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ORD 33635 - Formation of City of Omaha Parking Facilities Corporation 6.4111167?; Ada' rRmyin • 90 ro 4 71'D FEBRrq•� City of Omaha Hal Daub,Mayor Finance Department Honorable President Omaha/Douglas Civic Center 1819 Farnam Street,Suite 1004 and Members of the City Council, Omaha,Nebraska 68183-1004 (402)444-5416 • Telefax(402)444-5423 This Ordinance authorizes and approves the formation of the City of Louis A.D'Ercole Omaha Parking Facilities Corporation, a nonprofit corporation. The Acting Director Corporation is organized for the purpose of assisting the City with the acquisition, construction, furnishing and equipping of public parking facilities within the geographical boundaries of the City of Omaha, Nebraska; authorizing and approving a lease-purchase agreement (the "Agreement") between the corporation and the City of Omaha to provide funds for the lease-purchase of two public parking garages. A copy of �.. this Agreement is attached to the Ordinance as Exhibit A; authorizing and approving a ground lease agreement (the "Lease") between the corporation and the City for the leasing of the project sites by the City to -411 the corporation, approving an indenture of trust; and, approving the terms and conditions of the corporation's lease revenue bonds (Omaha- Park Four and Omaha-Park Five projects). We urge your favorable consideration of this Ordinance. Respectfully submitted, Referred to City Council For -nsideration -41Z Louis A. D'Ercole Mayor's Offi; • Acting Finance Director • ORDINANCE NO. .936.3 S AN ORDINANCE AUTHORIZING AND APPROVING THE FORMATION OF CITY OF OMAHA PARKING FACILITIES CORPORATION, A NONPROFIT CORPORATION ORGANIZED UNDER.THE LAWS OF THE STATE OF 'NEBRASKA(THE "CORPORATION"), FOR THE PURPOSE OF ASSISTING THE CITY WITH THE ACQUISITION, CONSTRUCTION, FURNISHING AND EQUIPPING OF PUBLIC PARKING FACILITIES WITHIN THE GEOGRAPHICAL BOUNDARIES OF THE CITY OF OMAHA, NEBRASKA; AUTHORIZING.AND APPROVING A LEASE-PURCHASE AGREEMENT (THE "AGREEMENT") BETWEEN THE CORPORATION AND THE CITY OF OMAHA, NEBRASKA (THE "CITY") TO PROVIDE FUNDS FOR THE LEASE-PURCHASE OF TWO PUBLIC PARKING GARAGES AS DESCRIBED THEREIN (THE "PROJECTS"), A COPY OF WHICH AGREEMENT IS ATTACHED HERETO AS EXHIBIT A AND INCORPORATED HEREIN BY THIS REFERENCE; AUTHORIZING AND APPROVING A GROUND LEASE AGREEMENT(THE"LEASE")BETWEEN THE CORPORATION AND THE CITY FOR THE LEASING OF THE • PROJECT SITES BY THE CITY TO THE CORPORATION, A COPY OF WHICH LEASE IS ATTACHED HERETO AS EXHIBIT B AND INCORPORATED HEREIN BY THIS REFERENCE; APPROVING AN INDENTURE OF TRUST (THE "INDENTURE") BY AND BETWEEN THE CORPORATION AND FIRSTIER BANK, OMAHA, N.A. AS TRUSTEE, A vi .0 60503 3 . , ORDINANCE NO. Page 2 COPY OF WHICH INDENTURE IS ATTACHED HERETO AS EXHIBIT C AND INCORPORATED HEREIN BY THIS REFERENCE; APPROVING THE TERMS AND CONDITIONS OF THE CORPORATION'S LEASE REVENUE BONDS (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS), SERIES 1995 (THE "BONDS") AS SET FORTH IN THE INDENTURE AND THE ISSUANCE AND DELIVERY THEREOF; APPROVING THE FORM, CONTENT AND DISTRIBUTION OF THE PRELIMINARY OFFICIAL STATEMENT, A COPY OF WHICH PRELIMINARY OFFICIAL STATEMENT IS ATTACHED HERETO AS EXHIBIT D AND INCORPORATED HEREIN BY THIS REFERENCE AND INCORPORATED HEREIN BY THIS REFERENCE; AUTHORIZING.AND APPROVING THE FORM AND CONTENT OF A LETTER AGREEMENT (THE "LETTER AGREEMENT") CONSTITUTING AN UNDERTAKING BY THE CITY TO PROVIDE ONGOING DISCLOSURE ABOUT THE CITY FOR THE BENEFIT OF THE HOLDERS OF THE BONDS, A COPY OF WHICH LETTER AGREEMENT IS ATTACHED HERETO AS EXHIBIT E AND INCORPORATED HEREIN BY THIS REFERENCE; SATISFYING APPLICABLE FEDERAL INCOME TAX LAW REQUIREMENTS AND APPROVING THE EFFECTIVE DATE HEREOF. 01/160503.3 ORDINANCE NO. ,.3,5o 3J Page 3 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA: ARTICLE I FINDINGS AND DETERMINATIONS The Mayor and Council of the City of Omaha hereby find and determine: (a) the City of Omaha, Nebraska(the "City") wishes to acquire, construct, equip and furnish certain facilities to be used for public parking (the "Projects"); and, (b) the City intends that certain parcels of real estate owned or to be owned by the City and located within the geographical boundaries of the City of Omaha, Nebraska and to be legally described in the hereinafter defined Lease (the "Project Sites"), constitute a part of and be the location of the Projects; and, (c) the City of Omaha Parking Facilities Corporation, a nonprofit corporation organised. under Nebraska law (the "Corporation") has been established for the purpose of assisting the City in the acquisition, construction, furnishing and equipping of public parking facilities within the geographical boundaries of the City of Omaha, Nebraska; and, (d) the Corporation is willing (i) to issue its lease revenue bonds in the aggregate principal amount not to exceed $8,475,000 (the "Bonds") on behalf of the City, the proceeds of which Bonds will be used, in part, to acquire, construct, furnish and equip the Projects and (ii) to lease the Projects to the City; and, 01/160503.3 ORDINANCE NO. i 3j Page 4 (e) the Corporation is willing to enter into an Indenture of Trust (the "Indenture") with FirsTier Bank Omaha, N.A., as trustee (the "Trustee"), setting forth the maturity, interest rate or rates and other terms and conditions of the Bonds; and, (f) the City and the Corporation, pursuant to Section 5.17 of the Home Rule Charter of the City of Omaha, 1956, as amended (the "Home Rule Charter"), contemplate entering into a Ground Lease Agreement (the "Lease") whereby the Corporation will lease the Project Sites from the City and a Lease Purchase Agreement (the "Agreement") whereby the City will lease the Projects from the Corporation and pay as rental payments the amounts necessary timely to discharge the indebtedness created by the Corporation's issuance of the Bonds; and, (g) under applicable Internal Revenue Service rulings, approval by the City Council of the issuance of the Bonds by the Corporation is required in order that the interest on the Bonds be excluded from gross income of the holders for the purpose of federal income taxation, which exclusion will reduce the Corporation's interest costs and thereby reduce the rental payments to be made by the City under the Agreement; and, (h) the Corporation has requested Kirkpatrick Pettis Smith Pollan, Inc., FirsTier Bank, National Association, Smith Barney Inc./Chiles Heider Division and Dain Bosworth Incorporated (collectively, the "Underwriters") to underwrite the Bonds; and, (i) in order that the Underwriters may comply with Section (b)(5)(i)of Securities and Exchange Commission Rule 15c2-12 (17 C.F.R., § 240.15c2-12) (the "Rule"), the City will enter into the Letter Agreement(the "Letter Agreement")with the Trustee pursuant to which the 01/160503.3 ORDINANCE NO. s Page 5 City will agree to provide ongoing disclosure about the City for the benefit of the holders of the Bonds; and, (j) the City has determined that it is in its best interest that the Corporation issue the Bonds and apply the proceeds thereof to the acquisition, construction, furnishing and equipping of the Projects and that it is necessary for the City to enter into the Agreement, the Lease and the Letter Agreement, approve the Indenture, the Bond Purchase Agreement, the form, content and distribution of the Preliminary Official Statement (the "Preliminary Official Statement") in connection with the marketing of the Bonds by the Underwriters, and satisfy certain requirements of federal income tax law in order that the interest on the Bonds shall be excluded from gross income of the holders for purposes of federal income taxation. ARTICLE II AUTHORIZATIONS AND APPROVALS Section 1. The previous formation of the Corporation is hereby acknowledged, approved and ratified by the City Council and the Corporation is authorized to do that which is necessary and appropriate in order that the Corporation may issue the Bonds on behalf of the.City for the purpose of acquiring, constructing, furnishing and equipping the Projects. Section 2. The Agreement is hereby authorized and approved in accordance with the provisions of Section 5.17 of the Home Rule Charter and the Mayor of the City shall execute the Agreement by and on behalf of the City, with the official seal of the City impressed or imprinted thereon and attested by the City Clerk, in substantially the form presented to the City 01/160503.3 ORDINANCE NO. 33 3 Page 6 Council and attached hereto as Exhibit A, subject to such changes, insertions and omissions and fillings-in of blanks as shall have been approved by the City officials executing the same pursuant to this Section. Section 3. The Lease is hereby authorized and approved and the Mayor of the City shall execute the Agreement by and on behalf of the City, with the official seal of the City impressed or imprinted thereon and attested by the City Clerk, in substantially the form presented to the City Council and attached hereto as Exhibit B, subject to such changes, insertions and omissions and fillings-in of blanks as shall have been approved by the City officials executing the same • pursuant to this Section. Section 4. The Indenture and the Preliminary Official Statement, in substantially the respective forms presented to the City Council and attached hereto as Exhibits C and D, � k respectively, are hereby authorized and approved. Section 5. The distribution of the Preliminary Official Statement by the Underwriters is hereby approved, and the Preliminary Official Statement is hereby deemed final as of its date for the purposes of and with omissions permitted by Section (b)(1) of the Rule. r Section 6. The Letter Agreement is hereby authorized and approved and the Mayor of the City shall execute the Letter Agreement by and on behalf of the City, with the official seal of the City impressed or imprinted thereon and attested by the City Clerk, in substantially the form presented to the City Council and attached hereto as Exhibit E, subject to such changes, 01/160503.3 ORDINANCE NO. 3i j Page 7 • insertions and omissions and fillings-in of blanks as shall have been approved by the City officials executing the same pursuant to this Section. Section 7. Payment by the City of the lease-rental amounts from time to time due under and pursuant to the Agreement is hereby authorized and directed. Section 8. The issuance and delivery by the Corporation of the Bonds in the aggregate principal amount, bearing interest at the rates per annum and otherwise on the terms and conditions set forth in the Indenture is.hereby preliminarily approved, subject to fmal approval of the terms of the Bonds, a bond purchase agreement, the final Official Statement and related matters by subsequent resolution of this City Council. Section 9. (a) The Mayor, City Clerk and Acting Finance Director (or any officer of the City authorized to act in the capacity of Mayor, City Clerk or Acting Finance Director) are hereby authorized and directed punctually to execute such instruments, certificates and documents as may be necessary and appropriate and to do all acts and things required therein by the terms, covenants, provisions and agreements of this Ordinance, the Bonds, the Agreement, the Lease, the Indenture and the Letter Agreement.. (b) The officers, employees and agents of the City are hereby authorized and directed to do all acts and things necessary to carry into effect the provisions of this Ordinance. Section 10. The City will accept delivery of full legal and unencumbered title to the • Projects at the end of the term of the Bonds. 01/160503.3 ORDINANCE NO. ,.j Page 8 ARTICLE III EFFECTIVE DATE • This Ordinance shall be in full force and effect on the date of its passage, this Ordinance not being legislative in character and immediate effectiveness being within the provisions of Section 2.12 of the Home Rule Charter. INTRODUCED BY CO ILMEMBER / r o..` pR PASSED SEP 12 1995 aS Qin � =` ��. ,iL • t- .•- :y th5� 7-0 %' FOR OF THE CITY OF OMAHA DATE ATTEST: C Y C OF E CITY OF OMAHA APPROVED AS TO FORM: ` CITY ATT EY 01/160503.3 .' : CITY OF OMAHA PARKING FACILITIES CORPORATION, as Lessor • • to . CITY OF OMAHA, NEBRASKA, . as Lessee • LEASE-PURCHASE AGREEMENT Dated as of September 1, 1995 01/160668.3 LEASE-PURCHASE AGREEMENT TABLE OF CONTENTS (This Table of Contents is not a part of the Lease-Purchase Agreement and is for convenience of reference.) Page RECITALS 1 Section 1. Term of Lease . 1 Section 2. Rental Payments 1 - Section 3. Place of Payment and Assignment of Rentals 3 Section 4. Repairs and Maintenance 4 Section 5. Insurance, Damage or Destruction 4 Section 6. Condemnation 5 Section 7. Indemnification of Corporation 6 Section 8. . Corporation's Right of Inspection 6 Section 9. Alterations, Additions and Improvements 6 Section 10. Use of Premises 7 Section 11. Subletting . 7 Section 12. No Right of Surrender . 7 Section 13. Acquisition of the Projects 7 Section 14. Termination of Leasehold 9 Section 15. Default 10 Section 16. Donations to City 10 Section 17. Financing 10 01/160668.3 Section 18. Amendment of This Agreement 11 Section 19. Refund of Sales Tax 11 Section 20. Discrimination . . . . 11 Section 21. Authority of Parties 11 Section 22. Compliance With Laws 11 Section 23. Notices 12 Section 24. Waiver 12 Section 25. No Merger 12 Section 26. Benefit 12 Section 27. Section Captions 12 TESTIMONIUM, SIGNATURES, AND SEALS 12 Exhibit A—Schedule of Basic Rent Payable by the City of Omaha, Nebraska Appendix A—Leasehold Property Descriptions 01/160668.3 ii LEASE-PURCHASE AGREEMENT THIS LEASE-PURCHASE AGREEMENT is made and entered into as of this 1st day of September, 1995 by and between CITY OF OMAHA PARKING FACILITIES CORPORATION, a Nebraska nonprofit corporation ("Corporation"), and the CITY OF OMAHA, NEBRASKA, a municipal corporation ("City"). RECITALS: Corporation hereby leases to City the property described at Appendix A hereto, together - with all improvements of every kind and description, including such buildings, structures, fixtures, equipment and personal property thereon and any property of every kind, whether real or personal, as may, during the term hereof, be situated thereon (the "Projects"). Section 1. .Term of Lease. The term of this Lease-Purchase Agreement (this "Agreement") shall be 20 years and 14 days beginning as of the date hereof and ending on September 15, 2015 unless sooner terminated as hereinafter provided. Section 2. Rental Payments. (a) Basic Rent. City shall pay to Corporation cash Basic Rent in the amounts and on or before the dates shown on Exhibit A which is attached hereto and made a part hereof by this reference. It is the intention of Corporation and City that the Basic Rent herein specified shall be net to Corporation in each year during the term of this Agreement, that all costs, expenses and obligations of every kind (except as otherwise specifically provided in this Agreement) which may arise or become due with respect to the Projects during the term of this Agreement shall be paid by City and that Corporation shall be indemnified by City against all such costs, expenses and obligations. In addition 01/160668.3 to Basic Rent, City agrees to pay as Additional Rent the items set forth below under(b). Basic or Additional Rent (collectively, the "Rental Payments") is not paid when Ifany ( Y due, such rent shall draw interest at the rate of 10% per annum from the due date until paid. • (b) Additional Rent. City acknowledges: (i) that under present law, no part of the Projects will be subject to taxation by the State of Nebraska or any political or taxing subdivision thereof; , that Corporation has relied on this factor, among others, in making this Agreement but that, if the Projects should be subject to taxation, City shall pay such taxes so that the Basic Rent will be net to Corporation; (ii) that to raise the funds to pay for the Projects as provided in Section 13 hereof, Corporation will issue its lease revenue bonds in the aggregate principal amount of$8,475,000(the "Bonds"), payable from the Basic Rent; that FirsTier Bank Omaha, N.A., as trustee ("Trustee"), will serve under the Indenture of Trust dated as of September 1, 1995 between Trustee and Corporation (the "Indenture") under which the Bonds shall be issued; and that there will be fees and expenses due to Trustee which shall be payable by City; and (iii) that there will be utility, operation, maintenance and other charges incurred in the use of the Projects which shall be paid by City. Accordingly, City agrees to pay, as Additional Rent, the following: 01/160668.3 2 (A) all taxes and assessments, general and special, levied or assessed with respect to the Projects, or any part thereof, during the term hereof, including any taxes due on the commencement of the term hereof, and all water and sewer charges, assessments and other governmental charges and impositions whatsoever, foreseen and unforeseen, and all other utility, operation and maintenance charges incurred in the operation, maintenance and use of the Projects, with Corporation promptly forwarding to City any notice, bill or other advice received by , Corporation regarding any such taxes, assessments or charges (provided that any failure by Corporation so to forward any such notice, bill or other advice shall not release City from its obligation to pay hereunder); • (B) the fees and expenses of Trustee under the Indenture governing the issuance of the Bonds, with City paying such fees and expenses as statements are rendered by Trustee to City; and (C) the expenses in connection with any audit or examination of Corporation's records requested by City. Section 3. Place of Payment and Assignment of Rentals. All Basic Rent shall be paid directly to Trustee for the benefit of the owners of the Bonds issued by Corporation. Trustee is the assignee of all of Corporation's rights to collect Basic Rent due hereunder, and, as such assignee, Trustee may enforce Corporation's rights hereunder to collect and receive Basic Rent. City shall have the right at its option, exercisable at any time, to prepay the Basic Rent without prepayment penalty or premium and thereby to terminate this Agreement at any time while not in default of this Agreement upon 30 days' prior written notice to Corporation and the 01/160668.3 3 • payment by City to Corporation (or to Trustee while any of the Bonds are outstanding) of an amount sufficient to pay the principal of all then outstanding Bonds, plus any redemption premium due on such Bonds on their first permitted redemption date, plus interest to accrue on such Bonds to such redemption date. In such event, City shall continue to pay Trustee's fees and the Additional Rent items as specified in Section 2(b) hereof until all Bonds are fully paid. Section 4. Repairs and Maintenance. Throughout the term of this Agreement, City shall, at its own expense (but insurance proceeds may be used), put and maintain the Projects , in good and safe condition and will make or cause to be made all necessary repairs thereto, both interior and exterior, structural and nonstructural, ordinary and extraordinary, however the necessity or desirability for repairs may occur, and whether or not necessitated by fire, flood or other casualty, wear, tear, obsolescence or defects, latent or otherwise. When used in this Section, the term "repairs" shall include all necessary replacements, renewals, alterations and betterments. All repairs made by City shall be at least equal in quality and class to the original work. City shall also, at its own expense, put and maintain in good and safe order, and free. from dirt, snow, ice, rubbish and other obstructions or encumbrances, the public sidewalks, gutters and curbs within and adjacent to the Projects. Section 5. Insurance, Damage or Destruction. (a) City shall obtain and keep in force during the term of this Agreement fire and extended coverage insurance with respect to the Projects in an amount at least equal to the full insurable value of the Projects. The term "full insurable value," as used herein, shall mean the actual replacement value or, at the option of City, any lesser amount which is equal to or greater than the amount of all of the Bonds then outstanding. Such insurance shall name City, Corporation and Trustee as insureds as their 01/160668.3 4 (111 interest may appear. So long as City is not in default hereunder, any loss shall be adjusted by and paid to City. City shall maintain possession of the policies or certificates evidencing such insurance. (b) Notwithstanding the foregoing, if City shall insure properties similar to the Projects by self insurance, City may, at its option, insure the Projects, in whole or in part, by means of an adequate self-insurance fund set aside and maintained out of its revenues. (c) No damage to or destruction of any part of the Projects, whether by fire or any , other casualty, shall entitle City to terminate this Agreement or to fail to comply with any of its provisions or in any way suspend, abate or reduce the Rental Payments then due or thereafter becoming due under the terms of this Agreement as set forth in Section 2 hereof, unless City shall elect not to replace or restore the Projects and shall provide to Trustee funds sufficient to redeem a portion of the Bonds then outstanding in an amount equal to the ratio of the dollar amount of damage to or destruction of the Projects to the principal amount of the Bonds then outstanding in accordance with the Indenture. (d) City shall deliver to the Trustee as named insured at or prior to the issuance of the Bonds a mortgagee's title insurance insurance policy in the amount of$8,475,000 insuring that the City has fee simple title to the sites of the Projects. Section 6. Condemnation. If at any time during the term of this Agreement the whole or any part of the Projects, including the leasehold interest of the Corporation therein, shall be taken as a result of the exercise of the power of eminent domain or by private purchase in lieu thereof, such taking shall in no way affect the liability of City to pay the Rental Payments provided in Section 2 hereof and to perform all of the other obligations of City hereunder, and 01/160668.3 5 City shall, at its own expense, comply with all of the requirements in connection with such taking. Proceeds of any such condemnation shall be paid to Corporation and applied on the last unpaid Basic Rent installment for the Projects, unless City shall elect to have a portion of the Bonds redeemed in an amount equal to the ratio of the dollar amount of the condemnation award to the principal amount of the Bonds then outstanding, as provided by the Indenture. Section 7. Indemnification of Corporation. City shall indemnify Corporation and any of its officers, directors, agents or employees (collectively, the "Indemnified Parties") against all liabilities, penalties, damages and expenses which may be imposed upon, incurred by or asserted against the Indemnified Parties as a result of (a) City's performance of, or the failure of City to perform, any obligation to be performed by City hereunder; (b) any use or condition of the Projects or any part thereof or any public street, alley, sidewalk, curb, passageway or space within or adjacent thereto; (c) any personal injury, including death resulting therefrom, or property damage occurring on or about the Projects or any adjacent street, alley, sidewalk, curb, passageway or space; (d) the failure of City to comply with any requirement of any governmental authority; and (e) any construction lien or security agreement filed against the Projects or any part thereof. Section 8. Corporation's Right of Inspection. Corporation, its agents and representatives shall have the right to enter upon the Projects at any reasonable time for the purpose of inspection. Section 9. Alterations, Additions and Improvements. City shall have the right to make any alterations, additions or improvements to the Projects, provided that any such alteration, addition or improvement shall not cause a diminution of the value of the Projects. Any 01/160668.3 6 alterations, additions or improvements to the Projects shall become a part of the Projects and be covered by this Agreement. In no event shall Corporation be obligated or required to make any alterations, additions or improvements except as provided in Section 13 hereof. Section 10. Use of Premises. The Projects shall be used by City as public parking facilities and other such uses as City shall deem appropriate from time to time; provided, however, that any other use of the Projects shall not impair City's use of the Projects as public parking facilities or the exclusion of interest on the Bonds from the gross income of the holders thereof for federal income tax purposes. Section 11. Subletting. City may sublet any part of the Projects for any public parking uses for a period not extending beyond the term of this Agreement;provided, however, that such subletting may not impair City's use of the Projects or the exclusion of interest on the Bonds from the gross income of the holders thereof for federal income taxation purposes. Such subletting shall not affect the obligation of City to pay the Rental Payments required under Section 2 of this Agreement. Section 12. No Right of Surrender. City shall have no right or privilege to surrender the Projects to Corporation, and City's abandonment of the Projects or City's failure or inability to use the Projects at any time shall not relieve City of its obligation to pay the Rental Payments required under Section 2 of this Agreement. Section 13. Acquisition of the Projects. Corporation agrees that it will acquire and construct, or cause the acquisition and construction of, the Projects, including the acquisition of such improvements and related fixtures, equipment and personal property as are necessary for the Projects to constitute public parking facilities suitable for City's use. The acquisition, 01/160668.3 7 • construction, furnishing and equipping of the Projects shall be made in accord with plans and specifications prepared by such Project architects and engineers with such changes as may be made with the approval of City. Corporation shall have no responsibility for the sufficiency of the Projects or any part thereof. Corporation agrees to contribute toward the cost of acquisition, construction, furnishing and equipping of the Projects such proceeds of the sale of the Bonds as remain after the payment of expenses of issuing the Bonds. Promptly after execution of this Agreement, Corporation will deposit the net proceeds of the sale of the Bonds with Trustee to , be disbursed in payment of costs of acquiring, constructing, furnishing and equipping the Projects. A leasehold interest in and to the Projects, including any and all buildings, improvements and other property (but not including the Project sites in which Corporation has a leasehold interest pursuant to the Ground Lease Agreement (the "Lease") dated as of September 1, 1995 between City and Corporation), shall vest in Corporation as such property becomes a part of the Projects, and Corporation shall continue to have such interest therein until City has satisfied all of its obligations to Corporation under this Agreement and the Projects are conveyed to City. Upon completion of the acquisition and construction of the Projects, City shall furnish to Corporation a complete description of all property, both real and personal, covered by this Agreement. City hereby confirms Corporation's ownership interest in such property, regardless of whether such property may be initially purchased by Corporation. Corporation shall have no responsibility to pay any costs of acquiring and constructing the Projects in excess of the net proceeds of the sale of the Bonds and other moneys provided by City to Corporation in respect of the Projects. 01/160668.3 8 City agrees that no delay, failure or insufficiency, for any reason whatsoever (including, in particular, but without limitation, an insufficiency in the amount of Bond proceeds to pay the cost of the Projects), in the acquisition, construction or operation of the Projects or any part thereof, shall entitle City to terminate this Agreement or operate in any way to suspend, abate or reduce the Rental Payments due or to become due under the terms of Section 2 of this Agreement. Corporation agrees that any and all amounts received by it from any contractor, supplier or other person (or any surety under any bond) by reason of breach of contract, failure of performance, refunds or other adjustments shall be applied toward the costs of the acquisition, construction or repair of the Projects. Corporation agrees to cooperate with City if City should request that Corporation issue its additional or completion bonds and apply the proceeds thereof to additions to or the completion of the Projects provided that City shall first agree to pay a sufficient additional amount of Rental Payments to provide for the timely payment of such additional or completion bonds and related costs and expenses. Section 14. Termination of Leasehold. Upon City's having paid all of the Rental Payments and moneys due Corporation hereunder and the termination of this Agreement, Corporation's leasehold interest in the Projects pursuant to the Lease shall terminate, and City shall have title to the Projects free and clear of such leasehold interest. Corporation further covenants and agrees that, after termination of this Agreement, Corporation will donate to City any Bond proceeds or other moneys provided to Corporation by 01/160668.3 9 City in respect of the Projects and remaining with Corporation after paying all of its debts and obligations in respect of the Projects. Section 15. Default. In the event City defaults in the performance of any of its obligations under this Agreement and such default continues for a period of 30 days after written notice thereof has been given by Corporation to City and Trustee, Corporation may declare this Agreement terminated, and City shall thereupon surrender possession of the Projects to Corporation or to the Trustee pursuant to Section 9.03 of the Indenture; provided, however, no , such termination or surrender shall operate to relieve City of its obligation to Corporation to pay the Rental Payments due hereunder pursuant to Section 2 hereof, including, but not limited to, the Basic Rent on the dates and in the amounts shown in Exhibit A. Such remedy shall not be an exclusive remedy. Section 16. Donations to City. City may receive and accept donations from any person, firm, corporation or governmental body to assist in the acquisition, construction, furnishing and equipping of the Projects. Any such donations so received by City (where the use is not otherwise specified by the donor) shall be held in trust and used only to satisfy City's obligations under this Agreement and to pay costs of acquiring the Projects. Section 17. Financing. City consents to and approves of the issuance by Corporation of the Bonds in the aggregate principal amount of $8,475,000, dated September 15, 1995, on the terms and conditions specified in the Indenture. City has undertaken to provide ongoing disclosure for the benefit of Bondholders pursuant to Section (b)(5)(i) of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (17 C.F.R., 01/160668.3 10 (11 § 240.15c2-12), in that certain Letter Agreement dated September 27, 1995 between the City and the Trustee. Section 18. Amendment of This Agreement. City and Corporation agree that, this Agreement being collateral for the Bonds, no amendment hereto shall be made without the consent of Trustee. Section 19. Refund of Sales Tax. Corporation acknowledges that any refund or rebate of sales or use taxes which it may receive will be attributable to the sales and use tax exemption of City, and, therefore, Corporation agrees to pay to City any refund or rebate of sales or use taxes attributable to the acquisition of the Projects. Corporation agrees to take such action, but at City's expense, as City may request to obtain any such refund or rebate of sales or use taxes. City agrees that any refund or rebate of sales or use taxes which it receives, including amounts remitted by Corporation pursuant to this Section 19, will be used to pay costs of acquiring the Project. Section 20. Discrimination. The contractor shall not, in performance of this contract, discriminate or permit discrimination in violation of federal or state or local ordinances because of race, color, sex, age, political or religious opinions, affiliations or national origin. Section 21. Authority of Parties. Each of the parties to this Agreement represents that it has full power and authority to execute, perform and carry out the terms of this Agreement. Execution of this Agreement has been authorized and directed by appropriate resolutions of the Board of Directors of Corporation and an ordinance of the City Council of City. Section 22. Compliance With Laws. Corporation shall comply with all applicable laws, ordinances, rules and regulations in connection with the acquisition of the Projects. 01/160668.3 11 Section 23. Notices. Any notices required or permitted under this Agreement shall be in writing and shall be sent by certified or-registered mail, postage prepaid, return receipt requested, addressed to Corporation at City of Omaha Planning Department, 1819 Farnam Street, Suite 1100, Omaha, Nebraska 68183 and to City at Omaha-Douglas Civic Center, 1819 Farnam Street, Omaha, Nebraska 68183 or to such other address as a party shall designate. Any notice shall be deemed to have been given at the time it is duly deposited in any United States Post Office. Section 24. Waiver. Any waiver at any time by a party to this Agreement of its rights with respect to a default under this Agreement or with respect to any other matter arising out of or in connection therewith shall not be deemed a waiver with respect to any subsequent default or matter. Section 25. No Merger. Neither this Agreement, the Lease nor any provisions hereof or thereof shall be construed to effect a merger of the title of City to the Project sites and City's leasehold interest herein. Section 26. Benefit. This Agreement shall be binding upon and shall inure to the benefit of the parties and their successors or assigns. Section 27. Section Captions. The section captions contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 01/160668.3 12 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers as of the day and year first above written. [SEAL] CITY OF OMAHA PARKING FACILITIES CORPORATION ATTEST: By President Secretary [SEAL] CITY OF OMAHA, NEBRASKA ♦- ATTEST: By NTay r City Cl • APPROVED AS TO FORM: Assistant Ci ttorn 0 1/1 60668.3 13 STATE OF NEBRASKA ) ) ss. COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged before me this a of September, 1995 g g by GREGORY A. PETERSON, President, and LARRY LAHAIE, Secretary, of CITY OF OMAHA PARKING FACILITIES CORPORATION, on behalf of Corporation. Notary Public (SEAL) STATE OF NEBRASKA ) ` ) ss. COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged before me this/'day of September, 1995 by HAL DAUB, Mayor of the City of Omaha, Nebraska, and by MARY GALLIGAN CORNETT, City Clerk, of the CITY OF OMAHA, NEBRASKA, on behalf of City. 4sENERAL NOTARY-State of Nebraska G j 2d 7 SANDRA L MOSES Notary Public My Comm.Exp.July 29,1996 (SEAL) 1 O1/160668.3 14 ' EXHIBIT A SCHEDULE OF BASIC RENT PAYABLE BY THE CITY OF OMAHA, NEBRASKA Date Principal Interest Total 03/15/96 $ 0 $224,461.25 $224,461.25 09/15/96 265,000 224,461.25 489,461.25 03/15/97 0 219,426.25 219,426.25 09/15/97 275,000 219,426.25 494,426.25 03/15/98 0 213,857.50 0 213,857.50 09/15/98 285,000 213,857.50 498,857.50 03/15/99 0 207,872.50 207,872.50 09/15/99 295,000 207,872.50 502,872.50 03/15/00 0 201,456.25 201,456.25 09/15/00 310,000 201,456.25 511,456.25 03/15/01 0 194,558.75 194,558.75 09/15/01 320,000 194,558.75 514,558.75 03/15/02 0 187,198.75 187,198.75 09/15/02 335,000 187,198.75 522,198.75 03/15/03 0 179,242.50 179,242.50 09/15/03 355,000 179,242.50 534,242.50 03/15/04 0 170,633.75 170,633.75 09/15/04 370,000 170,633.75 540,633.75 03/15/05 0 161,476.25 161,476.25 09/15/05 390,000 161,476.25 551,476.25 03/15/06 0 151,628.75 151,628.75 09/15/06 410,000 151,628.75 561,628.75 03/15/07 0 140,968.75 140,968.75 09/15/07 430,000 140,968.75 570,968.75 03/15/08 0 129,466.25 129,466.25 09/15/08 450,000 129,466.25- 579,466.25 03/15/09 0 117,091.25 117,091.25 09/15/09 475,000 117,091.25 592,091.25 03/15/10 0 103,791.25 103,791.25 09/15/10 505,000 103,791.25 608,791.25 03/15/11 0 89,398.75 89,398.75 09/15/11 535,000 89,398.75 624,398.75 03/15/12 0 73,482.50 73,482.50 09/15/12 565,000 _ 73,482.50 638,482.50 03/15/13 0 56,673.75 56,673.75 09/15/13 600,000 56,673.75 656,673.75 03/15/14 0 38,823.75 38,823.75 01/160668.3 0 09/15/14 635,000 38,823.75 673,823.75 03/15/15 0 19,932.50 19,932.50 09/15/15 670,000 19,932.50 689,932.50 01/160668.3 A-20 APPENDIX A LEASEHOLD PROPERTY DESCRIPTION Omaha-Park Four Project Lots 1 through 8 and the vacated alley in Block 176, original City of Omaha, Douglas County, Nebraska. Omaha-Park Five Project Lots 3, 4, 5, and 6 and the adjoining vacated alley in Block 79, original City of Omaha, Douglas County, Nebraska. 