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Home My WebLink About2013-06-10-Meeting Agendawww.augustaga.gov Finance Committee Meeting Commission Chamber- 6/10/2013- 12:55 PM FINANCE 1. Motion to approve the minutes of the Finance Committee held on May 28, 2013. Attachments 2. Motion to approve Water and Sewer Revenue Bonds Series 2013 bond resolution and authorize the Mayor and Clerk to sign all necessary documents. Attachments 3. Receive as information Required Notice to Governing Authority of Expenditures Exceeding Budgeted Levels for Fiscal Year 2012. Attachments 4. Motion to approve the designation of “McBean Enterprise Zone”. Attachments Finance Committee Meeting 6/10/2013 12:55 PM Minutes Department:Clerk of Commission Caption:Motion to approve the minutes of the Finance Committee held on May 28, 2013. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 1 Attachment number 1 \nPage 1 of 4 Item # 1 Attachment number 1 \nPage 2 of 4 Item # 1 Attachment number 1 \nPage 3 of 4 Item # 1 Attachment number 1 \nPage 4 of 4 Item # 1 Finance Committee Meeting 6/10/2013 12:55 PM Mottion to approve Water and Sewer Revnue bonds Series 2013 bond resolution and authroize the Mayor and Clerk to sign all necessary documents Department:Finance and Utilites Caption:Motion to approve Water and Sewer Revenue Bonds Series 2013 bond resolution and authorize the Mayor and Clerk to sign all necessary documents. Background:Commission has previously approved the issuance of the Water and Sewer Revenue Bonds. This is the next step in the process of issuing the 2013 Bond series. Analysis:This is the next step in the process of issuing the 2013 Bond Series. Financial Impact:n/a Alternatives:none Recommendation:Approve Bond Resolution Funds are Available in the Following Accounts: n/a REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 2 ___________________________________________________ PARITY BOND RESOLUTION ___________________________________________________ ADOPTED JUNE __, 2013 BY THE AUGUSTA-RICHMOND COUNTY COMMISSION RELATING TO AUGUSTA, GEORGIA WATER AND SEWERAGE TAXABLE REVENUE BONDS (SECOND RESOLUTION) SERIES 2013 This document was prepared by: MURRAY BARNES FINISTER LLP 3350 Peachtree Road, Suite 1140 Atlanta, Georgia 30326 Telephone: (678) 999-0354 Attachment number 1 \nPage 1 of 40 Item # 2 i TABLE OF CONTENTS ARTICLE I DEFINITIONS ............................................................................................................7 Section 1. Ratification and Incorporation. ....................................................................7 Section 2. Additional Definitions. ................................................................................7 ARTICLE II AUTHORIZATION, FORM AND REGISTRATION OF SERIES 2013 BONDS ....................................................................................................................8 Section 1. Authorization. ..............................................................................................8 Section 3. Execution; Form of Series 2013 Bonds. ......................................................9 Section 4. Required Authentication; Proof of Ownership. .........................................19 Section 5. Bond Registrar; Transfer and Exchange. ...................................................19 Section 6. Lost, Destroyed, Mutilated Series 2013 Bonds. ........................................20 Section 7. Blank Bonds. ..............................................................................................20 Section 8. Global Form; Securities Depository; Ownership of Series 2013 Bonds. ........................................................................................................21 Section 9. Cancellation and Destruction of Series 2013 Bonds..................................22 ARTICLE III REDEMPTION OF SERIES 2013 BONDS BEFORE MATURITY ....................23 Section 1. Redemption. ...............................................................................................23 ARTICLE IV CUSTODY AND APPLICATION OF PROCEEDS .............................................24 Section 1. Ratification and Incorporation. ..................................................................24 Section 2. Application of Series 2013 Bond Proceeds; Creation of 2013 Expense Account. ......................................................................................24 ARTICLE V PLEDGED REVENUES AND FLOW OF FUNDS ...............................................25 Section 1. Ratification and Incorporation. ..................................................................25 Section 2. Pledge of Revenues ....................................................................................25 ARTICLE VI ADDITIONAL BONDS AND SUBORDINATE BONDS....................................26 Section 1. Ratification and Incorporation. ..................................................................26 Section 2. Amendment of Provisions Relating to Additional Bonds..........................26 ARTICLE VII DEPOSITORIES OF MONEYS AND SECURITIES FOR DEPOSITS .............27 Section 1. Ratification and Incorporation. ..................................................................27 ARTICLE VIII GENERAL PROVISIONS...................................................................................28 Section 1. Ratification and Incorporation. ..................................................................28 Section 2. Continuing Disclosure for Series 2013 Bonds. ..........................................28 ARTICLE IX EVENTS OF DEFAULT; REMEDIES ..................................................................29 Section 1. Ratification and Incorporation. ..................................................................29 ARTICLE X BOND OWNERSHIP ..............................................................................................30 Section 1. Ratification and Incorporation. ..................................................................30 Attachment number 1 \nPage 2 of 40 Item # 2 ii ARTICLE XI DEFEASANCE ......................................................................................................31 Section 1. Ratification and Incorporation. ..................................................................31 ARTICLE XII SUPPLEMENTAL RESOLUTIONS ....................................................................32 Section 1. Ratification and Incorporation. ..................................................................32 ARTICLE XIII MISCELLANEOUS PROVISIONS ....................................................................33 Section 1. Severability. ...............................................................................................33 Section 2. General Ratification. ..................................................................................33 Section 3. Validation. ..................................................................................................33 Section 4. Repealer. ....................................................................................................33 Section 5. Preliminary Official Statement; Official Statement; and Deemed Final Certificate. ........................................................................................33 Section 6. General Authority. .....................................................................................34 Section 7. Appointment of Paying Agent, Bond Registrar and 2013 Expense Account Custodian. ....................................................................................34 Section 8. Waiver of Bond Audit. ...............................................................................35 Attachment number 1 \nPage 3 of 40 Item # 2 A PARITY BOND RESOLUTION PROVIDING FOR THE ISSUANCE OF WATER AND SEWERAGE TAXABLE REVENUE BONDS (SECOND RESOLUTION), SERIES 2013; TO PROVIDE FUNDS TO PAY OR TO BE APPLIED TOWARD THE COST OF (I) FUNDING, IN PART, THE DEBT SERVICE RESERVE ACCOUNT FOR THE PRIOR LIEN BONDS (HEREAFTER DEFINED), (II) FUNDING A DEBT SERVICE RESERVE ACCOUNT FOR THE SERIES 2013 BONDS AND (III) PAYING THE COSTS OF ISSUANCE OF THE SERIES 2013 BONDS; TO RATIFY, REAFFIRM AND ADOPT ALL APPLICABLE TERMS, PROVISIONS, COVENANTS AND CONDITIONS OF THE MASTER BOND RESOLUTION; TO PROVIDE FOR THE ISSUANCE UNDER CERTAIN TERMS AND CONDITIONS OF ADDITIONAL PARITY BONDS; TO PROVIDE FOR THE CREATION AND MAINTENANCE OF CERTAIN FUNDS; TO RATIFY AND AUTHORIZE THE PREPARATION, USE AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND A FINAL OFFICIAL STATEMENT IN CONNECTION WITH THE OFFER AND SALE OF THE SERIES 2013 BONDS; TO AUTHORIZE THE SALE OF THE SERIES 2013 BONDS TO THE WINNING BIDDER; TO PROVIDE FOR THE ANNUAL SUBMISSION OF CERTAIN FINANCIAL INFORMATION AND OPERATING DATA PURSUANT TO RULE 15c2-12 OF THE SECURITIES AND EXCHANGE COMMISSION AND FOR OTHER PURPOSES: WHEREAS, under the provisions of Article IX, Section III, Paragraph II(a) of the Constitution of the State of Georgia and an act of the General Assembly of the State of Georgia (Georgia Laws 1995, p. 3648 et seq., as amended—the “Act”), and pursuant to referenda, as authorized and required by the Act, which were held within the Consolidated Government of Augusta (the “Consolidated Government”) and Richmond County (the “County”), the Consolidated Government and the County (excluding the area within the Consolidated Government of Hephzibah and the Town of Blythe, Georgia) were consolidated into a consolidated government now known as “Augusta, Georgia” (the “Consolidated Government”); and WHEREAS, the Act was amended by subsequent acts, including Georgia Laws 1997, p. 4024 et seq., which provides: Said county-wide government shall be a new political entity, a body politic and corporate, and a political subdivision of the state to be known as “Augusta, Georgia,” at times in this Act called the “consolidated government” or “Augusta-Richmond County,” having all the governmental and corporate powers, duties, and functions heretofore held by and vested in the Consolidated Government of Augusta and Richmond County, and also the powers, duties, and functions provided in this charter; and WHEREAS, pursuant to the Act, the Consolidated Government now constitutes a county and a municipality under the laws and the Constitution of the State of Georgia, and is a Attachment number 1 \nPage 4 of 40 Item # 2 2 political subdivision of the State of Georgia in the exercise of the respective powers of a municipality and a county; and WHEREAS, pursuant to the Act, the water and sewerage systems of the Consolidated Government and the County are owned and operated by the Consolidated Government and pursuant to the 1996 Resolution (hereinafter defined) have been combined into one revenue producing undertaking; and WHEREAS, the Consolidated Government acting by and through its governing body, the Augusta-Richmond County Commission (the “Commission”), by virtue of the authority of the Constitution of the State of Georgia, the Act and Title 36, Chapter 82, Article 3 of the Official Code of Georgia Annotated, as amended (the “Revenue Bond Law”), is authorized to issue revenue