05/27/2014 Ordinances 9489 ORDINANCE NO.9489
AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF BOND ANTICIPATION
NOTES, SERIES 2014, OF THE CITY OF GRAND ISLAND, NEBRASKA, OF THE PRINCIPAL
AMOUNT OF NOT TO EXCEED TWO MILLION TWO HUNDRED THIRTY THOUSAND
DOLLARS ($2,230,000) FOR THE PURPOSE OF PROVIDING INTERIM FINANCING FOR A
PORTION OF THE COSTS OF CONSTRUCTING IMPROVEMENTS IN STREET
IMPROVEMENT DISTRICT NO. 1260 AND STREET IMPROVEMENT DISTRICT NO. 1261
PENDING THE ISSUANCE OF PERMANENT GENERAL OBLIGATION BONDS;
PRESCRIBING THE FORM OF SAID NOTES; AGREEING TO ISSUE GENERAL
OBLIGATION BONDS TO PAY THE NOTES AT MATURITY OR TO PAY THE NOTES FROM
OTHER AVAILABLE FUNDS; ENTERING INTO A CONTRACT ON BEHALF OF THE CITY
WITH THE HOLDERS OF SAID NOTES; AND ORDERING THIS ORDINANCE PUBLISHED
IN PAMPHLET FORM.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF GRAND
ISLAND,NEBRASKA:
Section 1. The Mayor and City Council hereby fmd and determine:
(a) That by Ordinance Nos. 9420 and 9421 of the City heretofore adopted, Street Improvement
District No. 1260 and Street Improvement District No. 1261 have heretofore been created;
(b) That for certain street and related improvements in Street Improvement District Nos. 1260 and
1261, the engineers of the City have prepared estimates for the cost of construction of the improvements in
the aforesaid Districts,have taken bids for the project and contracts have been let in the approximate amount
of $1,871,990, design and engineering costs of approximately $333,382 will be incurred, plus costs of
issuance and underwriting and a portion of interest to accrue on said notes during construction estimated at a
net amount of $24,628, for total estimated costs of $2,230,000; that the construction of the aforesaid
improvements is expected to be completed by November 1,2015;
(c) That it is necessary for the City to have funds available to meet its payment obligations under
the terms of contracts for the cost of the improvements to be constructed relative to the aforesaid
improvement districts and to meet its obligations to provide interim fmancing therefor, it is necessary and
advisable that the City now issue its notes in the principal amount of not to exceed $2,230,000 pending
permanent financing pursuant to Sections 16-623 and 16-626 R.R.S. Neb. 2012, and other applicable
Sections; that the City has authority under Section 10-137, R.R.S. Neb. 2012 to issue notes for the purpose
of providing interim financing for the construction of said improvements, including a portion of the interest
1 f} ve,A e.4 1 i 37' Z 7 4'
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to accrue on such notes and the costs of issuance thereof, all as set out above; that all conditions, acts and
things required by law to exist or to be done precedent to the issuance of Bond Anticipation Notes, Series
2014, in the amount of not to exceed $2,230,000, to pay a portion of the costs of the aforesaid
improvements, the costs of issuance of said notes and a portion of the interest to accrue on said notes, do
exist and have been done as required by law.