01/160668.3 fi CITY OF OMAHA, NEBRASKA, as Lessor to CITY OF OMAHA PARKING FACILITIES CORPORATION, as Lessee GROUND LEASE AGREEMENT Dated as of September 1, 1995 01/1610183 t •�1 GROUND LEASE AGREEMENT THIS GROUND LEASE AGREEMENT is made and entered into as of the 1st day of September, 1995 by and between the CITY OF OMAHA,NEBRASKA, a municipal corporation ("City"), as lessor, and CITY OF OMAHA PARKING FACILITIES CORPORATION, a Nebraska nonprofit corporation ("Corporation"), as lessee. RECITALS: City, in consideration of the covenants of Corporation hereinafter set forth, does by these presents lease to Corporation two parcels of ground, both located in the City of Omaha, Nebraska, more specifically described at Appendix A hereto. TO HAVE AND TO HOLD the same unto Corporation from, on and after the date- hereof to and including the earlier of(i) September 15,2015 and (ii) the termination date of that Lease-Purchase Agreement dated as of September 1, 1995 by and between Corporation, as lessor, and City, as lessee, and City warrants to Corporation the peaceful and quiet enjoyment of the premises hereby leased for and during the term hereof. Corporation, in consideration of the leasing of the premises as above set forth,has agreed with City to pay City as rent for the use of the same the sum of Ten Dollars ($10.00)per year, which rent has been paid by Corporation for the entire term, the receipt and sufficiency of which are hereby acknowledged by City. Corporation further covenants with City that at the expiration of the term of this Lease Agreement, peaceable possession of said premises, together with any buildings or improvements now or hereafter situated thereupon during the lease term, shall be given to City. It is further covenanted and agreed between the parties hereto that the leased premises shall be used only in connection with the provision of public parking facilities and functions incidental thereto. The covenants herein shall extend to and be binding upon the successors and assigns of the parties to this Lease Agreement. 01/161018.3 �F IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed by their duly authorized officers as of the day and year first written above. [SEAL] CTTY OF RAS ATTEST: By or By Cler [SEAL] CITY OF OMAHA PARKING FACILITIES S CORPORATION ATTEST: By By President Secretary APPROVED AS TO FORM: • By tart oun ttorne 01/1610183 2 T STATE OF NEBRASKA ) . ) SS. COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged before me this/day of September, 1995 by HAL DAUB, Mayor of the City of Omaha, Nebraska, and by MARY GALLIGAN CORNETT, City Clerk, of the CITY OF OMAHA, NEBRASKA, on behalf of City. L.,RAL NOTARY-State of Nebraska SANDRA L MOSES [$EAL] Mly Comm.Exp.July 29,1996 ,.-(4 Notary Public My commission expires: 4 _,,2, /�'9� , STATE OF NEBRASKA ) ) SS. COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged before me this day of September, 1995, by GREGORY A. PETERSON, President, and LARRY LAHAIE, Secretary, of CITY OF OMAHA PARKING FACILITIES CORPORATION, on behalf of Corporation. [SEAL] Notary Public My commission expires: 01/1610183 3 APPENDIX A Legal Description of Omaha-Park Four Project Lots 1 through 8 and the vacated alley in Block 176, original City of Omaha, Douglas County, Nebraska. Legal Description of Omaha-Park Five Project Lots 3, 4, 5, and 6 and the adjoining vacated alley in Block 79, original City of Omaha,. Douglas County, Nebraska. 01/1610183 '0 E . A ' 6 tz C DRAFT KUTAK ROCK 09/08/95 CITY OF OMAHA PARKING FACILITIES CORPORATION to FIRSTIER BANK OMAHA, N.A. as Trustee INDENTURE OF TRUST Dated as of September 1, 1995 01/160667.4 0 • tl TABLE OF CONTENTS (This Table of Contents is not part of the Indenture of Trust and is only for convenience of reference.) Page PARTIES 1 RECITALS 1 ARTICLE I DEFINITIONS 3 ARTICLE II ISSUANCE AND EXECUTION OF BONDS Section 2.01. Issuance of Bonds 5 Section 2.02. Terms, Medium and Place of Payment 5 Section 2.03. Execution - 6 Section 2.04. Form of Bonds 6 Section 2.05. Certificate of Authentication 6 Section 2.06. Authorization and Delivery 6 Section 2.07. Mutilated, Lost, Stolen or Destroyed Bonds 6 Section 2.08. Registration and Transfer of Bonds 7 Section 2.09. Additional Bonds 7 • Section 2.10. Refunding Bonds 8 Section 2.11. Temporary Bonds 9 Section 2.12. Book-Entry-Only Bonds 9 ARTICLE III REDEMPTION OF BONDS BEFORE MATURITY Section 3.01. Bonds Redeemable 11 Section 3.02. Optional Redemption 11 Section 3.03. Sinking Fund Redemption 11 Section 3.04. Extraordinary Optional Redemption 12 Section 3.05. Notice of Redemption 12 Section 3.06. Cancellation of Bonds 13 01/160667.4 • t ARTICLE IV GENERAL COVENANTS Section 4.01. Payment of Bonds 13 Section 4.02. Books and Records; Annual Accounting 13 Section 4.03. Trustee Enforcement of Agreement 13 Section 4.04. Reserved 13 Section 4.05. Parity Bonds 14 Section 4.06. Corporate Existence 14 Section 4.07. Arbitrage and Tax Covenants 14 ARTICLE V BOND FUND Section 5.01. Bonds Secured by Basic Rent Payments 15 Section 5.02. Creation of Bond Fund 15 Section 5.03. Deposits to Bond Fund 15 Section 5.04. Use of Moneys in Bond Fund 15 Section 5.05. Custody of Bond Fund; Withdrawals 15 Section 5.06. Unclaimed Moneys 15 Section 5.07. Additional Rent 16 ARTICLE VI ACQUISITION FUND Section 6.01. Creation of Acquisition Fund 16 Section 6.02. Use of Moneys in Acquisition Fund 16 Section 6.03. Requisitions 16 ARTICLE VII INVESTMENTS 16 ARTICLE VIII DISCHARGE OF I IFN AND DEFEASANCE 17 01/160667.4 ll • ARTICLE IX DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND BONDHOLDERS Section 9.01. Events of Default 19 Section 9.02. Acceleration 19 Section 9.03. Other Remedies 20 Section 9.04. Limitation on Bondholders' Right To Institute Proceedings 20 Section 9.05. Possession of Bonds Not Required for Enforcement 20 Section 9.06. Waiver 20 Section 9.07. Application of Moneys 20 Section 9.08. Restoration to Former Position 22 Section 9.09. Bondholders' Right To Direct Proceedings 22 ARTICLE X THE TRUSTEE Section 10.01. Acceptance of Trusts 22 Section 10.02. Limitations on Liability 23 Section 10.03. Dealings in Bonds 23 Section 10.04. Compensation 23 ARTICLE XI AMENDMENT OF INDENTURE Section 11.01. Supplemental Indentures Not Requiring Consent of Bondholders 23 Section 11.02. Supplemental Indentures Requiring Consent of Bondholders 24 Section 11.03. Consent of Trustee Required 25 ARTICLE XII AMENDMENT OF THE LEASE AGREEMENT Section 12.01. Amendment of Agreement Not Requiring Consent of Bondholders 25 Section 12.02. Amendment of Agreement Requiring Consent of Bondholders 25 Section 12.03. Consent of Trustee Required 25 01/160667.4 ill ARTICLE XIII MISCELLANEOUS Section 13.01. Execution of Instruments; Proof of Ownership 25 Section 13.02. Counterparts 26 Section 13.03. No Personal Liability of Corporation Officials; Limited Liability of Corporation to Bondholders 26 Section 13.04. Severability 26 EXHIIBIT A—Form of Bond EXHIIBIT B—Form of Requisition EXHIBIT C—Form of Blanket Issuer Letter of Representations • 01/160667.4 iv INDENTURE OF TRUST • THIS INDENTURE OF TRUST is made and entered into as of the 1st day of September, 1995 by and between CITY OF OMAHA PARKING FACILITIES CORPORATION, a Nebraska nonprofit corporation ("Corporation"), and FIRSTIER BANK OMAHA, N.A., a national banking association organized under the laws of the United States of America, with a corporate trust office in the City of.Omaha, Nebraska, as trustee ("Trustee"). RECITALS: WHEREAS, Corporation, as lessor, has entered into a Lease-Purchase Agreement dated as of September 1, 1995 (the "Agreement") with the City of Omaha, Nebraska ("City"), as lessee, under which Corporation has leased to City certain real and personal property situated in Omaha, Nebraska, the realty being described at Appendix A to the Agreement, which realty, together with the improvements, fixtures, equipment and such personal property as may be situated thereon, is herein referred to as the "Projects"; and WHEREAS, in order to obtain a portion of the funds for the acquisition, construction, furnishing and equipping of the Projects, it is necessary for Corporation to issue its Bonds in the aggregate principal amount of Eight Million Four Hundred Seventy-Five Thousand and 00/100 Dollars ($8,475,000) (the "Bonds"); the Bonds are secured by a pledge of the Basic Rent (as hereinafter defined) to become due under the Agreement, and Trustee has agreed to act as Trustee under this Indenture of Trust (this "Indenture") for the benefit of the owners of the Bonds issued as hereinafter provided; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: WITNESSETH: Corporation, in consideration of the premises, the acceptance by Trustee of the trusts hereby created, the purchase and acceptance of the Bonds by the original purchasers thereof, receipt of the sum of One Dollar ($1.00) lawful money of the United States of America to it duly paid by Trustee at or before the execution and delivery of these presents, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, in order to secure the payment of the principal of and interest on the Bonds issued as herein provided according to their tenor and effect, and the performance and observance by Corporation of all the covenants expressed or implied herein and in the Bonds, does hereby grant, bargain, sell, convey and pledge unto Trustee, and its successors in trust, and to them and their assigns forever, for the securing of the performance of the obligations of Corporation hereinafter set forth, the following: 1. All revenues and income derived by Corporation from the Projects, including, without limitation, all Rental Payments received by Corporation from City • 01/160667.4 under the Agreement, such payments to be made by City directly to Trustee and • deposited by Trustee in an account of Corporation designated "Bond Fund." 2. Any and all other property of every name and nature from time to time hereafter by delivery or by writing of any kind conveyed, mortgaged, pledged, assigned or transferred, as and for additional security hereunder by Corporation or by anyone in its behalf (or with its written consent) to Trustee, which is hereby authorized to receive any and all such property at any time and to hold and apply the same, subject to the terms hereof. TO HAVE AND TO HOLD all the same with all privileges and appurtenances hereby conveyed and assigned, or agreed or intended so to be, to Trustee and its respective successors in trust and to them and their assigns forever: IN TRUST, NEVERTHELESS, upon the terms and trusts herein set forth for the equal and proportionate benefit, security and protection of all owners of Bonds issued under and secured by this Indenture, without privilege, priority or distinction as to the lien or otherwise of any of the Bonds or interest thereon over any of the other said Bonds or interest thereon. PROVIDED, HOWEVER, that if Corporation, its successors or assigns shall well and truly pay, or cause to be paid, the principal of and interest on the Bonds due or to become due thereon, at the times and in the manner mentioned in the Bonds, according to the true intent and meaning thereof, and shall make the payments to the Bond Fund as required under Article V hereof, or shall provide as permitted hereby, for the payment thereof by depositing with Trustee the entire amount due or to become due thereon, and shall well and truly keep, perform and observe all the covenants and conditions pursuant to the terms of this Indenture to be kept, performed and observed by it, and shall pay or cause to be paid to Trustee all sums of money • due or to become due to it in accordance with the terms and provisions hereof, then upon such final payments this Indenture and the rights hereby granted shall cease, determine and be void, otherwise this Indenture to be and remain in full force and effect. THIS TRUST INDENTURE FURTHER WITNESSETH: that all Bonds issued and secured hereunder or to be issued, authenticated and delivered, and all the revenues, income and other property hereby pledged, including the Rental Payments due under the Agreement, are to be dealt with and disposed of under, upon and subject to the terms, conditions, trusts, uses and purposes hereinafter expressed, and Corporation has agreed and covenanted and does hereby agree and covenant with Trustee and with the respective owners, from time to time, of the Bonds, as follows. 01/160667.4 2 ARTICLE I DEFINITIONS In addition to the words and terms elsewhere defined in this Indenture, the following words and terms as used in this Indenture shall have the following meanings, unless the context or use indicates another or different meaning or intent. "Acquisition Fund" means the Fund created by Article VI of this Indenture, into which the net proceeds of the sale of the Bonds shall be deposited and out of which disbursements are to be made in the manner and for the purpose specified in Article VI of this Indenture. "Additional Rent" means the amounts City is required by the Agreement to pay with respect to the Projects, in addition to the Basic Rent. "Agreement" means the Lease-Purchase Agreement dated as of September 1, 1995 by and between Corporation and City, together with any amendments thereto. "Basic Rent" means the amounts City is required by the Agreement to pay to Corporation as rent for the Projects. "Bond" or "Bonds" means any bond or bonds issued pursuant to, in accordance with, and secured by this Indenture. "Bond Fund" means the Fund created by Article V of this Indenture into which the funds specified in Article V are to be deposited. "Bondholder(s)" means the owner of any Bond. "Bonds" means the$8,475,000 of Corporation's Lease Revenue Bonds(Omaha-Park Four and Omaha-Park Five Projects), Series 1995. "Bonds of Other Series" means bonds issued hereunder other than the Bonds. "Bond Year" means the period of time beginning on September 15 of a given year and ending on September 14 of the immediately subsequent year (or the maturity date of the Bonds, whichever is earlier). "City" means the City of Omaha, Nebraska. "Code" means the Internal Revenue Code of 1986, as amended, including the United States Treasury Regulations proposed or in effect with respect thereto and applicable to the Bonds or the use of the proceeds thereof. 01/160667.4 3 "Corporation" means City of Omaha Parking Facilities Corporation, a Nebraska nonprofit corporation. "Indenture" means this Indenture of Trust, together with any supplements hereto. "Letter of Instructions" means the letter of nationally recognized bond counsel describing the application of the rebate provisions of the Code. "Outstanding" or "Bonds outstanding hereunder" means all Bonds which have been authenticated, issued and delivered under this Indenture except: (a) bonds cancelled because of payment; (b) bonds for the payment or redemption of which cash funds or United States Government Obligations as provided in Article VIII shall have been theretofore deposited with Trustee, whether upon or prior to the maturity or redemption date of any of said Bonds; and (c) bonds in lieu of which others have been authenticated as provided under Article II hereof. "Person" includes natural persons, firms, associations, corporations and public bodies. "Projects" means the real and personal property described on the first page hereof and Exhibit A to the Agreement and the Lease and all property now or hereafter constructed or placed thereon. "Record Date" means the first day of any month containing an interest payment date, namely March 1 and September 1. "Rental Payments" means, collectively, the Basic Rent and the Additional Rent. "Trustee" or "Paying Agent" means FirsTier Bank Omaha, N.A., and its corporate successor or successors in trust under this Indenture. "United States Government Obligations" means direct general obligations of, or obligations the payment of the principal and interest of which are unconditionally guaranteed by, the United States of America, which are not subject to prior redemption except at prices which will produce the amount of cash required for the purpose for which the obligations are held. 01/160667.4 4 /" /� ARTICLE II ISSUANCE AND EXECUTION OF BONDS Section 2.01. Issuance of Bonds. The Bonds in the aggregate principal amount of Eight Million Four Hundred Seventy-Five Thousand Dollars ($8,475,000) shall be issued by Corporation as soon as practicable on or following the date of execution of this Indenture, and the proceeds thereof, net of accrued interest, if any, shall be delivered to Trustee to be deposited by Trustee in the Acquisition Fund. The Bonds shall not be a debt of City or a pledge of its faith and credit but, together with interest thereon, shall be payable solely out of the Rental Payments paid by City to Corporation under the Agreement. Section 2.02. Terms, Medium and Place of Payment. The Bonds shall be issued as fully registered bonds, without coupons, in the denomination of$5,000 or any integral multiple thereof. The Bonds shall be numbered in consecutive numerical order from one upwards in chronological order, as issued, or shall be numbered in any other manner as the Acting Finance Director of City shall determine. The Bonds shall be dated September 15, 1995 and shall become due and payable on September 15 of the years and shall bear interest at the rates per annum as shown below: Maturity Date Interest Rate (September 15) Amount 1996 $ 265,000 1997 275,000 1998 285,000 1999 295,000 2000 310,000 2001 320,000 2002 335,000 2003 355,000 2004 370,000 2005 390,000 2006 410,000 2007 430,000 2008 450,000 2009 475,000 2010 505,000 2015 3,005,000 01/160667.4 5 The Bonds shall bear interest from September 15, 1995 and shall be payable semiannually on March 15 and September 15 of each year, starting March 15, 1996. The principal of the Bonds shall be payable in lawful money of the United States of America at the principal office of Trustee in Omaha, Nebraska, or its successor. Payment of interest on the Bonds shall be made to the registered owner thereof and shall be paid (i) by check or draft mailed to the registered owner at his address as it appears on the registration books of Corporation on the Record Date or'at such other address as is furnished to Trustee in writing by such registered owner or (ii) by wire transfer to the registered owner of $1,000,000 in aggregate principal amount of the Bonds upon written notice by the registered owner given to Trustee not later than the close of business on the Record Date. Section 2.03. Execution. The Bonds shall be executed on behalf of Corporation by the President and Secretary of Corporation, each of whose signatures may be a facsimile of the signature, and the seal, or a facsimile thereof, of Corporation shall be placed on each Bond. In case any officer whose signature shall appear on the Bonds shall cease to be such officer before the delivery of such Bonds, such signature shall, nevertheless, be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Section 2.04. Form of Bonds. The Bonds shall be in substantially the form set forth in Exhibit A hereto with such variations, omissions and insertions as are permitted or required by this Indenture and are deemed advisable by nationally recognized bond counsel to effectuate the purposes of this Indenture. Section 2.05. Certificate of Authentication. Only such Bonds as shall have endorsed thereon a Certificate of Authentication substantially in the form set forth in Exhibit A hereto, duly manually executed by Trustee, shall be entitled to any right or benefit under this Indenture. No Bond shall be valid or obligatory for any purpose unless and until such Certificate of Authentication shall have been duly executed by Trustee, and such executed Certificate shall be conclusive evidence that such Bond has been authenticated under this Indenture. Section 2.06. Authorization and Delivery. Upon the execution and delivery of this Indenture, Corporation shall execute the Bonds and deliver same to Trustee, who shall authenticate the Bonds. The Bonds shall then be delivered to the original purchasers of the Bonds upon the payment of the purchase price not less than % of the principal amount thereof, together with interest to the date of payment and delivery of the Bonds. Section 2.07. Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond issued hereunder shall become mutilated, destroyed, stolen or lost, Corporation shall, if not then prohibited by law, cause to be executed, and Trustee may authenticate and deliver, a new Bond of like date, number, maturity and tenor in exchange and substitution therefor, and upon cancellation of such mutilated Bond, or in lieu of and in substitution for such lost Bond, upon the owner paying the reasonable expenses and charges of Corporation and Trustee in connection therewith, and, in case of a Bond destroyed or lost, the owner filing with Trustee evidence 01/160667.4 6 _ l satisfactory to it that such Bond was destroyed or lost, and furnishing Corporation and Trustee with indemnity satisfactory to them. Section 2.08. Registration and Transfer of Bonds. Corporation shall cause books for the registration and for the transfer of the Bonds as provided in this Indenture to be kept by Trustee. At reasonable times and under reasonable regulations established by the Corporation, such list may be inspected and copied by the owners (or a designated representative thereof) of 25% or more in aggregate principal amount of Bonds then Outstanding. Upon surrender for transfer of any Bond at the principal office of Trustee, Trustee shall deliver in the name of the transferee or transferees a new fully authenticated and registered Bond of$5,000 principal amount (or integral multiple thereof) of the same maturity for the aggregate principal amount which the Bondholder is entitled to receive. All Bonds presented for transfer, redemption or payment shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature as set forth in the form of Exhibit A hereto or as may be satisfactory to Corporation and Trustee, duly executed by the Bondholder or by his duly authorized attorney. Trustee also may require payment from the Bondholder of a sum sufficient to cover any tax, or other governmental fee or charge that may be imposed in relation thereto. Such taxes, fees and charges shall be paid before any such new Bond shall be delivered. Corporation and Trustee, on behalf of Corporation, shall not be required (a) to issue or register the transfer of any Bond during a period beginning on the Record Date and ending at the close of business on the business day next preceding any principal payment date or (b) to transfer any Bond selected, called or being called for redemption in whole or in part. Bonds delivered upon any transfer as provided herein, or as provided in Section 2.07 hereof, shall evidence the same debt as the Bond surrendered, shall be secured by this Indenture and shall be entitled to all of the security and benefits hereof to the same extent as the Bond surrendered. Corporation and Trustee shall treat the Bondholder, as shown on the registration books kept by Trustee, as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the Bondholder, except that all interest payments will be made to the Bondholder as of the Record Date. Section 2.09. Additional Bonds. Additional series of bonds having status and rank equal to the Bonds may be issued from time to time under the terms of this Indenture, providing for such interest rates and other characteristics as shall be fixed and determined by Corporation and as set forth in a supplemental indenture, and provided there must be compliance with each of the following: O1/160667.4 7 (1) Corporation is not in default under this Indenture; (2) City is not in default under the Agreement; (3) Corporation and City shall, prior to the issuance of such Bonds of Other Series, have entered into an amendment to the Agreement to increase the Basic Rent payable by City to provide sufficient additional funds at the times and in the amounts necessary to pay the principal of and interest on both the outstanding Bonds and the proposed Bonds of Other Series, including any principal due on the Bonds of Other Series due by mandatory redemption provisions and to provide that City will pay as Additional Rental the fees and expenses of Trustee with respect to the Bonds of Other Series; (4) each issue of Bonds of Other Series shall be designated by some name to indicate that such Bonds are of a different series than the Bonds; and (5) the issuance of such Bonds of Other Series shall have been approved by City. Section 2.10. Refunding Bonds. Bonds to refund all or any of the Bonds outstanding hereunder may be issued at any time provided there is compliance with each of the following: (1) Corporation is not in default under this Indenture, or the default will be cured immediately after issuance of the refunding bonds; (2) City is not in default under the Agreement; (3) Basic Rent payable by City under the Agreement shall be sufficient to pay, when due, the principal of and interest on all Bonds to be outstanding, including the refunding bonds; (4) the issuance of the refunding bonds shall in no manner adversely affect the exclusion from gross income of the interest on the Bonds for federal income tax purposes; (5) the proceeds of the refunding bonds shall be applied in such manner that the Bonds being refunded are no longer outstanding hereunder after issuance of the refunding bonds; and (6) the issuance of such refunding bonds shall have been approved by City. Any such refunding bonds shall bear interest and be on such other terms and conditions as shall be determined by Corporation. Refunding bonds issued in compliance with the foregoing provisions shall have rank and status equal to the Bonds. O1/160667.4 .8 4' Section 2.11. Temporary Bonds. Until Bonds in definitive form are ready for delivery, Corporation may execute, and upon the request of Corporation, Trustee shall authenticate and deliver to the purchasers thereof, subject to the provisions, limitations and conditions set forth above, one or more Bonds in temporary form, whether printed, type-written, lithographed or otherwise produced, substantially in the form of the definitive Bonds, with appropriate omissions, variations and insertions, and in authorized denominations. Until exchanged for Bonds in definitive form, such Bonds in temporary form shall be entitled to the lien and benefit of this Indenture. Upon the presentation and surrender of any Bond or Bonds in temporary form, Corporation shall, without unreasonable delay, prepare, execute and deliver to Trustee, and Trustee shall authenticate and deliver to the owner or owners thereof, in exchange therefor, a Bond or Bonds in definitive form. Such exchange shall be made by Trustee without making any charge therefor to the owners of such Bonds in temporary form. Section 2.12. Book-Entry-Only Bonds. (a) The Bonds shall initially be issued in book-entry form. The Depository Trust Company, New York, New York (the "Depository") is hereby appointed the Depository for the Bonds. The Blanket Issuer Representations Letter, attached hereto as Exhibit C and incorporated herein by this reference, dated as of the date of delivery of the Bonds and signed by Corporation and the Depository, is hereby approved, and the execution by the President of Corporation is hereby authorized. The ownership of one fully registered Bond for each maturity as set forth in Section 2.02 hereof, each in the aggregate principal amount of such maturity, shall be registered in the name of Cede & Co., as nominee for the Depository. Payment of semiannual interest on any Bond registered as of each Record Date in the name of Cede & Co. shall be made in same-day funds of its equivalent, by wire transfer to the account of Cede & Co. on the interest payment dates and the respective maturity dates for the Bonds, at the address indicated on the Record Date for Cede & Co. in the registration books of Corporation kept by Trustee. (b) Trustee and Corporation may treat the Depository (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of and interest on the Bonds, giving any notice permitted or required to be given to Bondholders under this Indenture, registering the transfer of Bonds, obtaining any consent or other action to be taken by Bondholders and for all other purposes whatsoever, and neither Trustee nor Corporation shall be affected by any notice to the contrary. (c) Corporation and Trustee shall have no responsibility or obligation to any securities broker-dealer, bank, trust company, clearing corporation or other organization for which the Depository holds Bonds as securities depository (each, a "Participant") or to any Participant and the person for whom it acquires an interest in the Bonds as nominee (each, a "Beneficial Owner") with respect to the following: (i) the accuracy of the records of the Depository, any nominees of the Depository or any Participant with respect to any ownership interest in the Bonds; O1/160667.4 9 :4\ - i (ii) the delivery to any Participant, any Beneficial Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption; or (iii) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the Bonds. Trustee shall make payments with respect to the Bonds only to or upon the order of the Depository or its nominee, and all such payments shall be valid and effective fully to satisfy and discharge the obligations with respect to such Bonds to the extent of the sum or sums so paid. No person other than the Depository shall receive an authenticated Bond. (d) Notwithstanding any other provision of this Indenture to the contrary, so long as any Bond is registered in the name of the Depository or any nominee thereof, all payments with respect to such Bond and all notices with respect to such Bond shall be made and given, respectively, to the Depository as provided in the Blanket Issuer Representations Letter. (e) Upon receipt by Trustee of written notice from the Depository to the effect that the Depository is unable or unwilling to discharge its responsibilities or upon receipt by Trustee of written notice from Corporation to the effect that Corporation has determined that the Depository is incapable of discharging its responsibilities, Trustee shall issue, transfer and exchange Bonds requested by the Depository in appropriate amounts. Whenever the Depository requests Trustee to do so, Trustee will cooperate with the Depository in taking appropriate action after reasonable notice (i) to arrange, with the prior written consent of Corporation, for a substitute depository willing and able upon reasonable and customary terms to maintain custody of the Bonds or (ii) to make available Bonds registered in whatever name or names the Beneficial Owners transferring or exchanging such Bonds shall designate. (f) If Corporation determines that it is desirable that certificates representing the Bonds be delivered to the Participants and/or Beneficial Owners of the Bonds and so notifies Trustee in writing, Trustee shall so notify the Depository, whereupon the Depository will notify the Participants of the availability through the Depository of bond certificates representing the Bonds. In such event, Trustee shall issue, transfer and exchange bond certificates representing the Bonds as requested by the Depository in appropriate amounts and in authorized denominations. (g) Registered ownership of the Bonds may be transferred on the books of registration maintained by Trustee, and the Bonds may be delivered in physical form to the following: (1) any successor securities depository or its nominee; (2) any person, upon (A) the resignation of the Depository from its functions as depository or (B) termination of the use of the Depository pursuant to this Section. 01/160667.4 10C.) (h) In the event of any partial redemption of a Bond unless and until such partially redeemed Bond has been replaced in accordance with the provisions of Section 2.08 of this Indenture, the books and records of Trustee shall govern and establish the principal amount of such Bond as is then outstanding, and all of the Bonds issued to the Depository or its nominee shall contain a legend to such effect. (i) If for any reason the Depository resigns and is not replaced, Corporation shall immediately provide a supply of printed bond certificates for issuance upon the transfers from the Depository and subsequent transfers or in the event of a partial redemption pursuant to Section 2.08 of this Indenture. (j) In the event that the Bonds are no longer held in book-entry form, payment of interest on the Bonds shall be made to the registered owners thereof as provided by Section 2.02 hereof. ARTICLE III REDEMPTION OF BONDS BEFORE MATURITY Section 3.01. Bonds Redeemable. The Bonds are noncallable for redemption except pursuant to Sections 3.02, 3.03 and 3.04 hereof. Section 3.02. Optional Redemption. The Bonds maturing on and after September 15, 2006 are subject to redemption by Corporation from any source, in whole at any time, or in part on any interest payment date, in such order of maturities as determined by Corporation (and by lot or other random selection method within a maturity) on or after September 15, 2005, at the following redemption prices expressed as a percentage of the principal amount of the Bonds to be redeemed, plus interest accrued thereon to the date of redemption: Redemption Period (dates inclusive) Redemption Price September 15, 2005 to September 14, 2006 102% September 15, 2006 to September 14, 2007 101 September 15, 2007 and thereafter 100 Section 3.03. Sinking Fund Redemption. The Bonds maturing September 15, 2015 are subject to mandatory redemption from Basic Rent sinking fund payments prior to their respective maturity dates, by lot (or other random selection method) selected by Trustee, at a price of par without premium on September 15, 2011, and on each September 15 thereafter in the years and principal amounts set forth below: 01/160667.4 1 1 Year Principal Amount 2011 $ 2012 2013 2014 2015 (maturity) To the extent that such Bonds have been previously called for redemption in part and otherwise than from the sinking fund, each related aforesaid annual sinking fund payment for the Bonds of such maturity shall be reduced by the amount obtained by multiplying the principal amount of such Bonds of such maturity so called for redemption, by the ratio which each annual sinking fund payment for the Bonds of such maturity bears to the total sinking fund payments of such Bonds subject to sinking fund redemption, and by rounding each sinking fund payment to the nearest $5,000 multiple. In case a Bond subject to sinking fund redemption is of a denomination larger than $5,000, a portion of such Bond ($5,000 or any multiple thereof) may be redeemed, but Bonds shall be redeemed only in the principal amount of$5,000 each or any integral multiple thereof. On or before the thirtieth day prior to each such sinking fund payment date, Trustee shall proceed to select for redemption (by lot in such manner, as Trustee may determine), from all outstanding Bonds subject to sinking fund redemption, a principal amount of such Bonds, equal to the aggregate principal amount of such Bonds redeemable with the required sinking fund payment, and shall call such Bonds or portions thereof($5,000 or any integral multiple thereof) for redemption from such sinking fund on the next September 15, and give notice of such call. Section 3.04. Extraordinary Optional Redemption. The Bonds are subject to redemption at any time in whole, or in part, in the event of damage to or destruction of one or both of the Projects or condemnation thereof and election by City that the proceeds of such damage, destruction or condemnation award shall not be used to rebuild or restore the affected Project or the Projects. Any such redemption shall be at the principal amount of the Bonds equal to the ratio of the dollar amount of such damage, destruction or condemnation award to the principal amount of the Bonds then Outstanding, without premium, plus accrued interest to the redemption date. No Bonds shall be redeemed under this provision, nor shall any notice of redemption be given by Trustee, until there has been furnished to Trustee sufficient funds, United States Government Obligations or other provision satisfactory to Trustee to fully retire all Bonds outstanding hereunder in accordance with this provision. Section 3.05. Notice of Redemption. In the event any of the Bonds are called for redemption as aforesaid, notice thereof identifying such Bonds will be given for Bonds held in book-entry-only form by mailing to the Depository not less than 30 days nor more than 60 days prior to the redemption date and for Bonds held in certificated form by mailing by first class mail to the registered owner thereof not less than 30 days prior to the date fixed for redemption. All maturities of the Bonds so called for redemption will cease to bear interest after the specified 01/160667.4 12 • redemption date, provided funds for their redemption are on deposit at the place of payment at that time. Any funds paid for redemption of Bonds shall be applied first against any interest due and owing on the Bonds and then against the unpaid principal balance thereof. Section 3.06. Cancellation of Bonds. All Bonds which have been redeemed shall be cancelled by Trustee and destroyed by Trustee in accordance with its regular procedures. ARTICLE IV GENERAL COVENANTS Section 4.01. Payment of Bonds. Corporation covenants that it will promptly pay the principal of and interest on every Bond issued under this Indenture at the place, on the dates and in the manner provided herein and in the Bonds according to the true intent and meaning hereof. Such principal and interest are payable solely from revenues in the Bond Fund derived from the Basic Rent payable under the Agreement or other funds deposited hereunder in the Bond Fund. Corporation further covenants faithfully to perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Indenture, and Corporation will do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, such indentures supplemental hereto and such further acts, instruments and transfers as Trustee may reasonably require for the better assuring, transferring, mortgaging, pledging, assigning and confirming unto Trustee the property herein described and the revenues, income and all other property pledged hereby to the payment of the principal of and interest on the Bonds. Section 4.02. Books and Records; Annual Accounting. Trustee agrees that, so long as any Bonds issued hereunder and secured by this Indenture shall be outstanding and unpaid, it will keep proper books of record and account in which full, true and correct entries will be made of all dealings or transactions of and in relation to the Projects and the revenues, income and all other property derived therefrom. Trustee agrees to furnish to City and Corporation an accounting annually, and at such other times as either may reasonably request, pertaining to the dealings and transactions of Trustee in relation to the Projects. All books and records of Trustee relating to the Projects and the revenues therefrom shall at all times be open to inspection by representatives of City and Corporation and the owners of the Bonds. Section 4.03. Trustee Enforcement of Agreement. The Agreement sets forth the covenants and obligations of Corporation and City and reference is hereby made to the Agreement for a detailed statement of the respective obligations. Corporation agrees that Trustee, in its own name or in the name of Corporation, may enforce all rights and obligations Corporation may have under and pursuant to the Agreement for and on behalf of the Bondholders, whether or not Corporation is in default in its covenants to enforce such rights and obligations. Section 4.04. Reserved. O1/160667.4 131111 Section 4.05. Parity Bonds. Corporation covenants that, so long as any of the Bonds are outstanding, it will not issue other bonds payable from the Basic Rent due under the Agreement except as permitted in Article II of this Indenture, and in any event not without the specific consent to such issuance given by City. Section 4.06. Corporate Existence. Corporation covenants to maintain its corporate existence as a nonprofit corporation under the laws of the State of Nebraska. Section 4.07. Arbitrage and Tax Covenants. Corporation and Trustee jointly and severally covenant and certify to each other and for the benefit of the holders of the Bonds that no use will be made of the proceeds from the issuance and sale of the Bonds nor will use be made of moneys in the various funds and accounts established under this Indenture which would cause the Bonds to be classified as arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and the Regulations thereunder (the "Code"). Pursuant to such covenant, Corporation and Trustee obligate themselves to comply throughout the term of the Bonds with the requirements of said Section 148 of the Code. Corporation and Trustee acknowledge that, under Section 148 of the Code, investment of the proceeds of the Bonds, including investment.proceeds, is subject to and must comply with the provisions of Section 148 of the Code with respect to the acquisition of obligations the yield on which will be materially higher than the yield on the Bonds during the term of the Bonds. Corporation and Trustee further acknowledge that investments may be made in materially higher yield obligations during a temporary period if certain requirements set forth in the regulations applicable to Section 148 are met. Corporation and Trustee further acknowledge that, under certain circumstances, earnings on certain funds may be subject to rebate to the United States in accordance with Section 148 of the Code, and Corporation and Trustee hereby agree to comply with Section 148 of the Code and all applicable regulations thereunder. Except as permitted by the rules set forth in such regulations, as they may be revised from time to time, with respect to investments made during a temporary period, the proceeds of the Bonds shall not be invested in materially higher yielding investments. All terms used in this Article IV which are defined in Section 148 of the Code shall have the same meanings in this Article IV as in the Code. Trustee shall establish a trust fund (the "Rebate Fund") pursuant to this Indenture for the purpose of accepting deposits of rebate amounts which may occur by operation of Section 148 of the Code. Corporation shall provide not later than 60 days after the fifth Bond Year and every five years thereafter for payment to the United States of 90% of the amounts deposited to said fund and 100% of the investment earnings on said deposits. Not later than 60 days after the final retirement of the Bonds, Corporation shall pay 100% of the remaining balance of said fund to the United States. Each payment shall be filed with the Internal Revenue Service Center, Philadelphia, Pennsylvania 19255. Each payment shall be accompanied by a copy of the Form 8038 (or successor instrument) originally filed with respect to the Bonds and a statement summarizing the determination of the amounts paid and to be paid to the United States. 