bonds to acquire by redemption, payment or otherwise all or any part of the Consolidated Government’s outstanding water and sewerage revenue obligations, to fund in part a reasonably required debt service reserve and to acquire additional water and sewerage facilities by the addition thereto of improvements to the Consolidated Government’s water and sewerage system, as now existent and as hereafter added to, extended, improved and equipped (the “System”), and to construct such additions, and to operate and maintain the System for its own use, and for the use of the public and to prescribe and revise rates, and to collect fees and charges for the services, facilities and commodities furnished by the System; and WHEREAS, pursuant to a resolution adopted on October 21, 1996 (the “1996 Resolution”), as supplemented and amended (as more specifically defined in the hereinafter described Master Bond Resolution, the “Prior Lien Resolution”), the Consolidated Government has heretofore authorized, issued and delivered its (i) $62,880,000 original aggregate principal amount of Richmond County Water and Sewerage Revenue Refunding and Improvement Bonds, Series 1996A (the “Series 1996A Bonds”) which have been paid in full; (ii) $5,910,000 original aggregate principal amount of Richmond County Water and Sewerage Revenue Refunding Bonds, Series 1997 (the “Series 1997 Bonds”), which have been paid in full; (iii) $97,080,000 original aggregate principal amount of Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2000 (the “Series 2000 Bonds”) which have been paid in full; (iv) $149,400,000 original aggregate principal amount of Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2002 (the “Series 2002 Bonds”), which have been paid in full; (v) $160,000,000 original aggregate principal amount of Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2004 (the “Series 2004 Bonds”), currently outstanding in the aggregate principal amount of $160,000,000; and (vi) $177,010,000 original aggregate principal amount of Augusta, Georgia Water and Sewerage Revenue Refunding Bonds, Series 2007 (the “Series 2007 Bonds”), which are currently outstanding in the aggregate principal amount of $167,520,000 (the Series 2004 Bonds and the Series 2007 Bonds that will be outstanding upon the issuance and delivery of the Series 2013 Bonds (hereafter described) are herein referred to as the “Prior Lien Bonds”); and WHEREAS, the Prior Lien Bonds are payable from and secured by a first lien and pledge of “pledged revenues” (as defined in the Prior Lien Resolution) of the System; and WHEREAS, pursuant to a Master Bond Resolution adopted on October 16, 2012 (the “Master Bond Resolution”), the Consolidated Government determined that it was in the best interests of the citizens of the area served by the System for the Consolidated Government to Attachment number 1 \nPage 5 of 40 Item # 2 3 make the additions, extensions, and improvements to the System described in the Master Bond Resolution as the Series 2012 Project, and the Consolidated Government determined that the most feasible means of (i) financing the Series 2012 Project, (ii) refunding the Series 2002 Bonds maturing October 1, 2018, October 1, 2027 and October 1, 2032 and then currently outstanding in the aggregate principal amount of $95,740,000 (iii) funding a debt service reserve account for the Series 2012 Bonds and (iv) paying the costs of issuance of the Series 2012 Bonds was through the issuance of its water and sewerage revenue bonds on the terms described in the Master Bond Resolution and designated as “Augusta, Georgia Water and Sewerage Revenue Refunding and Improvement Bonds (Second Resolution), Series 2012” (the “Series 2012 Bonds”) issued and delivered in the original aggregate principal amount of $138,830,000; and WHEREAS, under the Master Bond Resolution, the Consolidated Government determined that it would not issue any additional bonds or obligations of any kind payable from a lien on pledged revenues of the System ranking as to such lien on the pledged revenues of the System created by the Prior Lien Resolution on a parity with the Prior Lien Bonds; and WHEREAS, the Series 2012 Bonds are secured by a second lien on the Pledged Revenues (as defined in the Master Bond Resolution) of the System; and WHEREAS, the Prior Lien Resolution requires that if a rating issued to a debt service reserve surety bond provider by a rating agency is withdrawn or reduced below the rating assigned to that of the Prior Lien Bonds (currently rated “Aa3” by Moody’s and “AA-” by S&P) immediately prior to that action by such rating agency, the Consolidated Government must replace such debt services reserve surety bonds with a substitute surety bond within 60 days after such rating change, and, if no substitute surety bond is obtained by such date, must fund the debt service reserve account held within Sinking Fund No. 1 under the Prior Lien Resolution (the “Prior Lien Reserve Account”) in an amount equal to the Reserve Requirement (as defined in the Prior Lien Resolution) in not more than 24 equal monthly payments commencing not later than the first day of the month immediately succeeding the end of such 60 day period; and WHEREAS, the Consolidated Government previously obtained two debt service reserve surety bonds issued by Financial Security Assurance Inc. (“FSA”), currently known as Assured Guaranty Municipal Corp. (“AGM”), in the aggregate amount of $20,089,622 (collectively the “Sureties”) in order to fund the Prior Lien Reserve Account, and on January 17, 2013, Moody’s downgraded the rating issued to AGM from “Aa3” to “A2,” thereby triggering the need, commencing April 1, 2013, for the Consolidated Government to substitute the portion of the Prior Lien Reserve Account funded with the Sureties with cash, as no substitute surety bonds meeting the criteria in the Prior Lien Resolution were available; and WHEREAS, in anticipation of the issuance of the Series 2013 Bonds to provide a more permanent funding of the amounts required to be deposited in the Prior Lien Reserve Account, as an interim measure, on each of April 1, 2013, May 1, 2013, June 1, 2013 and July 1, 2013, the Consolidated Government made (and as to July 1, will make) a deposit to the Prior Lien Reserve Account equal to 1/24th of the cash requirement ($837,068) (the “Prior Lien Reserve Cash Deposits”); and Attachment number 1 \nPage 6 of 40 Item # 2 4 WHEREAS, the Consolidated Government has determined that the most feasible means of (i) funding the portion of the reserve requirement for the Prior Lien Bonds, (ii) funding a debt service reserve account for the Series 2013 Bonds and (iii) paying the costs of issuance of the Series 2013 Bonds is through the issuance of its water and sewerage revenue bonds on the terms described in this Parity Bond Resolution to be designated as “Augusta, Georgia Water and Sewerage Taxable Revenue Bonds (Second Resolution), Series 2013” (the “Series 2013 Bonds”) in an aggregate principal amount not to exceed $22,300,000; and WHEREAS, upon the issuance of the Series 2013 Bonds, the Series 2004 Bonds outstanding in the entire aggregate principal amount of $ 160,000,000 and the Series 2007 Bonds outstanding in the aggregate principal amount of $167,520,000 will be the only revenue obligations of the Consolidated Government outstanding having as security for the payment thereof and interest thereon a first or prior lien on the “pledged revenues” of the System and the Consolidated Government has been and is now complying and will continue to comply in all respects with the applicable terms, covenants and provisions of the Prior Lien Resolution; and WHEREAS, the Series 2013 Bonds will be secured on a parity with the Series 2012 Bonds by a second lien on the Pledged Revenues of the System; and WHEREAS, it was provided in Section 6.3 of the Master Bond Resolution that Additional Bonds could be issued from time to time upon meeting certain conditions, as set forth therein, which are as follows (the capitalized terms used herein shall have such meanings as set forth in the Master Bond Resolution): (a) There shall have been procured and filed with the Consolidated Government either: (i) a report by an Independent Certified Public Accountant to the effect that the historical Net Operating Revenues and Investment Earnings (excluding Investment Earnings, if any, on the Construction Fund) for a period of 12 consecutive months of the most recent 24 consecutive months prior to the issuance of the proposed Additional Bonds were equal to at least 125% of the maximum annual Debt Service Requirement on all Prior Lien Bonds and Senior Bonds that will be Outstanding immediately after the issuance of the proposed Additional Bonds, in the then current or any succeeding Fiscal Year, or (ii) (1) a report by an Independent Certified Public Accountant to the effect that the historical Net Operating Revenues and Investment Earnings (excluding Investment Earnings, if any, on the Construction Fund) for a period of 12 consecutive months of the most recent 24 consecutive months prior to the issuance of the proposed Additional Bonds were equal to at least 125% of the historical Debt Service Requirement on all Prior Lien Bonds and Senior Bonds that were Outstanding during such 12 month period, and (2) a report by an Independent Consulting Engineer to the effect that (A) the forecasted Net Operating Revenues and Investment Earnings (excluding Investment Earnings, if any, on the Construction Fund) for the period beginning Attachment number 1 \nPage 7 of 40 Item # 2 5 on the expected date of issuance of the proposed Additional Bonds and ending on the date of commencement of the Forecast Period are expected to equal at least 100% of the Debt Service Requirement during such period on all Prior Lien Bonds and Senior Bonds that will be Outstanding immediately after the issuance of the proposed Additional Bonds, after taking into account amounts deposited into the Capitalized Interest Account, and (B) the forecasted Net Operating Revenues and Investment Earnings (excluding Investment Earnings, if any, on the Construction Fund) for each Fiscal Year in the Forecast Period are expected to equal at least 125% of the maximum annual Debt Service Requirement on all Prior Lien Bonds and Senior Bonds that will be Outstanding immediately after the issuance of the proposed Additional Bonds, in the then current or any succeeding Fiscal Year. The reports by the Independent Certified Public Accountant that are required by [this] Section 6.3(a) [of the Master Bond Resolution] may contain pro forma adjustments to historical Net Operating Revenues equal to 100% of the increased annual amount attributable to any revision in the schedule of rates, fees, and charges for the services, facilities, and commodities furnished by the System, imposed prior to the date of delivery of the proposed Additional Bonds and not fully reflected in the historical Net Operating Revenues actually received during such 12-month period. Such pro forma adjustments shall be based upon a report of an Independent Consulting Engineer as to the amount of Operating