company is hereby appointed as Bond Registrar under the terms of this Resolution and under the provisions of a separate agreement with the Issuer filed herewith which is made a part hereof by this reference. Registrar shall maintain the books of the Issuer for the registration of ownership of the Bonds for the payment of principal of and interest on the Bonds as provided in this Resolution. All Bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the provisions - for registration and transfer contained in the Bonds and in this Resolution. -16- (b) Transfer. The ownership of any Bond may be transferred only upon the Registration Books kept for the registration and transfer of Bonds and only upon surrender thereof at the office of the Registrar together with an assignment duly executed by the holder or his duly authorized attorney in fact in such form as shall be satisfactory to the Registrar, along with the address and social security number or federal employer identification number of such transferee (or, if registration is to be made in the name of multiple individuals, of all such transferees). In the event that the address of the registered owner of a Bond (other than a registered owner which is the nominee of the broker or dealer in question) is that of a broker or dealer, there must be disclosed on the Registration Books the information pertaining to the registered owner required above. Upon the transfer of any such Bond, a new fully registered Bond, of any denomination or denominations permitted by this Resolution in aggregate principal amount equal to the unmatured and unredeemed principal amount of such transferred fully registered Bond, and bearing interest at the same rate and maturing on the same date or dates shall be delivered by the Registrar. (c) Registration of Transferred Bonds. In all cases of the transfer of the Bonds, the Registrar shall register, at the earliest practicable time, on the Registration Books, the Bonds, in accordance with the provisions of this Resolution. (d) Ownership. As to any Bond, the person in whose name the ownership of the same shall be registered on the Registration Books of the Registrar shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of any such Bonds and the premium, if any, and interest thereon shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. (e) Cancellation. All Bonds which have been redeemed shall not be reissued but shall be cancelled by the Registrar. All Bonds which are cancelled by the Registrar shall be destroyed and a certificate of the destruction thereof shall be furnished promptly to the Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the cancelled Bonds to the Issuer. (f) Non -Presentment of Bonds. In the event any payment check representing payment of principal of or interest on the Bonds is returned to the Paying Agent or if any bond is not presented for payment of principal at the maturity or redemption date, if funds sufficient to pay such principal of or interest on Bonds shall have been made available to the Paying Agent for the benefit of the owner thereof, all liability of the Issuer to the owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the owner of such Bonds who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Resolution or on, or with respect to, such interest or Bonds. The Paying Agent's obligation to hold such funds shall continue for a period equal to two years and six months following the date on which such interest or principal became due, whether at maturity, or at the date fixed for redemption thereof, -17- or otherwise, at which time the Paying Agent, shall surrender any remaining funds so held to the Issuer, whereupon any claim under this Resolution by the Owners of such interest or Bonds of whatever nature shall be made upon the Issuer. (g) Registration and Transfer Fees. The Registrar may furnish to each owner, at the Issuer's expense, one bond for each annual maturity. The Registrar shall furnish additional bonds in lesser denominations (but not less than the minimum denomination) to an owner who so requests. Section 9. Reissuance of Mutilated, Destroyed, Stolen or Lost Bonds. In case any outstanding Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall at the request of Registrar authenticate and deliver a new Bond of like tenor and amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond to Registrar, upon surrender of such mutilated Bond, or in lieu of and substitution for the Bond destroyed, stolen or lost, upon filing with the Registrar evidence satisfactory to the Registrar and Issuer that such Bond has been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Registrar and Issuer with satisfactory indemnity and complying with such other reasonable regulations as the Issuer or its agent may prescribe and paying such expenses as the Issuer may incur in connection therewith. Section 10. Record Date. Payments of principal and interest, otherwise than upon full redemption, made in respect of any Bond, shall be made to the registered holder thereof or to their designated agent as the same appear on the books of the Registrar on the 15th day of the month preceding the payment date. All such payments shall fully discharge the obligations of the Issuer in respect of such Bonds to the extent of the payments so made. Payment of principal shall only be made upon surrender of the Bond to the Paying Agent. Section 11. Execution Authentication and Delivery of the Bonds. Upon the adoption of this Resolution, the Mayor and Clerk shall execute and deliver the Bonds to the Registrar, who shall authenticate the Bonds and deliver the same to or upon order of the Purchaser. No Bond shall be valid or obligatory for any purpose or shall be entitled to any right or benefit hereunder unless the Registrar shall duly endorse and execute on such Bond a Certificate of Authentication substantially in the form of the Certificate herein set forth. Such Certificate upon any Bond executed on behalf of the Issuer shall be conclusive evidence