Section 2. For the purpose of providing interim financing for the costs set out in Section 1
pending the issuance of permanent general obligation various purpose bonds by the City of Grand Island,
there shall be and there are hereby ordered issued bond anticipation notes of the City of Grand Island,
Nebraska, to be known as "Bond Anticipation Notes, Series 2014" of the aggregate principal amount of not
to exceed Two Million Two Hundred Thirty Thousand Dollars ($2,230,000) (herein referred to as the
"Notes" or the "notes"), consisting of fully registered notes numbered from 1 upwards in the order of
issuance, in the denomination of$5,000 each, or integral multiples thereof; said Notes shall bear as date of
original issue their date of delivery, each of said Notes shall mature on such date, shall bear interest at the
rate or rates per annum and be issued in such principal amount as shall be determined in a written
designation (the "Designation") signed by the Mayor or City Treasurer/Finance Director of the City (the
"Authorized Officers") on behalf of the City Council of the City and which may be agreed to by Ameritas
Investment Corp. (the"Underwriter"),which Designation may also determine or modify pricing terms as set
forth in Section 6 below,all within the following limitations:
(a) the aggregate principal amount of the Notes shall not exceed$2,230,000;
(b) the aggregate amount of original issue premium and original issue discount (if any)
may result in an aggregate net original issue discount (if any) not in excess of one
percent(1.00%)of the stated principal amount of the Notes;
(c) the maturity of the Notes may not be later than July 1, 2016;
(d) the true interest cost of the Notes shall not exceed 1.50%;
,..._._ The Authorized Officers (or any one of them) are hereby authorized to make such determinations on behalf
of the City Council and to evidence the same by execution and delivery of the Designation and such
determinations, when made and agreed to by the Underwriter, shall constitute the action of the City Council
without further action of the City Council.
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Interest on the Notes shall be payable semiannually on May 15 and November 15 of each year,
commencing November 15, 2014(or such other dates as may be determined in the Designation, each of said
dates an"Interest Payment Date")and the Notes shall bear such interest from the date of original issue or the
most recent Interest Payment Date,whichever is later. The interest due on each Interest Payment Date shall
be payable to the registered owners of record as of the close of business on the fifteenth day immediately
preceding the Interest Payment Date(the "Record Date"), subject to the provisions of Section 4 hereof. The
Notes shall be numbered from 1 upwards in the order of their issuance. No Note shall be issued originally
or upon transfer or partial redemption having more than one principal maturity.
Also provided, however, the City reserves the right to redeem any or all of said notes prior to
maturity anytime on or after May 15, 2015 (or such other redemption date as may be determined in the
Designation), upon not less than thirty days written notice, at par and accrued interest to the date fixed for
redemption. Such notice of call for redemption shall be sufficient if it has been sent to a registered holder of
said note or notes by first class mail addressed to the registered address of said registered holder. If less than
all of the notes are called and redeemed, such notes shall be called in increments of $5,000 or integral
multiples thereof. If less than all of the principal amount of any outstanding note is called for redemption, in
such case upon the surrender of such note called for payment,there shall be issued to the registered owner of
said note, without charge therefor, a registered note or notes for the unpaid principal balance in any of the
authorized denominations authorized by this ordinance.
The principal of said notes and any interest due on said notes upon maturity or earlier call for
redemption shall be payable at the corporate office of Cornerstone Bank, in York, Nebraska, as Paying
Agent and Registrar, upon presentation and surrender of the note or notes when due or when called for
payment prior to maturity.
Section 3. The Cornerstone Bank, in York, Nebraska, is hereby designated as Paying Agent
and Registrar for the Bond Anticipation Notes herein ordered issued and is hereby authorized to make
payments of interest and principal from funds available for such purposes as provided herein as the same fall
due. The Paying Agent and Registrar shall keep and maintain for the City books for the registration and
transfer of the Notes. The names and registered addresses of the registered owner or owners of the Notes
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shall at all times be recorded in such books. Any Note may be transferred pursuant to its provisions by said
Paying Agent and Registrar by surrender of such Note for cancellation, accompanied by a written
instrument of transfer, in form satisfactory to said Paying Agent and Registrar, duly executed by the
registered owner in person or by such owner's duly authorized agent, and thereupon the Paying Agent and
Registrar on behalf of the City will deliver (or send by registered mail to the transferee owner or owners
thereof at such transferee owner's or owners' risk and expense), registered in the name of such transferee
owner or owners, a new note or notes of the same series, interest rate, aggregate principal amount and
maturity. To the extent of the denominations authorized for the notes by this ordinance, one note may be
transferred for several such notes of the same series, interest rate and maturity, and for a like aggregate
principal amount, and several such notes may be transferred for one or several such notes, respectively of
the same series, interest rate and maturity and for a like aggregate principal amount.In every case of transfer
of a note, the surrendered note shall be cancelled and destroyed. All notes issued upon transfer of the notes
so surrendered shall be valid obligations of the City evidencing the same obligations as the notes
surrendered and shall be entitled to all the benefits and protection of this ordinance to the same extent as the
notes upon transfer of which they were delivered. The City and said Paying Agent and Registrar shall not be
required to transfer any note called for redemption for a period of 30 days next preceding the date fixed for
redemption.