Revenues that would have been received during such 12-month period had the new rate schedule been in effect throughout such 12-month period. The report by the Independent Consulting Engineer that is required by Section 6.3(a)(ii)(2) [of the Master Bond Resolution] may not take into consideration any rate schedule to be imposed in the future, unless such rate schedule has been adopted by resolution of the Commission. Such rate schedule adopted by resolution may contain, however, future effective dates. (b) The Consolidated Government shall have received, at or before issuance of the Additional Bonds, a report from an Independent Certified Public Accountant to the effect that the payments required to be made into each account of the Sinking Fund have been made and the balance in each account of the Sinking Fund is not less than the balance required by the Bond Resolution as of the date of issuance of the proposed Additional Bonds. (c) The Series Resolution authorizing the proposed Additional Bonds must require the proceeds of such proposed Additional Bonds to be used to make capital improvements to the System, to fund interest on the proposed Additional Bonds, to acquire existing or proposed water or sewer utilities, to refund other obligations issued for such purposes (whether or not such refunding Bonds satisfy the requirements of Section 6.2 [of the Master Bond Resolution]), and to pay expenses incidental thereto and to the issuance of the proposed Additional Bonds. Attachment number 1 \nPage 8 of 40 Item # 2 6 (d) If any Additional Bonds would bear interest at a Variable Rate, the Series Resolution under which such Additional Bonds are issued shall provide a maximum rate of interest per annum that such Additional Bonds may bear. (e) The Administrator of the Consolidated Government and the Director of the Utilities Department of the Consolidated Government shall have certified, by written certificate dated as of the date of issuance of the Additional Bonds, that the Consolidated Government is in compliance with all requirements of the Bond Resolution. (f) The Consolidated Government shall have received an opinion of Bond Counsel, dated as of the date of issuance of the Additional Bonds, to the effect that the Series Resolution and any related Supplemental Resolution authorizing the issuance of Additional Bonds have been duly adopted by the Consolidated Government; and WHEREAS, as required by the Master Bond Resolution, prior to the issuance of the Series 2013 Bonds, the conditions set forth in paragraph (a) above shall be met, and the Independent Certified Public Accountant shall execute the certificate referred to in such paragraph and the other conditions to the issuance of the Series 2013 Bonds, including in paragraphs (b), (e) and (f) of the preceding clause, shall have been met; and WHEREAS, the Consolidated Government desires to amend Section 6.3(c) of the Master Bond Resolution to more particularly describe the purposes for which Additional Bonds may be issued, including the funding of a debt service reserve fund for the Bonds and the Prior Lien Bonds; and WHEREAS, this Parity Bond Resolution constitutes a Series Resolution under the Master Bond Resolution; and WHEREAS, to finance the overall undertaking now contemplated, the Series 2013 Bonds shall be offered for sale by competitive bid pursuant to an Official Notice of Sale and a Preliminary Official Statement (the “Preliminary Official Statement”); and WHEREAS, it is proposed that the Consolidated Government should ratify the preparation, use and distribution of the Preliminary Official Statement and authorize the execution, use and distribution of an Official Statement relating to the Series 2013 Bonds; and WHEREAS, it is further proposed that the Consolidated Government should appoint a paying agent and registrar and various fund depositories for the Series 2013 Bonds; and NOW, THEREFORE, BE IT RESOLVED by the Augusta-Richmond County Commission, as follows: Attachment number 1 \nPage 9 of 40 Item # 2 7 ARTICLE I DEFINITIONS Section 1. Ratification and Incorporation. Except as provided in Section 2 below, all terms and provisions of Article I of the Master Bond Resolution are hereby ratified and incorporated herein. Section 2. Additional Definitions. The following terms are intended to have the meanings set forth below, unless the context shall clearly indicate another or different meaning or intent. “Authorized Denominations” means, with respect to the Series 2013 Bonds, $5,000 and any integral multiple thereof. “Bond Registrar” means, with respect to the Series 2013 Bonds, U.S. Bank National Association. “Interest Payment Date” means, with respect to the Series 2013 Bonds, each April 1 and October 1, commencing October 1, 2013. “Paying Agent” means, with respect to the Series 2013 Bonds, U.S. Bank National Association. “Record Date” shall mean the 15th day (whether or not a business day) of the calendar month next preceding an Interest Payment Date. “Series 2013 Bonds” means the revenue bonds authorized to be issued pursuant to the Master Bond Resolution and Article II of this Series Resolution. “Series 2013 Disclosure Certificate” means the continuing disclosure certificate executed in connection with the issuance of the Series 2013 Bonds. Attachment number 1 \nPage 10 of 40 Item # 2 8 ARTICLE II AUTHORIZATION, FORM AND REGISTRATION OF SERIES 2013 BONDS Section 1. Authorization. Under the authority of the Revenue Bond Law, there is hereby authorized to be issued revenue bonds to be designated “Augusta, Georgia Water and Sewerage Taxable Revenue Bonds (Second Resolution), Series 2013” in an aggregate principal amount up to $22,300,000 for the purpose of (a) funding a portion of the reserve requirement for the Prior Lien Bonds, (b) funding a debt service reserve account for the Series 2013 Bonds and (c) paying the costs of issuance of the Series 2013 Bonds. The Series 2013 Bonds shall be payable solely from the Net Revenues of the System. Section 2. Terms of Series 2013 Bonds. The Series 2013 Bonds shall be dated their date of original issue, shall be in the form of fully registered bonds without coupons numbered R-1 upward, shall be in Authorized Denominations, bear interest at the rates per annum to be specified in a Supplemental Resolution to be adopted by the Consolidated Government (but which shall not in any event exceed a maximum per annum rate of interest of 6%), payable initially on October 1, 2013, and semiannually thereafter on each October 1 and April 1 of each year and shall mature no later than October 1, 2033. The maximum debt service on the Series 2013 Bonds due in any Bond Year (October 2 of a calendar year through October 1 of the next succeeding calendar year) shall not exceed $ 2,000,000). The maturity amounts and other provisions relating to the Series 2013 Bonds shall be set forth in a Supplemental Resolution. The Series 2013 Bonds shall bear interest (based on a 360-day year comprised of twelve 30-day months) from the Interest Payment Date next preceding their date of authentication to which interest has been paid, unless their date of authentication is an Interest Payment Date to which interest on such Series 2013 Bond has been paid in full or duly provided for, in which case from such Interest Payment Date, or unless their date of authentication is before the first Interest Payment Date, in which case from their date of issuance. When the Series 2013 Bonds are held in Book-Entry Form, the principal of and interest on the Series 2013 Bonds shall be payable in accordance with the rules of the Securities Depository as provided in Section 8. In the event that the Series 2013 Bonds are no longer held in Book-Entry Form, the principal amount of the Series 2013 Bonds shall be payable at maturity (unless redeemed prior thereto as hereinafter provided) upon presentation and surrender thereof at the principal corporate trust office of the Paying Agent. In the event that the Series 2013 Bonds are no longer held in Book-Entry Form, payments of interest on the Series 2013 Bonds shall be made by check or draft payable to the registered owner as shown on the Bond Register kept by the Bond Registrar at the close of business on the Record Date preceding the Interest Payment Date, and such payments of interest shall be mailed by first class mail to the registered owner at the address shown on the Bond Register or at such other address as is furnished in writing by such Bond Registrar prior to such Record Date, notwithstanding the cancellation of such Series 2013 Bonds upon any exchange or transfer thereof subsequent to the Record Date Attachment number 1 \nPage 11 of 40 Item # 2 9 and prior to such Interest Payment Date. Notwithstanding the foregoing, interest on the Series 2013 Bonds shall be paid to any registered owner of more than $1,000,000 in aggregate principal amount of the Series 2013 Bonds by wire transfer to such registered owner to an account maintained at a commercial bank located with the United States of America if written instructions are given to the Paying Agent prior to the Record Date, and interest shall continue to be so paid until such wire instructions are revoked in writing. Both the principal of and interest on the Series 2013 Bonds shall be payable in lawful money of the United States of America. Section 3. Execution; Form of Series 2013 Bonds. The Series 2013 Bonds shall be executed on behalf of the Consolidated Government by the manual or facsimile signature of the Mayor and attested by the manual or facsimile signature of the Clerk of the Commission. The official seal of the Consolidated Government shall be impressed thereon. The Series 2013 Bonds shall be authenticated by the manual signature of a duly authorized signatory of the Bond Registrar. The validation certificate to be attached to the Series 2013 Bonds shall be executed by the manual signature of the Clerk of the Superior Court of Richmond County, and the official seal of such Court shall be impressed thereon. In case any official whose signature shall appear on the Series 2013 Bonds shall cease to be such officer before delivery of the Series 2013 Bonds, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. The Series 2013 Bonds, the certificate of authentication and registration, form of assignment and the certificate of validation to be endorsed upon the Series 2013 Bonds, shall be in substantially the form set forth below, with such variations, omissions and insertions as are required or permitted by this Parity Bond Resolution. Prior to the preparation of definitive Series 2013 Bonds, the Consolidated Government may issue interim receipts, interim certificates, or temporary Series 2013 Bonds, exchangeable in any case for definitive Series 2013 Bonds upon the issuance of definitive Series 2013 Bonds. Attachment number 1 \nPage 12 of 40 Item # 2 10 Unless this Bond is presented by an authorized representative of The Depository Trust Company (“DTC”), a New York corporation, to Augusta, Georgia or its agent for registration of transfer, exchange, or payment, and any Bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. UNITED