Resolutions-2025-074

18-Month Exception: The 18-Month Exception set forth in Section 1.148-7(d) of the United States Treasury Regulations (the "Regulations") applies to the Net Sales Proceeds. Accordingly, if all Net Sales Proceeds of the Series 2025 Bond are expended at least as quickly as 15% within 6 months from the date of issuance of the Series 2025 Bond, 60% within 12 months and 100% within 18 months, then rebate will be required only with respect to a reasonably required reserve or replacement fund, if any. If the City exercises due diligence to complete the Project and an amount not exceeding the lesser of 3% of the Net Sales Proceeds of the Series 2025 Bond allocated to the Project ($431,520) or $250,000 remains unspent as of the end of the eighteenth month, the City will be treated as satisfying the final expenditure requirement. In addition, a reasonable retainage of up to 5% of the Net Sales Proceeds ($719,200) as of the end of the 18-month period may be allocated to expenditures within 30 months of the Dated Date. We certify that the City will comply with the investment requirements of Section 148 of the Code and the Regulations relating thereto with respect to the proceeds of the Series 2025 Bond, including the requirement to invest the proceeds of the Series 2025 Bond (and the investment earnings thereon) at fair market value, and, if appropriate, to comply with the bidding requirements for investment contracts. The City acknowledges that if it fails to spend the proceeds of the Series 2025 Bond (along with the investment earnings thereon) within the time periods set forth in the 18 Month Exception (or another applicable rebate exception), the City may have a rebate liability to the United States pursuant to Section 148 of the Code. The City shall consult with the appropriate auditors or rebate specialists with regard to determination of rebate liability. 8. The City shall make a final allocation of the proceeds of the Series 2025 Bond to capital expenditures not later than 18 months after the in-service date of the Project and in any event not later than five years and 60 days after the issuance of the Series 2025 Bond or not later than 60 days after retirement of the Series 2025 Bond. 9. The weighted average maturity of the Series 2025 Bond does not exceed the reasonably expected economic life of the Project. 10. To our best knowledge and belief, there are no facts, estimates or circumstances which would materially change the foregoing conclusions. 11. On the basis of the foregoing, it is not expected that the Net Sales Proceeds will be used in a manner that would cause the Series 2025 Bond to be an "arbitrage bond" under Section 148 of the Code and the regulations prescribed under that section. The City has not been notified of any listing or proposed listing of it by the Internal Revenue Service as a bond issuer whose arbitrage certifications may not be relied upon.