I-2 - Resolution 2021-011 - Authorizing and Approving Loan Agreement - 2021 GO Annual Approp Refunding

decision to appropriate such funds for a fiscal year shall be made in accordance with the City Council’s normal procedures for making decisions, and the then current City Council shall have the final responsibility for making such decisions. On or before December 1 of each year, the City Council by resolution shall determine whether or not to budget and appropriate funds for the next succeeding fiscal year to make the payments of principal of and interest due on the Bonds during such fiscal year. If the City Council determines to budget and appropriate funds for the foregoing purposes for such fiscal year, the City agrees to certify to the County Auditor of Johnson County the amount, if any (the “Debt Service Levy Amount”), of principal of and interest on the Bonds which is to be paid from Debt Service Tax Revenues for such fiscal year. In addition, if the City Council determines to budget and appropriate TIF Revenues for such purposes for such fiscal year, the City shall certify to the County Auditor of Johnson County an amount of indebtedness payable from the division of revenues set forth in Section 403.19 of the Code of Iowa equal to the amount of TIF Revenues so appropriated. Notwithstanding anything in this resolution to the contrary, the payments of principal and interest due on the Bonds shall not constitute a mandatory charge or a requirement in any ensuing fiscal year beyond the then-current fiscal year for which the City Council has appropriated funds for the payment thereof and the City shall have no continuing obligation to appropriate money for the payment of interest and principal due on the Bonds whether from Debt Service Tax Revenues, amounts on deposit in the Bond Fund, or any other source, and no provision of this resolution or the Bonds shall be construed or interpreted as creating a continuing obligation of the City in any fiscal year beyond the fiscal year for which funds have been appropriated for the payment of the Bonds or, except to the extent of such an appropriation, a debt within the meaning of any constitutional or statutory debt limitation. The City’s obligation to make payments of interest and principal in respect of the Bonds shall be subject at all times to non-appropriation by the City Council. In the event that the City Council does not budget and appropriate funds for any fiscal year in an amount sufficient to meet the payments of interest on and principal of the Bonds during such fiscal year (a “non-appropriation”), the City’s obligation under the Bonds shall terminate and become null and void on the last day of the fiscal year for which the necessary funds were appropriated. The City shall give notice to the Underwriter of any non-appropriation. Upon the occurrence of any such non-appropriation, the City shall not be obligated to make payment from any source (including funds on deposit in the Bond Fund) of any amounts of principal of and interest on the Bonds beyond those amounts for which an appropriation has previously been made, and the City shall not be liable to the holders of the Bonds for any remaining amounts due under the Bonds or for any costs, damages (including but not limited to consequential damages) or expenses incurred by the holders of the Bonds as a result of the exercise by the City of the foregoing right of non-appropriation. Section 11. It is the intention of the City that interest on the Bonds be and remain excluded from gross income for federal income tax purposes pursuant to the appropriate provisions of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations in effect with respect thereto (all of the foregoing herein referred to as the “Internal Revenue Code”). In furtherance thereof, the City covenants to comply with the provisions of the Internal Revenue Code as they may from time to time be in effect or amended and further covenants to comply with the applicable future laws, regulations, published rulings and court decisions as may