STATES OF AMERICA STATE OF GEORGIA AUGUSTA, GEORGIA WATER AND SEWERAGE TAXABLE REVENUE BOND (SECOND RESOLUTION), SERIES 2013 Number R- _________ $_______________ Maturity Date Interest Rate Dated CUSIP ________, 2013 Registered Owner: Cede & Co. Principal Amount: KNOW ALL MEN BY THESE PRESENTS that AUGUSTA, GEORGIA (the “Consolidated Government”), a political subdivision of the State of Georgia, existing as such under and by virtue of the Constitution, statutes and laws of the State of Georgia, for value received, hereby promises to pay (but only out of the sources provided) to the registered owner identified above, or registered assigns, on the Maturity Date stated above, unless this Bond shall have been called for redemption prior to maturity and payment of the redemption price shall have been duly made or provided for, the principal amount identified above and to pay (but only out of the sources provided) interest on the balance of such principal sum from time to time remaining unpaid from and including the date hereof or from and including the most recent Interest Payment Date (as hereinafter defined) with respect to which interest has been paid or duly provided for, until payment of such principal sum has been made, at the interest rate per annum shown above (computed on the basis of a 360-day year consisting of twelve 30-day months) on April 1 and October 1 of each year (each an “Interest Payment Date”) commencing April 1, 2014, until the payment of the principal amount of this Bond in full, and promises to pay interest on overdue principal and, to the extent permitted by law, on overdue premium, if any, and interest, at such rate. Attachment number 1 \nPage 13 of 40 Item # 2 11 Principal of and redemption premium, if any, on this Bond are payable when due in lawful money of the United States of America upon presentation and surrender of this Bond at the principal corporate trust office of U.S. Bank National Association, Atlanta, Georgia, as registrar and paying agent (the “Bond Registrar” or the “Paying Agent”). Payment of interest on this Bond shall be made to the registered owner and shall be paid in lawful money of the United States of America by check or draft mailed on the applicable Interest Payment Date to such registered owner as of the close of business on the 15th day of the calendar month (the “Record Date”) immediately preceding such Interest Payment Date at its address as it appears on the registration books (the “Bond Register”) of the Consolidated Government maintained by the Bond Registrar, or at such other address as is furnished in writing by such registered owner to the Bond Registrar. Notwithstanding the foregoing, however, interest on this Bond shall be payable to any registered owner of more than $1,000,000 in aggregate principal amount of the Bonds of the same series as this Bond (including this Bond) by deposit of immediately available funds to the account of such registered owner maintained with the Paying Agent or transmitted by wire transfer to such registered owner at an account maintained at a commercial bank located within the United States of America, if the Paying Agent receives from such registered owner written deposit or wire transfer instructions prior to the Record Date preceding the Interest Payment Date for which the deposit or wire transfer is requested. This Bond is one of a series of $___________________ in original aggregate principal amount of revenue bonds designated “Augusta, Georgia Water and Sewerage Taxable Revenue Bonds (Second Resolution), Series 2013” (the “Series 2013 Bonds”), issued by the Consolidated Government pursuant to and in full compliance with the provisions of the Constitution and laws of the State of Georgia, including specifically, but without limitation, Article 3 of Chapter 82 of Title 36 of the Official Code of Georgia Annotated, known as the “Revenue Bond Law,” as amended. The Series 2013 Bonds have been authorized by a Master Bond Resolution duly adopted by the Augusta-Richmond County Commission on October 16, 2012, as supplemented by a Parity Bond Resolution adopted on June __, 2013, as supplemented on July __, 2013 (the “Bond Resolution”), for the purpose of financing the costs of (a) funding a portion of the reserve requirement for the Prior Lien Bonds (hereafter defined), (b) funding a debt service reserve account for the Series 2013 Bonds and (c) paying the costs of issuance of the Series 2013 Bonds. The Series 2013 Bonds maturing on or after October 1, 2024, may be redeemed prior to their respective maturities at the option of the Consolidated Government on or after October 1, 2023, in whole or in part at any time, at the redemption price equal to the principal amount of the Series 2013 Bonds to be redeemed plus accrued interest to the redemption date. The Consolidated Government has established a book-entry system of registration for the Series 2013 Bonds. Except as specifically provided otherwise in the Bond Resolution, an agent will hold this Bond on behalf of the beneficial owner hereof. By acceptance of a confirmation of purchase, delivery, or transfer, the beneficial owner of this Bond shall be deemed to have agreed to such arrangement. While the Series 2013 Bonds are in the book-entry system of registration, the Bond Resolution provides special provisions relating to the Series 2013 Bonds, which override certain other provisions of the Bond Resolution. This Bond is transferable by the registered owner at the principal corporate trust office of the Bond Registrar but only in the Attachment number 1 \nPage 14 of 40 Item # 2 12 manner, subject to the limitations, and upon payment of the charges provided in the Bond Resolution and upon surrender of this Bond. Upon such transfer, a new registered Bond or Bonds of the same series, maturity, interest rate, aggregate principal amount, and tenor, of any authorized denomination or denominations, and bearing numbers not then outstanding, will be issued to the transferee in exchange for this Bond. The Series 2013 Bonds are issuable as fully registered Bonds in the denomination of $5,000 or any integral multiple thereof. The Bond Registrar is not required to transfer or exchange any Series 2013 Bond after notice calling such Series 2013 Bond for redemption has been given or during the period of 15 days (whether or not a business day for the Bond Registrar, but excluding the redemption date and including such 15th day) immediately preceding the giving of such notice of redemption. Pursuant to a resolution adopted by the Consolidated Government on October 21, 1996, as supplemented and amended (as more specifically defined in the Bond Resolution, the “Prior Lien Resolution”), the Consolidated Government has heretofore authorized, issued and delivered its (i) $62,880,000 original aggregate principal amount of Richmond County Water and Sewerage Revenue Refunding and Improvement Bonds, Series 1996A (the “Series 1996A Bonds”) which have been paid in full; (ii) $5,910,000 original aggregate principal amount of Richmond County Water and Sewerage Revenue Refunding Bonds, Series 1997 (the “Series 1997 Bonds”), which have been paid in full; (iii) $97,080,000 original aggregate principal amount of Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2000 (the “Series 2000 Bonds”) which have been paid in full; (iv) $149,400,000 original aggregate principal amount of Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2002 (the “Series 2002 Bonds”), which have been paid in full; (v) $160,000,000 original aggregate principal amount of Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2004 (the “Series 2004 Bonds”), currently outstanding in the aggregate principal amount of $160,000,000; and (vi) $177,010,000 original aggregate principal amount of Augusta, Georgia Water and Sewerage Revenue Refunding Bonds, Series 2007 (the “Series 2007 Bonds”), which are currently outstanding in the aggregate principal amount of $167,520,000 (the Series 2004 Bonds and the Series 2007 Bonds that will be outstanding upon the issuance and delivery of the Series 2013 Bonds are herein referred to as the “Prior Lien Bonds”). The Prior Lien Bonds are payable solely from, and secured by, a first lien on and pledge of “pledged revenues” (as defined in the Prior Lien Resolution) of the System. The Consolidated Government has agreed that it will not issue any additional bonds or obligations of any kind payable from a lien on net revenues of the System ranking as to such lien on net revenues of the System created by the Prior Lien Resolution on a parity with the Prior Lien Bonds. Pursuant to the Bond Resolution, the Consolidated Government has heretofore authorized, issued and delivered $138,830,000 original aggregate principal amount of August, Georgia Water and Sewerage Revenue Refunding and Improvement Bonds (Second Resolution), Series 2012, currently outstanding in the aggregate principal amount of $138,830,000 (the “Series 2012 Bonds”). The Series 2012 Bonds, the Series 2013 Bonds and such revenue bonds of the Consolidated Government as may in the future be issued on a parity therewith, are equally and ratably secured by pledge of the “Pledged Revenues” of the water and sewerage system (the “System”) of the Consolidated Government, which are defined in the Bond Resolution to include gross operating revenues of the System after provision for payment of all reasonable expenses of operation and maintenance and earnings on investments made with moneys and securities from time to time on deposit in the funds and accounts established in the Bond Resolution, and on and Attachment number 1 \nPage 15 of 40 Item # 2 13 after the date that the Prior Lien Bonds (hereafter defined) are no longer outstanding under the Prior Lien Resolution (hereafter defined), “Pledged Revenues” will include Hedge Receipts and exclude any amounts required in the Bond Resolution to be set aside pending, or used for, rebate to the United States government pursuant to Section 148(f) of the Internal Revenue Code of 1986, as amended, including, but not limited to, amounts in the Rebate Fund. So long as the Prior Lien Bonds remain outstanding, the Series 2012 Bonds, the Series 2013 Bonds and such revenue bonds of the Consolidated Government as may in the future be issued on a parity therewith will be payable solely from, and secured by, a second lien on and pledge of “pledged revenues” (as defined in the Prior Lien Resolution) of the System. THIS BOND SHALL NEVER CONSTITUTE AN INDEBTEDNESS OR GENERAL OBLIGATION OF THE STATE OF GEORGIA, THE CONSOLIDATED GOVERNMENT, OR ANY OTHER POLITICAL SUBDIVISION OF THE STATE OF GEORGIA, WITHIN THE MEANING OF ANY CONSTITUTIONAL PROVISION OR STATUTORY LIMITATION WHATSOEVER, NOR A PLEDGE OF THE FAITH AND CREDIT OR TAXING POWER OF ANY OF THE FOREGOING, NOR SHALL ANY OF THE FOREGOING BE SUBJECT TO ANY PECUNIARY LIABILITY HEREON. THIS BOND SHALL NOT BE PAYABLE FROM NOR A CHARGE UPON ANY FUNDS OTHER THAN THE REVENUES PLEDGED TO THE PAYMENT HEREOF AND SHALL BE A LIMITED OR SPECIAL OBLIGATION OF THE CONSOLIDATED GOVERNMENT PAYABLE SOLELY FROM THE FUNDS PROVIDED THEREFOR IN THE BOND RESOLUTION. NO