01/160667.4 14 le„ `\t ARTICLE V BOND FUND Section 5.01. Bonds Secured by Basic Rent Payments. The Projects have been leased to City under the Agreement and the Basic Rent payments have been and are hereby assigned and shall be remitted directly to Trustee for the account of Corporation and deposited in the Bond Fund, and the entire amount of the Basic Rent payments is pledged to the payment of the principal of and interest on the Bonds and other Bonds issued as permitted by Article H. Section 5.02. Creation of Bond Fund. There is hereby created by Corporation and ordered established with Trustee a trust fund to be designated "Bond Fund" which shall be used to pay the interest on and principal of the Bonds. Section 5.03. Deposits to Bond Fund. There shall be deposited in the Bond Fund all accrued interest received, if any, at the time of the issuance, sale and delivery of the Bonds, all Basic Rent payments, as and when received, made under the Agreement and all other moneys received by Trustee under and pursuant to any of the provisions of the Agreement directing such moneys to be paid into the Bond Fund. Section 5.04. Use of Moneys in Bond Fund. Moneys in the Bond Fund shall be used solely for the payment of the interest on the Bonds and for the retirement of the Bonds at or prior to maturity. Section 5.05. Custody of Bond Fund; Withdrawals. The Bond Fund shall be in the custody of Trustee, and Corporation hereby authorizes and directs Trustee to withdraw funds from the Bond Fund in amounts sufficient to meet installments of interest on or principal of the Bonds when due. Section 5.06. Unclaimed Moneys. In the event any Bonds shall not be presented for payment when the principal thereof becomes due, if funds sufficient to pay such Bonds shall have been made available to Trustee for the benefit of the owners thereof, all liability of Corporation to the Bondholders for the payment of such Bonds and the interest thereon shall forthwith cease, determine and be completely discharged and thereupon it shall be the duty of Trustee to hold such fund or funds, without liability for interest thereon, for a period of six years after all Bonds shall have matured, for the benefit of the owners of such Bonds, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on their part under this Indenture or with respect to such Bonds. At the expiration of such period, any unclaimed principal or interest shall be paid to City and thereafter all claimants shall be restricted exclusively to making claim against City for such principal or interest. City.shall have no liability for interest on any such funds paid to it and shall not be required to hold such funds in trust nor to, in any manner, segregate such funds on its books. 01/1 60667.4 15 Section 5.07. Additional Rent. It is understood and agreed that, pursuant to the provisions of the Agreement, City agrees to pay costs and expenses as Additional Rent (as that term is defined in the Agreement), including the fees and expenses of Trustee. ARTICLE VI ACQUISITION FUND Section 6.01. Creation of Acquisition Fund. A special fund is hereby created with Trustee to be designated "Acquisition Fund." Upon the issuance and sale of the Bonds, the proceeds thereof, excluding accrued interest, if any, shall be deposited into the Acquisition Fund. Section 6.02. Use of Moneys in Acquisition Fund. Moneys in the Acquisition Fund shall be disbursed for the following purposes: (1) the payment of expenses of issuing and selling the Bonds, including printing, legal and financial expenses; and (2) the amount remaining after payment or provision for payment of the expenses mentioned in (1) above shall be applied to the payment of the costs of the Projects, including the reimbursement of City for any such costs incurred after May 18, 1995, in the case of Omaha-Park Four Project, and May 25, 1995, in the case of the Omaha-Park Five Project, as provided in the Agreement. Section 6.03. Requisitions. Trustee shall disburse funds in payment of expenses permissible under Section 6.02(1) and Section 6.02(2)upon receipt of requisitions signed by the President or Secretary of Corporation. Requisitions submitted to Trustee shall be in the form attached hereto as Exhibit B. Trustee shall maintain complete and accurate records relating to each such disbursement for Projects' costs. ARTICLE VII INVESTMENTS Moneys for the credit of any fund or account under this Indenture shall be invested and reinvested by Trustee upon the written direction of Corporation, but only in investments authorized by Reissue Revised Statutes of Nebraska, 1943, Section 14-563, viz. securities of the United States, the State of Nebraska, the City, Douglas County, Nebraska, a school district of the City, municipality owned and operated public utility property and parts of the City, and certificates of deposit from and make time deposits in bank or capital stock financial institutions selected as depositories of City funds; provided that moneys deposited from Basic Rent payments Aink01/160667.4 16 • to the credit of the Bond Fund shall only be invested or reinvested by Trustee in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America. Any such.investment shall mature at such time and in such amounts so that funds will be available when required. Obligations so purchased as an investment of moneys shall be held by or under the control of Trustee and shall be deemed at all times part of the fund or account from which invested, and the interest accruing thereon and any profit realized from such investments shall be credited to such fund or account and any loss resulting from such investments shall be charged to such fund or account. ARTICLE VIII DISCHARGE OF LIEN AND DEFEASANCE If Corporation shall pay or cause to be paid to the owners of the Bonds the principal and interest to become due thereon at the time and in the manner stipulated therein, and if Corporation shall keep, perform and observe all and singular the covenants and promises in the Bonds and in this Indenture expressed as to be kept, performed and observed by it or on its part, then these presents and the estate and rights hereby granted shall cease, determine and be void, and thereupon Trustee shall cancel and discharge the lien of this Indenture and execute and deliver to Corporation such instruments in writing as shall be requisite to satisfy the lien hereof and assign and deliver to Corporation any property at the time subject to the lien of this Indenture which may then be in its possession, except cash held by Trustee for the payment of interest on and retirement of the Bonds, or as otherwise provided for herein. It is specifically understood and agreed that the release of the lien of this Indenture shall not affect nor cancel the provisions of this Indenture relating to Bonds issued or the rights of owners of the Bonds, Trustee or Corporation, which provisions shall continue in full force and effect according to their terms. Corporation may at any time surrender to Trustee for cancellation by it any Bonds previously authenticated and delivered hereunder which Corporation may have acquired in any manner whatsoever, and such Bonds, upon surrender and cancellation, shall be deemed to be paid and retired. For the purposes of this Indenture, any Bond issued hereunder shall be deemed to be fully discharged and satisfied and no longer outstanding when: (1) a Bond is cancelled whether by reason of payment or redemption prior to maturity; (2) a Bond is surrendered to Trustee for cancellation; (3) a Bond for which the payment of the principal of and all interest accrued and to accrue through the due date of payment (regardless of whether such due date 01/160667.4 17 arises by reason of maturity, upon redemption or by declaration as provided herein) has been made; such payment will be deemed to have been made when there has been deposited with Trustee sufficient moneys to make such payment or United States Government Obligations maturing, as to principal and interest, in such amount and at such times as will insure the availability of sufficient moneys to make any such payment and all necessary and proper fees, compensation and expenses of Trustee pertaining to such Bond with respect to which such deposit is made have either been paid or payment provided for to the satisfaction of Trustee; provided, however, no deposit of cash or United States Government Obligations shall constitute discharge and satisfaction as to any Bond to be redeemed prior to their maturity unless: (a) such Bond has been irrevocably called or designated for redemption on the first date thereafter on which such Bond may be redeemed in accordance with the provisions of Article III of this Indenture; and (b) proper notice of the redemption of such Bond has been mailed as required by Article III hereof, or irrevocable provision, satisfactory to Trustee, shall have been made for the mailing of such notice; (4) a Bond is mutilated, destroyed or lost and, subsequently, a new Bond is issued as provided under Section 2.07 of this Indenture. At such time as a Bond shall no longer be deemed to be outstanding hereunder, as provided in this Section, such Bond shall no longer be secured by or entitled to the benefits of this Indenture except for the purpose of payment from the cash or United States Government Obligations deposited with and held by Trustee for such purpose. Moneys deposited with Trustee under this Section and the proceeds of any United States Government Obligations held under this Section may be invested and reinvested in United States Government Obligations which mature in the amounts and at the times required to comply with the provisions of this Section. Any income from such investments in excess of the requirements for principal of and interest on any Bond not being outstanding under the provisions of this Section shall be paid into the Bond Fund to be disbursed or held as provided thereby. If cash or United States Government Obligations shall have been deposited with Trustee in accordance with this Section, in trust for the purpose and sufficient and available to pay the principal of any Bond, together with all interest due thereon to the due date thereof or to the date fixed for the redemption thereof, all liability of Corporation for such payments shall terminate and be discharged, whether or not such Bond shall be presented for payment on the due date, whether at maturity or upon redemption or by declaration, and Trustee shall hold such moneys or United States Government Obligations without liability to the owner of such Bond for interest thereon, in trust for the benefit of the owner of such Bond, who thereafter shall be restricted exclusively to such moneys or United States Government Obligations for any claim for such payment of whatsoever nature on his part, except as is provided in Section 5.06 hereof. 01/160667.4 18 � I ARTICLE IX DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND BONDHOLDERS Section 9.01. Events of Default. If any of the following events occur, it is hereby defined as and declared to be and to constitute an "Event of Default": (1) default in the due and punctual payment of the principal of or the interest on any Bond hereby secured and outstanding and the continuance thereof for a period of five days; (2) default in the due and punctual payment of moneys required to be paid to Trustee under the provisions of Article V hereof and the continuance thereof for a period of five days; or (3) default in the performance or observance of any other of the covenants, agreements or conditions on Corporation's part contained in this Indenture, or in the Bonds, and the continuance thereof for a period of 30 days after written notice thereof to Corporation by Trustee, or by the owners of not less than 20% in aggregate principal amount of Bonds outstanding hereunder. The term "default," as used in Section 9.01 hereof, shall mean default by Corporation in the performance or observance of any of the covenants, agreements or conditions on its part contained in this Indenture, or in the Bonds, exclusive of any period of grace required to constitute a default as an "Event of Default," as hereinabove provided, after giving the respective notice for the respective periods above stated. Section 9.02. Acceleration. Upon the occurrence of an Event of Default, Trustee may, and, upon the written request of the owners of 20% in aggregate principal amount of Bonds outstanding hereunder, shall, by notice in writing delivered to Corporation, declare the principal of all Bonds hereby secured then outstanding, and the interest accrued thereon, immediately due and payable. This provision is subject, however, to the condition that, if at any time after such declaration of principal and interest to be immediately due, and before any further action has been taken other than such declaration, the principal amount of all Bonds which have matured and all arrears of interest, together with the reasonable charges and expenses of Trustee, shall be paid or caused to be paid, then the owners of a majority of principal amount of the Bonds then outstanding, by notice in writing delivered to Trustee, may require Trustee to waive such default and its consequences and rescind such declaration. Until it is required to make the declaration hereinabove in this Section provided, Trustee shall have power to waive any default arising hereunder if, in the opinion of Trustee, the same shall have been cured or adequate satisfaction made therefor or if Trustee deems the declaration not to be in the best interest of the Bondholders. No such waiver shall extend to or affect any subsequent default. 01/160667.4 19 Section 9.03. Other Remedies. Upon the occurrence and a continuation of an Event of Default, Trustee may on its own initiative, and shall upon the written request of the owners of not less than 20% in principal amount of the Bonds then outstanding hereunder, and upon being indemnified to its reasonable satisfaction against any and all costs, expenses, outlays, counsel fees and other reasonable disbursements and against all liability, exercise any remedies available under the Agreement and, to the extent consistent therewith, may sell, lease or manage any portion of the Projects and apply the net proceeds thereof in accordance with Section 9.07 of this Article, and whether or not it has done so, proceed to take any other steps needful for the protection and enforcement of its rights and the rights of the owners of the Bonds as shall be provided by law, including a suit, action or special proceeding in equity or at law. Section 9.04. Limitation on Bondholders' Right To Institute Proceedings. No owner of any of the Bonds shall have any right to institute any suit, action or proceeding in equity or at law hereunder or for any other remedy hereunder unless such owner previously shall have given to Trustee written notice of an Event of Default as herein provided and unless the owners of not less than 20% in principal amount of the Bonds then outstanding shall have made written request of Trustee, after the right to exercise such powers or rights of action, as the case may be, shall have accrued, either to proceed to exercise the powers herein granted or to institute such action, suit or proceeding in the name of Trustee and Trustee shall have refused or neglected to comply with such request within a reasonable time and after being afforded a reasonable opportunity to do so and after having been offered security and indemnity satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby as aforesaid. All actions to enforce any provision of this Indenture shall be instituted and maintained for the equal benefit of all owners of the Bonds, except that nothing herein contained shall impair the right of any owner of any Bond at or after the maturity thereof to reduce the same to judgment. Section 9.05. Possession of Bonds Not Required for Enforcement. All rights of action under this Indenture or under any of the Bonds secured hereby enforceable by Trustee may be enforced without the possession of any of the Bonds or the production thereof at the trial or other proceedings relative thereto, and any such suit or proceeding instituted by Trustee shall be brought for the ratable benefit of the owners of the Bonds, subject to the provisions of this Indenture. Section 9.06. Waiver. In the event the Bondholders or Trustee waive any default or breach of duty, such waiver shall not impair any right or power exercisable hereunder by the Bondholders or Trustee nor shall such waiver be construed to be or be a waiver of any subsequent default or breach. Section 9.07. Application of Moneys. Anything in this Indenture to the contrary notwithstanding, if at any time the moneys in the Bond Fund shall not be sufficient•to pay the interest on or the principal of the Bonds as the same shall become due and payable (either by their terms or by acceleration of maturities under the provisions of Section 9.02 of this Article), such moneys, together with any moneys then available or thereafter becoming available for such 01/160667.4 20 (1/7) 1 purpose, whether through the exercise of the remedies provided for in this Article or otherwise, shall be applied as follows: (1) unless the principal of all the Bonds shall have become or shall have been declared due and payable, all such moneys shall be applied as follows: (a) FIRST: to the payment to the persons entitled thereto of all installments of interest then due and payable in the order in which such installments became due and payable and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment, ratably, according to the amounts due on such installment, to the persons entitled thereto, without any discrimination or preference; (b) SECOND: to the payment to the persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due and payable (other than Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of this Indenture), in the order of their stated payment dates, with interest on the principal amount of such Bonds from the respective dates upon which such Bonds became due and payable, and, if the amount available shall not be sufficient to pay in full the principal of the Bonds by their stated terms due and payable on any particular date, together with such interest, ratably, according to the amount of such interest due on such date, and then to the payment of such principal, ratably, according to the amount of such principal due on such date, to the persons entitled thereto without any discrimination or preference; and (c) THIRD: to the payment of the interest on and the principal of the Bonds, to the purchase and retirement of Bonds and to the redemption of Bonds, all in accordance with the provisions of Articles II and III of this Indenture; (2) if the principal of all the Bonds shall have become or shall have been declared due and payable, all such moneys shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, without preference or priority of principal over interest or of interest over principal, or of any installment of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the persons entitled thereto without any discrimination or preference; and (3) if the principal of all the Bonds shall have been declared due and payable and if such declaration shall thereafter have been rescinded and annulled under the provisions of Section 9.02 of this Article, then, subject to the provisions of paragraph (2) of this Section, in the event that the principal of all of the Bonds shall later become or be declared due and payable, the moneys remaining in and thereafter accruing to the 01/160667.4 21 Bond Fund shall be applied in accordance with the provisions of paragraph (1) of this Section. Whenever moneys are to be applied by Trustee pursuant to the provisions of this Section, such moneys shall be applied by Trustee at such times, and from time to time, as Trustee in its sole discretion shall determine, having due regard to the amount of such moneys available for application and the likelihood of additional moneys becoming available for such application in the future, and the deposit of such moneys, or otherwise setting aside such moneys, in trust for the proper purpose shall constitute proper application by Trustee; and Trustee shall incur no liability whatsoever to any Bondholder or to any other person for any delay in applying any such moneys, so long as Trustee acts with reasonable diligence, having due regard to the circumstances, and ultimately applies the same in accordance with such provisions of this Indenture as may be applicable at the time of application by Trustee. Whenever Trustee shall exercise such discretion in applying such moneys, it shall fix the date (which shall be an interest payment date unless Trustee shall deem another date more suitable) upon which such application is to be made and upon such date interest on the amounts of principal to be paid on such date shall cease to accrue. Trustee shall give such notice as it may deem appropriate of the fixing of any such date, and shall not be required to make payment to the owner of any Bond until such Bond shall be surrendered to Trustee for appropriate endorsement, or for cancellation if fully paid. Section 9.08. Restoration to Former Position. In case any proceedings taken by Trustee on account of any default shall have been discontinued or abandoned for any reason, then and in every such case Corporation, Trustee and the Bondholders shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and duties of Trustee shall continue as though no proceeding had been taken. Section 9.09. Bondholders' Right To Direct Proceedings. Anything in this Indenture to the contrary notwithstanding, the owners of a majority in principal amount of the Bonds then outstanding hereunder shall have the right, by an instrument or concurrent instruments in writing executed and delivered to Trustee, to direct the method and place of conducting all remedial proceedings to be taken by Trustee hereunder, provided that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture. ARTICLE X THE TRUSTEE Section 10.01. Acceptance of Trusts. Trustee hereby accepts the trusts imposed upon it by this Indenture and agrees to perform said trusts as an ordinarily prudent trustee under a corporate mortgage. Trustee may resign at any time by giving not less than 60 days' notice to Corporation and to City and, within five days after giving such notice, by mailing to each Bondholder of record by first-class mail a copy of such notice. Trustee may be removed at any time upon the written request or upon the affirmative vote of the owners of 51% in principal 01/160667.4 22 amount of Bonds outstanding. In the event of such resignation or removal, a successor may be appointed by the owners of 51% in principal amount of the Bonds outstanding, and such successor shall have all the powers and obligations of Trustee theretofore vested in its predecessor, provided that, unless and until the successor trustee shall have been appointed by the owners of the Bonds as aforesaid, Corporation shall forthwith appoint a trustee to fill such vacancy. Any successor trustee shall be a bank or trust company in either of the cities of Lincoln or Omaha, Nebraska, and having a capital and surplus of not less than $10,000,000. Section 10.02. Limitations on Liability. The duties and obligations of Trustee shall be determined solely by the express provisions of this Indenture, and Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture. Trustee shall be protected when acting in good faith upon the advice of its counsel, who may be bond counsel to Corporation. Trustee may conclusively rely upon any certificate of Corporation executed by any two of the directors of Corporation and upon any requisition certificate satisfying the requirements of Section 6.03 hereof. Trustee may require of Corporation full information and advice as to the performance of all covenants, conditions and agreements of Corporation contained in this Indenture or any supplement hereto, but Trustee shall not be required to ascertain or inquire as to the correctness of any information, statements, conclusions or opinions expressed in any certificate, resolution, report, opinion or other document furnished to it pursuant to any provision of this Indenture. Section 10.03. Dealings in Bonds. Trustee in its individual capacity may become the owner or pledgee of the Bonds with the same rights it would have if it were not Trustee hereunder. Section 10.04. Compensation. Trustee shall be entitled to reasonable compensation for all services rendered by it in the execution, exercise or performance of any of the powers and duties to be exercised or performed by it pursuant to the provisions of this Indenture and for the reasonable expenses, charges and other disbursements incurred in connection with the exercise and performance of said powers and duties, all of which under the Agreement are to be paid to Trustee by City. ARTICLE XI AMENDMENT OF INDENTURE Section 11.01. Supplemental Indentures Not Requiring Consent of Bondholders. Corporation may without the consent of the Bondholders, but with the consent of Trustee, from time to time and at any time, amend or supplement this Indenture in such manner as not to be inconsistent with the terms and provisions hereof, so as to thereby (a) cure any ambiguity or formal defect or omission in this Indenture, including any subsequent amendments thereto; (b) grant to and confer upon Trustee for the benefit of the Bondholders any additional rights, remedies, powers, authority or security that may be lawfully granted to or conferred upon the Bondholders or Trustee, or surrender any right, power or privilege reserved to or conferred• 01/160667.4 23 upon Corporation by this Indenture or any amendment thereto; (c) issue other Bonds in accordance with the provisions of Article II hereof; (d) comply with such requirements of the Code as are necessary in the opinion of nationally recognized bond counsel to make the interest on the Bonds excludable from gross income of the Bondholders for federal income tax purposes; or (e) to modify, alter, amend or supplement this Indenture in any other respect which in the judgment of Corporation, as concurred in by Trustee, is not materially adverse to the Bondholders. Section 11.02. Supplemental Indentures Requiring Consent of Bondholders. With the consent of the owners of not less than two-thirds of the Bonds then outstanding, Corporation, from time to time and at any time, may amend this Indenture in any manner; provided, however, that, without the specific consent of the owner of each Bond which would be affected thereby, no such amendment shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any Bond issued hereunder, or (b) a reduction in the principal amount of any Bond or a reduction in the rate of interest thereon, or (c) creation of any different privilege or priority of any Bond or Bonds over any other Bond or Bonds, or (d) a reduction in the aggregate principal amount of the Bonds required for consent to such amendment to this Indenture, or(e) any release or lessening of the pledge and assignment of the Basic Rent payable by City under the Agreement: If the owners of not less than two-thirds in aggregate principal amount of the Bonds then outstanding shall have consented to the amendment proposed, no owner of any Bond shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or in any manner to question the propriety of the execution thereof, or to enjoin or restrain Trustee or Corporation from taking any action pursuant to the provisions thereof. After the owners of the required percentage of Bonds shall have filed their consents to the amending of this Indenture, Corporation shall mail to each Bondholder a copy of the amendment together with a notice of such amending. If Trustee and Corporation shall so determine, new Bonds conforming to the amendment shall be executed and delivered in exchange for Bonds then outstanding upon surrender of the outstanding Bonds without charge to the owners thereof. Upon delivery to Trustee of a copy of the amendment to this Indenture certified by the Secretary of Corporation, together with an opinion of counsel to Corporation that such amendment is in proper form and was duly adopted in accordance with the provisions hereof and applicable law, this Indenture as it then exists and the Bonds shall be modified and amended in accordance with such amendment, and thereafter the respective rights and duties under this Indenture of Corporation and the Bondholders shall be determined under this Indenture as so amended. 01/160667.4 24 Section 11.03. Consent of Trustee Required. No amendment amending, changing or modifying any of the rights or obligations of Trustee hereunder may be adopted without the written consent of Trustee. ARTICLE XII AMENDMENT OF THE LEASE AGREEMENT Section 12.01. Amendment of Agreement Not Requiring Consent of Bondholders. Corporation or Trustee, or each of them, may from time to time, without the approval of the Bondholders, consent to any amendment, change or modification of the Agreement between Corporation and City for the purpose of curing any ambiguity, formal defect or omission or making any other change therein which, in the judgment of Trustee, is not to the prejudice of Trustee or materially adverse to the Bondholders. Section 12.02. Amendment of Agreement Requiring Consent of Bondholders. Except for amendments, changes or modifications as provided in Section 12.01 hereof, no amendment, change or modification of the Agreement shall be made without the written consent of the owners of two-thirds in principal amount of all the Bonds outstanding, except for the purpose of increasing the Basic Rent payable thereunder and making such other provisions as shall be required to permit the issuance of Bonds of Other Series as authorized under this Indenture; provided, however, that in no event shall the Agreement be amended to reduce the Basic Rent payable by City or extend the date when such Basic Rent shall be due, without the consent of the owners of all Bonds outstanding. The proportionate reduction of the amount of Basic Rent due by City under the Agreement by reason of City's having prepaid a portion of the Bonds shall not constitute an amendment of the Agreement. Section 12.03. Consent of Trustee Required. No amendment, change or modification to the Agreement shall be made without the written consent of Trustee. ARTICLE XIII MISCELLANEOUS Section 13.01. Execution of Instruments; Proof of Ownership. Any request, direction, consent or other instrument in writing required by this Indenture, or any supplement hereto, to be signed or executed by owners of Bonds may be in any number of concurrent instruments of similar tenor and may be signed or executed by such owners in person or by an agent duly appointed by an instrument in writing. Proof of the execution of any such instrument and of the ownership of such Bonds shall be sufficient for any purpose of this Indenture, and shall be conclusive in favor of Trustee and Corporation with regard to any action taken by them under such instrument, if made in the following manner: 01/160667.4 25 , r (1) the fact and date of the execution by any person of any such instrument may be proved by the certificate of any officer in any jurisdiction who, by the laws thereof, has power to take acknowledgments of deeds to be recorded within such jurisdiction, to the effect that the person signing such instrument acknowledged to him the execution thereof, or by an affidavit of a witness to such execution; (2) the fact of the holding of a Bond by any holder and the amount and numbers or other descriptive'details of such Bonds and the date of his holding the same may be proved by the affidavit of the person claiming to be such holder, if such affidavit shall be deemed by Trustee to be satisfactory or by a certificate issued by any trust company, bank or other depository, wherever situated, if such certificate shall be deemed by Trustee to be satisfactory, showing that at the date therein mentioned such person had on deposit with such trust company, bank or other depository the Bond described in such certificate. Trustee may, nevertheless, in its discretion require further proof in cases where it shall deem further proof desirable. For all purposes of this Indenture and of the proceedings for the enforcement thereof, such persons shall be deemed to continue to be the holder of such Bond until Trustee shall have received notice in writing to the contrary. Section 13.02. Counterparts. This Indenture may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 13.03. No Personal Liability of Corporation Officials; Limited Liability of Corporation to Bondholders. No covenant or agreement contained in the Bonds or in this Indenture shall be deemed to be the covenant or agreement of any present or future official, officer, agent or employee of Corporation, and neither the members of Corporation nor any official executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. Except for the payment when due of the payments and the observance and performance of the other agreements, conditions, covenants and terms required to be performed by it contained in this Indenture, Corporation shall not have any obligation or liability to the Bondholders with respect to this Indenture or the preparation, execution, delivery, transfer, exchange or cancellation of the Bonds or the receipt, deposit or disbursement of the payments by Trustee or with respect to the performance by Trustee of any obligation required to be performed by it contained in this Indenture. Section 13.04. Severability. If any provisions of this Indenture shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case, for any reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance or of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable to any extent 01/160667.4 26 whatever. The invalidity of any one or more phrases, sentences, clauses or paragraphs in this Indenture contained shall not affect the remaining portions of this Indenture or any part thereof. IN WITNESS WHEREOF, City of Omaha Parking Facilities Corporation has caused this Indenture to be executed in its behalf by its President and Secretary and its corporate seal hereunto affixed, and to evidence its acceptance of the trusts hereby created FirsTier Bank Omaha, N.A. has caused this Indenture to be executed in its name and behalf by duly authorized officers and its official seal to be hereunto affixed, all as of the first day of September, 1995. [SEAL] CITY OF OMAHA PARKING FACILITIES CORPORATION By By President Secretary [SEAL] FIRSTIER BANK OMAHA, N.A., Trustee ATTEST: By By Authorized Officer STATE OF NEBRASKA ] ] SS. COUNTY OF DOUGLAS ] The foregoing instrument was acknowledged before me this day of September, 1995 by GREGORY A. PETERSON and LAWRENCE E. LAHAIE of CITY OF OMAHA PARKING FACILITIES CORPORATION, a Nebraska nonprofit corporation, on behalf of the corporation. WITNESS my hand and seal this day of September, 1995. Notary Public • 01/160667.4 27 STATE OF NEBRASKA ] ] SS. COUNTY OF DOUGLAS ] The foregoing instrument was acknowledged before me this day of September, 1995 by and of FIRSTIER BANK OMAHA, N.A., a national banking association, on behalf of the bank. WITNESS my hand and seal this day of September, 1995. Notary Public 01/160667.4 28 EXHIBIT A (FORM OF BOND) • Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to City of Omaha Parking Facilities Corporation or its agent for registration and transfer, exchange or payment, and any certificate 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 CITY OF OMAHA PARKING FACILITIES CORPORATION LEASE REVENUE BOND (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS) SERIES 1995 No. R- $ MATURITY INTEREST DATED DATE RATE DATE CUSIP September 15, % September 15, 1995 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS AND NO CENTS ($ ) KNOW ALL MEN BY THESE PRESENTS that City of Omaha Parking Facilities Corporation ("Corporation"), a nonprofit corporation organized under the laws of the State of Nebraska, for value received, promises to pay, but only out of the Bond Fund created under Article V of the Indenture of Trust dated as of September 1, 1995 (the "Indenture") by and between Corporation and FirsTier Bank Omaha, N.A., as trustee ("Trustee"), to the order of the Registered Owner identified above, or registered assigns, on the Maturity Date specified above, upon surrender hereof, the Principal Amount specified above, and in like manner to pay interest on said sum from the Dated Date specified above at the Interest Rate per annum 01/160667.4 _ n t specified above (based on a year of 360 days and twelve 30-day months) per annum semiannually on March 15 and September 15 of each year, commencing on March 15, 1996, until said principal sum is paid, except as the provisions hereinafter set forth with respect to redemption of this Bond prior to maturity may become applicable hereto. Both principal of and interest on this Bond are payable in lawful money of the United States of America. Payment of principal shall be made at the corporate trust office of Trustee in Omaha, Nebraska or its successor. Payment of interest on any Bond interest payment date shall be made to the Registered Owner hereof as of the Record Date (defined in the Indenture) and shall be paid (i) by check or draft mailed on the Bond interest payment date to the Registered Owner as of the close of business on the Record Date at its address as it appears on the registration books of Corporation kept by Trustee on the Record Date or at such other address as is furnished to Trustee in writing by such Registered Owner not later than the close of business on the Record Date or (ii) by wire transfer to the Registered Owner of $1,000,000 in aggregate principal amount of the Bonds upon written notice by the Registered Owner given to Trustee not later than the close of business on the Record Date. