JOINT POWERS FINANCING AUTHORITY AGENDA PACKET 9-15-26

Page 5 of 6 Legal Structure and Financing Documents The proposed resolution will approve the following documents. Each of the documents is presented in substantial final form and will be completed after the Bonds are priced (i.e., when the principal amount of the Bonds, the interest rates and the original issue premium or discount is determined). • Indenture of Trust – The Indenture is a contract between the Authority and U.S. Bank National Association, acting as trustee for the holders of the Bonds. The Indenture specifies the trustee, dated date, maturity date or dates, interest rate or rates, interest payment dates, denominations, forms, registration privileges, manner of execution, place or places of payment, terms of redemption and other terms of the Bonds. • Installment Sale Agreement – The Installment Sale Agreement is a contract between the Authority and the City, under which the Authority agrees to provide financing for the water projects and to sell the completed water projects to the City in consideration of the payment by the City of semiannual installment payments which are sufficient to provide revenues with which to pay principal of, and interest on, the Bonds when due. • Bond Purchase Agreement – The Bond Purchase Agreement is a contract among the Authority, the City and Siebert Williams Shank & Co., LLC., as underwriter, whereby the Authority agrees to sell the Bonds to the Underwriter and the Underwriter agrees to buy the Bonds from the Authority for resale to the public. • Preliminary Official Statement – The Preliminary Official Statement is the offering statement used by the Underwriter to inform the marketplace of the terms of the Bonds, material information regarding the City’s water system and related matters. It contains all relevant information for the investors to decide whether to purchase the Bonds. • Continuing Disclosure Certificate – Contained in the Preliminary Official Statement is the form of Continuing Disclosure Certificate, which requires the City to submit annual continuing disclosure reports and notice of certain listed events to the marketplace as long as the Bonds are outstanding. Financing Team Participants The complex legal and financial structure of municipal debt requires issuing agencies to rely heavily upon experienced professional consultants to assist with the process. City staff assembled a team of professionals to assist the City in this transaction. All fees associated with the financing will be paid by the Bonds. Municipal Advisor - PFM. Ensures that the issuing entity’s interests are protected when the transaction is being structured and when interest rates are established on the Bonds. Bond Counsel/Disclosure Counsel - Jones Hall. Drafts the documents required to complete the sale of bonds as well as ensures compliance with all of the legal requirements surrounding municipal debt. Underwriter - Siebert Williams Shank & Co. Securities dealer who helps government entities bring bond issues to market by purchasing the bonds from the issuer and then reselling the bonds to investors. Trustee - U.S. Bank: Financial institution with trust powers that is given fiduciary powers by a Page 7 of 205