OWNER OF THIS BOND SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF THE TAXING POWER OF THE STATE OF GEORGIA, THE CONSOLIDATED GOVERNMENT, OR ANY OTHER POLITICAL SUBDIVISION OF THE STATE OF GEORGIA TO PAY THE PRINCIPAL OF THIS BOND OR THE INTEREST OR ANY PREMIUM HEREON, OR TO ENFORCE PAYMENT HEREOF AGAINST ANY PROPERTY OF THE FOREGOING, NOR SHALL THIS BOND CONSTITUTE A CHARGE, LIEN, OR ENCUMBRANCE, LEGAL OR EQUITABLE, UPON ANY PROPERTY OF THE FOREGOING. NEITHER THE MEMBERS OF THE GOVERNING BODY OF THE CONSOLIDATED GOVERNMENT NOR ANY PERSON EXECUTING THIS BOND SHALL BE LIABLE PERSONALLY ON THIS BOND BY REASON OF THE ISSUANCE HEREOF. The Consolidated Government has covenanted and hereby covenants and agrees while any Series 2013 Bonds and Series 2012 Bonds are outstanding and unpaid to prescribe, fix, maintain, and collect rates, fees, and other charges for the services, facilities, and commodities furnished by the System fully sufficient at all times to: (i) provide for 100% of the expenses of operation and maintenance of the System and for the accumulation in the Revenue Fund (as defined in the Bond Resolution) of a reasonable reserve therefor, and (ii) produce net operating revenues in each Fiscal Year (as defined in the Bond Resolution) that, together with certain investment earnings, will: (a) equal at least 110% of the debt service requirement on all Prior Lien Bonds and Senior Bonds (as defined in the Bond Resolution) then outstanding and 100% of the debt service requirement on all Subordinate Bonds (as defined in the Bond Resolution) then outstanding, (b) enable the Consolidated Government to make all required payments into the debt service reserve account under the Prior Lien Resolution, the Debt Service Reserve Account and the Rebate Fund and to any Financial Facility Issuer, any Reserve Account Credit Facility Provider, and any Qualified Hedge Provider (as each is defined in the Bond Resolution), (c) enable the Consolidated Government to accumulate an amount to be held in the Utility Attachment number 1 \nPage 16 of 40 Item # 2 14 General Fund (as defined in the Bond Resolution), which in the judgment of the Consolidated Government is adequate to meet the costs of major renewals, replacements, repairs, additions, betterments, and improvements to the System, necessary to keep the same in good operating condition or as is required by any governmental agency having jurisdiction over the System, and (d) remedy all deficiencies in required payments into any of the funds and accounts mentioned in the Bond Resolution from prior Fiscal Years. The Bond Resolution contains a more particular statement of the covenants and provisions securing the Series 2013 Bonds, the conditions under which the owner of this Bond may enforce covenants (other than the covenant to pay principal of and interest on this Bond when due from the sources provided, the right to enforce which is unconditional), the conditions upon which additional revenue bonds may be issued on a parity or achieve parity status with this Bond under the Bond Resolution, and the conditions upon which the Bond Resolution may be amended with the consent of the owners of a majority in aggregate principal amount of the Bonds (as defined in the Bond Resolution) of each class (senior and subordinate) outstanding or the issuer of any Credit Facility (as defined in the Bond Resolution), if any, of such Bonds. Upon the occurrence of an Event of Default under the Bond Resolution, the owner of this Bond shall be entitled to the remedies provided by the Bond Resolution and the Revenue Bond Law. It is hereby certified, recited, and declared that all acts, conditions, and things required to exist, happen, and be performed precedent to and in the issuance of this Bond do exist, have happened, and have been performed in due time, form, and manner as required by law. This Bond shall not be entitled to any security or benefit under the Bond Resolution or become valid or obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. Attachment number 1 \nPage 17 of 40 Item # 2 15 IN WITNESS WHEREOF, the Consolidated Government has caused this Bond to be executed by the manual signature of its Mayor and has caused the official seal of the Consolidated Government to be impressed on this Bond and attested by the manual signature of its Clerk. (SEAL) AUGUSTA, GEORGIA By: Mayor Attest: Clerk Attachment number 1 \nPage 18 of 40 Item # 2 16 BOND REGISTRAR’S CERTIFICATE OF AUTHENTICATION This Bond is one of the bonds of the series described in the within mentioned Bond Resolution. U.S. BANK NATIONAL ASSOCIATION, as Bond Registrar By: Authorized Signatory Date of Registration and Authentication: _____________________, ______ Attachment number 1 \nPage 19 of 40 Item # 2 17 VALIDATION CERTIFICATE STATE OF GEORGIA ) ) RICHMOND COUNTY ) The undersigned Clerk of the Superior Court of Richmond County, State of Georgia, DOES HEREBY CERTIFY that this Bond and the security therefor was validated and confirmed by judgment of the Superior Court of Richmond County, on the ____ day of July, 2013, that no intervention or objection was filed opposing the validation of this Bond and the security therefor, and that no appeal of such judgment of validation has been taken. IN WITNESS WHEREOF, I have hereunto set my hand and have impressed hereon the official seal of the Superior Court of Richmond County, Georgia. (SEAL) Clerk, Superior Court of Richmond County, Georgia Attachment number 1 \nPage 20 of 40 Item # 2 18 The following abbreviations, when used in the inscription on this Bond or in the assignment below, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common and not as community property UNIF TRANS MIN ACT - ______________________ Custodian ______________________ (Custodian) (Minor) under Uniform Transfers to Minors Act _____________________ (State) Additional abbreviations may be used although not in the above list. [FORM OF ASSIGNMENT] ASSIGNMENT AND TRANSFER FOR VALUE RECEIVED, the undersigned sells, assigns, and transfers unto (Name and Address of Assignee) (Insert Social Security or Taxpayer Identification Number of Assignee) the within revenue bond of the Augusta, Georgia and does hereby irrevocably constitute and appoint ______________________________ attorney to transfer the Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: (Signature Guaranteed) Notice: Signature(s) must be guaranteed by an eligible guarantor institution (such as banks, stockbrokers, savings and loan associations, and credit unions) with membership in an approved Signature Guarantee Medallion Program pursuant to S.E.C. Rule 17Ad-15. Registered Owner Notice: The signature(s) on this assignment must correspond with the name as it appears on the face of the within bond in every particular without alteration or enlargement or any change whatsoever. (END OF BOND FORM) Attachment number 1 \nPage 21 of 40 Item # 2 19 Section 4. Required Authentication; Proof of Ownership. Only those Series 2013 Bonds which shall have endorsed thereon a certificate of authentication and registration substantially in the form hereinbefore set forth, duly executed by the manual signature of an authorized officer of the Bond Registrar shall be entitled to any benefit or security under this resolution. Such certificate of the Bond Registrar upon any of Series 2013 Bonds when duly executed shall be conclusive evidence that such Series 2013 Bonds have been duly authenticated, registered and delivered under the Bond Resolution and that the owner is entitled to the benefit of the Bond Resolution. It shall not be necessary that the same authorized signatory of the Bond Registrar sign the certificate of authentication and registration on all of the Series 2013 Bonds that may be issued hereunder at any one time. The person in whose name any Series 2013 Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes and the payment of the principal of and interest on the Series 2013 Bonds shall be made only to or upon the order of the registered owner thereof. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Series 2013 Bonds, including redemption premium, if any, and the interest thereon to the extent of the sums so paid. Section 5. Bond Registrar; Transfer and Exchange. The Bond Registrar shall keep the Bond Register of the Consolidated Government for the registration of the Series 2013 Bonds and for the registration of transfers of the Series 2013 Bonds as herein provided. The transfer of any Series 2013 Bond shall be registered upon the Bond Register upon the surrender and presentation of the Series 2013 Bond to the Bond Registrar duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner or attorney duly authorized in writing in such form as shall be satisfactory to the Bond Registrar. Upon any such registration of transfer, the Bond Registrar shall authenticate and deliver in exchange for such Series 2013 Bond or Series 2013 Bonds so surrendered, a new Series 2013 Bond or Series 2013 Bonds registered in the name of the transferee or transferees, of any Authorized Denomination, and in an aggregate principal amount or maturity amount equal to the aggregate principal amount or maturity amounts of the Series 2013 Bonds so surrendered and of the same maturity, interest rate, series and tenor, and bearing numbers not then outstanding. Any Series 2013 Bond, upon presentation and surrender thereof to the Bond Registrar, together with an assignment duly executed by the registered owner or duly authorized attorney, in such form as may be satisfactory to the Bond Registrar, may be exchanged for an aggregate principal amount of Series 2013 Bonds of the same series, interest rate, maturity and equal to the principal amount of the Series 2013 Bond so surrendered, of any Authorized Denomination, and bearing numbers not then outstanding. The Bond Registrar may make a charge for every exchange or registration of transfer of the Series 2013 Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of transfer, but no other charge shall be made to the owner for the privilege of exchanging or registering the transfer of Series 2013 Bonds under the Bond Resolution. The Bond Registrar shall not be required to transfer or exchange any Series 2013 Bond after notice calling such Series 2013 Bond for redemption has been given or during the period of 15 days (whether or not a business day for the Bond Registrar, but excluding the date Attachment number 1 \nPage 22 of 40 Item # 2 20 of giving such notice of redemption and including such 15th day) immediately preceding the giving of such notice of redemption. All Series 2013 Bonds surrendered for exchange or transfer of registration shall be canceled and destroyed by the Bond Registrar in accordance with Section 9. Notwithstanding the foregoing, registrations of transfers and exchanges shall be made in accordance with the Book-Entry System as long as the Series 2013 Bonds are held in Book-Entry Form. Section 6. Lost, Destroyed, Mutilated Series 2013 Bonds. If any Series 2013 Bond is mutilated, lost, stolen, or destroyed, the Consolidated Government may execute and deliver a new Series 2013 