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE SIDE HEREOF AND SUCH FURTHER PROVISIONS SHALL, FOR ALL PURPOSES, HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. The Bonds are not a debt of the City of Omaha, Nebraska or a pledge of its faith and credit but, together with interest thereon, are payable solely from the Rental Payments. This Bond shall not be valid for any purpose until the Certificate of Authentication hereon shall have been signed by Trustee. IN WITNESS WHEREOF, Corporation has caused this Bond to be executed in its name by the manual or facsimile signature of its President, to be impressed with its corporate seal and to be attested by the manual or facsimile signature of its Secretary, all as of this 15th day of September, 1995. (SEAL) CITY OF OMAHA PARKING FACILITIES CORPORATION ATTEST: By President By Secretary • 01/160667.4 A-2 • FORM OF REVERSE OF BOND This Bond is one of an authorized issue of bonds limited to and in the total amount of Eight Million Four Hundred Seventy-five Thousand Dollars and No Cents ($8,475,000) (the "Bonds"), dated as even date and like tenor except as to maturity date and interest rate, issued for the purpose of providing funds for the acquisition, construction, furnishing and equipping of two public parking garages (the "Projects"), which are leased to the City of Omaha, Nebraska ("City"). The Projects have been leased to City under the Lease-Purchase Agreement dated as of September 1, 1995 (the "Agreement") by and between Corporation and City. The principal of and interest on the Bonds are to be paid out of Rental Payments (as that term is defined in the Agreement) payable by City pursuant to the Agreement, which Rental Payments have been assigned to Trustee under the Indenture, under which this Bond is issued; the provisions of the Indenture, govern the rights of the owners of the Bonds. The Rental Payments are in an amount sufficient to pay the principal of and interest on the Bonds as the same become due. The Bonds maturing on and after September 15, 2006 are subject to redemption by Corporation from any source, in whole at any time or in part, on any interest payment date, in such order of maturities as determined by Corporation (and by lot or other random selection method within a maturity) on or after September 15, 2005 at the redemption prices (expressed as a percentage of principal amount of the Bonds to be redeemed), respectively, set forth below, plus accrued interest to the date of redemption: Redemption Period (dates inclusive) Redemption Price September 15, 2005 to September 14, 2006 102% September 15, 2006 to September 14, 2007 101 September 15, 2007 and thereafter 100 The Bonds maturing September 15, 2015 are subject to mandatory redemption from Basic Rent sinking fund payments prior to their respective maturity dates, by lot (or other random selection method) selected by Trustee, at a price of par, without premium, on September 15, 2011 and on each September 15 thereafter in the years and the principal amounts set forth below: Year Principal Amount 2011 $ 2012 2013 2014 2015 (maturity) 01/160667.4 A-3 The Bonds, of whatever maturity, shall also be subject to redemption, in whole, at any time in the event of damage to or destruction of one or both of the Projects or the condemnation thereof and the election by City that any proceeds resulting from such damage, destruction or condemnation award shall not be used to rebuild or restore the affected Project or Projects; any such redemption shall be at the principal amount of the Bonds equal to the ratio of the dollar amount of such damage, destruction or condemnation award to the principal amount of the Bonds then Outstanding, without premium, plus accrued interest to the redemption date. If a Bond in book-entry-only form is to be called for redemption, notice will be mailed to the Depository not less than 30 days nor more than 60 days prior to the redemption date. If a Bond not in book-entry-only form is to be called for redemption, notice will be given by mailing a copy of the redemption notice by first class mail not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books of Corporation kept by Trustee. All maturities of the Bonds so called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment at that time. This Bond is transferable by the registered owner hereof by execution of an assignment in the form appearing on this Bond, and upon delivery of this Bond and completed assignment to Trustee, but subject to the limitations imposed by law and upon payment of all charges incurred by Corporation and Trustee. TRUSTEE'S CERTIFICATE OF AUTHENTICATION This Bond is one of the bonds designated herein and issued under the provisions of the within-mentioned Indenture. • Date: FIRSTIER BANK OMAHA, N.A., Trustee By Authorized Officer 01/160667.4 A-4 FORM OF ASSIGNMENT FOR VALUE RECEIVED, , the undersigned, hereby sells, assigns and transfers unto (Tax Identification or Social Security No. ) the within-mentioned Bond and all rights thereunder, and hereby irrevocably constitutes and appoints , attorney, to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every NOTICE: Signature(s) must be guaranteed particular, without alteration or enlargement by a financial institution that is a member of or any change whatsoever. the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signature Program ("MSP") or such other "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. • 01/160667.4 A-5 EXHIBIT B FORM OF REQUISITION 01/160667.4 Requisition No. • REQUISITION FROM ACQUISITION FUND FOR CITY OF OMAHA PARKING FACILITIES CORPORATION LEASE REVENUE BONDS (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS) SERIES 1995 TO: FirsTier Bank Omaha, N.A., Trustee FROM: City of Omaha Parking Facilities Corporation Pursuant to Section 6.03 of the Indenture of Trust (the "Indenture") dated as of September 1, 1995 by and between City of Omaha Parking Facilities Corporation ("Corporation") and you, you are hereby directed to disburse from the Acquisition Fund referred to in the Indenture (the "Acquisition Fund") the amount indicated below. 1. The name and address of the person, firm or corporation to whom payment is due: 2. Amount to be disbursed: $ Previous disbursements Cumulative disbursements after this requisition $ 3. The disbursement herein requested is for expenses properly incurred, pursuant to Sections 6.02(1) and (2) of the Indenture, and is a proper charge against the Acquisition Fund and has not been the basis of any previous disbursement. 4. - A bill or bills or other evidence of each such obligation of Corporation is hereby attached. 01/160667.4 Dated this day of , 19 . CITY OF OMAHA PARKING FACILITIES CORPORATION By Title • 01/160667.4 B-2 L EXHIBIT C FORM OF BLANKET ISSUER LETTER OF REPRESENTATIONS O1/160667.40 Blanket Issuer Letter of Representations [To be Completed by Issuer] City of Omaha Parking Facilities Corporation [Name of Issuer) September , 1995 [Date] Attention: Underwriting Department—Eligibility The Depository Trust Company 55 Water Street; 50th Floor New York, NY 10041-0099 Ladies and Gentlemen: This letter sets forth our understanding with respect to all issues (the "Securities") that Issuer shall request be made eligible for deposit by The Depository Trust Company("DTC"). To induce DTC to accept the Securities as eligible for deposit at DTC, and to act in accordance with DTC's Rules with respect to the Securities, Issuer represents to DTC that Issuer will comply with the requirements stated in DTC's Operational Arrangements, as they may be amended from time to time. Note: Very trulyyours, Schedule A contains statements that DTC believes accurately describe DTC, the method of effecting book- entry transfers of securities distributed through DTC,and City of Omaha Parking Facilities Corporation certain related matters. (Issuer) By: (Authorized Officer's Signature) Received and Accepted: City of Omaha Parking Facilities Corporation City of Omaha Planning Department THE DEPOSITORY TRUST COMPANY Suite 1100 1819 Farnam Street Omaha, NE By: 1 SCHEDULE A SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING BOOK-ENTRY-ONLY ISSUANCE (Prepared by DTC—bracketed material may be applicable only to certain issues) 1. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully-registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue exceeds S200 million, one certificate will be issued with respect to each S200 million of principal amount and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC is a limited-purpose tnist company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a"clearing corporation"within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of • 1934. DTC holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock.Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive writ-ten confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities,except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Securities with DTC and their . registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. • 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. [6. Redemption notices shall be sent to Cede & Co. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.] 7. Neither DTC nor Cede & Co. will consent or vote with respect to Securities. Under its usual procedures, DIG mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose • accounts the Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Principal and interest payments on the Securities will be made to DTC. DTC's practice is to credit • Direct Participants' accounts on payable date in accordance with their respective holdings shown on • DTC's records unless DTC has reason to believe that it will not receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Agent, or the. Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is.the responsibility of the Issuer or the Agent, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. [9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant,to the [Tender/Remarketing]Agent,and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to the [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with a demand for purchase or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records.] 10. DTC may discontinue providing its services as securities depository with respect to the Securities at any time by giving reasonable notice to the Issuer or the Agent. Under such circumstances, in the • event that a successor securities depository is not obtained, Security certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository).In that event,Security certificates will be printed and delivered. 12.The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. � *.'l Lx 0 c m PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 12,1995 � > Am NEW ISSUE RATINGS: Moody's: m -C." -0 BOOK-ENTRY-ONLY Standard&Poor's: 0 •T g (See"RATINGS"herein) • o• m .n In the opinion ofBond Counsel,under existing laws,regulations,rulings and judicial decisions,interest on the Bonds is excluded mgross income of the owners thereof c = P� 8 8 8 1 .� t • 3 for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations,except that such 0 .E m interest nutst be included in the'adjusted current earnings'of certain corporations for purposes of calculating alternative minimum taxable income. Bond Counsel also is of the a •w .1 opinion that,under existing laws of the State of Nebraska,such interest is exempt from Nebraska state income taxation as long as it is exempt for purposes of the federal income tax. a a 3 See'LEGAL MATTERS—Tax Exemption'herein. m 0 2 m d $8,475,000* C r s CITY OF OMAHA PARKING FACILITIES CORPORATION LEASE REVENUE BONDS 0.-0 S (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS) d m SERIES 1995 I. 71, 8 e a Dated: September 15,1995 Due: September 15,as shown below m m .o ;5 The Series 1995 Bonds(the"Bonds')are issuable in fully registered form in the denominations of$5,000 and integral multiples thereof. Interest is payable semiannually •+ ;; 3 on March 15 and September 15 of each year,commencing March 15,1996,by check,draft or wire of the trustee on each interest payment date to the registered owner as of the = ,$ d applicable record date as shown on the books of registration of the Corporation(as hereinafter defined)maintained by FirsTier Bank Omaha,N.A.,as Trustee and Paying Agent. 2 E Principal of the Bonds is payable upon presentation and surrender of the Bonds at the corporate office of the Trustee,in Omaha,Nebraska. The Bonds are subject to optional redemption,mandatorysinkingfund redemption and extraordinaryoptional redemptionprior to• � p p' p p maturity,as more fully set forth herein. rn O 0 The Bonds initially will be registered in the name of Cede&Co.,as nominee for The Depository Trust Company,New York,New York("DTC"),which will act as m .�• securities depository.for the Bonds. Purchases of the Bonds may be made only in book-entry form in authorized denominations by credit to participating broker-dealers and other 3 E 0 institutions on the books of DTC as described herein. Purchasers will not receive certificates evidencing the Bonds. Principal of,premium,if any,and interest on the Bonds will o in a be payable by the Paying Agent directly to DTC as the registered owner thereof. Disbursement of such payments to the DTC Participants is the responsibility of DTC,and 1 • P. >_ disbursement of such payments to the beneficial owners is the responsibility of the DTC Participants and the Indirect Participants,as more fully described herein. Any purchaser I t y •C of a beneficial interest in the Bonds must maintain an account with a broker or dealer who is,or acts through,a DTC Participant to receive payment of the principal of,premium, °m ... • if any,and interest on such Bonds. See"THE BONDS—Book-Entry-Only System"herein. O C 0 D The Bonds are being.issued toprovide funds for the Cityof Omaha ParkingFacilities Corporation(the"Corporation")to payall or aportion of the costs of acquiring, m �e rP ) q g. ee• 0 E' constructing,furnishing and equipping two public parking garages to be located in the City of Omaha,Nebraska. e m o o I 0 A o MATURITY SCHEDULE" • •= 'a $5,470,000 Serial Bonds .+ y y y a Maturity Date Principal Interest Price or Maturity Date Principal Interest Price or m _ (September 15) Amount Rate Yield (September 15) Amount Rate Yield ' O y 0 F — 0 1996 $265,000 2004 $370,000 I m y y c S m 1997 275,000 2005 390,000 • y 1 c c 1998 285,000 2006 410,000 E m g 1999 295,000 2007 430,000 m 0 ,, ag s 2000 310,000 2008 450,000 • 1+ ii u a 2001 320,000 2009 475,000 E m o 2002 335,000 2010 505,000 a d o io u 2003 355,000 a)• a a. • 0 O' y0 C $3,005,00U %Term Bonds due September 15,2015 m "(Price %Plus Accrued Interest) e .2 1 .c am. The Bonds are being issued pursuant to the provisions of an Indenture of Trust dated as of September 1, 1995 by and between City of Omaha Parking Facilities •0 .E •°' Corporation(the"Corporation")and the Trustee. THE BONDS ARE NOT A DEBT OF THE CITY OF OMAHA,NEBRASKA OR A PLEDGE OF ITS FAITH AND CREDIT, 'o• 73 0 BUT ARE PAYABLE SOLELY FROM THE CASH RENTALS TO BE PAID BY THE CITY OF OMAHA,NEBRASKA UNDER A LEASE-PURCHASE AGREEMENT e a O DATED AS OF SEPTEMBER 1,1995 BY AND BETWEEN THE CORPORATION AND THE CITY. co y w o E •2 This cover page contains information for convenient reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain O• ie tY information essential and material to the making of an informed investment decision. O m ,27 c m The Bonds are being offered when,as and if issued by the Corporation and accepted by the Underwriters,subject to the approval of legality of the Bonds by ai e e Kutak Rock,Bond Counsel,and to certain other conditions. Certain matters will be passed upon for the Underwriters by their counsel,Kutak Rock. It is expected that delivery e $ of the Bonds will be made on or about September , 1995,at DTC against payment therefor. L 3 •O C ,� 0 m0 KIRKPATRICK PETTIS • C d m a' FIRSTIER BANK.NATIONAL ASSOCIATION SMITH BARNEY INC. DAIN BOSWORTH INCORPORATED • v o c o CHILES HEIDER DIVISION m c y o _ ai .� c 5 m Dated: September , 1995 V0 y0 C1 � L • e• wc ._ 0 *Preliminary;subject to change. 3 C c c d C as 0 m as Y o. � s � y a1 U_ 0°U E-. .E.' 3 ci 01/161215.5 f Y. No dealer, broker, salesperson or other person has been authorized by the City, the Corporation or the Underwriters to give any information or to make any representations in connection with the Bonds or the matters described herein, other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by the City,the Corporation or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer,solicitation or sale. The information and expressions of opinion contained herein are subject to change,without notice,and neither the delivery of this Official Statement,nor any sale made hereunder,shall, under any circumstances,create any implication that there has been no change in the matters described herein since the date hereof. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used,in whole or in part,for any other purpose. The Underwriters may offer and sell Bonds to certain dealers and others at prices lower than the offering prices stated on the cover page hereof. The offering prices may be changed from time to time by the original purchasers. TABLE OF CONTENTS INTRODUCTION 1 THE AGREEMENT 9 THE CORPORATION 1 THE INDENTURE 11 THE PROJECTS 2 UNDERWRITING 13 ESTIMATED SOURCES AND USES OF CONTINUING DISCLOSURE 14 FUNDS 2 LITIGATION 14 SECURTTY FOR THE BONDS 3 LEGAL MATTERS 14 THE BONDS 4 Tax Exemption 14 Description of the Bonds 4 Statutory Property Tax Receipts Limitation . . 15 Place of Payment 4 Revaluation of Residential Real Property . . . 16 Book-Entry Only System 4 Legal Opinions 16 Optional Redemption 7 RATINGS 16 Mandatory Sinking Fund Redemption 7 FINANCIAL STATEMENTS 17 Extraordinary Optional Redemption 8 MISCELLANEOUS 17 Additional Bonds 8 APPENDIX A—City of Omaha Refunding Bonds 9 APPENDIX B—Form of Letter Agreement THE LEASE 9 APPENDIX C—Form of Opinion of Bond Counsel IN CONNECTION WITH THEIR REOFFERING OF THE BONDS, THE UNDERWRITERS OF THE BONDS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. 01/161215.5 f RY construction, furnishing and equipping of public parking facilities within the geographical boundaries of the City of Omaha, Nebraska. The Corporation has three directors, who serve without compensation. Their names and principal occupations are as follows: Name and Office Occupation Gregory A. Peterson, President Assistant Planning Director for the City of Omaha Joseph A. Mangiamelli, Vice President Director of the Administrative Services Department of the City of Omaha Larry Lahaie, Secretary/Treasurer Public Events Manager for the City of Omaha The three directors named above hold office until death or resignation, in which case the City may designate a successor, but if the City does not designate a successor within 30 days after the death or resignation, the remaining directors shall appoint a successor. THE PROJECTS O C S The Corporation will use the proceeds of the Bonds to pay all or a portion of the costs of acquiring, constructing, furnishing and equipping the Projects. The Project sites are owned by the City, which is leasing the Project sites to the Corporation under the Ground Lease Agreement dated as of September 1, 1995 (the "Lease") by and between the City and the Corporation for a term ending on September 15, 2015, at a rental of$10 per year which was prepaid upon the delivery of the Bonds. See "THE LEASE." ESTIMATED SOURCES AND USES OF FUNDS • Following are the estimated sources and uses of the Bond proceeds: Sources of Funds Bond Proceeds $ Interest from September 15 to date of closing Total $ 01/161215.5 2 r , OFFICIAL STATEMENT $8,475,000* CITY OF OMAHA PARKING FACILITIES CORPORATION LEASE REVENUE BONDS (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS) SERIES 1995 • INTRODUCTION This Official Statement and the cover page (excluding prices) are furnished in connection with the offering by City of Omaha Parking Facilities Corporation, a nonprofit corporation organized under the laws of the State of Nebraska (the "Corporation") of$8,475,000* aggregate principal amount of its Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects), Series 1995, to be issued pursuant to the Indenture of Trust dated as of September 1, 1995 (the "Indenture") by and between the Corporation and FirsTier Bank Omaha, N.A., as trustee and paying agent (the "Trustee"). The proceeds of the Bonds will be provided to the Trustee for deposit in the Acquisition Fund pursuant to the Indenture and used to finance all or a portion of the costs of acquisition, construction, furnishing and equipping of two public parking garages, one such garage to be located at 10th and Jackson Streets, Omaha, Nebraska, known as Omaha-Park Four (the "Omaha-Park Four Project") and the other such garage to be located adjacent to the Omaha Civic Auditorium at 1804 Capitol Avenue, Omaha, Nebraska, known as Omaha-Park Five (the "Omaha-Park Five Project" and, collectively with the Omaha-Park Four Project, the "Projects"). The Bonds will be secured by a pledge of the cash rents payable by the City of Omaha, Nebraska (the "City") under the Lease-Purchase Agreement dated as of September 1, 1995 (the "Agreement") by and between the Corporation and the City and assigned by the Corporation to the Trustee under the Indenture. The Trustee will receive such cash rentals and act as paying agent for the Bonds. THE CORPORATION The Corporation was incorporated on September , 1995 under the Nebraska Nonprofit Corporation Act, Sections 21-1901 - 21-1991, R.R.S. Neb. 1943, as amended. The only purpose for which the Corporation was organized is to assist the City with the acquisition, 'Preliminary; subject to change. 01/161215.5 Uses of Funds Acquisition Fund Deposit $ Bond Fund Deposit Underwriter's Discount and Costs of Issuance Total $ SECURITY FOR THE BONDS The Corporation and the City have entered into the Agreement whereby the Corporation has leased the Projects to the City for a period ending on September 15, 2015. Under the Agreement, the City is obligated to pay, semiannually, cash rentals equal in amount to the principal of and interest on the Bonds, which cash rental payments will be due in such amounts and at such times as to provide sufficient funds to meet the principal and interest payments on the Bonds as the same become due. The City is also obligated to provide insurance and pay any taxes, maintenance expenses and other miscellaneous expenses so that the cash rentals are net to the Corporation. See "THE AGREEMENT." The cash rentals due from the City will be assigned to and received by the Trustee for payment of principal of and interest on the Bonds. Under Section 5.17 of the Home Rule Charter of the City of Omaha, 1956, as amended (the "City Charter"), the City is specifically authorized to enter into lease-purchase agreements, and under Section 5.27 of the City Charter, the amount of any such lease-purchase agreement is not chargeable against the City's debt limit. The City's obligations under the Agreement are general obligations of the City payable from the City's General Fund each year of the lease-purchase term on the same basis as operating expenses and other contractual obligations of the City. The Agreement is an unconditional obligation of the City and is not subject to annual renewal. The City is required• to annually include in its General Fund budget appropriations for paying the lease-purchase obligations. The City's primary sources of General Fund revenues are: (a) A general property tax not exceeding $.6125 per $100 of actual taxable value plus certain other amounts more fully described under the caption "AUTHORITY TO LEVY TAXES" in Appendix A hereto. (b) A city sales and use tax of 11/2%. See the captions "CITY OF OMAHA GENERAL FUND" and "AUTHORITY TO LEVY TAXES" in Appendix A for further details on the City's sources of revenue. • 01/161215.5 3 The Bonds are payable from and secured solely by the cash rentals payable by the City. The Corporation has no assets other than the Projects, or revenues other than such cash rentals. Section 13 of the Agreement contains the following provision: City agrees that no delay, failure or insufficiency, for any reason whatsoever (including, in particular, but without limitation, an insufficiency in the amount of Bond proceeds to pay the cost of the Projects), in the acquisition, construction or operation of the Projects, or any part thereof, shall entitle City to terminate this Agreement or operate in any way to suspend, abate or reduce the Rental Payments due or to become due under the terms of . . . this Agreement. THE BONDS Description of the Bonds The Bonds, in aggregate principal amount of$8,475,000,* will be dated September 15, 1995, will be issued in fully registered form, and will mature as set forth on the cover page of this Official Statement. Interest is payable semiannually on March 15 and September 15 of each year commencing March 15, 1996. Place of Payment The principal of the Bonds will be payable in lawful money of the United States of America at the corporate trust office of FirsTier Bank Omaha, N.A., as trustee and paying agent (the "Trustee"), in Omaha, Nebraska. Interest on the Bonds will be paid by wire transfer of the Trustee to the registered owner of$1,000,000 in aggregate principal amount of the Bonds upon written notice by the registered owner given to the Trustee not later than the close of business on February 1 or August 1, as the case may be, or by check or draft mailed to the person in whose name a Bond is registered as of the February 1 or August 1, as the case may be, next preceding each interest payment date. Book-Entry Only System The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be initially issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully registered Bond certificate will be issued for each maturity of the Bonds and will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform `Preliminary; subject to change. 01/161215.5 4 Commercial Code and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct Participants") deposit with DTC. DTC also facilitates the settlement among Participants (as defined hereinafter) of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a Direct Participant either directly or indirectly ("Indirect Participants"). (Direct Participants and Indirect Participants are referred to herein collectively as the "Participants.") The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of the Bonds under the DTC system must be made in authorized denominations by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond (a "Beneficial Owner") is in turn to be recorded on the Direct Participants' and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of beneficial ownership interest in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. For every transfer and exchange of beneficial ownership interests in the Bonds, DTC and the Participants may charge the Beneficial Owner a sum sufficient to pay any tax, fee or other governmental charge that may be imposed in relation thereto. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book entry for the Bonds is discontinued. SO LONG AS CEDE & CO., AS NOMINEE FOR DTC, IS THE REGISTERED OWNER OF THE BONDS, THE CITY AND THE PAYING AGENT WILL TREAT CEDE & CO. AS THE ONLY OWNER OF THE BONDS FOR ALL PURPOSES UNDER THE ORDINANCE (AS HEREINAFTER DEFINED), INCLUDING RECEIPT OF ALL PAYMENTS OF PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS, RECEIPT OF NOTICES AND VOTING. To facilitate subsequent transfers, the Bonds deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of the Bonds with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC will have no knowledge of the actual Beneficial Owners of the Bonds. DTC's records will reflect only the identity of the Direct Participants to whose accounts such Bonds are 01/161215.5 5 ' ,7-%\ credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants and by Direct Participants and Indirect Participants to Beneficial Owners, will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices will be sent to Cede & Co. If less than all of the Bonds are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant to be redeemed. Neither DTC nor Cede & Co. will consent or vote with respect to the Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to the City, as issuer of the Bonds, as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal, premium, if any, and interest payments on the Bonds will be made by the Paying Agent to DTC. DTC's practice is to credit Direct Participants' accounts on payment dates in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on a payment date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Trustee, the Corporation or any other party under the Indenture, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium, if any, and interest to DTC is the responsibility of the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the Corporation and the Trustee. Under such circumstances, in the .event that a successor securities depository is not obtained, Bond certificates are required to be delivered as described in the Indenture. Upon (i) the written direction of the Corporation or (ii) the written consent of 100% of the Bondholders, the Trustee shall withdraw the Bonds from DTC and authenticate and deliver Bond certificates fully registered to the assignees of DTC or its nominee. If the request for such withdrawal is not the result of any Corporation action or inaction, such withdrawal, authorization and delivery shall be at the cost and expense of the persons requesting such withdrawal, authentication and delivery. 01/161215.5 6 r The information in this section concerning DTC and DTC's book-entry system has been obtained from DTC. The Corporation does not take any responsibility for its accuracy. THE CORPORATION AND THE TRUSTEE CANNOT AND DO NOT GIVE ANY ASSURANCES THAT THE DIRECT PARTICIPANTS OR THE INDIRECT PARTICIPANTS WILL DISTRIBUTE TO THE BENEFICIAL OWNERS OF THE BONDS (i) PAYMENTS OF PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS, (ii) CERTIFICATES REPRESENTING AN OWNERSHIP INTEREST OR OTHER CONFIRMATION OF BENEFICIAL OWNERSHIP INTERESTS IN THE BONDS OR (iii) REDEMPTION OR OTHER NOTICES SENT TO DTC OR CEDE & CO., ITS NOMINEE, AS THE REGISTERED OWNERS OF THE BONDS, OR THAT THEY WILL DO SO ON A TIMELY BASIS OR THAT DTC, DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS WILL SERVE AND ACT IN THE MANNER DESCRIBED IN THIS OFFICIAL STATEMENT. THE CURRENT "RULES" APPLICABLE TO DTC ARE ON FILE WITH THE SECURITIES AND EXCHANGE COMMISSION AND THE CURRENT "PROCEDURES" OF DTC TO BE FOLLOWED IN DEALING WITH DIRECT PARTICIPANTS ARE ON FILE WITH DTC. NEITHER THE CORPORATION NOR THE TRUSTEE HAS ANY RESPONSIBILITY OR OBLIGATIONS TO THE DIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS WITH RESPECT TO (A) TIC ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT PARTICIPANT; (B) THE PAYMENT BY DTC OR ANY DTC PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNERS IN RESPECT OF THE PRINCIPAL, PREMIUM, IF ANY, AND INTEREST ON THE BONDS; (C) THE DELIVERY OR TIMELINESS OF DELIVERY BY DTC OR ANY DIRECT PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE INDENTURE TO BE GIVEN TO BONDHOLDERS; (D) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENTS IN THE EVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (E) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC OR ITS NOMINEE, CEDE & CO., AS BONDHOLDER. Optional Redemption The Bonds maturing September 15, 2006 and thereafter are subject to redemption at the option of the Corporation from any source, in whole at any time, or in part on any interest payment date, in such order of maturities as determined by the Corporation (and by lot or other random selection method within a maturity) on or after September 15, 2005, at the following redemption prices (expressed as a percentage of the principal amount to be redeemed), plus accrued interest to the date of redemption: • 01/161215.5 7 r p Redemption Period (dates inclusive) Redemption Price September 15, 2005 to September 14, 2006 102% September 15, 2006 to September 14, 2007 101 September 15, 2007 and thereafter 100 Mandatory Sinking Fund Redemption The Bonds maturing September 15, 2015 are subject to mandatory sinking fund redemption from cash rental sinking fund payments prior to their respective maturity dates, by lot (or other random selection method) selected by the Trustee, at a price of par, without premium, on September 15, 2011, and on each September 15 thereafter in the years and principal amounts set forth below: Year Principal Amount 2011 $ 2012 2013 2014 2015 (maturity) To the extent that such Bonds have been previously called for redemption in part and otherwise than from the sinking fund, each related aforesaid annual sinking fund payment for - the Bonds of such maturity shall be reduced by the amount obtained by multiplying the principal amount of such Bonds of such maturity so called for redemption, by the ratio which each annual sinking fund payment for the Bonds of such maturity bears to the total sinking fund payments of such Bonds subject to sinking fund redemption, and by rounding each sinking fund payment to the nearest $5,000 multiple. In case a Bond subject to sinking fund redemption is of a denomination larger than $5,000, a portion of such Bond ($5,000 or any multiple thereof) may be redeemed, but Bonds shall be redeemed only in the principal amount of$5,000 each or any integral multiple thereof. On or before the thirtieth day prior to each such sinking fund payment date, Trustee shall proceed to select for redemption (by lot in such manner as Trustee may determine), from all outstanding Bonds subject to sinking fund redemption, a principal amount of such Bonds equal to the aggregate principal amount of such Bonds redeemable with the required sinking fund payment, and shall call such Bonds or portions thereof($5,000 or any integral multiple thereof) for redemption from such sinking fund on the next September 15, and give notice of such call. 01/161215.5 8 y � Extraordinary Optional Redemption The Bonds are also subject to redemption at any time, in whole or in part, in the event of damage to or destruction to one or both of the Projects or condemnation thereof and election by the City that the proceeds of such damage, destruction or condemnation shall not be used to rebuild or restore the affected Project or Projects. Any such redemption shall be at a principal amount of the Bonds equal to the ratio of the dollar amount of such damage, destruction or condemnation award to the principal amount of the Bonds then outstanding,plus accrued interest to the redemption date. Additional Bonds Additional Bonds on parity with the Bonds may be issued only if the Agreement is amended to increase the cash rentals payable by the City to provide sufficient funds at the times and in the amounts necessary to pay principal of and interest when due on both the outstanding Bonds and the proposed Additional Bonds. Refunding Bonds Other Bonds to refund all or any of the Bonds may be issued at any time so long as the cash rentals payable by the City are sufficient to cover the principal and interest requirements on all Bonds outstanding, including the refunding Bonds. THE LEASE Following is a summary of certain provisions of the Lease. Reference should be made to the Lease itself for a complete statement of its provisions. Pursuant to the Lease, the City agrees to lease to the Corporation the respective parcels of land upon which the Projects will be constructed, in consideration of which the Corporation agrees to pay the City rent in the amount of $10.00 per year, to and including September 15, 2015, when the Lease expires by its terms. Upon the expiration of the Lease, the Corporation will return the land, together with any buildings or improvements thereupon, to the City. The Lease is binding upon any successors or assigns of the City or the Corporation. 