Section 4. Said Notes shall not be valid and binding on the City until authenticated by the
Paying Agent and Registrar.
Section 5. Said notes shall be substantially in the following form:
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UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
BOND ANTICIPATION NOTE
OF THE CITY OF GRAND ISLAND,NEBRASKA
SERIES 2014
No.R-1
Date of
Interest Rate Maturity Date Original Issue CUSIP
_,20_ 2014
Registered Owner: Cede& Co.
13-2555119
Principal Amount: THOUSAND DOLLARS($ )
KNOW ALL PERSONS BY THESE PRESENTS: That the City of Grand Island, in the County of
Hall, in the State of Nebraska, hereby acknowledges itself to owe and for value received promises to pay to
the registered owner shown above and as shown on the registration books of the City on the maturity date
shown above, the principal amount shown above in lawful money of the United States of America with
interest thereon to maturity (or earlier redemption) from the date of original issue or most recent Interest
Payment Date, whichever is later, at the rate per annum specified above, payable semiannually on May 15
and November 15 of each year, commencing November 15, 2014 (each of said dates an "Interest Payment
Date"). Said interest shall be computed on the basis of a 360-day year consisting of twelve 30-day months.
The principal of this note and any interest due upon maturity or earlier call for redemption are payable at the
corporate office of Cornerstone Bank, as Paying Agent and Registrar, in York, Nebraska,upon presentation
and surrender of the note when due or when called for payment prior to maturity.
This note is redeemable at the option of the City prior to maturity at any time on or after May 15,
2015 at par and accrued interest to date fixed for redemption.Notice of call of any note for redemption prior
to maturity shall be sufficient if given in writing and mailed by first class mail, postage prepaid, to the
registered owner at the address shown on the note register not less than thirty days prior to the date fixed for
redemption.
This note is one of an issue of notes numbered from 1 upwards in order of issuance, of the total
principal amount of ($ ) in the
denomination of$5,000 or integral multiples thereof, of even date and like tenor herewith, issued by the
City of Grand Island for the purpose of providing interim financing to pay a portion of the cost of
improvements in Street Improvement District No.1260 and Street Improvement District No. 1261,including
the cost of issuance of said notes and a portion of the interest to accrue on said notes, pending the issuance
of permanent general obligation bonds. The issuance of this note and the other notes of this issue has been
lawfully authorized by ordinance duly passed, signed and published by the Mayor and City Council of said
City in strict compliance with Sections 16-623, 16-626 and 10-137, R.R.S. Neb. 2012, and all other
applicable laws.
The City agrees that the principal and interest of this note shall be payable from the proceeds of the
issuance and sale of its general obligation bonds,the issuance and sale of its bond anticipation notes,or from
other monies of the City lawfully available for such purposes.
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The City reserves the right to issue additional bond anticipation notes for the purpose of paying the
balance of the costs of the projects financed in part by this issue of notes or of other improvement projects of
the City, for the purpose of refunding the notes of this issue at or prior to maturity and for the purpose of
paying for additional improvements for the City. The ordinance under which these notes are issued
constitutes an irrevocable contract between the City and the holders of all of said notes and said contract
cannot be changed or altered without the written consent of the holders of seventy-five percent (75%) in
principal amount of the notes of this series then outstanding.