Bond of the same series, maturity, interest rate, aggregate principal amount, and tenor in lieu of and in substitution for the Series 2013 Bond mutilated, lost, stolen, or destroyed. In the case of any mutilated Series 2013 Bond, however, such mutilated Series 2013 Bond shall first be surrendered to the Bond Registrar, and, in the case of any lost, stolen, or destroyed Series 2013 Bond, there shall first be furnished to the Bond Registrar evidence satisfactory to it of the ownership of such Series 2013 Bond and of such loss, theft, or destruction, together with indemnity to the Consolidated Government and the Bond Registrar, satisfactory to each of them. If any such Series 2013 Bond shall have matured or a redemption date pertaining to the Series 2013 Bond shall have passed, instead of issuing a new Series 2013 Bond the Consolidated Government may pay or cause the Paying Agent to pay the Series 2013 Bond. The Consolidated Government, the Bond Registrar, and the Paying Agent may charge the owner of such Series 2013 Bond with their reasonable fees and expenses for replacing mutilated, lost, stolen, or destroyed Series 2013 Bonds. In executing a new Series 2013 Bond and in furnishing the Bond Registrar with the written authorization to deliver a new Series 2013 Bond as provided for in this Section, the Consolidated Government may rely conclusively on a representation of the Bond Registrar that the Bond Registrar is satisfied with the adequacy of the evidence presented concerning the mutilation, loss, theft, or destruction of any Series 2013 Bond. Section 7. Blank Bonds. The Consolidated Government shall make all necessary and proper provisions for the transfer and exchange of the Series 2013 Bonds by the Bond Registrar and the Consolidated Government shall deliver or cause to be delivered to the Bond Registrar a sufficient quantity of blank Series 2013 Bonds duly executed on behalf of the Consolidated Government, together with the certificate of validation pertaining thereto duly executed by the Clerk of the Superior Court of Richmond County, as herein provided in order that the Bond Registrar shall at all times be able to register and authenticate the Series 2013 Bonds at the earliest practicable time in accordance with the provisions of this resolution. All Series 2013 Bonds surrendered in any such exchange or registration of transfer shall be forthwith canceled by the Bond Registrar and a record thereof duly entered in the permanent records pertaining to the Series 2013 Bonds maintained by the Bond Registrar. Attachment number 1 \nPage 23 of 40 Item # 2 21 Section 8. Global Form; Securities Depository; Ownership of Series 2013 Bonds. (a) Upon the initial issuance, the ownership of each Series 2013 Bond shall be registered in the name of the Securities Depository or the Securities Depository Nominee, and ownership thereof shall be maintained in Book-Entry Form by the Securities Depository for the account of the Participants thereof. Initially, each maturity of the Series 2013 Bonds shall be registered in the name of Cede & Co., as the nominee of The Depository Trust Company. Beneficial Owners will not receive Series 2013 Bonds from the Paying Agent evidencing their ownership interests. Except as provided in subsection (c) of this Section 8, the Series 2013 Bonds may be transferred, in whole but not in part, only to the Securities Depository or the Securities Depository Nominee, or to a successor Securities Depository selected or approved by the Consolidated Government or to a nominee of such successor Securities Depository. (b) With respect to Series 2013 Bonds registered in the name of the Securities Depository or the Securities Depository Nominee, the Consolidated Government, the Paying Agent and the Bond Registrar shall have no responsibility or obligation to any Participant or Beneficial Owner. Without limiting the foregoing, the Consolidated Government, the Paying Agent, the Bond Registrar and their respective affiliates shall not have any responsibility or obligation with respect to: (i) the accuracy of the records of the Securities Depository, the Securities Depository Nominee or any Participant with respect to any beneficial ownership interest in the Series 2013 Bonds; (ii) the delivery to any Participant, any Beneficial Owner or any other person, other than the Securities Depository or the Securities Depository Nominee, of any notice with respect to the Series 2013 Bonds; or (iii) the payment to any Participant, any Beneficial Owner or any other person, other than the Securities Depository or the Securities Depository Nominee, of any amount with respect to the principal, premium, if any, or interest on the Series 2013 Bonds. So long as any Series 2013 Bonds are registered in Book-Entry Form, the Consolidated Government and the Paying Agent may treat the Securities Depository as, and deem the Securities Depository to be, the absolute owner of such Series 2013 Bonds for all purposes whatsoever, including without limitation: (i) the payment of principal, premium, if any, and interest on such series of Series 2013 Bonds; (ii) giving notices of redemption and other matters with respect to such Series 2013 Bonds; (iii) registering transfers with respect to such Series 2013 Bonds; Attachment number 1 \nPage 24 of 40 Item # 2 22 (iv) the selection of Series 2013 Bonds for redemption; and (v) voting and obtaining consents under the Bond Resolution. So long as any Series 2013 Bonds are registered in Book-Entry Form, the Paying Agent shall pay all principal, premium, if any, and interest on the Series 2013 Bonds only to the Securities Depository or the Securities Depository Nominee as shown in the Bond Register, and all such payments shall be valid and effective to fully discharge the Consolidated Government’s obligations with respect to payment of principal of, premium, if any, and interest on the Series 2013 Bonds to the extent so paid. (c) If at any time (i) the Consolidated Government determines that the Securities Depository is incapable of discharging its responsibilities described herein, (ii) the Securities Depository notifies the Consolidated Government that it is unwilling or unable to continue as Securities Depository with respect to the Series 2013 Bonds, or (iii) the Securities Depository shall no longer be registered or in good standing under the Securities Exchange Act of 1934 or other applicable statute or regulation and a successor Securities Depository is not appointed by the Consolidated Government within 90 days after the Consolidated Government receives notice or becomes aware of such condition, as the case may be, then this Section 8 shall no longer be applicable and the Consolidated Government shall execute and the Bond Registrar shall authenticate and deliver bonds representing the Series 2013 Bonds to the owners of the Series 2013 Bonds. Series 2013 Bonds issued pursuant to this paragraph (c) shall be registered in such names and Authorized Denominations as the Securities Depository, pursuant to instructions from the Participant or otherwise, shall instruct the Bond Registrar. Upon exchange, the Bond Registrar shall deliver such certificates representing the Series 2013 Bonds to the persons in whose names such Series 2013 Bonds are so registered on the business day immediately preceding the date of such exchange. Section 9. Cancellation and Destruction of Series 2013 Bonds. If a Series 2013 Bond is paid, purchased or redeemed in full, either at or before maturity, it shall be delivered to the Bond Registrar when such payment, purchase or redemption is made, and the Series 2013 Bond shall thereupon be cancelled and shall not be reissued. All Series 2013 Bonds cancelled on account of payment, transfer or exchange shall be destroyed in accordance with the prevailing practice of the Bond Registrar and a permanent record of such destruction shall be kept by the Bond Registrar. Attachment number 1 \nPage 25 of 40 Item # 2 23 ARTICLE III REDEMPTION OF SERIES 2013 BONDS BEFORE MATURITY Section 1. Optional Redemption. The Series 2013 Bonds maturing on or after October 1, 2024, may be redeemed prior to their respective maturities at the option of the Consolidated Government on or after October 1, 2023, in whole or in part at any time, at the redemption price equal to the principal amount of the Series 2013 Bonds to be redeemed plus accrued interest to the redemption date. Section 2. Ratification and Incorporation by Reference. All terms and provisions of Sections 3.3, 3.4, 3.5, 3.6 and 3.7 of the Master Bond Resolution are hereby ratified and incorporated herein. Attachment number 1 \nPage 26 of 40 Item # 2 24 ARTICLE IV CUSTODY AND APPLICATION OF PROCEEDS Section 1. Ratification and Incorporation. Except as provided in Section 2 below, all terms and provisions of Article IV of the Master Bond Resolution are hereby ratified and incorporated herein. Section 2. Application of Series 2013 Bond Proceeds; Creation of 2013 Expense Account. (a) The Consolidated Government shall apply the net proceeds (i.e., the sale proceeds less the purchaser’s discount) from the sale of the Series 2013 Bonds shall be applied as follows: (1) an amount needed to fund the Prior Lien Reserve Account to the Reserve Requirement (as defined in the Prior Lien Resolution) shall be deposited to the Prior Lien Reserve Account, which is held within Sinking Fund No. 1 under the Prior Lien Resolution. Such amount to be deposited shall not take into account the Prior Lien Reserve Cash Deposits, which will be returned to the Revenue Fund of the System after the issuance of the Series 2013 Bonds. (2) an amount needed to fund the Debt Service Reserve Requirement under the Bond Resolution relating to the Series 2013 Bonds shall be deposited in the Debt Service Reserve Account held within the Sinking Fund. (3) the remainder of the proceeds derived from the sale of the Series 2013 Bonds shall be deposited in the 2013 Expense Account and used to pay the costs of issuance for the Series 2013 Bonds. (b) There shall be created a separate account designated as the “2013 Expense Account” (the “Expense Account”) to be held by U.S. Bank National Association, Atlanta, Georgia. All payments from the Expense Account shall be applied at the written direction of an authorized officer or representative of the Consolidated Government to the payment of costs and expenses incurred by the Consolidated Government in connection with the issuance and delivery of the Series 2013 Bonds. Moneys remaining in the Expense Account after the earlier of (i) the payment of all costs and expenses in connection with the Series 2013 Bonds or (ii) the date 30 days after the date of issuance and delivery of the Series 2013 Bonds shall be transferred upon direction of the Consolidated Government to the Interest Account of the Sinking Fund. (c) Notwithstanding the foregoing, if the Mayor of the Consolidated Government shall determine that a different application of funds is required to carry out the intent of this Parity Bond Resolution, the different application of funds may be provided for in a Supplemental Resolution or the Mayor may provide