01/161215.5 9 THE AGREEMENT Following is a summary of certain provisions of the Agreement. Reference should be made to the Agreement itself for a complete statement of its provisions. Term. The term of the Agreement is for 20 years and 14 days, beginning on September 1, 1995 and ending on September 15, 2015. Rental. The City agrees to pay to the Corporation cash basic rent in the amounts and on or before the dates shown in the Agreement. The due dates of the cash rental payments are the principal and interest payment dates of the Bonds, and the amount of each rental installment is equal to the principal and interest next due. The City agrees that the cash rent shall be net to the Corporation and that all costs, expenses and obligations of every kind which may arise or become due with respect to the Projects during the term of the Agreement shall be paid by the City. Assignment of Rentals. The Trustee is the assignee of all of the Corporation's rights to collect basic rent due under the Agreement, and such basic rent shall be paid by the City directly to the Trustee for the benefit of the owners of the Bonds. Prepayment. The City has the right to prepay the basic rent at any time and without penalty and thereby purchase the Projects upon 30 days' prior written notice to the Corporation, provided that the City is not in default under the Agreement. Any such prepayment must be in an amount sufficient to pay the principal of all outstanding Bonds, plus redemption premium, if any, and accrued interest, if any, to the first permitted redemption date. Additional Payments by City. As additional rental, the City has agreed to pay all taxes on the Projects and all utility charges incurred in the operation, maintenance and use of the Projects, the fees and expenses of the Trustee under the Indenture and the expenses of any audit or examination of the Corporation's records requested by the City. Repairs and Maintenance. The City has agreed, at its own expense, to put and maintain the Projects in good and safe order and condition and to make all necessary repairs required for any reason. Insurance, Damage or Destruction. The City has agreed: (a) to obtain and keep in force during the term of the Agreement fire and extended-coverage insurance with respect to the Projects in an amount at least equal to the full insurable value thereof, with the City, the Corporation and the Trustee, as their interests may appear, to be named as insured parties, but with any loss to be adjusted by and paid to the City so long as the City is not in default; 01/161215.5 10 (b) that no damage to or destruction of any part of the Projects by fire or other casualty shall entitle the City to terminate the Agreement or to violate any of its provisions or in any way to suspend, abate or reduce the rent then due or thereafter becoming due under the terms of the Agreement unless the City shall elect not to replace or restore the Projects and shall provide to the Trustee funds sufficient to redeem all the Bonds in accordance with the Indenture; and (c) to deliver to the Trustee as named insured at or prior to the issuance of the Bonds a mortgagee's title insurance policy in the amount of$8,475,000 insuring that the City has a fee simple title to the sites of the Projects. The City may self-insure by means of an adequate self-insurance fund set aside and maintained out of its revenues if the City insures properties similar to the Projects by self-insurance. Condemnation. No condemnation of all or any part of the Projects shall in any way affect the liability of the City to pay the full rent due under the Agreement and proceeds of any such condemnation shall be paid to the Corporation and applied on the last unpaid rental installment, unless the City elects to have all Bonds redeemed as provided by the Indenture. Indemnification of the Corporation. The City has agreed to indemnify the Corporation against all liabilities, penalties, damages and expenses which may be imposed upon, incurred by or asserted against the Corporation as a result of (a) the failure of the City to perform any obligation of the City under the Agreement; (b) any use or condition of the Projects or any part thereof or any street, alley, sidewalk, curb, passageway or space adjacent thereto; (c) any personal injury, including death resulting at any time therefrom, or property damage occurring on or about the Projects or any adjacent street, alley, sidewalk, curb, passageway or space; (d) the failure of the City to comply with any requirement of any governmental authority; and (e) any mechanic's lien or security agreement filed against the Projects or any part thereof. Alterations, Additions and Improvements. The City has the right to make any alterations, additions or improvements to the Projects which will not diminish the value thereof, and any such alterations, additions or improvements shall become a part of the Projects and shall be covered by the Agreement. Use of Premises. The Projects may be used by the City for public parking purposes and other such uses as the City shall deem appropriate from time to time; provided, however, that any other use of the Projects shall not impair the City's use of the Projects as public parking facilities or the exclusion of interest on the Bonds from the gross income of the holders thereof for federal income tax purposes. The City may sublet any part of the Projects for any uses for a period not extending beyond the term of the Agreement; provided, however, that such subletting will not impair the exclusion of interest on the Bonds from gross income for the purposes of federal income taxation. 01/161215.5 1 10 No Right of Surrender by the City. The City has no right to surrender the Projects to the Corporation, and no abandonment of the Projects or failure or inability of the City to use the Projects at any time shall relieve the City of its obligation to pay the agreed rentals for the entire term of the Agreement. Conveyance of Project to the City. The Corporation has agreed to convey the Projects to the City upon full payment of the rentals due under the Agreement. Default. The Corporation has the right to terminate the Agreement and take possession of the Projects in the event the City defaults in the performance of any of its obligations under the Agreement and such default continues for a period of 30 days after written notice to the City. No such termination shall operate to relieve the City of its obligation to the Corporation to pay the cash rentals due under the Agreement, and the City shall continue to be liable for payment of the basic cash rent. Donations Held as Trust Fund. The City has agreed that any donation received by the City to assist in acquiring, constructing, furnishing and equipping the Projects shall be held in trust and (unless the use is otherwise specified by the donor) used only to satisfy the City's obligations under the Agreement, to apply to the purchase of the Projects from the Corporation and to pay costs of acquiring the Projects. THE INDENTURE Following is a summary of certain provisions of the Indenture not summarized elsewhere in this document. Reference should be made to the Indenture itself for a complete statement of its provisions. Investment of Funds. All moneys held by the Trustee for the credit of any fund or account under the Indenture shall be invested and reinvested by the Trustee upon the written direction of the Corporation, but only in investments authorized by Reissue Revised Statutes of Nebraska, 1943, Section 14-563, viz. securities of the United States, the State of Nebraska, the City, Douglas County, Nebraska, a school district of the City, municipality owned and operated public utility property and parts of the City, and certificates of deposit from and time deposits in bank or capital stock financial institutions selected as depositories of City funds, provided that moneys deposited from cash rental payments to the credit of the Bond Fund shall only be invested and reinvested by the Trustee in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America. Any such investment shall mature at such time and in such amounts so that funds will be available when required. Income from all investments shall be credited to the fund from which the investment was made. Amendment of Indenture. An amendment which would extend the maturity of or reduce the interest rate on any Bond or affect the pledge and assignment of the cash rentals payable by the City or permit any priority of any Bond over any other Bond or reduce the percentage of 0 01/161215.5 12 L Bondholders required to consent to any amendment of the Indenture requires the specific consent of the owner of each Bond which would be affected thereby. In the case of all other amendments, the Indenture may not be modified or amended without the consent of the owners of at least two-thirds of the principal amount of each Series of Bonds outstanding, except to (i) correct an ambiguity or formal defect or omission, including any subsequent amendments thereto; (ii) grant and confer upon the Trustee for the benefit of the Bondholders any additional rights, remedies, powers, authority or security that may be lawfully granted to or conferred upon the Bondholders or the Trustee; (iii) issue Additional Bonds or refunding bonds; (iv) comply with such requirements of the Code as are necessary in the opinion of nationally recognized bond counsel to make the interest on the Bonds exempt from federal income taxes; or (v) modify, alter, amend or supplement the Indenture in any other respect which in the judgment of the Corporation, as concurred in by the Trustee, is not materially adverse to the Bondholders. Amendment of the Agreement. No amendment to the Agreement shall be made without the consent of the Trustee. Amendments may be made with the consent of the owners of two-thirds of the principal amount of all Bonds outstanding, but in no event shall the cash rental payable by the City be reduced or the payment dates extended without the consent of the owners of all Bonds outstanding. Notice of Redemption of Bonds. If a Bond in book-entry-only form is called for redemption, notice shall be mailed to the Depository not less than 30 days, nor more than 60 days prior to the redemption date. If a Bond not in book-entry-only form is called for redemption, notice shall be given by mailing a copy of the redemption notice by first-class mail not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books of the Corporation kept by the Trustee. Defeasance. The Corporation's obligation as to any Bond shall be discharged when there has been deposited with the Trustee, in trust solely for such purpose, cash or United States government direct or guaranteed obligations maturing in such amount and at such times as will provide funds sufficient to retire such Bond at maturity or earlier permitted redemption date and pay interest and premium, if any, thereon to such retirement date. Events of Default. The following constitute events of default under the Indenture: (1) default in the due and punctual payment of the principal of or the interest on any outstanding Bond and the continuance thereof for a period of five days; (2) default in the due and punctual payment of the basic cash rental payments to the Trustee and the continuance thereof for a period of 30 days; or (3) default in the performance or observance of any other of the covenants, agreements or conditions on the Corporation's part contained in the Indenture, or in the Bonds, and the continuance thereof for a period of 30 days after written notice thereof 01/161215.5 13 to the Corporation by the Trustee, or by the owners of not less than 20% in aggregate principal amount of Bonds outstanding. Default Remedies. Upon the occurrence of an event of default under the Indenture, the Trustee may, and upon the written request of the owners of 20% in principal amount of the Bonds, shall, accelerate the principal of and the interest on the Bonds. The Trustee may rescind its declaration of acceleration and waive any default under the Indenture under certain circumstances. The owners of not less than 20% in principal amount of Bonds then outstanding shall have the right to request the Trustee, upon being indemnified to its satisfaction, to exercise any remedies available under the Agreement and, to the extent consistent therewith, may sell, lease or manage any portion of the Projects and apply the net proceeds thereof as provided in the Indenture and, whether or not it has done so, proceed to take any other steps needful for its protection and that of the owners of the Bonds subject to the right in all events of the owners of a majority in principal amount of Bonds outstanding to direct the Trustee's action. UNDERWRITING Under a Bond Purchase Agreement(the "Bond Purchase Agreement") entered into by the Corporation and Kirkpatrick, Pettis, Smith, Polian, Inc.; FirsTier Bank, National Association; Smith Barney Inc./Chiles Heider Division; and Dail Bosworth Incorporated, as Underwriters (the "Underwriters"), the Bonds are being purchased at a price of $ . The Agreement provides that the Underwriters will purchase all of the Bonds if any are purchased. The obligation of the Underwriters to accept delivery of the Bonds is subject to various conditions contained in the Bond Purchase Agreement, including the absence of pending or threatened litigation questioning the validity of the Bonds or any proceedings in connection with the issuance thereof and the absence of material adverse changes in the fmancial or business condition of the Corporation or the City. The Underwriters intend to offer the Bonds to the public initially at the offering prices set forth on the cover page of this Official Statement, which prices may subsequently change without any requirement of prior notice. The Underwriters reserve the right to join with dealers and other underwriters in offering the Bonds to the public. The Underwriters may offer and sell Bonds to certain dealers (including dealers depositing Bonds into investment trusts) at prices lower than the public offering price. CONTINUING DISCLOSURE The City has entered into an undertaking (the "Undertaking") for the benefit of the holders of the Bonds to send certain financial information and operating data to certain information repositories annually and to provide notice to the Municipal Securities Rulemaking Board or certain other repositories of certain events, pursuant to the requirements of Section (b)(5)(i) of Securities and Exchange Commission Rule 15c2-12 (17 C.F.R., § 240.15c2-12) (the "Rule"). See APPENDIX B—FORM OF LETTER AGREEMENT. 01/161215.5 14 The City's Undertaking is its first under the Rule. A failure by the City to comply with the Undertaking will not constitute an Event of Default under the Indenture or the Agreement, although any Bondholder will have any available remedy at law or in equity, including seeking specific performance by court order, to cause the City to comply with its obligations under the Undertaking. Any such failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. LITIGATION No litigation is pending or, to the knowledge of the Corporation, threatened in any court to restrain or enjoin the issuance or delivery of any of the Bonds or in any way contesting or affecting the validity of the Bonds, the related resolution of the Corporation, the Agreement, the Indenture, or the City's related ordinance, or contesting the powers or authority of the Corporation to issue the Bonds or to adopt the related resolution or of the city to execute and deliver the Agreement or pass its related ordinance. LEGAL MATTERS Tax Exemption In the opinion of Kutak Rock, Bond Counsel, to be delivered at the time of original issuance of the Bonds, under existing laws, regulations, rulings and judicial decisions, interest on the Bonds is (a) excluded from gross income for federal income tax purposes and (b) is not a specific item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. Interest on the Bonds, however, will be included in the "adjusted current earnings" (i.e., alterative minimum taxable income as adjusted for certain items including those items that would be included in the calculation of a corporation's earnings and profits under Subchapter C of the Internal Revenue Code of 1986, as amended(the "Code")) of certain corporations for taxable years beginning after 1989 and such corporations are required to include in the calculation of alternative minimum taxable income 75% of the excess of each such corporation's adjusted current earnings over its alternative minimum taxable income (determined without regard to this adjustment and prior to reduction for certain net operating losses). The opinions set forth above are subject to continuing compliance by the City and the Corporation with their respective covenants regarding federal tax laws in the Ordinance and the Indenture. Failure to comply with such covenants could cause interest on the Bonds to be included in gross income retroactive to the date of issue of the Bonds. The accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of certain recipients, such as banks, thrift institutions, property and casualty insurance companies, corporations (including S corporations, foreign corporations operating 01/161215.5 15 • branches in the United States and corporations subject to the environmental tax imposed by Section 59A of the Code), Social Security or Railroad Retirement benefit recipients, or individuals who itemize deductions, among others. The extent of these other tax consequences will depend upon the recipients' particular tax status of other items of income or deduction. Bond Counsel expresses no opinion regarding any such consequences and investors should consult their own tax advisors regarding the tax consequences of purchasing or holding the Bonds. In Bond Counsel's further opinion, under the existing laws of the State of Nebraska, the interest on the Bonds is exempt from Nebraska state income taxation so long as it is exempt for purposes of the federal income tax. Statutory Property Tax Receipts Limitation The State of Nebraska's system of assessing and taxing personal property for purposes of local ad valorem taxation for support of local political subdivisions, including the City, was the subject in recent years of constitutional amendment, legislation and litigation, the result of which has been to substantially resolve certain challenges to the validity of the tax system. However, the State of Nebraska's system of assessing and taxing real and personal property continues to be the object of considerable controversy and challenges. During the First Session of the 1995 Nebraska Legislature, several bills and resolutions proposing a variety of property tax relief measures that would impact local political subdivisions, including the City, were introduced. Among other things, the proposals include limitations on the real property tax levy, government spending limitations and, to offset property tax reductions, imposition of new taxes on services and sales. In addition, several initiative petitions proposing constitutional property tax relief amendments are circulating in the State. In 1994, a lawsuit was filed in Lancaster County District Court challenging the validity under the equal protection clauses of the Nebraska Constitution and the Constitution of the United States of America of a May 12, 1992 amendment to the uniformity clause of the Nebraska Constitution. The uniformity clause, as so amended, grants the Nebraska Legislature greater authority to administer the property tax in a nonuniform manner and allows real and personal property to be treated as separate classes of tangible property for taxation purposes. Arguments were heard in May of 1995, and the trial judge has taken the lawsuit under advisement. There can be no assurance that Nebraska's system of assessing and taxing real and personal property will remain substantially unchanged, given the uncertain outcome of the various bills, resolutions, petitions and the lawsuit. Such changes could materially and adversely affect the amount of property tax revenues the City could collect in future years. The City does not believe, however, that the Nebraska Legislature would leave the City without adequate taxing resources to pay for its programs and meet its financial obligations, including the repayment of its bonds and other obligations. The opinion of Bond Counsel will be rendered based on the law 01/161215.5 16 existing as of the date of issuance of the Bonds and in reliance upon general legal presumptions in favor of the constitutionality of statutes and upon the holdings of existing case law. Revaluation of Residential Real Property The Douglas County Assessor has completed two years of a three-year project to revalue residential real property in Douglas County to provide for equalization of assessments of such property for taxation in compliance with the Constitution and statutes of the State. In 1994, the State Board of Equalization and Assessment also imposed a general 10% valuation increase on residential real property in Douglas County for assessment equalization purposes. The initial valuation increases were effective for ad valorem taxes levied in 1994 for collection in 1995. The general effect of the revaluations is to shift to owners of residential real property a portion of the property tax burden previously shouldered by the owners of other classes of real property, such as business and agricultural properties. In order to avoid a windfall of property tax revenues from the general 10% valuation increase, Douglas County, after making allowance for actual growth in taxable real and personal property, set its 1994 levy at a level designed to limit 1995 collections to an amount estimated not to exceed the amount that would have been collected but for such revaluation. The levies with respect to each separate issue of the Bonds will be set in accordance with the revaluations. Legal Opinions Legal matters incident to the authorization and issuance of the Bonds are subject to the unqualified approving opinion of Kutak Rock, Bond Counsel, a copy of whose approving opinion will be delivered with the Bonds. See "APPENDIX C—FORM OF OPINION OF BOND COUNSEL." Certain legal matters will be passed upon for the Underwriters by their counsel, Kutak Rock. RATINGS Moody's Investors Service ("Moody's") and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P"), have assigned the Bonds the ratings of " " and " ," respectively. Such credit ratings of the Bonds by Moody's and S&P reflect only the views of such credit rating agencies. An explanation of the significance of such credit ratings may be obtained from Moody's or S&P, as the case may be. There is no assurance that such credit ratings will continue for any given period of time or that they will not be reviewed or withdrawn entirely by such credit rating agencies, if in their judgment circumstances so warrant. Neither the City nor the Underwriters have undertaken any responsibility either to bring to the attention of the owners of the Bonds any proposed change in or withdrawal of such credit ratings or to oppose any such proposed revision. Any such downward change in or withdrawal of such credit ratings may have an adverse effect on the market price of the Bonds. 01/161215.5 17 FINANCIAL STATEMENTS The audited financial statements for the City for the fiscal year ended December 31, 1994 are included in this Official Statement as a part of Appendix A and should be read in their entirety. Financial statements for the City for fiscal years ending prior to December 31, 1994 are available for inspection at the offices of the City in Omaha, Nebraska. The financial statements of the City as of December 31, 1994 included as Appendix A of this Composite Official Statement have been audited by Deloitte & Touche, L.L.P. and Hayes & Associates, independent certified public accountants, as stated in their report appearing therein. MISCELLANEOUS Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. This Official Statement is not to be construed as a contract or agreement between the Corporation and the purchasers or owners of any of the Bonds. The information contained in this Official Statement has been taken from the City, DTC and other sources considered to be reliable, but is not guaranteed. To the best of the knowledge of the undersigned, this Official Statement does not include any untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The execution and delivery of this Official Statement have been duly authorized by the Corporation as of the date shown on the cover hereof. CITY OF OMAHA PARKING FACILITIES CORPORATION By President 01/161215.5 18 APPENDIX A CITY OF OMAHA CITY OF OMAHA—General Information Form of Government Omaha operates with a Mayor-Council form of government. As a home-rule city, Omaha has all of the powers available to a home-rule city under the Nebraska Constitution. The Mayor and Council, consisting of seven members, are elected for four-year terms. The Mayor is elected in a city-wide election while the City Council members are elected by district. • City Administration The executive and administrative powers of the City are vested in the Mayor, who is popularly elected for four years on a nonpartisan basis. The Honorable Hal Daub, Omaha's Mayor, was elected on December 13, 1994 to complete the term ending in June 1997 of the former Mayor who resigned in September 1994. Mayor Daub assumed his office on January 9, 1995. Prior to December, 1994, Mayor Daub, an attorney and businessman in his private capacity, served four terms as a Congressman in the United States House of Representatives from 1981-1989 and, most recently, as a principal and international trade specialist with the accounting firm of Deloitte and Touche. The head of the City's Finance Department is the Acting Finance Director of the City, Louis A. D'Ercole, who assumed the position upon the resignation of the City's former Finance Director in March 1995. Following his graduation from the University of Nebraska at Omaha and service in the United States Army, Mr. D'Ercole joined the Finance Department of the City in 1968 and has held the positions of Accountant/Auditor, Budget Analyst, Budget and Accounting Manager and City Comptroller. Location and General Background Omaha, founded in 1854, is the largest city in the State of Nebraska. Omaha is the hub of a vast transportation network leading to all parts of the nation and thus offers significant advantages to business and industry competing in regional and national markets. This fact is substantiated by the growth of population, employment and income during recent years. 01/161215.5 Area and Population The population of the five-county Omaha Metropolitan Statistical Area ("MSA"), comprising four Nebraska counties and one Iowa county, numbered an estimated 662,801 as of July 1994. Residing within the City itself in 1994 were an estimated 342,862 people. Transportation Eleven major airlines and five commuter airlines currently handle flights in and out of Eppley Airfield. In 1994, 2,561,110 passengers used Eppley Airfield, located less than 15 minutes driving time from downtown Omaha. Omaha is general headquarters for the Union Pacific Railroad. Five other mainline railroads and a terminal railway combine to make Omaha an important rail center. Two interstate highways(Interstate 80 and Interstate 29), five federal highways and seven state highways provide fast all-weather routes within Nebraska and to and from the rest of the nation. In addition, Interstate 480 (downtown spur) and Interstate 680 (circumferential route) provide quick access to all parts of the metropolitan area. More than 85 motor common carriers haul freight to and from Omaha and all parts of the nation, making Omaha a major midwestern trucking center. Greyhound Bus Lines furnishes Omaha with transcontinental passenger service. Several smaller bus lines operate between Omaha and points in Iowa and Nebraska. Utility Services Residential, commercial and industrial electric service rates in Omaha historically have been below the national averages, according to reports of the Edison Electric Institute in its Statistical Yearbook of the Electrical Utility Industry. In addition to low rates, the Omaha Public Power District, a Nebraska political subdivision, assures its customers ample power with a net generating capability of 1,926,000kW. The Metropolitan Utilities District("MUD"), a Nebraska political subdivision, distributes natural gas and water in the Omaha area. Rates compare favorably with those prevailing in other metropolitan areas in the nation. Omaha has a plentiful water supply (Missouri River and Platte River wells) and a water system designed to the standards of the National Board of Fire Underwriters, with a current capacity of 218 million gallons a day. MUD's supply of natural gas is purchased wholesale from Northern Natural Gas Company. This supply is supplemented • with peak-shaving storage facilities which can provide up to approximately 30% of peak demand. There have been no interruptions of natural gas service to firm commercial and residential customers and no interruptions are expected in the foreseeable future. MUD continues to add new natural gas customers. 01/161215.5 A-2 Education Omaha is an important educational center and is the location of Creighton University, the University of Nebraska at Omaha and the University of Nebraska Medical Center. These institutions, together with three additional colleges located in Omaha, offer educational programs at the graduate and undergraduate levels, in law, and in the health professions: medicine, dentistry, nursing and pharmacy. Public elementary and secondary education are provided by four local school districts: School District of Omaha, Douglas County School District No. 66, School District of Millard, and School District of Ralston. The School District of Omaha has the largest enrollment of pupils residing within the City. The City is also served by a number of private and parochial schools at both the elementary and secondly levels. Health Services There are 13 hospitals within the City of Omaha, six of them classified as acute-care community hospitals. Of the remaining seven hospitals, two are acute-care hospitals operated by governmental entities (one by the State of Nebraska and one by Douglas County), four are specialized hospitals (pediatrics, maternity care, geriatrics and psychiatry), and one is a major hospital of the Veterans Administration. There are more than 1,200 physicians and more than 300 dentists in Omaha; their services are utilized both by Omaha residents and by persons within the surrounding region. Military The United States Strategic Command ("StratCom") is headquartered at Offutt Air Force Base, just south of Omaha. StratCom has been assigned planning and targeting responsibility for the nation's strategic nuclear weapons. The Economy From an economy founded on the livestock industry in the late nineteenth century, Omaha has become a major grain market in the United States. Food processing is also an important part of the economy and is represented by such companies as ConAgra, Inc., Kellogg Company and Campbell Soup Company. Concurrently with the growth of the City's agribusiness industry, new and related industries began to develop in the area. The City has an increasingly well-diversified economy, although it still remains agriculturally oriented. The Omaha MSA contains more than 670 manufacturing plants, including plants operated by AT&T Technologies Inc. (formerly Western Electric Company), Vickers, Inc. (a Trinova Company), Control Data Corporation and Lozier Corporation. In the early 1980's, Omaha began developing as a major participant in the 01/161215.5 A-3 reservation and direct-response center industry. Currently, there are 27 such firms located within the City. In total they employ a labor force in excess of 20,000. Major employers in this group include First Data Resources, Hyatt Reservations, Idelman Telemarketing, Inc., Marriott Reservations, Wats Marketing of America, West Telemarketing and 900 Services, Inc. Omaha is the home of 32 insurance companies, including Mutual of Omaha, the world's largest mutual health and accident company, and Woodmen of the World Life Insurance Society, the largest fraternal life insurance company. The district offices of the Farm Credit System for Nebraska, Iowa, South Dakota and Wyoming are headquartered in Omaha. The Farm Credit Bank of Omaha, among the largest in the system, has loans outstanding of over $3.8 billion. A branch Federal Reserve Bank and 20 commercial banks are located within the city limits of Omaha. First Data Resources, Union Pacific Railroad, Northern Natural Gas Company, Peoples Natural Gas Company and ConAgra, Inc. maintain their headquarters in Omaha. During 1994, the annual average unemployment rate for the Omaha MSA was 3.0%, compared with 6.0% for the United States as a whole. The Omaha MSA unemployment rate in May 1995 was 2.4%, compared with a rate of 5.8% for the United States as a whole. CITY OF OMAHA—Selected Economic Indicators Largest Employers—City of Omaha August 1994 United States Strategic Command Department of Defense 11,600 First Data Reources Credit Card Processors 7,000 Mutual of Omaha/United of Omaha Insurance 6,200 University of Nebraska Medical Center University,Hospital, Clinics 5,800 Omaha Public Schools School System 5,525 Methodist Health System Health Care 4,800 Union Pacific Railroad Railroad 3,500 U S West Communications Communications 3,200 City of Omaha Municipal Government 3,000 AT&T Network Systems Cable and Wire Division 2,800 Bergan Mercy Health Care 2,600 01/161215.5 .A-4 Omaha MSA Nonagricultural Wage and Salary Employment 1995 First Five 1994 Months % of % of Number . Total Number Total Industry Manufacturing 37,156 10.30 38,016 10.30 Construction and Mining 16,423 4.55 15,861 4.30 Transportation,Communications and Utilities 25,144 6.97 25,823 7.00 Trade 88,776 24.60 84,229 24.18 Finance,Insurance and Real Estate 31,868 8.83 32,102 8.70 Services 111,888 31.01 119,601 32.40 Government 49,578 13.74 48.463 13.13 Total 360,833 100.00 369,095 100.01 Source: Estimated annual averages based on place of employment,from Reports of Nebraska Department of Labor,Division of Employment and Research Statistics. Omaha MSA Effective Buying Income* Year Total(000) Per Household 1950 $ 558,006 $ 4,978 1960 966,698 6,856 1970 1,956,095 11,734 1980 4,991,836 21,524 1990 9,527,248 31,166 1991 9,728,236 34,898 1992 10,572,879 35,980 1993 11,001,262 37,227 Source:Annual surveys of buying power,Sales and Marketing Management. 'Effective Buying Income:personal income(wages,salaries,interest,dividends,profits and property income)minus federal,state and local taxes. O1/161215.5 A-5 Retail Sales—Douglas County Retail Retail Year Sales(000) Year Sales(000) 1977 $1,659,304 1986 $3,163,571 1978 1,771,647 1987 3,074,692 1979 1,848,774 1988 3,311,816 1980 1,873,004 1989 3,481,232 1981 2,017,847 • 1990 3,717,333 1982 2,250,087 1991 3,567,814 1983 3,073,914 1992 4,266,146 1984 2,739,494 1993 4,739,758 1985 2,904,388 Source:Sales and Marketing Management. Banking Activity Year Bank Clearings Year Bank Clearings 1950 $ 6,833,253,983 1986 $32,704,050,362 1960 9,796,472,675 1987 34,704,749,145 1970 16,751,962,240 1988 39,836,595,615 1980 31,915,078,877 1989 38,372,075,646 1981 37,294,813,955 1990 38,383,435,837 1982 33,933,485,920 1991 38,119,116,503 1983 32,048,543,360 1992 40,931,943,464 1984 32,684,214,958 1993 34,940,684,074* 1985 32,884,571,411 1994 31,868,830,077 Source:Federal Reserve Bank of Kansas City. 