AS PROVIDED IN THE ORDINANCE REFERRED TO HEREIN, UNTIL THE TERMINA-
TION OF THE SYSTEM OF BOOK-ENTRY-ONLY TRANSFERS THROUGH THE DEPOSITORY
TRUST COMPANY,NEW YORK,NEW YORK(TOGETHER WITH ANY SUCCESSOR SECURITIES
DEPOSITORY APPOINTED PURSUANT TO THE ORDINANCE, "DTC"), AND NOTWITH-
STANDING ANY OTHER PROVISIONS OF THE ORDINANCE TO THE CONTRARY, A PORTION
OF THE PRINCIPAL AMOUNT OF THIS NOTE MAY BE PAID OR REDEEMED WITHOUT
SURRENDER HEREOF TO THE REGISTRAR.DTC OR A NOMINEE,TRANSFEREE OR ASSIGNEE
OF DTC OF THIS NOTE MAY NOT RELY UPON THE PRINCIPAL AMOUNT INDICATED
HEREON AS THE PRINCIPAL AMOUNT HEREOF OUTSTANDING AND UNPAID. THE
PRINCIPAL AMOUNT HEREOF OUTSTANDING AND UNPAID SHALL FOR ALL PURPOSES BE
THE AMOUNT DETERMINED IN THE MANNER PROVIDED IN THE ORDINANCE.
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED OFFICER OF DTC(A)TO THE
REGISTRAR FOR REGISTRATION OF TRANSFER OR EXCHANGE OR (B) TO THE REGISTRAR
FOR PAYMENT OF PRINCIPAL, AND ANY NOTE ISSUED IN REPLACEMENT HEREOF OR
SUBSTITUTION HEREFOR IS REGISTERED IN THE NAME OF DTC AND ANY PAYMENT IS
MADE TO DTC OR ITS NOMINEE, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE ONLY THE
REGISTERED OWNER HEREOF,DTC OR ITS NOMINEE,HAS AN INTEREST HEREIN.
This note shall not be valid and binding on the City until authenticated by the Paying Agent and
Registrar.
IT IS HEREBY CERTIFIED AND WARRANTED that all conditions, acts and things required by
law to exist or to be done precedent to and in the issuance of this note did exist, did happen and were done
and performed in regular and due form and time as provided by law.
IN WITNESS WHEREOF the Mayor and Council of the City of Grand Island, Nebraska, have
caused this note to be executed on behalf of the City with the manual or facsimile signatures of the Mayor
and the City Clerk and by causing the official seal of the City to be impressed or imprinted hereon, all as of
the date of original issue specified above.
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CITY OF GRAND ISLAND,NEBRASKA
Mayor
ATTEST:
City Clerk
(SEAL)
CERTIFICATE OF AUTHENTICATION
This note is one of the notes of the issue designated therein and issued under the provisions of the
ordinance authorizing said issue.
CORNERSTONE BANK
YORK,NEBRASKA
Paying Agent and Registrar
Authorized Signature
(Form of Assignment)
For value received hereby sells,assigns
and transfers unto the within mentioned note and hereby
irrevocably constitutes and appoints , attorney, to
transfer the same on the books of registration in the office of the within-in mentioned Paying Agent and
Registrar with full power of substitution in the premises.
Dated:
Registered Owner(s)
Witness:
Note: The signature of this assignment must correspond with the name as written on the face of the
within-mentioned note in every particular,without alteration,enlargement or any change whatsoever.