that the Bond so authenticated has been duly issued under this Resolution and that the holder thereof is entitled to the benefits of this Resolution. No Bonds shall be authenticated and delivered by the Registrar unless and until there shall have been provided the following: A certified copy of the Resolution of Issuer authorizing the issuance of the Bonds; 2. A written order of Issuer signed by the Treasurer of the Issuer directing the authentication and delivery of the Bonds to or upon the order of the Purchaser upon payment of the purchase price as set forth therein; 3. The approving opinion of Ahlers & Cooney, P.C., Bond Counsel, concerning the validity and legality of all the Bonds proposed to be issued. Section 12. Right to Name Substitute Paying Agent or Registrar. Issuer reserves the right to name a substitute, successor Registrar or Paying Agent upon giving prompt written notice to each registered bondholder. Section 13. Form of Bond. Bonds shall be printed substantially in the form as follows: Item 1, figure 1= "STATE OF IOWA" "COUNTY OF BLACK HAWK" "CITY OF WATERLOO" "GENERAL OBLIGATION BOND" "SERIES 2014A" "CORPORATE PURPOSE" Item 2, figure 1= Rate: Item 3, figure 1= Maturity: Item 4, figure 1= Bond Date: June 27, 2014 Item 5, figure 1= CUSIP No.: Item 6, figure 1= 'Registered" Item 7, figure 1= Certificate No. Item 8, figure 1= Principal Amount: $ Item 9, figure 1= The City of Waterloo, State of Iowa, a municipal corporation organized and existing under and by virtue of the Constitution and laws of the State of Iowa (the "Issuer"), for value received, promises to pay from the source and as hereinafter provided, on the maturity date indicated above, to Item 9A, figure 1 = (Registration panel to be completed by Registrar or Printer with name of Registered Owner). Item 10, figure 1 = or registered assigns, the principal sum of (enter principal amount in long form) THOUSAND DOLLARS in lawful money of the United States of America, on the maturity date shown above, only upon presentation and surrender hereof at the office of Bankers Trust Company, Paying Agent of this issue, or its successor, with interest on the sum from the date hereof until paid at the rate per annum specified above, payable on December 1, 2014, and semiannually thereafter on the 1 st day of June and December in each year. Interest and principal shall be paid to the registered holder of the Bond as shown on the records of ownership maintained by the Registrar as of the 15th day of the month preceding such interest payment date. Interest shall be computed on the basis of a 360 -day year of twelve 30 - day months. This Bond is issued pursuant to the provisions of Sections 384.25, 384.26, and 384.28 of the Code of Iowa, for the purpose of paying costs of the acquisition, improvement and -19 installation of traffic control devices, signage, fixtures, equipment and improvements, including but not limited to traffic signal, traffic safety and street light fixtures, connections, and facility improvements; the acquisition of vehicles and equipment for the Police, Fire Rescue and Street Departments; the rehabilitation and improvement of City parks and the acquisition, repair and replacement of facilities, equipment and improvements commonly found in City parks; the construction, reconstruction and repairing of street, sidewalk, alley, public ground, marketplace, bridge, pedestrian underpass and overpass repairs and reconstruction, and intersection improvements; the acquisition, construction and improvement of real and personal property useful for the protection of property from floods or high waters, including flood control, levees, embankments, waterway, storm water and drainage improvements; the removal or replacement of dead or diseased trees; the acquisition and demolition of dangerous or dilapidated buildings, structures or properties; aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa, as amended, and the Urban Renewal Plan for the NE Industrial Area Development Plan, such as those costs associated with land acquisition, public infrastructure projects, including streets, streetscape, and utility improvements, including for the following projects: the downtown development plan, demolition costs, and the NE Industrial Park project; refunding of outstanding City indebtedness, including the General Obligation Bonds, Series 2006A; acquisition of vehicles for various city departments, including public works, building inspections, leisure and building maintenance; equipping various city departments, including animal control, public works, city clerk, and finance; building and infrastructure improvements for public works; and acquisition of Information Services equipment and software, including computers, productivity software and telephone system upgrades and improvements; reconstruction, renovation, remodeling, improvement, equipping and repairing of the Downtown Parking Garages, and Entertainment Area parking lot improvements; reconstruction, renovation, remodeling, improvement, equipping and repairing of various City buildings and facilities, including projects at new city facilities, various ADA compliance improvements, public library, fire station improvements; Cultural and Art projects, including at the Center for the Arts, the Youth Pavillion, and the Amphitheatre; and police department improvements, including at the training facility, evidence storage and remodeling projects; reconstruction, renovation and improvements to Sports Facility Improvement Fund, the Boating Center; acquisition of off-road maintenance equipment for the parks, golf course, and downtown departments; and chemical storage building improvements and downtown maintenance infrastructure projects, in conformity to a Resolution of the Council of said City duly passed and approved. Unless this certificate is presented by an authorized representative of The Depository Trust Company, a limited purpose trust company ("DTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other Issuer