'Effective July 1,1993,the Federal Reserve Bank changed its policy with respect to the amounts that are included in this total. The effect of the change was a reduction in Bank Clearings reported rather than a reduction in activity. Value of Building Permits—City of Omaha Year Amount Year Amount 1950 $ 24,105,401 1986 $229,321,621 1960 46,927,523 1987 245,621,274 1970 61,626,242 1988 249,985,556 1980 136,736,312 1989 269,168,245 1981 99,180,317 1990 318,473,517 1982 98,758,516 1991 286,025,269 1983 141,773,718 1992 284,328,785 1984 227,776,399 1993 301,972,761 1985 236,167,683 1994 313,879,897 Source:Department of Permits and Inspections,City of Omaha. 01/161215.5 A-6 ..D :, CITY OF OMAHA—Financial Statistics City of Omaha General Fund Statement of Revenue, Expenditures and Changes in Fund Balance Five Years Ended December 31, 1994 Year Ended December 31 1990 1991 1992 1993 1994 Revenue: Property taxes $ 39,052,636 $ 40,440,017 $42,915,687 $42,526,712 $44,043,664 City sales and use tax 54,829,680 56,694,789 58,505,433 60,931,372 66,875,807 Business taxes 15,649,244 18,115,070 18,963,884 20,957,900 21,610,354 Licenses and permits 2,701,627 2,498,699 2,987,276 3,740,715 4,075,181 Intergovernmental revenue 5,255,936 5,183,680 5,104,383 5,256,442 5,206,806 Charges for services 7,807,466 7,475,075 8,352,013 7,059,864 7,603,140 Investment income 4,530,855 4,705,686 3,398,404 2,312,140 2,357,026 Rents and royalties 780,077 824,541 578,176 428,853 320,148 Miscellaneous 409,591 183,282 315,749 372,780 589,431 Total revenue $131,017,112 $136,120,839 $141,121,005 $143,586,778 $152,681,557 Expenditures: General government 11,240,199 14,382,623 19,394,754 18,444,824 19,918,688 Parks,recreation&public property 16,176,670 16,474,303 12,332,951 12,849,361 13,990,023 Public safety 58,480,036 55,266,989 60,604,640 61,265,388 61,900,314 Public works 12,843,922 14,199,764 16,258,303 14,569,119 13,636,165 Public library 4,720,424 4,639,116 4,525,992 4,798,539 3,992,385 Employee benefits 20,954,105 21,509,669 22,250,349 24,652,517 25,647,435 Lease-purchase agreements 1,754,321 2,987,760 1,857,903 1,841,261 1,950,602 Other 5,760,577 3,256,318 2,749,586 2,920,330 5,135,731 Total expenditures $131,930,254 $132,716,542 $139,974,478 $141,341,339 $146.171,343 Excess(deficiency)or revenues over expenditures (913,142) 3,404,297 1.146,527 2,245,439 6,510,214 Other sources(uses)of financial resources: Initial credit 2,030,264 1,113,918 1,124,009 1,403,471 1,102,618 Operating transfers(net) 553,861 (3,114,744) (1,167,918) (2,187,664) f5,948,869) Net other sources(uses) of financial resources 2,584,125 (2,000,826) (43,909) (784,193) (4,846,251) Excess(deficiency)of revenues • over expenditures and other sources(uses)of financial resources* 1,670,983 1,403,471 1,102,618 1,461,246 1,663,963 Fund balance,beginning of year 3,144,182 2,237,927 2,527,480 2,505,089 2,563,864 Residual equity transfer out , (546,974) -0- -0- -0- -0- Less—initial credit (2,030,264) (1,113,918) (1,124,009) (1,403,471) (1,102,618) 864 3 125 209 2 237 927 2 527 480 2 506 089 $ 2 563 $ Fund balance,end of year $ $ $ Source:Records of the Finance Department,City of Omaha. *City of Omaha procedure in General Fund budgeting is as follows: at the end of each fiscal year the excess, if any, of revenues and adjustments over expenditures and encumbrances is determined. Any such excess,less extraordinary transfers out,if any,is used as the initial credit to the General Fund Budget for the second year following the year in which the excess has arisen. N. ,40, 01/161215.5 A-7 III Property Valuations and Debt Ratios as of December 31 1990 1991 1992 19933 1994 Actual Valuation' $9,284,792,157 $9,706,483,045 $9,922,157,265 $9,840,315,645 $10,109,771,409 Net Direct General Obligation Bonded Debt2 115,435,013 123,242,603 125,857,549 127,967,461 128,491,733 % of Net Direct General Obligation Bonded Debt to Actual Valuation 1.24% 1.27% 1.27% 1.30% 1.27% 'Source: Records of Accounting Department,Office of the Douglas County Clerk. 2Amounts shown above as Direct General Obligation Bonded Debt are net of the fund balance in the Debt Service Fund. 3The 1993 taxable valuation was calculated by including increases in valuation due to growth and revaluation and factoring in a 24%reduction in personal property valuations. The reduction is the result of Nebraska Supreme Court rulings which declared that the state's then-existing personal property tax laws were discriminatory and,therefore,unconstitutional. The reductions in tax collections were reimbursed by the State. Population, Net General Bonded Debt and Per Capita Debt Per Capita Net Direct Net Direct General Obligation General Obligation Year Population' Bonded Debt2'3 Bonded Debt 1950 251,117 $ 11,100,500 $ 44.20 1960 301,598 30,697,871 101.78 1970 346,929 71,586,248 206.34 1980 313,911 73,939,298 235.54 1990 335,795 115,435,013 343.77 1991 338,300 123,242,603 364.30 1992 342,600 125,857,549 367.36 1993 342,885 127,967,461 372.10 1994 346,338 128,491,733 371.00 'Source: United States Census. 2Records of the Finance Department,City of Omaha. 3In 1982,the City of Omaha inaugurated a new annexation policy. The current annexation policy is designed to create annual, balanced annexation packages and establish consistency from year to year. Such annexation packages combine areas with relatively high outstanding indebtedness in relation to assessed valuation with other areas that have a more positive financial picture. These balanced packages can then be added to the City without tax increase to cover retirement of the additional debt assumed by the City. Under this approach,Omaha has grown by approximately 30,000 people and over 13 square miles as a result of annexations since 1980. 01/161215.5 A-8 0 L I OVERLAPPING DEBT Listed below are the political subdivisions which have the power,to levy taxes and the amount of net bonded indebtedness of each, as of July 31, 1994, applicable to the taxable property within the City of Omaha: % Applicable to $ Amount Bonds Outstanding City of Omaha Applicable Douglas County' $ 2,995,000 76.09% $ 2,278,952 Omaha-Douglas Public Building Commission' 10,325,000 76.09 7,856,490 School District of Omaha' 58,120,000 86.13 50,058,756 School District of Ralston' -0- 72.92 -0- School District of Millard' 90,642,000 53.56 48,547,855 School District No. 66 of Douglas Count? -0- 100.00 -0- Net Overlapping Bonded Debt $108,742,053 'Douglas County,under various lease purchase agreements,is obligated to provide for annual rental payments. From 1995 to 2005 the highest annual payment is approximately$2,956,000 (in the 1996/1997 fiscal year), the lowest is approximately$414,315(in the 2004/2005 fiscal year),and the average annual payment is approximately$2,216,000. 2Payable from certain property tax revenues and payments to be made to it by the City of Omaha and Douglas County under certain contractual agreements. Future annual obligations do not exceed$388,033 (in 1997). The Act authorizing issuance of bonds by the Omaha-Douglas Public Building Commission (the "Commission") permits the Commission to levy a tax of$.0149 per$100 of actual valuation on all the taxable property in Douglas County;the levy for 1994-95 is $.017 per$100 of actual valuation. However, although the same Act authorizes the City to levy a tax on all the taxable property in the City, except intangible property,of$.017 per$100 of actual valuation in excess of the Charter limitation described under "AUTHORITY TO LEVY TAXES" in Appendix A hereto, if and to the extent necessary to make the City's payments to the Commission, no such levy has ever been made by the City for such purpose. 3Tax levies for general obligation bond sinking fund purposes are unlimited as to amount. Residents of the City reside in one of the four school districts and pay taxes only to that school district. LONG-TERM CONTRACTUAL AGREEMENTS The City of Omaha, under certain existing contractual agreements (including lease purchase agreements), is obligated to provide for annual payments which are a charge on the General Fund. From 1995 to 2006, the highest annual payment is $1,078,913 (in 1995), the lowest is $47,498 (in 2006), and the average annual payment is $330,309. Such annual payments are included as General Fund budgetary items for which annual appropriations are required. Under the Charter of the City of Omaha, the outstanding amount of any lease 01/161215.5 A-9 purchase agreements executed by the City as vendee or as lessee is not chargeable against the City debt limit. Under terms of a lease purchase agreement with the Omaha Pollution Control Corporation, the City is required to pay basic rental of $360,000 annually, payable in semiannual installments of $180,000. The term of the lease is for a period of 30 years, terminating in 1997. The payments under this agreement are made from the Sewer Revenue Fund. City of Omaha and Local Authorities and Districts Revenue and Special Obligation Bonds Outstanding* as of December 31, 1994 City of Omaha: Sanitary Sewerage System Revenue Bonds $ 24,300,000 Tax Increment Bonds and Notes 26,633,132 Special Tax Revenue Bonds 3,870,000 Omaha Public Power District 1,020,327,000 Metropolitan Utilities District of the City of Omaha -0- Airport Authority of the City of Omaha 60,015,849 Omaha Housing Authority 10,219,000 *Revenue bond indebtedness is not general obligation debt of the City. Principal and interest are paid solely from revenues arising from operations of the respective City facilities or of the Authority or District issuing such revenue bonds. No taxes are levied for payment of either principal or interest. Nor are the Tax Increment Bonds and Notes and Special Tax Revenue Bonds referred to above general obligations of the City. Principal and interest are paid(1) either from that portion of the ad valorem tax on real property in a redevelopment project which is in excess of that portion of the ad valorem tax upon real property in such redevelopment project produced by the levy at the rate fixed each year by or for each public body levying a tax in such redevelopment project on the valuation for assessment of the taxable real property as last certified for the year prior to the providing for division of such taxes pursuant to the redevelopment plan or (2) from special tax revenues collected pursuant to redevelopment laws. ANTICIPATED ISSUANCE In the fourth quarter of 1995, the City plans to issue lease revenue bonds secured on the same basis as the Bonds in the aggregate principal amount of approximately $16,000,000 to finance a portion of the cost of improvements to the City's auditorium and general obligation bonds in the principal aggregate amount of$14,000,000 to finance various public improvement projects of the City. III 01/161215.5 A-10 , AUTHORITY TO LEVY TAXES Under the City Charter, the tax levy of the City in any year for all purposes shall not exceed the total of (i) $.6125 per $100 of actual taxable value plus (ii) whatever tax levy is necessary to provide for principal and interest payments on the indebtedness of the City, for the administrative expenses incurred in issuing and maintaining bonds, and for the satisfaction of judgments and litigation expenses in connection therewith, plus (iii)whatever amount is required to fmance certain overtime and holiday pay for members of the police force. In addition, the Omaha-Douglas Public Building Commission Act pursuant to which the Commission issues bonds empowers the City to levy a tax on all the taxable property in the City, except intangible property, of$.017 per $100 of actual valuation in excess of the Charter limitation if and to the extent necessary to make the City's payments to the Commission. • The City's tax levy during its current fiscal year ending December 31, 1995 is shown in the table below. No separate levy above the Charter limitation was made for payments to the Omaha-Douglas Public Building Commission. A levy of the additional $.017 authorized by the Omaha-Douglas Public Building Commission Act would have meant an additional levy of $1,714,759. Set forth in the table below is a detailed summary of the property tax levied on real and personal property in the City. Total Property Tax Levies in the City of Omaha (Levied on Real and Tangible Personal Property) 1991 1992 1993 1994 1995 (amount per$100 of actual valuation) City of Omaha General Fund $ .4107 $ .4257 $ .4237 $ .4266 $ .4163 Debt Service Fund .2298 .2203 .2176 .2148 .1963 Judgment Fund .0050 .0000 .0044 .0044 .0045 Riverfront Redevelopment Fund .0049 .0044 .0047 .0046 .0046 Total for City of Omaha $ .6504 $ .6504 $ .6504 $ .6504 $ .6217 1990-91 1991-92 1992-93 1993-94 1994-95 (amount per$100 of actual valuation) Other Taxing Units M.U.D.-Water Hydrants $ .0115 $ .0115 $ .0115 $ .0115 $ .0110 Douglas County .2912 .2912 .2915 .2912 .2775 School District of Omaha' 1.4691 1.4349 1.5293 1.6477 1.6673 School District No. 66 of Douglas County' 1.5658 1.5837 1.5758 1.6193 1.5355 School District of Ralston' 2.0415 2.0194 1'.8789 1.8837 1.9023 School District of Millard' 1.4313 1.4420 1.4111 1.4718 1.5736 State Educational Service Units .0180 .0186 .0197 .0197 .0382 Omaha-Douglas Public Building Commission .0170 .0170 .0170 .0170 .0149 Papio Missouri River Natural Resources District .0322 .0321 .0357 .0357 .0350 Metropolitan Technical Community College .0662 .0700 .0773 .0767 .0776 Omaha Transit Authority .0700 .0700 .0700 .0700 .0635 'Residents in Omaha reside in one of the above four school districts and pay taxes only to that school district. 01/161215.5 A-11 Major Taxpayers' The following are firms located within the City of Omaha with the greatest 1995 real estate valuations. Value of Taxpayer Real Property United Benefit Life Insurance Co. (Mutual/United) $77,427,400 Prudential Insurance Company of America 60,421,300 Creighton Saint Joseph Regional Healthcare System 57,049,700 Oak View Mall Corporation 49,636,400 Crossroads Joint Venture 44,975,000 California Public Retirement System(Two Towers) 28,300,000 Woodmen of the World Life Insurance Society 24,500,000 Regency Associates 20,855,100 Omaha Hotel Inc. 20,624,200 Immanuel Inc. 17,634,900 Vanderbilt Ltd. 17,125,900 AT&T Communications Inc. 16,997,700 Kellogg USA Inc. 16,563,000 Physicians.Mutual Insurance Co. 16,525,000 PDM Inc. 16,310,200 Nebraska Furniture Mart 16,039,700 SFI Ltd. Partnership 13 etal 16,005,000 First National of Nebraska Inc. 15,640,000 First Data Resources Inc. 14,977,500 Shorenstein Realty Investors 13,950,000 Red Lion Inns Operating Limited Partnership 13,829,500 State Street Bank and Trust 13,500,000 Guarantee Mutual Life 13,088,500 SFI Ltd. Partnership 12 12,809,500 Construction Developers Inc. 11,890,000 Consolidated Capital Prop. 11,807,200 Norwest Bank Nebraska 11,600,400 Loyal Katskee 11,198,900 Comfre-Dodge Fund VII 11,164,800 Camelot Village Dev. Co. 10,455,400 C F T Company 10,435,000 Clarkson Memorial Hospital 10,295,400 Federal Reserve Bank 10,265,300 Thomasville Inc. 10,230,000 Bernard Taulborg 10,190,200 Prefco XI Limited Partnership 10,121,800 Source: Records of the Tax Control Supervisor, Office of the Douglas County Clerk. 'In 1986,valuations for Northwestern Bell Telephone Co. (predecessor in interest to US WEST)and Union Pacific Corp.were$52,368,000 and$14,212,600, respectively. Since 1987,valuations for these taxpayers have been determined on a statewide basis and taxes are collected by the Nebraska Department of Revenue. The centrally collected taxes are distributed to local taxing units in proportion to property valuations therein. 01/161215.5 A-12 PROPERTY TAX COLLECTIONS Property taxes on tangible property, real and personal, are levied by the City of Omaha, collected by the Douglas County Treasurer and remitted to the City. Real property taxes are levied September 1 of each year and become due December 31. The first half of tax payable becomes delinquent the following April 1 and the second half August 1. Personal property taxes are levied September 1 of each year and become due November 1. The first half of tax payable becomes delinquent December 1 and the second half the following July 1. Taxes for Year Shown Prior Years' Year Ended Amount % Taxes Total December 31 Certified Collected Collected Collected Collections 1990 $60,388,288 $58,072,932 96.2 $2,851,616 $60,924,548 1991 63,130,966 61,035,328 96.7 3,002,703 64,038,031 1992 64,533,711 62,482,543 96.8 3,077,626 65,560,169 1993 64,001,413 62,062,689 97.0 3,209,644 65,272,333 1994 65,753,953 64,153,434 97.6 2,996,534 67,149,968 Source: Records of Finance Department, City of Omaha. CASH RESERVE FUND At a special City election held on November 6, 1984, voters of the City approved an amendment to Section 5.03 of the City Charter to provide in subsection (10) for the establishment of a cash reserve fund ("Cash Reserve Fund") for the purpose of meeting emergencies arising from: (a) the loss or partial loss of a revenue source; (b) an unanticipated expenditure demand due to a natural disaster, casualty loss or act of God; (c) expenditure demand for the satisfaction of judgments and litigation expenses when the Judgment Levy Fund balance is inadequate; or (d) conditions wherein serious loss of life, health or property is threatened or has occurred. The 1984 amendment to the City Charter authorized the appropriation at the close of any fiscal year for credit to the Cash Reserve Fund of any amount, or portion thereof, held as General Fund surplus. Income earned on amounts credited to the Cash Reserve Fund is retained 01/161215.5 A-13 in the fund. The maximum size of the Cash Reserve Fund was established at an amount equal to 4% of General Fund appropriations. The ordinance adopted by the City Council to close Fiscal 1984 Accounts provided that the sum of$1,600,000 be transferred from 1984 available budgetary balances as the initial credit to the Cash Reserve Fund to be held as provided in Section 5.03(10) of the City Charter. An additional $1,000,000 was credited to the Cash Reserve Fund from budgetary balances as of December 31, 1985. In 1986, the City Council approved a transfer of$1,620,000 of the fund balance to build a court-ordered recreation facility. The 1994 year end transfer ordinance credited $500,000 to the Cash Reserve Fund, increasing the balance as of December 31, 1994 to $2,434,885. 01/161215.5 A-14 e CITY OF OMAHA, NEBRASKA General Purpose Financial Statements for the Year Ended December 31, 1994 and Independent Auditors' Report CITY OF OMAHA, NEBRASKA TABLE OF CONTENTS Exhibit Page INDEPENDENT AUDITORS' REPORT 1 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet-All Fund Types and Account Groups 1 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 2 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual-General and Special Revenue Funds(Budget Basis) 3 7 Combined Statement of Revenues, Expenses and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds 4 8 Combined Statement of Cash Flows -All Proprietary Fund Types 5 9 Notes to General Purpose Financial Statements 10 Deloitte & Tou h LLP HAS &c e ASSOCIATES /‘ Certified Public Accountants INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council City of Omaha,Nebraska We have audited the accompanying general purpose financial statements of City of Omaha,Nebraska as of December 31, 1994 and for the year then ended, listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the management of City of Omaha. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 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JilHi1li E-W0 dy0 ° oco ww °1 7 • Exhibit 4 • CITY OF OMAHA, NEBRASKA COMBINED STATEMENT OF REVENUES,EXPENSES AND RETAINED EARNINGS/FUND BALANCES- ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS YEAR ENDED DECEMBER 31,1994 Proprietary Fund Types Fiduciary Totals Infernal Fund Type (Memorandum Only) Enterprise Service Pension Trust 1994 1993 Revenues: Sewerage service charges $30,652,873 $ - $ - $ 30,652,873 $ 28,119,920 Other user charges 3,093,799 - - 3,093,799 2,833,586 Misc;.11a::;.:.;r...,.ues 137,956 438,741 129,390 706,087 322,985 Contributions - - 15,851,363 15,851,363 16,112,979 Investment income - - 28,197,943 28,197,943 33,794,468 Charges for services - - - - 168,725 Total revenues 33,884,62g 438,74f 44,178,696 78,502,065 81,352,661 Expenses: Payroll and related taxes and benefits 12,514,976 - - 12,514,976 12,145,831 Outside services 5,978,566 - - 5,978,566 5,899,565 Commodities 2,609,028 380,595 - 2,989,623 3,231,233 Depreciation and amortization 8,447,227 34,765 - 8,481,992 8,150,407 Pension plan benefits - - 16,825,831 16,825,831 15,611,232 Contribution refunds - - 399,776 399,776 416,598 Trustee's fees • - - 1,656,957 1,656,957 1,535,968 Other operating expenses 260,608 - 67,610 328,218 168,890 Total expenses 29,810,405 415,360 18,950,174 49,175,939 47,159,724 Operating income 4,074,223 23,381 25,228,522 29,326,126 34,192,939 Nonoperating revenue(expenses): Interest income 576,918 - - 576,918 671,739 Interest on revenue bonds (1,421,704) - - (1,421,704) (2,151,837) Interest on capitalized lease obligations (65,252) - - (65,252) (80,565) Total nonoperating expenses (910,038) - - (910,038) (1,560,663) Transfers: In 1,012,100 - 1,012,100 592,476 Out - - - - (619,007) Net transfers 1,012,100 - - 1,012,100 (26,531) Net income before extraordinary loss 4,176,285 23,381 25,228,522 29,428,188 32,605,745 Extraordinary loss on defeasance(Note 7) (1,856,186) - - (1,856,186) - Net income 2,320,099 23,381 25,228,522 27,572,002 32,605,745 Retained earnings/fund balances, beginning of year 69,592,318 545,963 305,891,782 376,030,063 338,069,380 Depreciation transferred on contributed capital 5,454,883 - - 5,454,883 5,354,938 Retained earnings/fund balances,end of year $77,367,300 $569,344 $331,120,304 $409,056,948 $376,030,063 See notes to general purpose financial statements. 8 1 Exhibit 5 CITY OF OMAHA, NEBRASKA COMBINED STATEMENT OF CASH FLOWS-ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31,1994 Totals Internal (Memorandum Only) Enterprise Service 1994 1993 Cash flows from operating activities: Operating income $ 4,074,223 $ 23,381 $ 4,097,6,04 $ 1,858,570 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation and amortization 8,447,227 34,765 8,481,992 8,150,407 Changes in assets and liabilities: Receivables (748,913) (5,693) (754,606) (701,246) Inventory 2,088 - 2,088 3,291 Warrants payable (2,854,076) 16,587 (2,837,489) 228,637 Accounts payable (477,701) 3,550 (474,151) 551,323 Deposits payable (81,581) - (81,581) 93,383 Workers'compensation claims 420,041 - 420,041 (48,707) Accrued compensated absences (21,409) - (21,409) 50,364 Accrued liabilities (1,486) - (1,486) 34,788 Deferred revenue (29,260) - (29,260) 29,260 Accrued payroll (12,882) - (12,882) 54,199 Net cash flows from operating activities 8,716,271 72,590 8,788,861 10,304,269 Cash flows from noncapital financing activities: Operating transfer in 1,012,100 - 1,012,100 592,476 Operating transfer out - - - (619,007) Net cash flows from noncapital financing activities 1,012,100 - 1,012,100 (26,531) Cash flows from capital and related financing activities: Principal payments under capital lease obligation (294,748) - (294,748) (279,435) Principal payments on long-term debt - - - (1,930,000) Interest paid on capital lease obligations (65,252) - (65,252) (80,565) Principal payments on note payable (1,424,200) - (1,424,200) (1,269,500) Interest paid on long-term debt (897,800) - (897,800) (2,151,837) Capital expenditures (11,947,972) (16,639) (11,964,611) (6,958,043) Proceeds from notes payable 4,110,125 - 4,110,125 1,843,500 Proceeds from long-term debt issuance 26,452,912 - 26,452,912 - Transfer to escrow due to defeasance (28,092,228) - (28,092,228) - Return of grant proceeds (101,019) - (101,019) - Contributions from grants - - - 206,494 Contributions from other funds (23,150) - (23,150) (23,151) Net cash flows from capital and related financing activities (12,283,332) (16,639) (12,299,971) (10,642,537) Cash flows from investing activities: Change in investments,net 770,455 - 770,455 1,043,170 Interest received on investments 622,360 - 622,360 668,923 Net cash flows from investing activities 1,392,815 - 1,392,815 1,712,093 Net increase(decrease)in cash and cash equivalents (1,162,146) 55,951 (1,106,195) 1,347,294 Cash and cash equivalents at beginning of year 5,517,923 386,469 5,904,392 4,557,098 Cash and cash equivalents at end of year $ 4,355,777 $442,420 $ 4,798,197 $ 5,904,392 See notes to general purpose financial statements. • CITY OF OMAHA, NEBRASKA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1994 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Omaha,Nebraska(City)was incorporated on February 2, 1857. The City operates under a Home Rule Charter and has a mayor-council form of governmentCouncil, composed of�se�en members. The ll-time chief executive,the Mayor,and an elected legislativebody, seven Council members each represent one of the City's seven districts. The Mayor and members of the Council are elected through popular vote to four-year terms. The City, as a political subdivision of the State of Nebraska, is exempt from state and Federal income taxes. inc The Financial Reporting Entity-The City's general purposeuurposeasic financial n for statements including a governmentallude allfunds and account groups of the financial reporting entity. The department, agency, institution,commission,public authority,or other governmental organization in the City's financial reporting entity is the significance potentiaCity'sfigovenancial mmental units silIf t�the lusion in its governmental unit. The City has evaluated the several financial reporting entity and has determined it would be inappropriate to do so. rds of Related Organizations-The City's officials are responsible for appointing members of the nd beyond making g _ other organizations,but the City's accountability for these organizations does the appointments. The Mayor or City Council appoint board members of the Omaha Omaha-Douglas glas Housing Authority, the Omaha Airport Authority,the Metro Area Transit Authority and Building Commission. Basis of Presentation - Fund Accounting-The accounts of the City are organized on the basis ofto accounting entity. The operations of considered a separate which is P funds and account groups,each ofcomprise its assets, each fund are accounted for: �separate s, revenueseand expendituraccounts /expenses. The various funds are and account liabilities, fund balance/retained followingfund types summarized by type in the general purpose financial cial statements. The groups are used by the City: • Governmental Fund Types -Governmental funds are those through which most general governmental the functions of the City are financed. The acquisition,use and balances s of ProprietaryCity's exce t those accounted expendable financial resources and the related liabilitiesndsThe measurement focus is upon Funds)are accounted for through governmental determination of changes in financial position, rather than upon net income. The following are the City's governmental fund types: • General Fund -The General Fund is the operating fund of the City. It is used to primary op g p rY account for all financial resources except those required to be accounted for in another fund. 10 • Special Revenue Funds- Special revenue funds are used to account for the proceeds of specific revenue sources(other than expendable trusts or major capital projects)that are legally restricted to expenditures for specified purposes. • Debt Service Funds-Debt service funds are used to account for the accumulation of resources for, and the payment of,general long-term debt principal, interest and related costs. • Capital Projects Funds -Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and similar trust funds). • Proprietary Fund Types-Proprietary funds are used to account for the City's ongoing organizations and activities which are similar to those often found in the private sector. The measurement focus is upon determination of net income and capital maintenance. The following are the City's Proprietary Fund types: • Enterprise Funds-Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises: (a)where the intent of the governing body is that the costs (expenses, including depreciation)of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or(b)where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance,public policy,management control,accountability, or other purposes. • Internal Service Funds-Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City or to other governmental units on a cost-reimbursement basis. • Fiduciary Fund Types -Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations,other governmental units and/or other funds. • Trust and Agency Funds -The City's Trust and Agency Funds include Expendable, Pension Trust and Agency Funds. Pension Trust funds are accounted for and reported essentially in the same manner as proprietary funds. Expendable trust funds are accounted for and reported essentially in the same manner as governmental funds. Agency funds are custodial in-nature and do not involve measurement of results of operations. • Account Groups -Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term liabilities. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. The following are the City's account groups. • General Fixed Assets Account Group-This account group is established to account for all fixed assets of the City, other than those accounted for in the Proprietary Funds and Trust Funds. 11 � , • General Long-term Debt Account Group -This account group is established to account for all long-term liabilities of the City except those accounted for in the Proprietary Funds and similar trust funds. Fixed assets used in governmental fund type operations are accounted for in the general fixed assets account group. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Public domain(infrastructure)general fixed assets consisting of certain improvements other than buildings, including roads, bridges,curbs and gutters, streets and sidewalks,drainage systems and lighting systems are not accounted for with general fixed assets. Such assets normally are immovable and of value only to the City. Therefore,the purpose of stewardship for capital expenditures is satisfied without recording these assets. No depreciation has been provided for on general fixed assets nor has interest been capitalized. All general fixed assets are valued at historical cost or estimated historical cost if actual historical cost 1J ilot available. Donated general fixed assets are valued at their estimated fair value on the date donated. Property,plant and equipment owned by the Proprietary Funds is stated at cost or estimated historical cost. Contributed fixed assets are recorded at fair value at the time received. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Facilities in service 20-75 years All others 3 - 10 years Because of their spending measurement focus,expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets,such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-term Debt Account Group. All Proprietary Funds and Pension Trust Funds are accounted for on a cost of services or"capital maintenance"measurement focus. This means that all assets and all liabilities (whether current or noncurrent)associated with their activity are included on their balance sheets. Their reported fund equity(net total assets) is segregated into contributed capital and retained earnings components. Proprietary Fund type operating statements present increases(revenues)and decreases (expenses)in net total assets. In Proprietary Funds,grants,entitlements or shared revenues received for operations and/or for either capital acquisitions or construction are reported as "nonoperating" revenues. Such resources externally restricted for capital acquisitions or construction are reported as contributed capital. Operating expenses include depreciation on all depreciable fixed assets. Depreciation recognized on assets acquired or constructed through such resources externally restricted for capital acquisitions is transferred to the appropriate contributed capital account and reported in the operating statement. The net income(loss) is adjusted by the amount of depreciation on fixed assets acquired or constructed through such resources externally restricted for this purpose and closed to retained earnings. Contributed capital at December 31, 1994 is net of accumulated depreciation. 12 411. r Basis of Accounting-Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the general purpose financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds,agency funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Major revenue sources and the City's basis of accounting are as follows: • Sales taxes collected by the state through December,property taxes levied and business and occupation taxes due for the current year and remitted to the City within 60 days are considered available and are therefore, recognized as revenues even though a portion of the taxes may be collected in the subsequent year. However, it is the City's policy, in accordance with City Charter requirements,to account for these types of revenues when received for budgetary purposes. In applying the measurable and available concept to intergovernmental revenues,the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however,essentially two types of these revenues. For one type,monies must be expended on the specific purpose or project before any amounts will be paid to the City;therefore, revenues are recorded based upon expenditures incurred. For the other type,monies are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the measurable and available criteria are met. Licenses and permits, charges for services,fines and forfeits and miscellaneous revenues(except investment earnings)are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are measurable. Special assessments are recorded as revenues in the year assessments become current;those amounts receivable after one year are recorded as deferred revenue. Annual installments not yet due are reflected as special assessment receivables and deferred revenues. The accrual basis of accounting is used by Proprietary Funds and Pension Trust Funds. Budget and Budgetary Accounting-The Mayor is required by City Charter to prepare and submit an annual budget to the City Council. A budget is prepared for the General Fund and all Special Revenue Funds,exclusive of all grant funds and the service type special assessments fund. These budgets are prepared primarily on a cash basis for revenues except as described above and accrual basis for expenditures. In addition, encumbrance accounting is employed. Under this system, purchase orders, contracts and other commitments for the expenditure of funds are recorded as encumbrances in order to reserve a portion of the applicable appropriation. 13 e Budgetary control is maintained by department/division and by the following category of expenditures: personnel services,nonpersonnel services,capital outlay and debt service. All budget amendments must be approved by the Mayor and/or City Council. Unencumbered appropriations lapse at the end of the fiscal year. Encumbered funds are carried over to the ensuing fiscal year until utilized or cancelled. Budgets are prepared by department or division and by fund. The City Charter also requires the City Council each year to make an ad valorem tax levy for a sinking fund(Debt Service Fund)which shall provide for principal and interest payments on the general obligation bonded indebtedness of the City. Appropriations for certain Special Revenue Funds and Capital Projects Funds are controlled on a project h,c;c •,nd are carried forward each year until the project is completed or grant funds are expended. Budgets are also prepared for the Proprietary Funds as a management control device. The budgets for these funds are prepared on a revenue and expenditure basis,similar to the budgets for the governmental fund types. Encumbrances-Encumbrance accounting is employed in the governmental funds. Under encumbrance accounting,purchase orders,contracts and other commitments for the expenditures of funds are recorded rances are as reorder to reserveofuthatb portion since the yplicable appropriation.do not constitute liabilities. As explained in the reported get footnote reservations of fund balances they above, December 31, 1994 encumbrances have been reported as expenditures on the budget basis statements. Pooled Cash and Investments-The City maintains a pooled cash and investment account for all funds. These funds are placed in the custody of the City Treasurer. Each fund reports its undistributed interest in the principal balance of the pool. Interest earned on the City's pooled cash and investments is credited to the General Fund of the City. Investments-Investments,except for deferred compensation fund investments, are stated at cost or amortized cost,which approximates market. Deferred compensation fund investments are stated at fair value. Income from investments held by the individual funds is recorded in the respective funds as it is earned. Inventory-Inventory of materials and supplies are stated at the lower of cost or market. Cost is determined on a first-in,first-out basis,consumption method. Compensated Absences-Employees earn annual vacation and sick leave at specific rates during the periods of employment. In the event of termination, an employee is reimbursed for accumulated vacation time up to a maximumallowed carryo ver of 240 hours for civilian bargaining employees and 280 hours ca for civilian management employees, 240 hours for uniformed police and firefighters assigned to a 40- hour shift and 360 hours for firefighters assigned to 24-hour shifts,plus the current year's earnings. Additionally, civilian employees are reimbursed,depending on employee,from one-sixteenth to one- and fourth of accumulated sick leave to a maximum of 1,600 hours (100 to 400 hours),uniformed police fire department employees are reimbursed for one-eighth of accumulated sick leave. Compensation for future vacation and sick leave rights is accrued as earned. 