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Section 6. Each of the Notes shall be executed on behalf of the City with the manual or
facsimile signatures of the Mayor and the City Clerk and shall have imprinted thereon the City's seal
(which may be a facsimile seal). The Notes shall be issued initially as "book-entry-only" notes using the
services of The Depository Trust Company ("DTC"), with one typewritten note certificate per maturity
being issued to DTC. In such connection, said officers are authorized to execute and deliver a Letter of
Representations in the form required by DTC (including any blanket letter previously executed and
delivered by the City), for and on behalf of the City, which shall thereafter govern matters with respect to
registration, transfer, payment and redemption of the Notes. Upon the issuance of the Notes as "book-
entry-only" notes,the following provisions shall apply:
(a) The City and the Paying Agent and Registrar shall have no responsibility or
obligation to any broker-dealer, bank or other financial institution for which the
Depository holds Notes as securities depository (each, a "Bond Participant") or to any
person who is an actual purchaser of a Note from a Bond Participant while the Notes are
in book-entry form(each,a"Beneficial Owner")with respect to the following:
(i) the accuracy of the records of the Depository, any nominees of
the Depository or any Bond Participant with respect to any ownership
interest in the Notes,
(ii) the delivery to any Bond Participant, any Beneficial Owner or
any other person, other than the Depository, of any notice with respect to
the Notes,including any notice of redemption, or
(iii) the payment to any Bond Participant, any Beneficial Owner or
any other person, other than the Depository, of any amount with respect
to the Notes.
The Paying Agent and Registrar shall make payments with respect to the Notes only to or
upon the order of the Depository or its nominee, and all such payments shall be valid and
effective fully to satisfy and discharge the obligations with respect to such Notes to the
extent of the sum or sums so paid. No person other than the Depository shall receive an
authenticated Note,except as provided in(e)below.
(b) Upon receipt by the Paying Agent and Registrar of written notice from the
Depository to the effect that the Depository is unable or unwilling to discharge its
responsibilities, the Paying Agent and Registrar shall issue, transfer and exchange Notes
requested by the Depository in appropriate amounts. Whenever the Depository requests
the Paying Agent and Registrar to do so, the Paying Agent and Registrar will cooperate
with the Depository in taking appropriate action after reasonable notice (i) to arrange,
with the prior written consent of the City, for a substitute depository willing and able
upon reasonable and customary terms to maintain custody of the Notes or (ii) to make
available Notes registered in whatever name or names the Beneficial Owners transferring
or exchanging such Notes shall designate.
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(c) If the City determines that it is desirable that certificates representing the Notes
be delivered to the Bond Participants and/or Beneficial Owners of the Notes and so
notifies the Paying Agent and Registrar in writing, the Paying Agent and Registrar shall
so notify the Depository, whereupon the Depository will notify the Bond Participants of
the availability through the Depository of note certificates representing the Notes. In such
event, the Paying Agent and Registrar shall issue, transfer and exchange note certificates
representing the Notes as requested by the Depository in appropriate amounts and in
authorized denominations.
(d) Notwithstanding any other provision of this Ordinance to the contrary, so long as
any Note is registered in the name of the Depository or any nominee thereof, all
payments with respect to such Note and all notices with respect to such Note shall be
made and given, respectively, to the Depository as provided in the Letter of Represen-
tations.
(e) Registered ownership of the Notes may be transferred on the books of
registration maintained by the Paying Agent and Registrar, and the Notes may be
delivered in physical form to the following:
(i) any successor securities depository or its nominee;
(ii) any person, upon (A) the resignation of the Depository from its
---- functions as depository or (B) termination of the use of the Depository
pursuant to this Section.
(0 In the event of any partial redemption of a Note unless and until such partially
redeemed Note has been replaced in accordance with the provisions of this Ordinance,
the books and records of the Paying Agent and Registrar shall govern and establish the
principal amount of such Note as is then outstanding and all of the Notes issued to the
Depository or its nominee shall contain a legend to such effect.
