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254 <br /> <br />profit derived from the investment of bond proceeds; and <br /> <br /> WHEREAS, Section 148(f)(4)(C) of the Code provides an <br />exception to such rebate requirement for governmental units <br />with general taxing powers, such as the City, that expect to <br />issue not more than $5,000,000 in tax-exempt bonds in any <br />calendar year (the "Small-Issuer Rebate Exception"); and <br /> <br /> WHEREAS, the Code authorizes the City to allocate a <br />portion of its $5,000,000 annual limit to its "subordinate <br />entities," such as the Authority; and <br /> <br /> WHEREAS, the Authority has requested such an allocation <br />for the Bonds; and <br /> <br /> WHEREAS, the City Council has determined that such <br />designation and allocation would be in the best interest of <br />the City and its citizens; <br /> <br /> BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br />CHARLOTTESVILLE, VIRGINIA: <br /> <br /> 1. The City hereby designates the Bonds as "qualified <br />tax-exempt obligations" for the purpose of Section 265(b)(3) <br />of the Code, provided that the Bonds are issued in calendar <br />year 1988. <br /> <br /> 2. The City, hereby covenants and represents as <br />follows: <br /> <br /> (a) The City will in no event designate more than <br />$10,000,000 of obligations as "qualified tax-exempt <br />obligations" in 1988, including the Bonds, for the purpose of <br />such Section 265(b)(3); <br /> <br />(b) The City and all its "subordinate" entities <br />(within the meaning of Section 265(b)(3) of the.Code) have <br />not issued more than $10,000,000 of tax-exempt obligations in <br />1988 (not including "private activity bonds" as defined in <br />Section 141 of the Code other than "qualified 501(c)(3) <br />bonds" as defined in Section 145 of the Code), including the <br />Bonds~ and <br /> <br /> (c) Barring circumstances unforeseen as of the date <br />hereof, the City will not issue tax-exempt obligations itself <br />or approve the issuance of tax-exempt obligations of any such <br />subordinate entities if the issuance of such tax-exempt <br />obligations would, when aggregated with all other tax-exempt <br />obligations theretofore issued in 1988 by the City and such <br />subordinate entities, result in the City and such subordinate <br />entities having issued a total of more than $10,000,000 of <br />tax-exempt obligations in 1988 (not including private <br />activity bonds other than qUalified 501(c)(3) bonds), <br />including $2,364,000 of the Bonds; and <br /> <br /> (d) The City has not reason to believe that the <br />City and its subordinate entities will issue tax-exempt <br />obligations in 1988 in an aggregate amount that will exceed <br />such $10,000,000 limit; provided, however, that if the City <br />receives an opinion of nationally recognized bond counsel <br />that compliance with any restriction set forth in (a) or (c) <br />above is not required for the Bonds to be qualified <br />tax-exempt obligations, the City need not comply with such <br />restriction. <br /> <br /> 3. The City, hereby allocates $2,364,000 of the City's <br />$5,000,000 annual bond limit for the purpose of the Small- <br />Issuer Rebate Exception to the Authority for the Bonds, <br />provided that the Bonds are issued in calendar year 1988. <br /> <br />4. The City hereby covenants and represents as follows: <br /> <br />(a) The City and all its "subordinate" entities, <br /> <br /> <br />