for such different application of funds in the authentication order to be delivered at the time of issuance of the Series 2013 Bonds. Attachment number 1 \nPage 27 of 40 Item # 2 25 ARTICLE V PLEDGED REVENUES AND FLOW OF FUNDS Section 1. Ratification and Incorporation. All terms and provisions of Article V of the Master Bond Resolution are hereby ratified and incorporated herein. Section 2. Pledge of Revenues The Series 2013 Bonds shall stand on a parity and be of equal dignity with the Series 2012 Bonds and shall be secured by the lien on the Pledged Revenues created pursuant to the provisions of the Master Bond Resolution, as the same is ratified, reaffirmed, broadened and extended by this Parity Bond Resolution, just as if the Series 2012 Bonds and the Series 2013 Bonds had been issued simultaneously under the same resolution. Attachment number 1 \nPage 28 of 40 Item # 2 26 ARTICLE VI ADDITIONAL BONDS AND SUBORDINATE BONDS Section 1. Ratification and Incorporation. Except as provided in Section 2, all terms and provisions of Article VI of the Master Bond Resolution are hereby ratified and incorporated herein. Section 2. Amendment of Provisions Relating to Additional Bonds. (a) Section 6.3(c) of the Master Bond Resolution is hereby deleted in its entirety and the following is substituted in lieu thereof (the amended language reflected in bold): (c) The Series Resolution authorizing the proposed Additional Bonds must require the proceeds of such proposed Additional Bonds to be used to make capital improvements to the System, to fund interest on the proposed Additional Bonds, to acquire existing or proposed water or sewer utilities, to refund other obligations issued for such purposes (whether or not such outstanding Bonds satisfy the requirements of Section 6.2), to fund debt service reserve funds for Bonds and Prior Lien Bonds and to pay expenses incidental thereto and to the issuance of the proposed Additional Bonds. Attachment number 1 \nPage 29 of 40 Item # 2 27 ARTICLE VII DEPOSITORIES OF MONEYS AND SECURITIES FOR DEPOSITS Section 1. Ratification and Incorporation. All terms and provisions of Article VII of the Master Bond Resolution are hereby ratified and incorporated herein. Attachment number 1 \nPage 30 of 40 Item # 2 28 ARTICLE VIII GENERAL PROVISIONS Section 1. Ratification and Incorporation. All terms and provisions of Article VIII of the Master Bond Resolution are hereby ratified and incorporated herein. Section 2. Continuing Disclosure for Series 2013 Bonds. The Consolidated Government hereby covenants and agrees that it shall comply with and carry out all of the provisions of the Series 2013 Disclosure Certificate. Notwithstanding any other provision of the Bond Resolution, failure of the Consolidated Government to comply with the Series 2013 Disclosure Certificate shall not be considered a default or an Event of Default under the Bond Resolution. It is expressly provided, however, that any beneficial owner of the Series 2013 Bonds may take such action, to the extent and in such manner as may be allowed by applicable law, as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Consolidated Government to comply with its obligations under this Section 2. Attachment number 1 \nPage 31 of 40 Item # 2 29 ARTICLE IX EVENTS OF DEFAULT; REMEDIES Section 1. Ratification and Incorporation. All terms and provisions of Article IX of the Master Bond Resolution are hereby ratified and incorporated herein. Attachment number 1 \nPage 32 of 40 Item # 2 30 ARTICLE X BOND OWNERSHIP Section 1. Ratification and Incorporation. All terms and provisions of Article X of the Master Bond Resolution are hereby ratified and incorporated herein. Attachment number 1 \nPage 33 of 40 Item # 2 31 ARTICLE XI DEFEASANCE Section 1. Ratification and Incorporation. All terms and provisions of Article XI of the Master Bond Resolution are hereby ratified and incorporated herein. Attachment number 1 \nPage 34 of 40 Item # 2 32 ARTICLE XII SUPPLEMENTAL RESOLUTIONS Section 1. Ratification and Incorporation. All terms and provisions of Article XII of the Master Bond Resolution are hereby ratified and incorporated herein. Attachment number 1 \nPage 35 of 40 Item # 2 33 ARTICLE XIII MISCELLANEOUS PROVISIONS Section 1. Severability. In case any one or more of the provisions of this Parity Bond Resolution, or the Series 2013 Bonds issued hereunder, shall for any reason be held illegal or invalid, such illegality or invalidity shall not affect any other provision of this Parity Bond Resolution or the Series 2013 Bonds, but this Parity Bond Resolution and the Series 2013 Bonds shall be construed and enforced as if such illegal or invalid provisions had not been contained therein. Section 2. General Ratification. (a) The provisions of the Master Bond Resolution and every appropriate sentence thereof shall be construed as including and as being applicable to the Series 2013 Bonds, and the Series 2013 Bonds shall be treated for all intents and purposes, unless otherwise specifically stated, just as if they had been issued together with the Series 2012 Bonds and pursuant to the terms of the Master Bond Resolution. (b) The Consolidated Government hereby reaffirms all of the applicable covenants, agreements and provisions of the Master Bond Resolution for the equal protection and benefit of all bondholders, unless otherwise specifically stated herein. Section 3. Validation. The Series 2013 Bonds herein authorized shall be validated in the manner provided by law, and to that end notice of the adoption of this Parity Bond Resolution and a copy thereof shall be served upon the District Attorney of the Augusta Judicial Circuit, in order that proceedings for the above purpose be instituted in the Superior Court of Richmond County. Section 4. Repealer. Except for the Prior Lien Resolution and the Master Bond Resolution (except to the extent amended by this Parity Bond Resolution), any and all resolutions or parts of resolutions in conflict with this Parity Bond Resolution this day adopted be and the same are hereby repealed, and this Parity Bond Resolution shall be in full force and effect from and after its adoption. Section 5. Preliminary Official Statement; Official Statement; and Deemed Final Certificate. The Series 2013 Bonds are hereby authorized to be sold pursuant to competitive sale and there is hereby authorized a Notice of Sale and a Preliminary Official Statement to be prepared and distributed to all securities dealers deemed to have an interest in purchasing all, but not a part, of the Series 2013 Bonds. Once the bids are received for the sale of the Series 2013 Attachment number 1 \nPage 36 of 40 Item # 2 34 Bonds pursuant to the Notice of Sale, the Mayor is authorized to accept the bid with the lowest total interest cost and the Consolidated Government will adopt a Supplemental Resolution ratifying the acceptance of the winning bid for the Series 2013 Bonds and setting forth the final interest rates on, maturities, redemption provisions and principal amount of the Series 2013 Bonds, which interest rates and principal amounts shall be within the parameters set forth in this Parity Bond Resolution. The Consolidated Government hereby authorizes the Mayor or the Mayor Pro Tem to deem the Preliminary Official Statement final, except for “Permitted Omissions,” as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange of 1934, as amended (the “Rule”). As used herein, “Permitted Omissions” shall mean the offering price(s), interest rate(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings, the identity of the underwriter or bond insurer and other terms of the Series 2013 Bonds and any underlying obligations depending on such matters, all with respect to the Series 2013 Bonds and any underlying obligations. The execution and delivery of the “deemed final certificate” required by the Rule are hereby authorized and approved. The execution of the “deemed final certificate” by the Mayor or Mayor Pro Tem as hereby authorized shall be conclusive evidence of the approval of any changes to the Preliminary Official Statement. In addition, the Supplemental Resolution will provide for the preparation and distribution of a final Official Statement. Section 6. General Authority. From and after the date of adoption of this Parity Bond Resolution, the officials, employees, and agents of the Consolidated Government are hereby authorized to do all such acts and things and to execute and deliver any and all other documents, agreements, certificates (including, without limitation, the Series 2013 Disclosure Certificate), and instruments as may be necessary or desirable in connection with the execution, delivery, and sale of the Series 2013 Bonds, the investment of the proceeds of the Series 2013 Bonds, and the transactions contemplated on the part of the Consolidated Government by the Parity Bond Resolution. The Mayor and Clerk of the Commission are hereby authorized and directed to prepare and furnish to the purchasers of the Series 2013 Bonds, when the Series 2013 Bonds are issued, certified copies of all proceedings and records of the Consolidated Government relating to the Series 2013 Bonds or to this Parity Bond Resolution, and such other affidavits and certificates as may be required to show the facts relating to the legality and marketability of the Series 2013 Bonds as such facts appear from the books and records in the officers’ custody and control or as otherwise known to them. All such certified copies, certificates, and affidavits, including any heretofore furnished, shall constitute representations of the Consolidated Government as to the truth of all statements contained therein. Section 7. Appointment of Paying Agent, Bond Registrar and 2013 Expense Account Custodian. U.S. Bank National Association, a national banking association, is hereby designated as the Paying Agent, Bond Registrar and 2013 Expense Account Custodian with respect to the Series 2013 Bonds. Attachment number 1 \nPage 37 of 40 Item # 2 35 Section 8. Waiver of Bond Audit. The Consolidated Government hereby approves the publication of the requisite legal notice waiving the performance audit and performance review requirements of Section 36-82-100 of the Official Code of Georgia Annotated. Attachment number 1 \nPage 38 of 40 Item # 2 36 Adopted and approved this ______ day of June, 2013. AUGUSTA-RICHMOND COUNTY COMMISSION (SEAL) By: Mayor Attest: Clerk Attachment number 1 \nPage 39 of 40 Item # 2 37 CLERK’S CERTIFICATE GEORGIA, RICHMOND COUNTY The undersigned Clerk of the Augusta-Richmond County Commission (the “Commission”), DOES HEREBY CERTIFY that the foregoing pages constitute a true and correct copy of the resolution adopted by June __, 2013, at which a quorum was present and acting throughout, authorizing the issuance up to $______________ Augusta, Georgia Water and Sewerage Taxable Revenue Bonds (Second Resolution), Series 2013, the original of said resolution being duly recorded in the Minute Book of the Commission, which Minute Book is in my custody and control, and that said resolution was duly adopted by a vote of: Aye ____ Nay ____ Abstain ____. WITNESS my hand and the official seal of Augusta, Georgia this June __, 2013. Clerk (SEAL) Attachment number 1 \nPage 40 of 40 Item # 2 Finance Committee Meeting 6/10/2013 12:55 PM Receive as Information Required Notice to Governing Authority of Expenditures Exceeding Budgeted Levels for fiscal Year 2012 Department:Finance Caption:Receive as information Required Notice to Governing Authority of Expenditures Exceeding Budgeted Levels for Fiscal Year 2012. Background:Generally accepted Accounting Principals (GAAP) require that the budget officer notify the governing authority when expenditures exceed budgeted levels for the fiscal year. This is required even if revenue collected is sufficient to match those expenditures, or that the fund was a pass-thru fund, or that the revenues collected exceeded both the budget and the actual ependitures. Analysis:The 2012 audit is not yet complete but it is reasonable to expect that the funds listed below will fall into one or more of the categories listed above. 