If for any reason the Depository resigns and is not replaced, the City shall immediately provide a supply
of printed note certificates for issuance upon the transfers from the Depository and subsequent transfers or
in the event of partial redemption. In the event that such supply of certificates shall be insufficient to meet
the requirements of the Paying Agent and Registrar for issuance of replacement Notes upon transfer or
partial redemption, the City agrees to order printed an additional supply of certificates and to direct their
execution by manual or facsimile signature of its then duly qualified and acting Mayor and City Clerk of
such City. In case any officer whose signature or facsimile thereof shall appear on any Note shall cease to
be such officer before the delivery of such Note (including any note certificates delivered to the Paying
Agent and Registrar for issuance upon transfer or partial redemption), such signature or such facsimile
signature shall nevertheless be valid and sufficient for all purposes the same as if such officer or officers
had remained in office until the delivery of such Note. The Notes shall not be valid and binding on the
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r_..__. City until authenticated by the Paying Agent and Registrar. The City Treasurer shall cause the Notes to be
registered and authenticated. Upon execution, registration and authentication of the Notes, the City
Treasurer is authorized to deliver them to Ameritas Investment Corp., as the initial purchaser thereof,
upon receipt of 99.10% of the principal amount of the Notes (or such other amount as may be determined
in the Designation) plus accrued interest thereon to date of payment for the Notes. Said initial purchaser
shall have the right to direct the registration of the Notes and the denominations thereof within each
maturity, subject to the restrictions of this Ordinance. The Mayor is hereby authorized to execute the Note
Purchase Agreement with respect to the Notes.
Section 7. The City covenants and agrees that it will take all steps required to complete the
improvements described in Section 1 hereof in a manner to allow it to issue and sell its various purpose
bonds or other bonds. The City further covenants and agrees to issue and sell its various purpose bonds or
other bonds in a sufficient amount and at such times as will enable it to take up and pay off the bond
anticipation notes herein ordered issued, both principal and interest, at or prior to maturity, to the extent
not paid from other sources.
Section 8. The City hereby reserves the right to issue additional bond anticipation notes for
the purpose of paying the balance of the cost of the projects of the City set out in Section 1 hereof, for the
purpose of refunding the Notes herein ordered issued at or prior to maturity or for the purpose of paying
for additional improvements for the City.
Section 9. The City Clerk shall make and certify a complete transcript of the proceedings
had and done by said City precedent to the issuance of said Notes which shall be delivered to the
purchaser of the Notes. After being executed by the Mayor and Clerk said Notes shall be delivered to the
City Treasurer who shall be responsible therefor under her official bond. The City Treasurer is authorized
and directed to deliver said Notes to the purchaser upon receipt of payment of the purchase price in
accordance with the contract of the City with said purchaser.
Section 10. The City hereby covenants to the purchasers and holders of the Notes that it will
make no use of the proceeds of said Notes issue, including money held in any sinking fund attributable to
said Notes which would cause the Notes to be arbitrage bonds within the meaning of the Internal Revenue
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Code of 1986, as amended, and further covenants and agrees to take all actions necessary under current
federal law to maintain the tax-exempt status (as to taxpayers generally) of interest payable on the Notes.
The City hereby authorizes the Mayor or City Treasurer to designate the Notes as its "qualified tax-
exempt obligations" under Section 265(b)(3)(B)(i)(III) of the Internal Revenue Code of 1986, as
amended, and provide such covenants and warranties as deteunined necessary or appropriate in
connection therewith.
Section 11. If any section, paragraph, clause or provision of this Ordinance shall be held
invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other
provisions of this ordinance.
Section 12. All ordinances, resolutions or orders, or parts thereof, in conflict with the
provisions of this Ordinance are to the extent of said conflict hereby repealed.
Section 13. The City hereby(a)authorizes and directs that a Mayor,Treasurer or Clerk execute
and deliver, on the date of issue of the Notes, a continuing disclosure undertaking in accordance with the
requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission (the "Rule") in
such form as determined necessary and appropriate by such Mayor, Treasurer or Clerk (the "Continuing
Disclosure Undertaking") and (b) covenants and agrees that it will comply with and carry out all of the
provisions of the Continuing Disclosure Undertaking. Notwithstanding any other provision of this
resolution, failure of the City to comply with the Continuing Disclosure Undertaking shall not be considered
an event of default hereunder; however, any Participating Underwriter (as such term is defined in the
Continuing Disclosure Undertaking) or any Beneficial Owner or any Registered Owner of a Note (as such
tel are defined in the Continuing Disclosure Undertaking)may take such actions as may be necessary and
appropriate, including seeking mandamus or specific performance by court order, to cause the City to
comply with its obligations under this section,and under the Continuing Disclosure Undertaking.