as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. Bonds maturing after June 1, 2022, may be called for optional redemption by the Issuer and paid before maturity on said date or any date thereafter, from any funds regardless of source, -20- in whole or from time to time in part, in any order of maturity and within an annual maturity by lot. The terms of redemption shall be par, plus accrued interest to date of call. Thirty days' written notice ofredemption shall be given to the registered owner of the Bond. Failure to give written notice to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds. All bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment. Written notice will be deemed completed upon transmission to the owner of record. If less than all of a maturity is called for redemption, the Issuer will notify DTC of the particular amount of such maturity to be redeemed prior to maturity. DTC will determine by lot the amount of each Participant's interest in such maturity to be redeemed and each Participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. The Bonds maturing on June 1, 2027 are subject to mandatory redemption prior to maturity by application of money on deposit in the Bond Fund and shall bear interest at 3.000% per annum at a price of the portion of the principal amount thereof to be redeemed plus accrued interest at the redemption date on June 1 st of each of the years in the principal amount set opposite each year in the following schedule: Principal Maturity Amount June 1St $480,000 2026 $495,000 2027* *Final Maturity The principal amount of Term Bonds may be reduced through the earlier optional redemption, with any partial optional redemption of the Term Bonds credited against future mandatory redemption requirements for such Term Bonds in such order as the City shall determine. Ownership of this Bond may be transferred only by transfer upon the books kept for such purpose by Bankers Trust Company, the Registrar. Such transfer on the books shall occur only upon presentation and surrender of this Bond at the office of the Registrar as designated below, together with an assignment duly executed by the owner hereof or his duly authorized attorney in the form as shall be satisfactory to the Registrar. Issuer reserves the right to substitute the Registrar and Paying Agent but shall, however, promptly give notice to registered bondholders of such change. All bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the provisions for registration and transfer contained in the Bond Resolution. -21- And it is hereby represented and certified that all acts, conditions and things requisite, according to the laws and Constitution of the State of Iowa, to exist, to be had, to be done, or to be performed precedent to the lawful issue of this Bond, have been existent, had, done and performed as required by law; that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within the territory of the Issuer for the payment of the principal and interest of this Bond as the same will respectively become due; that the faith, credit, revenues and resources and all the real and personal property of the Issuer are irrevocably pledged for the prompt payment hereof, both principal and interest; and the total indebtedness of the Issuer including this Bond, does not exceed the constitutional or statutory limitations. IN TESTIMONY WHEREOF, the Issuer by its Council, has caused this Bond to be signed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, with the seal of the City printed or impressed hereon, and to be authenticated by the manual signature of an authorized representative of the Registrar, Bankers Trust Company, Des Moines, Iowa. Item 11, figure 1 = Date of authentication: Item 12, figure 1 = This is one of the Bonds described in the within mentioned Resolution, as registered by Bankers Trust Company. BANKERS TRUST COMPANY, Registrar By: Authorized Signature Item 13, figure 1 = Registrar and Transfer Agent: Bankers Trust Company Paying Agent: Bankers Trust Company SEE REVERSE FOR CERTAIN DEFINITIONS Item 14, figure 1 = (Seal) Item 15, figure 1 = (Signature Block) CITY OF WATERLOO, STATE OF IOWA By: (manual or facsimile signature) Mayor ATTEST: By: (manual or facsimile signature) City Clerk -22- Item 16, figure 1 = (Assignment Block) (Information Required for Registration) ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto (Social Security or Tax Identification No. ) the within Bond and does hereby irrevocably constitute and appoint attorney in fact to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: (Person(s) executing this Assignment sign(s) here) SIGNATURE) GUARANTEED) IMPORTANT - READ CAREFULLY The signature(s) to this Power must correspond with the name(s) as written upon the face of the certificate(s) or bond(s) in every particular without alteration or enlargement or any change whatever. Signature guarantee must be provided in accordance with the prevailing standards and procedures of the Registrar and Transfer Agent. Such standards and procedures may require signature to be guaranteed by certain eligible guarantor institutions that participate in a recognized signature guarantee program. INFORMATION REQUIRED FOR REGISTRATION OF TRANSFER Name of Transferee(s) Address of Transferee(s) Social Security or Tax Identification Number of Transferee(s) Transferee is a(n): Individual* Partnership Corporation Trust *If the Bond is to be registered in the names of multiple individual owners, the names of all such owners and one address and social security number must be provided. The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though written out in full according to applicable laws or regulations: -23- TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with rights of survivorship and not as tenants in common IA UNIF TRANS MIN ACT - .......... Custodian .......... (Cust) (Minor) Under Iowa Uniform Transfers to Minors Act ................... (State) ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST Section 