296 Tourism 616 Employee Health Benefits 763 1949 Pension 764 Other Urban Pension Plans 296 Street Lights requires the use of available fund balance Special revenue funds 205 Drug Court and 207 5% Crime Victim's Assistance require tranfers from the general fund due to a shortfall in collections. They have no available fund balances. Fund 546 Transit: The 2012 budget reduced operating tranfers in. The amount of those transfers was insufficient to cover expenses. Fund 221 HND: Program revenue generated plus the transfers in were not sufficient to cover expenses. 546 Golf Course: The commission took over operation of the course in the 4th quarter of 2012. Expenditures exceeded the amount of revenue generated. Financial Impact: Alternatives: Recommendation:Accept as information Funds are Available Cover Memo Item # 3 in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 3 Finance Committee Meeting 6/10/2013 12:55 PM Request for approval to designate McBean Enterprise Zone Department:Planning and Development Caption:Motion to approve the designation of “McBean Enterprise Zone”. Background:Georgia law provides for local governments to offer several types of economic development incentives, among them are Enterprise Zones (EZ), Opportunity Zones (OZ), and Tax Allocation Districts (TAD). In order to make the Augusta Corporate Park more competitive the Augusta Development Authority has proposed designating that property as an EZ and an OZ. They contracted with the CSRA Regional Development Commission to find a way to make the designation conform to the standards in the law. The RDC was able to do that by incorporating the Corporate Park into a larger area that includes the properties along Mike Padgett Highway south of the Park to the county line. In order for an area to be designated as an Opportunity Zone (OZ) it first has to be designated as an Enterprise Zone (EZ). The purpose of this agenda item is to designate the area as an EZ. Approval would abate property taxes for employers who create 5 or more jobs for up to 10 years; 100% for the first 5 years and then 80%, 60%, 40%, 20% and 10%. Data provided by the RDC indicates that the area is eligible for designation. Analysis:The action would encourage economic development by abating property taxes on investments that probably wouldn’t happen otherwise. Financial Impact:Potentially significant as a positive if successful in attracting investment that would not otherwise occur. Alternatives:Approve or deny Recommendation:Approve Funds are Available in the Following Cover Memo Item # 4 Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 4 Attachment number 1 \nPage 1 of 6 Item # 4 Attachment number 1 \nPage 2 of 6 Item # 4 Attachment number 1 \nPage 3 of 6 Item # 4 Attachment number 1 \nPage 4 of 6 Item # 4 Attachment number 1 \nPage 5 of 6 Item # 4 Attachment number 1 \nPage 6 of 6 Item # 4 Attachment number 2 \nPage 1 of 28 Item # 4 Attachment number 2 \nPage 2 of 28 Item # 4 Attachment number 2 \nPage 3 of 28 Item # 4 Attachment number 2 \nPage 4 of 28 Item # 4 Attachment number 2 \nPage 5 of 28 Item # 4 Attachment number 2 \nPage 6 of 28 Item # 4 Attachment number 2 \nPage 7 of 28 Item # 4 Attachment number 2 \nPage 8 of 28 Item # 4 Attachment number 2 \nPage 9 of 28 Item # 4 Attachment number 2 \nPage 10 of 28 Item # 4 Attachment number 2 \nPage 11 of 28 Item # 4 Attachment number 2 \nPage 12 of 28 Item # 4 Attachment number 2 \nPage 13 of 28 Item # 4 Attachment number 2 \nPage 14 of 28 Item # 4 Attachment number 2 \nPage 15 of 28 Item # 4 Attachment number 2 \nPage 16 of 28 Item # 4 Attachment number 2 \nPage 17 of 28 Item # 4 Attachment number 2 \nPage 18 of 28 Item # 4 Attachment number 2 \nPage 19 of 28 Item # 4 Attachment number 2 \nPage 20 of 28 Item # 4 Attachment number 2 \nPage 21 of 28 Item # 4 Attachment number 2 \nPage 22 of 28 Item # 4 Attachment number 2 \nPage 23 of 28 Item # 4 Attachment number 2 \nPage 24 of 28 Item # 4 Attachment number 2 \nPage 25 of 28 Item # 4 Attachment number 2 \nPage 26 of 28 Item # 4 Attachment number 2 \nPage 27 of 28 Item # 4 Attachment number 2 \nPage 28 of 28 Item # 4 Attachment number 3 \nPage 1 of 14 Item # 4 Attachment number 3 \nPage 2 of 14 Item # 4 Attachment number 3 \nPage 3 of 14 Item # 4 Attachment number 3 \nPage 4 of 14 Item # 4 Attachment number 3 \nPage 5 of 14 Item # 4 Attachment number 3 \nPage 6 of 14 Item # 4 Attachment number 3 \nPage 7 of 14 Item # 4 Attachment number 3 \nPage 8 of 14 Item # 4 Attachment number 3 \nPage 9 of 14 Item # 4 Attachment number 3 \nPage 10 of 14 Item # 4 Attachment number 3 \nPage 11 of 14 Item # 4 Attachment number 3 \nPage 12 of 14 Item # 4 Attachment number 3 \nPage 13 of 14 Item # 4 Attachment number 3 \nPage 14 of 14 Item # 4 Attachment number 4 \nPage 1 of 23 Item # 4 Attachment number 4 \nPage 2 of 23 Item # 4 Attachment number 4 \nPage 3 of 23 Item # 4 Attachment number 4 \nPage 4 of 23 Item # 4 Attachment number 4 \nPage 5 of 23 Item # 4 Attachment number 4 \nPage 6 of 23 Item # 4 Attachment number 4 \nPage 7 of 23 Item # 4 Attachment number 4 \nPage 8 of 23 Item # 4 Attachment number 4 \nPage 9 of 23 Item # 4 Attachment number 4 \nPage 10 of 23 Item # 4 Attachment number 4 \nPage 11 of 23 Item # 4 Attachment number 4 \nPage 12 of 23 Item # 4 Attachment number 4 \nPage 13 of 23 Item # 4 Attachment number 4 \nPage 14 of 23 Item # 4 Attachment number 4 \nPage 15 of 23 Item # 4 Attachment number 4 \nPage 16 of 23 Item # 4 Attachment number 4 \nPage 17 of 23 Item # 4 Attachment number 4 \nPage 18 of 23 Item # 4 Attachment number 4 \nPage 19 of 23 Item # 4 Attachment number 4 \nPage 20 of 23 Item # 4 Attachment number 4 \nPage 21 of 23 Item # 4 Attachment number 4 \nPage 22 of 23 Item # 4 Attachment number 4 \nPage 23 of 23 Item # 4 ORDIACE O. _______________ A ORDIACE TO AMED THE AUGUSTA GEORGIA CODE SO A S TO AMED SECTIO 2-4 BY ADDIG A EW SUBSECTIO 23 ETITLED “MCBEA ETERPRISE ZOE”, TO PROVIDE A EFFECTIVE DATE, TO REPEAL COFLICTIG ORDIACES AD FOR OTHER PURPOSES. WHEREAS, a method has been provided by the General Assembly of the State of Georgia through the enactment of the Enterprise Zone Employment Act of 1997 as amended (O.C.G.A. § 36-88-1 et. seq.) to promote investment in areas of disinvestment, underdevelopment and economic decline; and, that said Act promotes reinvestment and rehabilitation efforts in such areas by qualifying businesses though the abatement of state, county and municipal ad valorum taxes, and other fee abatement incentives; and, WHEREAS, O.C.G.A. § 36-88-6 establishes the criteria by which an area may be designated as an enterprise zone, such criteria being listed in subsections (b), (c) , (d), (e), and (f, and quantifying conditions of “pervasive poverty”, “unemployment”, “general distress”, “underdevelopment”, an “general blight”, respectively; and, that nominated areas must meet at least three (3) of the five (5) established for qualification; and, WHEREAS, the Augusta Development Authority commissioned a study examining conditions of disinvestment, underdevelopment and economic decline in a portion of the city of Augusta located in the vicinity of the McBean community the boundary of such study area being specified and illustrated in Exhibit A as the McBean Enterprise Zone; and, WHEREAS, the McBean Opportunity Study presented to the Augusta Georgia Commission by the Augusta Development Authority and as provided in Exhibit B, confirms that the McBean Enterprise Zone meets four (4) of the five (5) criteria qualifying it for enterprise zone designation; and, WHEREAS, designation of the McBean Enterprise Zone is consistent with the goals and objectives of the city of Augusta’s comprehensive plan; OW THEREFORE, THE AUGUSTA GEORGIA COMMISSIO ordains as follows: SECTIO 1 . AUGUSTA GEORGIA CODE, Section 2-4, is amended by adding a new Section 2-4-23 which reads as follows: 2-4-23 Designation the “McBean Enterprise Zone.” The Augusta Georgia Commission hereby designates the area hereafter described as an Enterprise Zone to be known as the “McBean Enterprise Zone” to wit: BOUNDARY DESCRIPTION Beginning at a point where S.R. 56 (Mike Padgett Highway) intersects the Burke County, Georgia line, and proceeding northward roughly 4.2 miles; incorporating Attachment number 5 \nPage 1 of 2 Item # 4 parcels fronting on and flanking both sides of the highway corridor, and including parcels in close proximity to and projecting from either side of the corridor with or without frontage on Alden Drive, Amarillo Circle, Black Road, Blackberry Lane, Cemetery Drive, Clark Road, Cannon Court, Corinth Road, Hephzibah- McBean road, Horseshoe Road, McCombs Road, McKinely Lane, Mosley Road, Old Mike Padgett Highway, Piney Grove Road, Rollins Road and Union Cemetery Drive; such area being contained within 2010 Census Block Groups 109.05 (1), and 109-05 (2); and , such area consisting of roughly 3,686 acres, the meandering boundary of which is highly variable as specified and illustrated in Exhibit A. SECTIO 2 . Consistent with the applicable provisions of O.C.G.A., 36-88-1 et. seq., qualifying businesses and service enterprises within the McBean Enterprise Zone, generating the minimum investments for which they may receive access to state enterprise zone incentives, shall be exempted from state, county, and municipal ad valorum taxes in the amount not o exceed the following schedule: One hundred percent of property taxes shall be exempt for the first five (5) years; Eighty percent of property taxes shall be exempt for the next two (2) years; Sixty percent of property taxes shall be exempt for the next year; Forty percent of property taxes shall be exempt for the next year; and Twenty percent of property taxes shall be exempt for the last year. SECTIO 3. This Ordinance shall become effective on its adopting in accordance with applicable laws. SECTIO 4. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Adopted this _________ day of ______________, 2013. __________________________________ Davis S. Copenhaver, As its Mayor ATTEST: __________________________________ Lena Bonner, Clerk of Commission Attachment number 5 \nPage 2 of 2 Item # 4