Section 14. The Preliminary Official Statement with respect to the Notes is hereby approved.
The City Council hereby authorizes the Mayor and City Clerk (or either of them) to approve a
Preliminary Official Statement with respect to the Notes and the information therein contained, and the
Mayor and City Clerk(or either of them) are authorized to approve and deliver a final Official Statement
-..-- for and on behalf of the City, and said final Official Statement shall be delivered in accordance with the
Rule.
Section 15. In order to promote compliance with certain federal tax and securities laws
relating to the Notes herein authorized (as well as other outstanding bonds) the policy and procedures
attached hereto as Exhibit "A" (the "Post-Issuance Compliance Policy and Procedures") are hereby
adopted and approved in all respects. To the extent that there is any inconsistency between the attached
Post-Issuance Compliance Policy and Procedures and any similar policy or procedures previously adopted
and approved,the Post-Issuance Compliance Policy and Procedures shall control.
Section 16. This Ordinance shall be published in pamphlet form as provided by law. This
Ordinance shall take effect immediately upon its publication in pamphlet form.
PASSED AND APPROVED this 27th day of May,2014.
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Mayor
ATTEST:
4
Qr. .... _S . L 0
City Clerk
[SEAL]
fi=
3
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EXHIBIT"A"
Policy and Procedures
Federal Tax Law and Disclosure Requirements for
Tax-exempt Bonds and/or Build America Bonds
ISSUER NAME: The City of Grand Island,in the State of Nebraska
COMPLIANCE OFFICER(BY TITLE): City Treasurer/Finance Director
POLICY
It is the policy of the Issuer identified above(the"Issuer")to comply with all Federal tax requirements and securities law continuing
disclosure obligations for its obligations issued as tax-exempt bonds(or as direct pay build America bonds,as applicable)to ensure,
as applicable (a) that interest on its tax-exempt bonds remains exempt from Federal income tax, (b) that the direct payments
associated with its bonds issued as"build America bonds"are received by the Issuer in a timely manner and(c)compliance with any
continuing disclosure obligations of the Issuer with respect to its outstanding bonds.
PROCEDURES
Compliance Officer. Review of compliance with Federal tax requirements and securities law continuing disclosure obligations as
generally outlined below shall be conducted by the Compliance Officer identified above(the"Compliance Officer"). To the extent
more than one person has been delegated specific responsibilities, the Compliance Officer shall be responsible for ensuring
coordination of all compliance review efforts.
Training. The Compliance Officer shall evaluate and review educational resources regarding post-issuance compliance with Federal
tax and securities laws, including periodic review of resources published for issuers of tax-exempt obligations by the Internal
Revenue Service(either on its website at http://www.irs.gov/taxexemptbond,or elsewhere)and the Municipal Securities Rulemaking
Board(either on its Electronic Municipal Market Access website["EMMA"]at http://www.emma.msrb.org,or elsewhere).
Compliance Review.A compliance review shall be conducted at least annually by or at the direction of the Compliance Officer. The
review shall occur at the time the Issuer's annual audit takes place,unless the Compliance Officer otherwise specifically determines a
different time period or frequency of review would be more appropriate.
Scope of Review.
Document Review. At the compliance review, the following documents (the "Bond Documents") shall be reviewed for general
compliance with covenants and agreements and applicable regulations with respect to each outstanding bond issue:
(a) the resolution(s)and/or ordinance(s),as applicable,adopted by the governing body of the Issuer authorizing the issuance of its
outstanding bonds, together with any documents setting the final rates and terms of such bonds (the "Authorizing
Proceedings"),
(b) the tax documentation associated with each bond issue,which may include some or all of the following(the"Tax Documents"):
(i) covenants,certifications and expectations regarding Federal tax requirements which are described in the Authorizing
Proceedings;
(ii) Form 8038 series filed with the Internal Revenue Service;
(iii) tax certificates,tax compliance agreements,tax regulatory agreement or similar documents;
(iv) covenants,agreements,instructions or memoranda with respect to rebate or private use;
(v) any reports from rebate analysts received as a result of prior compliance review or evaluation efforts;and
(vi) any and all other agreements,certificates and documents contained in the transcript associated with the Authorizing
Proceedings relating to federal tax matters.