14. Contract Between Issuer and Purchaser. This Resolution constitutes a contract between said City and the purchaser of the Bonds. Section 15. Non -Arbitrage Covenants. The Issuer reasonably expects and covenants that no use will be made of the proceeds from the issuance and sale of the Bonds issued hereunder which will cause any of the Bonds to be classified as arbitrage bonds within the meaning of Sections 148(a) and (b) of the Internal Revenue Code of the United States, as amended, and that throughout the term of the Bonds it will comply with the requirements of statutes and regulations issued thereunder. To the best knowledge and belief of the Issuer, there are no facts or circumstances that would materially change the foregoing statements or the conclusion that it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be arbitrage bonds. Section 16. Approval of Tax Exemption Certificate. Attached hereto is a form of Tax Exemption Certificate stating the Issuer's reasonable expectations as to the use of the proceeds of the Bonds. The form of Tax Exemption Certificate is approved. The Issuer hereby agrees to comply with the provisions of the Tax Exemption Certificate and the provisions of the Tax Exemption Certificate are hereby incorporated by reference as part of this Resolution. The Finance Officer is hereby directed to make and insert all calculations and determinations necessary to complete the Tax Exemption Certificate at issuance of the Bonds to certify as to the reasonable expectations and covenants of the Issuer at that date. Section 17. Continuing Disclosure. The Issuer hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate, and the provisions of the Continuing Disclosure Certificate are hereby incorporated by reference as part of this Resolution and made a part hereof. Notwithstanding any other provision of this Resolution, failure of the Issuer to comply with the Continuing Disclosure Certificate shall not be considered an event of default under this Resolution; however, any holder of the Bonds or Beneficial Owner may take such actions as may be necessary and appropriate, including seeking specific performance by court order, to cause the Issuer to comply with its obligations under the Continuing Disclosure Certificate. For purposes of this section, "Beneficial Owner" means any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to -24- dispose of ownership of, any Bond (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. Section 18. Discharge and Satisfaction of Bonds. The covenants, liens and pledges entered into, created or imposed pursuant to this Resolution may be fully discharged and satisfied with respect to the Bonds, or any of them, in any one or more of the following ways: (a) By paying the Bonds when the same shall become due and payable; and (b) By depositing in trust with the Registrar, or with a corporate trustee designated by the Council, for the payment of said obligations and irrevocably appropriated exclusively to that purpose an amount in cash or direct obligations of the United States, the maturities and income of which shall be sufficient to retire at maturity, or by redemption prior to maturity on a designated date upon which said obligations may be redeemed, such obligations together with the interest thereon to maturity or to the designated redemption date, premiums thereon, if any, that may be payable on the redemption of the same; provided that proper notice of redemption of all such obligations to be redeemed shall have been previously published or given, or provisions shall have been made therefor. Upon such payment or deposit of money or securities, or both, in the amount and manner provided by this Section, all liability of the Issuer with respect to such Bonds shall cease, determine and be completely discharged, and the holders thereof shall be entitled only to payment out of the money or securities so deposited. Section 19. Additional Covenants Representations and Warranties of the Issuer. The Issuer certifies and covenants with the purchasers and holders of the Bonds from time to time outstanding that the Issuer through its officers, (a) will make such further specific covenants, representations and assurances as may be necessary or advisable; (b) comply with all representations, covenants and assurances contained in the Tax Exemption Certificate, which Tax Exemption Certificate shall constitute a part of the contract between the Issuer and the owners of the Bonds;(c) consult with Bond Counsel (as defined in the Tax Exemption Certificate); (d) pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage profits, relating to the Bonds;(e) file such forms, statements and supporting documents as may be required and in a timely manner; and (f) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the Issuer in such compliance. Section 20. Amendment of Resolution to Maintain Tax Exemption. This Resolution may be amended without the consent of any owner of the Bonds if, in the opinion of Bond Counsel, such amendment is necessary to maintain tax exemption with respect to the Bonds under applicable Federal law or regulations. Section 21. Repeal of Conflicting Resolutions or Ordinances. That all ordinances and resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed. -25- Section 22. Severability Clause. If any section, paragraph, clause or provision of this Resolution be held invalid, such invalidity shall not affect any of the remaining provisions hereof, and this Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this 16th day of June, 2014. ATTEST: Suzy Schare , City Clerk -26- G. Clark, Mayor CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF BLACK HAWK ) I, the undersigned City Clerk of the City of Waterloo, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of public hearing and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this day of atsL , 2014. Suzy Sch4es, City Clerk, City of. Waterloo, State of Iowa (SEAL) 01023196-1 \ 11310-101 Exhibit A "Funding Trust Agreement"