(c) the Issuer's continuing disclosure obligations,if any,contained in the Authorizing Proceedings or in a separate agreement(the
"Continuing Disclosure Obligations"),and
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(d) any communications or other materials received by the Issuer or its counsel,from bond counsel,the underwriter or placement
agent or its counsel, the IRS, or any other material correspondence relating to the tax-exempt status of the Issuer's bonds or
relating to the Issuer's Continuing Disclosure Obligations.
Use and Timely Expenditure of Bond Proceeds. Expenditure of bond proceeds shall be reviewed by the Compliance Officer to
ensure(a)such proceeds are spent for the purpose stated in the Authorizing Proceedings and as described in the Tax Documents and
(b) that the proceeds, together with investment earnings on such proceeds, are spent within the timeframes described in the Tax
Documents,and(c)that any mandatory redemptions from excess bond proceeds are timely made if required under the Authorizing
Proceedings and Tax Documents.
Arbitrage Yield Restrictions and Rebate Matters. The Tax Documents shall be reviewed by the Compliance Officer to ensure
compliance with any applicable yield restriction requirements under Section 148(a)of the Internal Revenue Code(the"Code")and
timely calculation and payment of any rebate and the filing of any associated returns pursuant to Section 148(f) of the Code. A
qualified rebate analyst shall be engaged as appropriate or as may be required under the Tax Documents.
Use of Bond Financed Property. Expectations and covenants contained in the Bond Documents regarding private use shall be
reviewed by the Compliance Officer to ensure compliance. Bond-financed properties shall be clearly identified(by mapping or other
reasonable means). Prior to execution,the Compliance Officer(and bond counsel,if deemed appropriate by the Compliance Officer)
shall review (a) all proposed leases, contracts related to operation or management of bond-financed property, sponsored research
agreements,take-or-pay contracts or other agreements or arrangements or proposed uses which have the potential to give any entity
any special legal entitlement to the bond-financed property,(b)all proposed agreements which would result in disposal of any bond-
financed property,and(c)all proposed uses of bond-financed property which were not anticipated at the time the bonds were issued.
Such actions could be prohibited by the Authorizing Proceedings,the Tax Documents or Federal tax law.
Continuing Disclosure. Compliance with the Continuing Disclosure Obligations with respect to each bond issue shall be evaluated
(a) to ensure timely compliance with any annual disclosure requirement, and (b) to ensure that any material events have been
properly disclosed as required by the Continuing Disclosure Obligation.
Record Keeping. If not otherwise specified in the Bond Documents,all records related to each bond issue shall be kept for the life of
the indebtedness associated with such bond issue(including all tax-exempt refundings)plus six(6)years.
Incorporation of Tax Documents. The requirements,agreements and procedures set forth in the Tax Documents,now or hereafter in
existence,are hereby incorporated into these procedures by this reference and are adopted as procedures of the Issuer with respect to
the series of bonds to which such Tax Documents relate.
Consultation Regarding Questions or Concerns. Any questions or concerns which arise as a result of any review by the Compliance
Officer shall be raised by the Compliance Officer with the Issuer's counsel or with bond counsel to determine whether non-
compliance exists and what measures should be taken with respect to any non-compliance.
VCAP and Remedial Actions. The Issuer is aware of(a)the Voluntary Closing Agreement Program(known as"VCAP")operated
by the Internal Revenue Service which allows issuers under certain circumstances to voluntarily enter into a closing agreement in the
event of certain non-compliance with Federal tax requirements and (b) the remedial actions available to issuers of certain bonds
under Section 1.141-12 of the Income Tax Regulations for private use of bond financed property which was not expected at the time
the bonds were issued.
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