14 e Self-Insurance-The City self-insures all claims related to personal liability and property damage claims related to City owned vehicles,medical and workers'compensation claims and the first$100,000 of buildings and contents coverage. In addition,the City maintains certain insurance coverage on its sewer treatment plants as required by revenue bond covenants. Capitalized Interest-Interest costs incurred on specific construction of proprietary fund plant and equipment is capitalized. The rate used in determining the capitalized interest amount was the effective rate during the year of the outstanding debt. Capitalized interest is offset by interest income of construction funds. Comparative Data-Comparative total data for the prior year has been presented in the accompanying general purpose financial statements in order to provide an understanding of changes in the City's financial position and operations. However,comparative(i.e.,presematiu.. .-r-for year totals by fund type)data has not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Total Columns on Combined Statements-Total columns on the combined statements are captioned "memorandum only"to indicate they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations,or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregate of this data. Unbilled Sewer Revenues- Sanitary sewer charges are billed for the City by the Metropolitan Utilities District. Unbilled revenues, representing estimated consumer usage for the period between the last billing date and the end of the period, are not recorded. Had this amount, approximately$977,000 at December 31, 1994,been recorded, revenue for 1994 would have been higher by approximately $11,000. The City Council sets the rate schedule for the sewer charges. A revised rate structure was developede0 and approved in June 1990 establishing the sewer service charges for the period September through December 1994. In the absence of subsequent revisions,the 1994 rate structure will remain in effect. Cash Equivalents-For purposes of the statements of cash flows,the City considers all highly liquid debt instruments with a maturity of three months or less when purchased to be cash equivalents. 2. PROPERTY TAXES The Home Rule Charter of the City of Omaha imposes a tax ceiling for general revenue purposes. The tax levy certified in any year shall not exceed$.6125 per$100 of actual valuation plus whatever tax levy is necessary to provide for principal and interest payments on the indebtedness of the City, and for administrative expenses incurred in issuing and maintaining bonds,and for satisfaction of judgments and litigation expenses in connection therewith. The 1994 general tax levy($.42657 per$100 of actual valuation)was below the legal limit by$.18593 or$18,797,098. The assessed value upon which the 1994 levy was based was approximately$10,109,771,409. 15 .. _� • M1 , The tax levies for all political subdivisions in Douglas County are certified by the County Board on or before September 15. Real estate taxes are due and become an enforceable lien on property on December 31. The first half of real estate taxes become delinquent on April 1 and the second half becomes delinquent on August 1 following the levy date. Personal property taxes are due on November 1 and become delinquent on December 1 and July 1 following the levy date. Delinquent taxes bear 14% interest. Motor vehicle taxes are due when an application is made for registration of a motor vehicle. 3. FUND DEFICITS Deficits exist in the fund balance of the Judgment Levy Fund-$392,439,the Federal Disaster Fund- $98,0. a,;.i the Western Heritage Fund-$1,580,Special Revenue Fund types and the 1984 Street& Highway Bond Fund HR-3299 -$255,the Capital Avenue East Parking Fund-$190,991,the Rosenblatt Stadium Expansion Fund-$1,173,711,the 1989 Street Bond Fund-$180,655,the Recreation and Culture Bond Fund-$54,080,the Redevelopment Projects Fund-$359,505,the Capital Type Special Assessments Funds-$1,164,059,the Sewer Bond-$150,890,the Civic Auditorium Parking Fund-$19,906 and the Civic Auditorium Renovation Fund-$411,478, Capital Projects Fund types. These fund balance deficits will be eliminated through collection of special assessments and pledges, additional financing or operating transfers. 4. INTERFUND RECEIVABLES AND PAYABLES Interfund receivables and payables at December 31, 1994 were as follows: Interfund Interfund Receivables Payables General Fund $3,734,352 $ - Special Revenue Funds: 7 Jugment Levy 311,517 _ 1,580 Western Heritage _ 37,796 1993 Federal Assistance _ 528,002 Governmental Grants Total Special Revenue Funds _ 878,895 Capital Project Funds: _ 1,159,893 Rosenblatt Stadium Expansion _ 159,8 3 Capital Avenue Parking _ 190,917 7 Civic Auditorium Renovation _ 15 Civic Parking Renovation _ 17,846 1986 Recreation and Culture Bond _ 248,939248,99 Downtown Redevelopment#4 McKesson Robbins - 35469,505 1989 Street and Highway Bond 6 _Total Capital Project Funds 2,750,888 Fiduciary Funds: _ 104,569 Police and Fire Retirement Reserve Total-All Funds $3,734,352 $3,734,352 16 5. CASH AND INVESTMENTS Statute and bond covenants authorize the City to invest in"investments of the nature which individuals of prudence,discretion and intelligence acquire or retain in dealing with the property of another". Investments throughout the year were substantially the same as those held at year-end. Deposits-The amount of total bank deposits are classified in these three categories of credit risk: (1) Insured or collateralized with securities held by the entity or by its agent in the entity's name. (2) Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name. (3) Uncollateralized. (This includes any bank balance that is collateralized with securities held by the pledging financial institution,or by its trust department or agent,but not in the entity's name.) The collateralization of the City's deposits with banks at December 31, 1994 is as follows: Bank deposits per banks $ 1,064,128 Time deposits per banks 5,557,471 Total deposits 6,621,599 Less FDIC coverage(category 1) (500,000) Remaining deposits (category 2) $ 6,121,599 Pledged securities at market value $15,255,267 The deposits which are not covered by FDIC coverage or pledged securities are considered to be category 3. Investments-The City's investments, except those of the deferred compensation fund, are held by the counterparty in the counterparty's customer account at the Federal Reserve. Deferred compensation fund investments of$17,929,088 consists of mutual funds and are not subject to categorization. 17 Idle Fund Investment Pool-Investments of the Idle Fund Investment Pool are made from available cash of all city funds and are not identified with any specific fund. The pooled cash and investment account at December 31, 1994 consisted of: Carrying Fair Amount Value U.S. Government and government agency securities $58,944,862 $58,488,435 Bank deposits 1,632,285 1,632,285 Time deposits 5,500,000 5,500,000 $66,077,147 $65,620,720 Pension Funds Civilian Plan Uniformed Plan Fair Fair Cost Value Cost Value Short-term investments $ 9,265,201 $ 9,265,201 $ 19,637,847 $ 19,637,847 U.S. Government and government agency securities 32,775,590 32,768,811 56,120,969 55,621,346 Foreign securities - - 1,000,000 934,700 Corporate bonds 32,298,433 30,148,076 37,485,738 35,774,107 Corporate stocks 62,425,599 70,162,891 77,263,939 81,646,132 $136,764,823 $142,344,979 $191,508,493 $193,614,132 Reconciliation of Investments Fair Cost Value U.S. government and government agency securities $ 16,076,641 $ 15,868,449 Certificates of deposit 57,471 57,471 Pension funds 328,273,202 335,929,111 Less investments included in restricted assets (2,68,0,000) (2,686,700) $341,727,314 $349,168,331 18 6. RESTRICTED ASSETS • Restricted assets at December 31, 1994 were comprised of the following: Bond Reserve Construction Accounts Account Total Enterprise Funds: Sewer Revenue Fund: Equity in pooled cash and investments $ - $ 697,536 $ 697,536 Investments 2,680,000 - 2,680,000 $2,680,000 $ 697,536 $3,377,536 7. BONDS PAYABLE AND OTHER LONG-TERM OBLIGATIONS A summary of long-term debt is as follows: Balances at Retirements Balances at January 1, or Other December 31, 1994 Additions Reductions 1994 General Long-term Debt Account Group: General obligation bonds $139,110,000 $18,010,000 $13,845,000 $143,275,000 Tax increment notes and bonds 28,865,258 922,089 3,154,215 26,633,132 Special tax revenue bond,Series 1989 4,030,000 - 160,000 3,870,000 Lease-purchase contracts payable 3,905,000 2,260,000 3,000,000 3,165,000 Accrued compensated absences 9,234,366 912,451 - 10,146,817 Workers'compensation claims 10,266,664 - 406,553 9,860,111 Other accrued liabilities 4,185,333 1,209,884 - 5,395,217 Total General Long-term Debt Account Group 199,596,621 23,314,424 20,565,768 202,345,277 Enterprise Funds: Revenue bonds 26,230,000 26,800,000 26,230,000 26,800,000 Less unamortized discount - (353,128) - (353,128) I ease-purchase contracts payable 984,750 - 310,901 673,849 Workers'compensation claims 922,467 393,789 - 1,316,256 Total Enterprise Funds 28,137,21/ 26,840,661 26,540,901 28,436,977 Total-All Funds $227,733,838 $50,155,085 $47,106,669 $230,782,254 190 I Long-term debt at December 31, 1994 is comprised of the following individual issues: Effective Interest Rate at Issuance- First Original Payable Series Date Amount Issued Issue Semiannually Due Callable Outstanding General Obligation Bonds $ 8,675,000 3/15/76 Various purpose 5.18763% 1977-1995 1986 $ 450,000 6,000,000 3/15/77 Various purpose 4.71691 1979- 1996 1987 660,E , 20,120,000 6/15/78 Various purpose-refund series 5.05974 1979- 1998 1988 1,200,000 12,800,000 6/15/79 Various purpose 5.25000 1980- 1999 1989 3,200,000 9,465,000 11/1/85 Various purpose 7.84500 1986-2005 1995 535,000 28,500,000 12/1/85 G.O.defeasance bonds 7.71800 1986-2002 1995 1,620,000 13,615,000 11/1/86 Various purpose 6.23019 1987-2006 1996 5,905,000 14,600,000 5/1/90 Various purpose 7.000-7.005 1991 -2010 2000 11,680,000 18,940,000 9/1/91 Various purpose-refund series 6.0622 1992-2011 2004 14,690,000 18,270,000 9/15/91 G.O.-defeasance bonds 6.0465 1992-2009 2002 14,280,000 12 765,000 11/1/92 Various purpose-refund 2002 11,250,000 series 5.25-6.10 1993 20 12 13,660,000 11/1/92 G.O.-defeasance bonds 5.00-6.20 1993-2010 2002 11,395,000 16,895,000 10/1/93 Various purpose-refund series 4.30-4.75 1994-2013 2013 15,520,000 32,090,000 10/15/93 Various purpose-refund series 4.10-4.80 1994-2008 2008 30,940,000 13,000,000 12/1/94 Various purpose 5.75-6.25 1995-2014 2004 13,000,000 Total General Bonds 136,325,000 Annexed Area Bonds 2,500,000 7/15/73 S.I.D.#188 5.81224 1974- 1998 1978 715,000 410,000 9/15/87 S.I.D.#230 Registered 7.4 7.8 1988- 1999 1992 400,0000 3,000,000 5/15/78 S.I.D.#261 4.96722 1978-1996 1983 1,100,000 1/15/92 S.I.D.#230 Registered 5.5-7.0 1995-2004 1996 1,000,000 1,350,000 11/15/93 S.I.D.#368 Registered 3.2-5.70 1995-2008 1996 1,310,000 000 9/15/89 S.I.D.#243 Registered 6.5-8.0 1995-2004 1994 1 815 000 930,0001996 1,130,000 5/1/90 S.I.D.#265A Regi stered 7.0-8.5 1995-2005 1,200,000 1/1/93 S.I.D.#265B Registered 4.25-6.75 1995-2013 1998 1,180,000 Total Annexed Area Bonds 6,950,000 Total General Obligation Bonds $143,275,000 �20 i ' Tax Increment Notes and Bonds Tax Increment Notes Effective Original Interest Rate Amount Issue at Issuance Outstanding $ 580,000 Orpheum Theater 10.25 % $ 160,122 670,000 18th Street-Skywalk 6.75 430,000 80,000 1102 Harney 14.00 44,188 200,000 Lackawanna Leather Co. - 85,467 10,087,270 Beta West 8.85 12,480,000 700,000 Scoular Redevelopment 10.25 555,000 160,000 New Idea Building 9.25 8,553 700,000 First National Bank Building- RPI Services 10.38 700,000 760,000 Stockyards-Phase 1 9.00 686,565 80,000 Roseland Theater 10.50 49,604 115,000 Leo Vaughn Manor 10.25 54,170 140,000 Mason School 10.50 98,535 310,000 Lozier 8.25 70,857 669,375 Spring Valley Plaza 10.25 416,716 70,016 Vinton School 11.25 45,856 87,520 Park School 11.25 59,637 450,000 Redick Tower 11.00 17,951 205,000 Nogg Bros. Paper Co. 8.25 124,329 284,796 John Day 8.25 161,036 702,250 Spring Valley#2, Phase II 10.25 582,983 48,600 Hanighen Square 8.00 31,455 231,068 K B Foods 10.75 147,200 387,027 Millard Refrigerator Services 11.00 299,053 280,000 Stockyards-Phase II 9.30 278,549 750,000 Joseph Terrace 10.00 489,668 300,000 . Hill Hotel 10.75 283,160 200,000 Sleepy Partnership/Sleep Inn 10.00 196,090 164,000 MedCentre Villa 10.25 63,371 h 225,290 Columbian School 10.25 103,939 412,500 Spring Valley#2 10.25 216,164 210,000 Aspen Ridge Apartments 9.50 199,618 88,250 Central Supply Rubber 10.00 57,620 84,500 Omaha Bolt,Nut& Sc rew 10.00 74,942 246,250 Eggress -O'Flying Building 10.00 299,000 180,015 National Building 7.50 180,015 180,000 Cannonball Express 10.00 171,719 Total Tax Increment Notes $19,923,132 21 GI Tax Increment Notes and Bonds,cont. Tax Increment Notes,cont. Effective Interest Rate at Issuance- First Original Payable Series Date Amount Issued Issue Semiannually Due Callable Outstanding Total Tax Increment Notes brought forward S19,923,132 $ 5,730,000 1/15/91 Riverfront Redevelopment- Project No. 1 -Tax-exempt Refunding Bonds 5.9-6.9% 1994-2004 1996 5,410,000 1,385,000 1/15/91 Riverfront Redevelopment- Project No. 1 -Taxable Refunding Bonds 8.2-9.25 1994-2004 1996 1,300,000 Total Tax Increment Bonds 6,710,000 Total Tax Increment Notes and Bonds $26,633,132 Special Tax Revenue Bonds $ 4,700,000 12/1/88 Riverfront Redevelopment- 5.8-7.3 1989-2003 1998 $ 2,040,000 Project 7.625 2008 1,830,000 Total Special Tax Revenue Bonds $ 3,870,000 Revenue Bonds Sewer Revenue Bonds $26,800,000 8/1/94 Regular Sanitary Sewer Revenue - 3.5-5.25 1995-2003 - $26,800,000 22 • As of December 31, 1994,the bonded debt service requirements of the City for principal and interest in future years were as follows: General Obligation Bonded Debt Years Ending December 31, Principal Interest Total 1995 $ 15,785,000 $ 7,795,615 $ 23,580,615 1996 12,465,000 6,934,644 19,399,644 1997 11,950,000 6,299,838 18,249,838 1998 11,410,000 5,678,635 17,088,635 1999 11,045,000 5,086,921 16,131,921 2000 and thererafter 80,620,000 25,893,986 106,513,986 $143,275,000 $57,689,63y $200,964,639 Enterprise Funds Years Ending December 31, Principal Interest Total 1995 $ 2,500,000 $ 1,165,064 $ 3,665,064 1996 2,900,000 1,116,638 4,016,638 1997 3,020,000 987,788 4,007,788 1998 3,160,000 845,578 4,005,578 1999 3,310,000 690,223 • 4,000,223 2000 and thereafter 11,910,000 1,035,556 12,945,556 $ 26,800,000 $ 5,840,847 $ 32,640,847 General obligation bonds have been approved by the voters and issued by the City for various municipal improvements. These bonds represent indebtedness supported by the full faith and credit of the City. At December 31, 1994,the City also had$45,180,000 of authorized but unissued general obligation bonds. In December, 1994,the City issued$13,000,000 of series 1994 general obligations-various purpose bonds. The bonds have interest rates ranging from 5.75%to 6.25%and have annual maturities of $650,000 from 1995 to 2014. The City also annexed several area sanitary and improvement districts (SID)during the current year. SID. #368,bonds originally issued during November, 1993 were assumed at$1,310,000 by the City during 1994. The bonds have interest rates of 3.8%to 5.7%and mature in amounts ranging from$45,000 to$155,000 from 1995 to 2008. Also during 1994,the City assumed$815,000 of SID. #243, originally issued during September, 1989. The bonds have interest rates of 7.25%to 8.0%and mature in amounts ranging from$50,000 to$100,000 from 1995 to 2004. In addition,the City assumed$1,075,000 of SID. #265, originally issued during May, 1990. The bonds have interest rates of 7.5%to 8.5%and mature in amounts ranging from$25,000 to$200,000 from• 1995 to 2005. Finally,the City assumed$1,180,000 of SID. #265 bonds,originally issued during January, 1993. The bonds have interest rates of 4.5%to 6.75%and mature in amounts ranging from $20,000 to$200,000 from 1995 to 2013. 0, 23 } In addition to the above,the City has tax increment notes totaling$19,923,132 and tax increment bonds totaling$6,710,000 which are payable solely from the property taxes collected on certain redeveloped areas. These obligations are retired over a maximum fifteen-year period. According to the City Charter,the total amount of general obligation indebtedness outstanding at any time,which shall include bonds issued but shall not include bonds authorized thethey are t eissued,December shall not exceed 3.5%of the actual value of taxable real and personal propertyCity. 1, 1994 the maximum debt limit was$353,841,999,general obligation debt less available fund balance in debt service was$125,532,945, leaving a debt margin of$228,309,054. Revenue bonds and certain other long-term obligations are the obligation of specific Enterprise Funds and are payable solely from the revenues of the respective funds. Provisions in the revenue bond ordinances contain limitations and restrictions on annual debt service requirements,maintenance of and flow of monies through various restricted accounts and minimum amounts to be maintained in various accounts. it is management's opinion the City is in compliance with all such significant provisions. In August 1994,the City issued$26,800,000 in revenue refunding bonds to advance a refund of $26,230,000 of outstanding 1985 and 1986 Sewer Revenue Bonds. The net proceeds of$26,481,024 (after payment of$375,200 in other issuance costs)plus an additional $1,605,162 were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1985 and 1986 bonds. As a result,the 1985 and 1986 bonds are considered to be defeased and the liability and the related assets placed in the escrow for those bonds have been removed from the balance sheet. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of$1,856,186. The difference is reported in the accompanying financial statements as an extraordinary loss on defeasance. The City completed the advance refunding to reduce its total debt service payments over the next nine years by$1,477,884 and to obtain an economic gain (difference between the present value of the old and new debt service payments)of$2,180,468. In prior years,the City defeased certain outstanding general obligation and revenue bonds by placing the irrevocable trust to provide for all future debt service payments on the old proceeds of new bondsman bonds. Accordingly,the trust account assets and the liability for the defeased bonds are not included in the City's general purpose financial statements. The amount of in-substance defeased debt outstanding at December 31, 1994 is shown below: General Obligation Bonds: 1985 Various Purpose Bonds $ 4,115,00014, ,000 1985 Refund 1987 Various Purpose 6,500,0006, 00,000 1988 Various Purpose 28,145,000 Annexed Area Bonds: 640,000 S.I.D. #134 2,995,000 S.I.D. #290 3,635,000 Sewer Revenue Fund Revenue Bonds: 6,170,000 1973 Series, Revenue Bonds 1980 Series,Revenue Bonds 3,140,0003, 0,000 1983 Series, Revenue Bonds 1985 (Defeasance of Series 1973, 1980 and 1983) Series, Revenue Bonds 12,230,00012, 0,000 1986 Series, Revenue Bonds 39,125,000 $70,905,000 24 -. 8. LEASES General Obligation -The City is leasing the Orpheum Theatre,a waste disposal facility and several libraries and other buildings under noncancellable lease-purchase agreements expiring at various times through 2006,at which time title will be conveyed to the City. The rental payments are designed to equal the debt service requirements of certain nonprofit organizations that financed the construction of the facilities. The City has an option to purchase the facilities at any time by paying an amount equal to the total of all remaining unpaid lease obligations to the lessor at that time. The following is a schedule by years of future minimum lease payments under the lease-purchase agreements together with the present value of the net minimum lease payments as of December 31, 1994: Fiscal Year Ending 1995 $1,078,913 1996 462,700 1997 357,385 1998 254,235 1999 251,330 Later years 1,559,140 Total minimum lease payments 3,963,703 Less amount representing interest 798,703 Total obligation under capital leases with rates of interest from 5%to 7.75% $3,165,000 The City leases space in the Omaha-Douglas Civic Center and the adjoining Hall of Justice under a noncancellable operating lease that expires only upon payment of all outstanding bonds of the Omaha- Douglas Public Building Commission(see Note 11). The annual rental payments are determined based upon actual space occupied by the City for operation and maintenance. The City currently has no plans which would materially affect the amount of space it occupies in the buildings. At the expiration of the lease term,title will be conveyed to the City for that portion of the building occupied during the immediately preceding twelve months. Actual rental payments for 1994 were$791,112. Enterprise Funds-The City is a party to a noncancellable lease-purchase agreement with the Omaha Pollution Control Corporation involving the use of a packing house waste treatment facility. The agreement expires in 1997, at which time the City can purchase the facility for$1. The agreement provides for annual rentals of$360,000 and is accounted for as a capital lease. The facility is presently not in use. 25 i The following is a schedule by years of future minimum lease payments under this capital lease,together with the present value of the net minimum lease payments as of December 31, 1994: Fiscal Year Ending 1995 $ 360,000 1996 360,000 1997 360,000 Later years - Total minimum lease payments 1,080,000 Less amount representing interest 95,250 Total obligation under capital lease with an interest rate implicit in the agreement of 5.4% $ 984,750 9. NOTES PAYABLE At December 31, 1994,the City had outstanding a$3,800,000 special assessment note payable at 7.00% interest due December 14, 1995. Revolving loan contracts between the City and the Nebraska Department of Environmental Quality (NDEQ), for the purpose of improving wastewater treatment facilities,dated April 1, 1992, May 6, 1992 and August 26, 1993 were entered into for amounts not to exceed$3,015,000, $2,205,000 and $3,500,000, respectively,at interest rates of 3.5%during construction and 4.0%thereafter, 3.5% throughout and 3.5%throughout, respectively,with amounts to be repaid from user charges within five years,ten years and five years, respectively,and with outstanding balances at December 31, 1994 of $372,925, $1,183,900 and$2,317,500, respectively. Due to the revolving nature of the loan contracts, such balances are classified as current liabilities. 10. DUE FROM OTHER GOVERNMENTS The total due from other governments of$8,664,278 includes the following significant items: Fund/Fund Type Amount Due From/Source General $2,521,953 State of Nebraska, state aid distribution General 4,911,450 State of Nebraska,November sales and use tax General 360,826 Douglas County, property tax collections Debt Service/General Debt Service 181,651 Douglas County, property tax collections Debt Service/General Debt Douglas County, special assessment Service 31,059 collections 1 County, special Capital Projects Type Special 23,183 Douglas Co ty, assessment Assessments/Capital Projects collections City Street Maintenance/ 232,973 Special Revenue Douglas County, wheel tax Municipal Infrastructure 388,993 State of Nebraska cigarette taxes Redevelopment, Special Revenue 26 11. CONTRIBUTED CAPITAL The changes in the City of Omaha's contributed capital accounts for its proprietary funds were as follows: Enterprise Sewer Municipal Revenue Dock Beginning balance, contributed capital $150,140,627 $255,942 Contributing sources: Other funds 7,995,611 - Less: Depreciation transfer (5,454,883) (23,150) Return of grant (101,019) - Ending balance, contributed capital $152,580,336 $232,792 12. JOINT VENTURE The City of Omaha and Douglas County have entered into a joint venture to construct and maintain certain facilities used to provide services to their constituents. The joint venture,the Omaha-Douglas Public Building Commission(Commission), is considered a separate reporting entity by the City. Accordingly,the Commission has not been included in these general purpose financial statements. The Commission was formed by a joint resolution of the City and Douglas County in 1972. Management of the Omaha-Douglas Civic Center and the adjoining Hall of Justice is vested in the Commission. The City's ownership in the joint venture is based upon the percentage of space occupied. The city occupied approximately 47%of the space in 1994. Total joint venture debt at June 30, 1994 was$11,085,000, including a current portion of$1,460,000. The Commission has entered into lease agreements with the City of Omaha and Douglas County to provide adequate funding for operation of the Civic Center and,with taxes to be levied by the Commission,to provide for the retirement of principal and interest on the debt. A summary of certain joint venture financial information as of and for the year ended June 30, 1994 is shown below: Total assets $31,785,215 Total liabilities 12,641,950 Total equity 19,143,265 Total revenues 4,461,849 Total expenses 3,612,350 Net increase in retained earnings 849,499 13. EMPLOYEES' RETIREMENT PLANS The employees of the City are covered by two single-employer retirement plans. The City of Omaha Employees' Retirement System(Civilian Plan)and the City of Omaha Police and Firefighters Retirement System (Uniformed Plan), as described below,are accounted for by the City as Pension Trust Funds. 27 Civilian Plan Plan Description-The Civilian Plan became effective on January 1, 1949. Its provisions are governed by Chapter 22 of the Omaha Municipal Code. All City employees except the following are covered by the Civilian Plan: police; firefighters;persons paid on a contractual or fee basis; seasonal,temporary, part-time employees;and elected officials who do not make written application. For the year ended December 31, 1994,the City's total payroll was$97,340,971 of which$43,961,577 was covered under the Civilian Plan. The Civilian Plan,as of the last actuarial valuation date,July 1, 1993,had 2,210 members consisting of: Retirees currently receiving benefits 469 Beneficiaries 247 Disability retirements 59 Current active employees: Vested(City's and employee's portion of benefit) 1,093 Nonvested(employee portion only) 342 2,210 An employee with at least five years of service may retire as early as age 55. If an employee retires prior to age 60 his/her benefit shall be reduced by 8%for each year his/her pension commences prior to the year of his/her 60th birthday. If at retirement an employee's age plus service is greater than or equal to 85,the 8%per year reduction is not applied. An employee's monthly pension equals, for each year of service credit, 1.667%of the average final monthly compensation of the highest annual equivalent in pay periods of the last five years of compensation upon which a 4%contribution was made pursuant to the Code. An employee who terminates before obtaining pension eligibility receives a refund of his/her contributions plus interest(currently 5%per annum). If employment terminates after five years of service,the employee may elect a deferred pension instead of a contribution refund. An employee is treated as an active employee if he or she dies before the pension becomes payable. Employees contribute,by payroll deduction, 4%of their total calendar year compensation. Employees are 100%vested in their contributions. An employee who has participated in the plan for twenty-five r years may elect to discontinue his contributions and receive no pension credits for service thereafter. The City makes quarterly payments equal to the amount contributed by employees plus the remaining cost of membership service plus an amount sufficient to amortize the past service cost over thirty years from July 1, 1989. Prior service credit is granted for employment with the City before January 1, 1949, and membership service credit is granted for employment thereafter. Compulsory military duty and voluntary military duty in time of war count as service. The Civilian Plan also provides for certain disability and death benefits. 28 Funding Status and Progress-The actuarial present value(APV)of credit projected benefits is a standardized disclosure measure of the accrued pension benefit obligation(PBO). It is the discounted amount of benefits estimated to be payable in the future as a result of employee service through the valuation date,computed by attributing an equal benefit amount(including the effects of projected salary increases and step-rate benefits)to each year of credited and expected future employee service. The APV of credited projected benefits at July 1, 1993 was determined through an actuarial valuation. Significant actuarial assumptions used in the valuation include(a)a rate of return on the investment of present and future assets of 7%a year compounded annually, (b)projected salary increases of 4.5%a year,compounded annually,attributable to inflation and seniority merit,and(c)life expectancies before and after retirement based on the 1984 Unisex Pension Mortality Table. Pension Benefit Obligation as of July 1, 1993 Vested Benefits: $ 54,853,982 Participants currently receiving benefits Accumulated employee contributions -including interest 24,544,454 Active participant benefits attributable to employer 30,286,166 109,684,602 Nonvested benefits - 2,409,028 obligation Pension benefit (PBO)( ) 112,093,630 Net assets available for benefits at cost(with a market value of $140,689,071 in 1993) 116,848,751 Assets in excess of pension benefit obligation $ 4,755,121 Annual covered payroll $ 44,254,510 Net assets available for benefits at fair value as a percentage of PBO 104 % Assets in excess of PBO as a percentage of annual covered payroll 11 % Contribution Required and Contribution Made -The City uses the Entry Age Normal Cost valuation method to determine its required contribution to the Plan. The significant actuarial assumptions used to Ndetennine the required contribution are the same as those used to compute the PBO. 29 The actuarially determined City contribution requirement for the year ended June 30, 1993 was $2,108,226, including$1,184,755 of normal cost plus$923,471 of underfunded past service cost,based on a projected covered payroll of$44,254,510, or 4.764%as a percentage of payroll. The Funds are allocated a portion of the normal cost based on percentages of payroll. Expense of$394,432 and $386,433 for 1994 and 1993, respectively,was incurred and paid by the Funds. Actual City contributions are based on the percentage of payroll calculated by the actuary. Actual contributions at December 31, 1994 and 1993 include the following: 1994 1993 As a Percentage As a Percentage of Current Year of Current Year In Dollars Covered Payroll In Dollars Covered Payroll Employer $2,286,002 5.2 % $2,383,293 5.2 % Employee-required 1,758,463 4.0 1,833,302 4.0 Special contributions: Employer - - - - Employee 70,328 - 2,757 - Total $4,114,793 9.2 % $4,219,352 9.2 % Three-year historical trend information,as available, is as follows: Assets in Excess (Deficit)of Pension Col. 1 Pension Annual Col.4 Net Assets Benefit as%of Benefit Covered as%of for Benefits Obligation Col.2 Obligation Payroll Col.5 (Col. 1) (Col.2) (Col.3) (Col.4) (Col.5) (Col.6) July 1, 1992 No Valuation Available July 1, 1993 $116,848,751 $112,093,630 104 % $4,755,121 $44,254,510 11 % July 1, 1994 No Valuation Available Required ten-year historical trend information,as available, is presented in Tables 1 and 2 of the supplemental information. Uniformed Plan Plan Description -The Uniformed Plan became effective July 1, 1961. Its provisions are covered by Chapter 22 of the Omaha Municipal Code. The Uniformed Plan covers all probationary and regular uniformed personnel of the police and fire divisions of the public safety department of the City. For the year ended December 31, 1994,the City's payroll covered under the Uniform Plan was $53,379,264. 30 As of July 1, 1994,the date of the last actuarial valuation,the Uniformed Plan had membership as follows: Retirees currently receiving benefits 359 Beneficiaries 245 Disability retirements 237 Vested terminations 3 Current active employees 1,202 2,046 An employee with at least twenty-five years of service may retire as early as age 50. An employee's monthly pension is a percentage(from 20 to 60)of the employee's highest average monthly compensation during any consecutive twelve paid months during the employee's last five years of service. Prior to September 1989 the maximum monthly pension compensation percentage was 50%. In September 1989 the City agreed to increase the percentage by 1%for each year of service over twenty-five years of service to the current maximum of 60%. The Uniformed Plan also provides for certain disability and death benefits. An employee who terminates prior to obtaining pension eligibility receives a refund of his contributions plus interest. If employment terminates before age 50 with more than twenty years of service and prior to obtaining pension eligibility,the employee may elect to receive, in lieu of a refund, a deferred monthly pension beginning at age 50. Employees are required to contribute,by payroll deduction, 9.1%(previously 8.15%through mid- September 1989)of total monthly salary. The City is required by the Municipal Code to contribute 10.4%(9.45%through mid-September 1989)of each eligible employee's total monthly salary and the City shall make contributions to fund the cost of pensions accrued for prior service in an amount equal to (a)required interest on the unfunded actuarial liability for prior service,or(b)the actual amount of such pensions as they become due and payable. As a result of litigation,the City has agreed to contribute to the Uniform Plan$1,327,600 per year,which fulfills the City's requirement (b)above. L 31 Funding Status and Progress -The APV of credited projected benefits at July 1, 1994 was determined through an actuarial valuation. Significant actuarial assumptions used in the valuation included(a)a rate of return on the investment of present and future assets of 8.5%, and(b)projected annual salary increases for inflation plus merit increases based on age. Pension Benefit Obligation as of July 1, 1994 Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them $103,588,878 Accumulated employee contributions-including interest 54,000,910 ,.articipant benefits attributable to employer 50,582,163 208,171,951 Nonvested benefits 35,886,659 • Pension benefit obligation 244,058,610 Net assets available for benefits at cost(with a market value of $191,282,653 in 1994) 183,255,226 Unfunded pension benefit obligation $ 60,803,384 Annual covered payroll $ 53,379,264 Net assets available for benefits at cost as a percentage of PBO 75 % Unfunded PBO as a percentage of annual covered payroll 114 % Contribution Required and Contribution Made -The City uses the Aggregate Cost valuation method to determine its required contribution to the Plan. The significant actuarial assumptions used to determine the required contribution are the same as those used to compute the PBO. 32 The Plan's contribution was based on the most recent actuarial determination plus an increase resulting from a change in the Plan's provisions made in September 1990. Actual contributions for the year ended December 31, 1994 include: As a Percentage of Current Year In Dollars Covered Payroll City: Current $ 5,551,457 10.40 % Prior service 1,327,600 2.49 Employee-required 4,857,513 9.10 Total $11,736,570 21.99 % Additional historical trend information to analyze the strength of the Uniformed Plan is available in Tables 3 and 4 of the supplemental information. 14. DEFERRED COMPENSATION PLAN The City of Omaha has a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan permits eligible employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, unforeseeable emergency, or permanent disability. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are(until paid or made available to the employee or other beneficiary)solely the property and rights of the City(without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The plan's assets are held by an external administrator, and are recorded in the general purpose financial statements at fair market value. It is the City's opinion that the City has no liability for losses which may arise under any legally permitted investment of funds under the plan, but does have the duty of due care that would be required of an ordinary prudent investor. The City has not used these assets to pay general creditors and the City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 0 33 15. SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains five Enterprise Funds which provide sewer,marina, dock,parking and golf concession services. Segment information for the year ended December 31, 1994 is as follows: Downtown Golf Dodge Park Redevelopment Concession Sewer Marina Municipal Project Revenue Revenue Fund Fund Dock Fund No.1 Fund Fund Tote: Operating revenues $ 30,652,873 S282,307 S 55,597 $ - $2,893,851 S 33,884,628 Operating expenses: Depreciation and amortization $ 8,304,026 $ 39,432 $ 38,716 $ - $ 65,053 $ 8,447,227 Other 18,785,372 157,353 549 19,437 2,400,467 21,363,178 $ 27,089,398 $196,785 $ 39,265 S 19,437 S2,465,520 S 29,810,405 Operating income(loss) $ 3,563,475 S 85,522 $ 16,332 S(19,437) $ 428,331 S 4,074,223 Net income(loss) $ 1,500,959 S 93,914 $ 16,332 S(19,437) $ 728,331 S 2,320,099 Net working capital $ 13,247,514 $261,824 $ 99,281 $78,975 S 859,133 S 14,546,727 Total assets $262,872,602 $849,996 $401,063 S 82,817 $1,747,800 $265,954,278 Bonds and notes payable-net of unamortized discount $ 30,321,197 $ - $ - S - $ - $ 30,321,197 Current year contributed capital S 2,439,709 $ - $(23,150) $ - $ - $ 2,416,559 Fund equity $227,149,621 $849,163 $401,063 $78,975 $1,701,606 S230,180,428 Net acquisition(disposal)of property,plant and equipment $ 11,462,200 $ (3,394) $ - $ - $ 482,378 $ 11,941,184 16. FIXED ASSETS General Fixed Assets-All assets are valued at estimated historical cost or, if donated,estimated value at time of donation. The City has elected not to record infrastructure assets or to depreciate general fixed assets. A summary of changes in general fixed assets follows: Balance Balance December 31, January 1, 1994 Additions Deletions 1994 Land $ 25,269,814 $ 391,626 $ - $ 25,661,440 Buildings and improvements 107,769,941 9,720,629 12,635,228 104,855,342 Equipment 26,051,354 4,052,616 5,772,534 24,331,436 $159,091,109 $14,164,871 $18,407,762 $154,848,218 34 Proprietary Fund Types-A summary of Proprietary Fund Type property,plant and equipment at December 31, 1994 follows: Internal Enterprise Service Land $ 2,311,178 $ - Buildings 440,032 - Improvements other than buildings 919,017 - Equipment,machinery and fixtures 7,927,376 293,029 Sewerage treatment plants and other facilities 320,419,867 - Construction in progress 13,285,450 - 345,302,920 293,029 Less accumulated depreciation 104,115,050 115,658 $241,187,870 $177,371 Construction in progress at December 31, 1994 is composed of the following: Sewer Fund: Street Sewer Separation Project $ 2,243,680 Missouri River Treatment Works 2,004,998 Geographic Information Mapping System 2,082,084 Construction on various sewer facilities 6,743,916 Golf Revenue Fund: Elmwood Renovation Project 210,772 Total construction in progress $13,285,450 17. RECONCILIATION OF BUDGET BASIS REVENUES AND EXPENDITURES TO GAAP Revenue and expenditures presented on a non-GAAP budget basis of accounting differ from the revenues and expenditures presented in accordance with generally accepted accounting principles (GAAP)because of the different treatment of encumbrances and accruals(revenue recognition). In addition, Section 5.14 of the City of Omaha's Home Rule Charter requires that the year-end general fund balance"be applied as general fund revenue in the budget for the fiscal year two years subsequent to that fiscal year". Therefore,the amount of the general fund carryover coming into a particular fiscal year has already been determined. Any general fund encumbrances at the end of a fiscal year are not included in the year-end general fund balance because those encumbrances will normally need to be paid in the following fiscal year and cannot be held until the fiscal year two years subsequent to the fiscal year when the encumbrance was incurred. 35 a) ." 0 O et W W c0 f+i C O N N �O 'D i+ y 7 VO 0 N co so 0 as �G >1 .0 V V } Cl.C.. N ).O c--,.[,, en tt O N C C W" sO NO _N M M ONO . . 000 Q N v�1 U1L y 7 %O .-• 00 Cl.. N O. V1 0 V! m CI C M �O N N 'Cr .N. N ON ,a w w 69 59 69 69 C C a •30 d CO 0 m o .0 `• � a� 03 = 15s � 8 o a) <ea 4.0 3 }� C V 0 • 0 s s • • N 8 s i I t j .0 0 C V 07 c:,3 a) V c C C C 0 = y LL co v — • y 69 69' 69 69 p• = H > N o)C3 �H M en o�0 N N 0�0 NO O — NO 61 f.; l" 0 co t vO VD h O cD h '0 N v ena) to y ON. 01 M t. so cc!, en Q NO • en )C 4) C y ' ' '0 '0 so N 00 , O O C� N - N- OS i. W > 0. C - Il N , M M M o 0'U Ce W y 0 69 69 69 vi • Q a) • > 0 CO 'O O a.)) CO y 0 0 t N es, 0000 0000 Of) V vi ^t,, ,D en on on .0 y 6 e0 0) o •Crs N 00 o o en f el ♦.1 0 C 2 V1 v N M .- .—, cl et .E 0 69 69 69 69 en a. c (A = RS N 0 a 3 co +•+ y N N N N O4) ..0 O O O NM - NN • � 4.) ..0N 00 00 00 N o' N O O • • • • • 0 N 0C NO N el U C o. as C M N cr.. O C 0 y • 3 {j 69 4, 69 69 CI ate' .° • 0 CO WI C NO te W ' V'1 V1 M � CO 'O %O N CIO a7 C� IX � •.• w.i en — V'1 c.) ccl �-. 69 69 69 69 cel CI C - V 0 C e0 N oO O v1 C N 00. C y V C y U Q R C } p h l O w i N M N cON 0 0000 ice.. i• ce.. .� m y 0 .-. N so —• .--. en M ....� .�. 0 03 m 69 69 69 69 N C Cl aCi 6- y C "' 13 C' C, as•r1 VD 7 (AO c eat a) , �_ 0 0 o m C d ti g LC C "1 R c. I. y ci2U oo y re iii N � Cv � C y C> > > p y3 e4 Ctl b a.) C C (AOOO O „we-, c' V .� � C 6, r . f-. 03co 0 N Ou0 N M �' N L. a co C� V ....„. C a. M ON ON ON C+ a` o` R E—� 4Z1 co 0 aQs C ca W CZ ^- a a) cc) p] c.., q W W C7 t" • en eat 36 • 18. POST-RETIREMENT HEALTH CARE BENEFITS In addition to providing the pension benefits described in Note 13,the City provides health insurance covrage, in accordance with the City's Municipal Code and the City's contracts with the Omaha Police Union Local No. 101,the Professional Firefighters Association of Omaha Local No. 385 and the Omaha City Employees Local No. 251. Currently, 1,091 individuals meet these eligiblity requirements. The cost of health insurance coverage is recognized as an expense as premiums are paid. For 1994,these costs approximated$2,400,000. 19. EXCESS OF EXPENDITURES OVER APPROPRIATIONS Excess of expenditures over appropriations in individual funds or general fund/departments are as follows: Excess Fund/Department Expenditures General Fund: General Government $ 173,002 Parks, Recreation and Public Property 297,714 Other 391,173 Special Revenue Funds: Municipal Infrastructure Redevelopment Fund 276 Police/FBI Seized Assets Fund 41,271 Emergency Telephone Communications 333,097 Interceptor Sanitory Sewer Fund 240,133 Parks and recreation 494,438 Other 562,984 20. COMMITMENTS The City is a defendant in a number of lawsuits in its normal course of operations. The majority of these lawsuits relate to condemnations for street and utility construction projects which are not included in tax supported funds. In addition to amounts recorded by the City as other accrued liabilities,the City Attorney is of the opinion that there is a reasonable possibility that the City will incur additional losses on these lawsuits not to exceed$9,000,000. The City is a party to numerous contracts related to design and construction projects within the Wastewater Collection and Treatment System. At December 31, 1994,approximately$4,522,992 of such contracts were not recorded as liabilities as the related construction had not been performed. The City participates in a number of Federally assisted grant programs,principally Federal Highway Construction Grants, Community Development Block Grant, Job Training Partnership Act and other local improvement programs. The programs are subject to financial audits. The amount of expenditures,if any,which may be disallowed by granting agencies is not determinable at this time; however, City management does not believe that such amounts, if any,would be significant. 37 APPENDIX B FORM OF LETTER AGREEMENT September , 1995 FirsTier Bank Omaha, N.A., as Trustee 1700 Farnam Street Omaha, Nebraska 68102-2183 $8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects) Series 1995 Dear Ladies and Gentlemen: (a) This Letter Agreement is executed and delivered by the City of Omaha, Nebraska (the "City") and FirsTier Bank Omaha, N.A., as Trustee (the "Trustee") under that certain Indenture of Trust dated as of September 1, 1995 (the "Indenture"), for the benefit of the holders of$8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds(Omaha-Park Four and Omaha-Park Five Projects), Series 1995 (the "Bonds") and to facilitate compliance with Section (b)(5)(i)of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (17 C.F.R. § 240.15c2-12) (the "Rule"). This Letter Agreement is being executed and delivered to assist Kirkpatrick Pettis Smith Polian, Inc., FirsTier Bank, National Association, Smith Barney Inc./Chiles Heider Division and Dain Bosworth Incorporated (collectively, the "Underwriter"), as Participating Underwriters under the Rule, to comply with the Rule. Capitalized terms used in this Letter Agreement and not otherwise defined in the Indenture shall have the meanings assigned such terms in paragraph (b) hereof. (b) The following are the definitions of the capitalized terms used herein and not otherwise defined in the Indenture: "Annual Financial Information" means the financial information or operating data with respect to the City, provided at least annually, of the type included in Appendix A hereto. The financial statements included in the Annual Financial Information shall be prepared in accordance with generally accepted accounting principles ("GAAP") for governmental units as prescribed by the Government Accounting Standards Board ("GASB"). Such fmancial statements may, but are not required to, be Audited Financial Statements. 01/161215.5 "Audited Financial Statements" means the City's annual financial statements, prepared in accordance with GAAP for governmental units as prescribed by GASB, which financial statements shall have been audited by the City Council Audit Committee. "Material Event" means any of the following events, if material, with respect to the Bonds: (i) Principal and interest payment delinquencies; (ii) Non-payment related defaults; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (vii) Modifications to rights of Bondholders; (viii) Bond calls (other than mandatory sinking fund redemptions); (ix) Defeasances; (x) Release, substitution or sale of property securing repayment of the Bonds; and (xi) Rating changes. "Material Event Notice" means written or electronic notice of a Material Event. "NRMSIR" means a nationally recognized municipal securities information repository, as recognized from time to time by the Securities and Exchange Commission by no-action letter for the purposes referred to in the Rule. The NRMSIRs as of the date of this Letter Agreement are Bloomberg Municipal Repositories, Post Office Box 840, Princeton, New Jersey 08542-0840, Phone: (609) 279-3200 and Fax: (609) 279-5962; The Bond Buyer, Attention: Municipal Disclosure, 395 Hudson Street, New York, New York 10014, Phone: (212) 807-3814, Fax: (212) 989-9282 and Internet: Disclosure Muller.com;Kenny Information Systems, Inc., 16th Floor, 65 Broadway, New York, 01/161215.5 B-2 New York 10006, Attention: Kenny Repository Service, Phone: (212) 770-4595 and Fax: (212) 797-7994;Moody's NRMSIR, Public Finance Information Center, 99 Church Street, New York, New York 10007, Phone: (800) 339-6306 and Fax: (212) 553-1460; and Disclosure Inc., 5161 River Road, Bethesda, Maryland 20816, Attention: Document acquisitions/Municipal Securities, Phone: (301) 951-1450 (for issuer related questions) and Fax: (301) 718-2329 (for issuers to fax in documents). "SID" means a state information depository as operated or designated by the State of Nebraska and recognized by the Securities and Exchange Commission by no-action letter as such for the purposes referred to in the Rule. There is not a SID as of the date of this Letter Agreement. (c) The City undertakes to provide the following information as provided in this Letter Agreement: (1) Annual Financial Information; (2) Audited Financial Statements, if any; and (3) Material Event Notices. (d)(1) The City shall while any Bonds are Outstanding provide the Annual Financial Information on or before the date which is 270 days after the end of each fiscal year of the City (the "Submission Date"), beginning in 1997, to the Trustee, who shall provide such Annual Financial Information to each then existing NRMSIR and the SID, if any, on or before the date which is five days after the Submission Date (the "Report Date") while any Bonds are Outstanding or, if not received by the Trustee by the second Business Day prior to the Report Date, then within five Business Days of its receipt by the Trustee. The City shall include with each submission of Annual Financial Information to the Trustee a written representation addressed to the Trustee to the effect that the Annual Financial Information is the Annual Financial Information required hereby and that it complies with the applicable requirements hereof. If the City changes its fiscal year, it shall provide written notice of the change of fiscal year to the Trustee and to each then existing NRMSIR or the Municipal Securities Rulemaking Board ("MSRB") and the SID, if any. It shall be sufficient if the City provides to the Trustee and the Trustee provides to each then existing NRMSIR and the SID, if any, any or all of the Annual Financial Information by specific reference to documents previously provided to each NRMSIR and the SID, if any, or filed with the Securities and Exchange Commission and, if such a document is a final official statement within the meaning of the Rule, available from the MSRB. (2) If not provided as part of the Annual Financial Information, the City shall provide the Audited Financial Statements to the Trustee when and if available while any Bonds are Outstanding and the Trustee shall then promptly provide each then existing NRMSIR and the SID, if any, with such Audited Financial Statements. 01/161215.5 B-3 (3)(i) If a Material Event occurs while any Bonds are Outstanding, the City shall provide written or electronic notice of a Material Event in a timely manner to the Trustee. The Trustee shall promptly prepare a Material Event Notice, which shall be so captioned and shall _. prominently state the date, title and CUSIP numbers of the Bonds, and shall promptly provide the Material Event Notice to each then existing NRMSIR or the MSRB and the SID, if any. (ii) The Trustee shall promptly advise the City whenever, in the course of performing its duties as Trustee hereunder or under the Indenture, the Trustee identifies an occurrence which, if material, would require the City to provide a Material Event Notice pursuant to subparagraph (d)(3)(i), provided that the failure of the Trustee to so advise the City shall not cause a breach by the Trustee of any of its duties and responsibilities hereunder. (4) The Trustee shall, without further direction or instruction from the City, provide in a timely manner to each then existing NRMSIR or the MSRB and to the SID, if any, notice of any failure by the City while any Bonds are Outstanding to provide to the Trustee Annual Financial Information on or before the Report Date (whether caused by failure of the City to provide such information to the Trustee by the Submission Date or for any other reason). For the purposes of determining whether information received from the City is Annual Financial Information, the Trustee shall be entitled conclusively to rely on the City's written representation made pursuant to paragraph (d)(1) hereof. (5) If the City provides to the Trustee information relating to the City or the Bonds, which information is not designated as a Material Event Notice, and directs the Trustee to provide such information to information repositories, the Trustee shall provide such information in a timely manner to the MSRB and the SID, if any. (6) The Trustee shall determine each year prior to the Report Date the name and address of each NRMSIR and the SID, if any. (e) The continuing obligation hereunder of the City to provide Annual Financial Information, Audited Financial Statements, if any, and Material Event Notices shall terminate immediately once the Bonds no longer are Outstanding. This Letter Agreement, or any provision hereof, shall be null and void in the event that the City delivers to the Trustee an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this Letter Agreement, or any such provision, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds, provided that the Trustee shall have provided notice of such delivery and the cancellation of this Letter Agreement or any provision hereof to each then existing NRMSIR or the MSRB and the SID, if any. (f) This Letter Agreement may be amended by the City and the Trustee, without the consent of the Bondholders, but only upon the delivery by the City to the Trustee of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of this Letter Agreement and by the City with the Rule and that such amendment complies with this 01/161215.5 B-4 paragraph (f), provided that the Trustee shall have provided notice of such delivery and of the amendment to each then existing NRMSIR or the MSRB and the SID, if any. Any such amendment shall satisfy the following conditions: (1) The amendment may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law or change in the identity, nature or status of the City, or type of business conducted; (2) This Letter Agreement, as amended, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (3) The amendment does not materially impair the interest of holders of the Bonds, as determined by nationally recognized bond counsel, or by approving vote of holders of the Bonds pursuant to the terms of the Indenture at the time of the amendment. The initial Annual Financial Information after the amendment shall explain, in narrative form, the reasons for the amendment and the effect of the change in the type of operating data or financial information being provided. (g) Any failure by the parties hereto to perform in accordance with this Letter Agreement shall not constitute an "Event of Default" under the Indenture or the Lease Purchase Agreement, and the rights and remedies provided by the Indenture upon the occurrence of an "Event of Default" shall not apply to any such failure. The Trustee shall not have the power or duty to enforce this Letter Agreement. If the City fails to comply herewith, any Bondholder may take such actions as may be necessary and appropriate, including seeking specific performance by court order, to cause the City to comply with its obligations hereunder. (h) This Letter Agreement shall be governed by and construed in accordance with the laws of the State of Nebraska, provided that to the extent this Letter Agreement addresses matters of federal securities laws, including the Rule, this Letter Agreement shall be construed in accordance with such federal securities laws and official interpretations thereof. (i) Article X of the Indenture is hereby made applicable to this Letter Agreement as if this Letter Agreement were (solely for this purpose) contained in the Indenture. The Trustee shall have only such duties as are specifically set forth in this Letter Agreement, and the City agrees, subject to the availability of appropriations of funds to it therefor and other moneys legally available for the purpose, to indemnify and hold harmless the Trustee from and against any and all claims, damages, losses, liabilities, costs or expenses whatsoever which the Trustee may incur (or which may be claimed against the Trustee by any person or entity whatsoever) arising out of or in the exercise or performance of its powers and duties hereunder, but excluding liabilities due to the Trustee's gross negligence or willful misconduct. 01/161215.5 B-5 (j) This Letter Agreement shall inure solely to the benefit of the City, the Trustee, the Underwriter, the City of Omaha Parking Facilities Corporation and the holders from time to time of the Bonds and shall create no rights in any other person or entity. (k) This Letter Agreement may be simultaneously executed in several counterparts, , each of which shall be an original and all of which shall constitute but one and the same instrument. Very truly yours, [SEAL] CITY OF OMAHA, NEBRASKA ATTEST: By Mayor City Clerk APPROVED AS TO FORM: Assistant City Attorney Acknowledged and Accepted as of the date first above written: FIRSTIER BANK OMAHA, N.A., as Trustee By Authorized Signatory 01/161215.5 B-6 �i - • APPENDIX C FORM OF OPINION OF BOND COUNSEL September , 1995 City of Omaha Parking Facilities Corporation City of Omaha Planning Department Suite 1100, 1819 Famam Street Omaha, NE 68183 $8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects) Series 1995 1 Gentlemen: We have acted as Bond Counsel in connection with the issuance and sale by City of Omaha Parking Facilities Corporation, a nonprofit corporation organized under the laws of the State of Nebraska (the "Corporation"), of its Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects), Series 1995, on behalf of the City of Omaha, Nebraska (the "City"), in the aggregate principal amount of$8,475,000 (the "Bonds"). The Bonds are issued as fully registered bonds without coupons, are dated September 15, 1995, bear interest semiannually on March 15 and September 15 of each year commencing March 15, 1996 at the rates per annum set forth below and mature on September 15 of the years and in the principal amounts set forth below: Year Principal Amount Interest Rate 1996 $ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015 01/161215.5 ♦ r f • The Bonds maturing on September 15, 2006 and thereafter are subject to redemption at the option of the Corporation in whole at any time or in part on any interest payment date on or after September 15, 2005 and to extraordinary mandatory redemption in whole at any time. The Bonds have been issued under and pursuant to the Constitution and laws of the State of Nebraska and in accordance with (i) the provisions of a resolution (the "Resolution") adopted by the Board of Directors of the Corporation that authorized the issuance of the Bonds and the execution and delivery of the Lease-Purchase Agreement dated as of September 1, 1995 (the "Agreement") by and between the Corporation and the City, the Indenture of Trust dated as of September 1, 1995 (the "Indenture")by and between the Corporation and FirsTier Bank Omaha, N.A., as trustee (the "Trustee"), the Ground Tease dated as of September 1, 1995 (the "Lease") between the Corporation and the City and the Bond Purchase Agreement dated September 19, 1995 between the Corporation and Kirkpatrick Pettis Smith Polian, Inc., FirsTier Bank, National Association, Smith Barney, Inc./Chiles Heider Division and Dain Bosworth Incorporated (collectively, the"Underwriter"); and(ii) the provisions of Ordinance No. (the "Ordinance") passed by the City Council of the City on September 12, 1995, which Ordinance authorized the execution and delivery of the Agreement, the Lease and the Letter Agreement dated September 27, 1995 between the City and the Trustee and approved the Indenture and the terms of and the issuance of the Bonds. The Bonds have been issued to provide the funds for all or a portion of the cost of acquiring, constructing, furnishing and equipping two public parking garages to be located in the City of Omaha, Nebraska (the "Projects"). The Project sites are leased by the City to the Corporation pursuant to the Lease. Under the Agreement, the City will be granted possession of the Projects and the right to acquire all of the Corporation's interest in and to the Projects. The Corporation has covenanted in the Indenture to comply with all necessary restrictions of the Internal Revenue Code of 1986, as amended, and the Regulations thereunder (the "Code") to preserve the exclusion of interest on the Bonds from gross income for the purposes of federal income taxation. Noncompliance by the Corporation with such restrictions may cause the interest on the Bonds to be subject to federal income taxation retroactive to their date of issue. In connection with the issuance of the Bonds, we have examined the following: (a) the Articles of Incorporation and Bylaws of the Corporation; (b) the Resolution; (c) the Ordinance; (d) executed counterparts of the Agreement; (e) executed counterparts of the Indenture; (f) an executed counterparts of the Lease; 01/161215.5 C-2 (g) an executed counterparts of the Letter Agreement; (h) the form of Bond No. R-1; and (i) such other proceedings, opinions, records, documents, Code provisions and statutes as we deemed necessary and appropriate in rendering this opinion. In connection with the issuance of the Bonds, we are of the opinion that: (1) The Corporation is a nonprofit corporation validly created and existing in the State of Nebraska. (2) The Corporation has the power to issue the Bonds for the purpose and in the manner and to apply the proceeds of the sale of the Bonds as set forth in the Indenture. (3) The Agreement has been duly authorized, executed and delivered by the Corporation and, assuming due authorization, execution and delivery by the City, represents a valid and binding agreement of the Corporation and the City, enforceable in accordance with its terms. (4) The Indenture has been duly authorized, executed and delivered by the Corporation and, assuming due authorization, execution and delivery by the Trustee, represents the valid and binding agreement of the Corporation and the Trustee, enforceable in accordance with its terms. (5) The Lease has been duly authorized, executed and delivered by the Corporation and, assuming due authorization, execution and delivery by the City, represents the valid and binding agreement of the Corporation and the City, enforceable in accordance with its terms. (6) The Bonds are in proper form and have been executed by proper officers of the Corporation. The Bonds constitute valid and legally binding obligations of the Corporation payable, as to principal and interest, solely and only from the Rental Payments (as that term in defined in the Agreement) from the City's use of the Projects. (7) The Rental Payments payable by the City under the terms of the Agreement are general obligations of the City and are payable from the City's General Fund each year of the term of the Agreement on the same basis as operating expenses and other contractual obligations of the City. Rental Payments are payable out of the funds of the City which may be raised, among other sources, by taxes levied by valuation on all the taxable property within the boundaries of the City and by sales taxes, subject to applicable taxing limitations. 01/161215.5 C-3 (8) The Agreement represents unconditional obligations of the City and is not subject to annual renewal. (9) The obligations of the parties and the enforceability of the provisions contained in the Agreement, the Indenture and the Lease relating to the parties may be subject to general principles of equity which permit the exercise of judicial discretion and are subject to bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting creditors' rights generally. (10) Assuming compliance by the Corporation/with the covenant referred to in the fourth paragraph of this letter, interest on the Bonds is excluded from gross income for the purposes of federal income taxation and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. However, for certain corporations, interest on the Bonds is included in the "adjusted current earnings" (i.e., alternative minimum taxable income as adjusted for certain items, including those items that would be included in the calculation of a corporation's earnings and profits under Subchapter C of the Code) for taxable years beginning after 1989, and such corporations are required to include in the calculation of alternative minimum taxable income 75% of the excess of each such corporation's adjusted current earnings over its alternative minimum taxable income (determined without regard to this adjustment and prior to reduction for certain net operating losses). Although the interest in the Bonds is excluded from gross income for federal income tax purposes, the accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the recipient. The extent of these other tax consequences will depend upon the recipient's particular tax status or other items of income or deduction. We express no opinion regarding any such consequences. Purchasers of the Bonds, particularly purchasers that are corporations (including S corporations, foreign corporations operating branches in the United States and corporations subject to the environmental tax imposed by Section 59A of the Code), property or casualty insurance companies, banks, thrifts or other financial institutions, certain recipients of Social Security or Railroad Retirement benefits or individuals who itemize deductions are advised to consult their tax advisors as to the tax consequences of purchasing or holding the Bonds. Interest of the Bonds is exempt from Nebraska state income taxation so long as it is exempt for purposes of the federal income tax. We express no opinion as the title to, or the sufficiency in, the Agreement, the Indenture or the Lease or otherwise of the description of the Projects or the priority of any liens, charges or encumbrances on the Projects. Very truly yours, 01/161215.5 C-4 111111 • Supplement to Preliminary Official Statement Dated September 12, 1995 Relating To: $8,475,000* City of Omaha Parking Facilities Corporation LeacP Revenue Bonds (Omaha-Park Four and Omaha Park-Five Projects) Series 1995 The Preliminary Official Statement is hereby amended and supplemented as follows: (1) The references on the cover page and under "THE BONDS-Place of Payment" to the corporate office of the Trustee in Omaha, Nebraska shall instead be to the principal corporate trust office of the Trustee in Lincoln, Nebraska. (2) The references under "THE BONDS-Place of Payment" to February 1 and August 1 shall instead be to March 1 and September 1, respectively. (3) The caption for the text under "LEGAL MATTERS-Statutory Property Tax Receipts Limitation" shall instead be "-Validity of State Property Tax System." (4) The text under "LEGAL MATTERS-Statutory Property Tax Receipts Limitation" shall be: Nebraska law imposes a 0% limit on the annual increase of anticipated property tax receipts budgeted by local political subdivisions such as the City. Several exceptions from the limitation exist, including property taxes collected for the retirement of bonded indebtedness (which exception does not include the Bonds) and collected as a result of growth, e.g., improvements to real property which increase the value of such property. In addition, the anticipated receipts may be increased (i) upon an affirmative majority vote of the governing body of the political subdivision, by up to 4% by the percentage change in the previous calendar .year's Consumer Price Index-All Urban Consumers, (ii) upon a 75% affirmative vote of the governing body, by the additional increment between such percentage change and 4% and (iii) upon an affirmative majority vote of those voting in a special election called by the governing body, by the amount approved. September 12, 1995. gir LETTER AGREEMENT September 27, 1995 FirsTier Bank Omaha, N.A., as Trustee 1700 Farnam Street Omaha, NE 68102-2183 $8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects) Series 1995 Dear Ladies and Gentlemen: (a) This Letter Agreement is executed and delivered by the City of Omaha, Nebraska (the "City") and FirsTier Bank Omaha, N.A., as Trustee (the "Trustee") under that certain Indenture of Trust dated as of September 1, 1995 (the "Indenture"), for the benefit of the holders of$8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects), Series 1995 (the "Bonds") and to facilitate compliance with Section (b)(5)(i)of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (17 C.F.R. § 240.15c2-12) (the "Rule"). This Letter Agreement is being executed and delivered to assist Kirkpatrick, Pettis, Smith, Pollan, Inc., FirsTier Bank, National Association, Smith Barney Inc./Chiles Heider Division and Dain Bosworth Incorporated (collectively, the "Underwriter"), as Participating Underwriters under the Rule, to comply with the Rule. Capitalized terms used in this Letter Agreement and not otherwise defined in the Indenture shall have the meanings assigned such terms in paragraph (b) hereof. (b) The following are the definitions of the capitalized terms used herein and not otherwise defined in the Indenture: "Annual Financial Information" means the financial information or operating data with respect to the City, provided at least annually, of the type included in Appendix A hereto. The financial statements included in the Annual Financial Information shall be prepared in accordande with generally accepted accounting principles ("GAAP") for 01/161965.3 governmental units as prescribed by the Government Accounting Standards Board ("GASB"). Such financial statements may, but are not required to, be Audited Financial Statements. "Audited Financial Statements" means the City's annual financial statements, prepared in accordance with GAAP for governmental units as prescribed by GASB, which financial statements shall have been audited by the City Council Audit Committee. "Material Event" means any of the following events, if material, with respect to the Bonds: (i) Principal and interest payment delinquencies; (ii) Non-payment related defaults; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting fmancial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (vii) Modifications to rights of Bondholders; (viii) Bond calls (other than mandatory sinking fund redemptions); (ix) Defeasances; (x) Release, substitution or sale of property securing repayment of the Bonds; and (xi) Rating changes. "Material Event Notice" means written or electronic notice of a Material Event. "NRMSIR" means a nationally recognized municipal securities information repository, as recognized from time to time by the Securities and Exchange Commission by no-action letter for the purposes referred to in the Rule. The NRMSIRs as of the date of this Letter Agreement are Bloomberg Municipal Repositories, Post Office Box 840, 01/161965.3 2 L Princeton, New Jersey 08542-0840, Phone: (609) 279-3200 and Fax: (609) 279-5962; The Bond Buyer, Attention: Municipal Disclosure, 395 Hudson Street, New York, New York 10014, Phone: (212) 807-3814, Fax: (212) 989-9282 and Internet: Disclosure @ Muller.com; Kenny Information Systems, Inc., 16th Floor, 65 Broadway, New York, New York 10006, Attention: Kenny Repository Service, Phone: (212) 770-4595 and Fax: (212) 797-7994; Moody's NRMSIR, Public Finance Information Center, 99 Church Street, New York, New York 10007, Phone: (800) 339-6306 and Fax: (212) 553-1460; and Disclosure Inc., 5161 River Road, Bethesda, Maryland 20816, Attention: Document acquisitions/Municipal Securities, Phone: (301) 951-1450 (for issuer related questions) and Fax: (301) 718-2329 (for issuers to fax in documents). "SID" means a state information depository as operated or designated by the State of Nebraska and recognized by the Securities and Exchange Commission by no-action letter as such for the purposes referred to in the Rule. There is not a SID as of the date of this Letter Agreement. (c) The City undertakes to provide the following information as provided in this Letter Agreement: (1) Annual Financial Information; (2) Audited Financial Statements, if any; and (3) Material Event Notices. (d)(1) The City shall while any Bonds are Outstanding provide the Annual Financial Information on or before the date which is 270 days after the end of each fiscal year of the City (the "Submission Date"), beginning in 1997, to the Trustee, who shall provide such Annual Financial Information to each then existing NRMSIR and the SID, if any, on or before the date which is five days after the Submission Date (the "Report Date") while any Bonds are Outstanding or, if not received by the Trustee by the second Business Day prior to the Report Date, then within five Business Days of its receipt by the Trustee. The City shall include with each submission of Annual Financial Information to the Trustee a written representation addressed to the Trustee to the effect that the Annual Financial Information is the Annual Financial Information required hereby and that it complies with the applicable requirements hereof. If the City changes its fiscal year, it shall provide written notice of the change of fiscal year to the Trustee and to each then existing NRMSIR or the Municipal Securities Rulemaking Board ("MSRB") and the SID, if any. It shall be sufficient if the City provides to the Trustee and the Trustee provides to each then existing NRMSIR and the SID, if any, any or all of the Annual Financial Information by specific reference to documents previously provided to each NRMSIR and the SID, if any, or filed with the Securities and Exchange Commission and, if such a document is a final official statement within the meaning of the Rule, available from the MSRB. 01/161965.3 3 (2) If not provided as part of the Annual Financial Information, the City shall provide the Audited Financial Statements to the Trustee when and if available while any Bonds are Outstanding and the Trustee shall then promptly provide each then existing NRMSIR and the SID, if any, with such Audited Financial Statements. (3)(i) If a Material Event occurs while any Bonds are Outstanding, the City shall provide written or electronic notice of a Material Event in a timely manner to the Trustee. The Trustee shall promptly prepare a Material Event Notice, which shall be so captioned and shall prominently state the date, title and CUSIP numbers of the Bonds, and shall promptly provide the Material Event Notice to each then existing NRMSIR or the MSRB and the SID, if any. (ii) The Trustee shall promptly advise the City whenever, in the course of performing its duties as Trustee hereunder or under the Indenture, the Trustee identifies an occurrence which, if material, would require the City to provide a Material Event Notice pursuant to subparagraph (d)(3)(i), provided that the failure of the Trustee to so advise the City shall not cause a breach by the Trustee of any of its duties and responsibilities hereunder. (4) The Trustee shall, without further direction or instruction from the City, provide in a timely manner to each then existing NRMSIR or the MSRB and to the SID, if any, notice of any failure by the City while any Bonds are Outstanding to provide to the Trustee Annual Financial Information on or before the Report Date (whether caused by failure of the City to provide such information to the Trustee by the Submission Date or for any other reason). For the purposes of determining whether information received from the City is Annual Financial Information, the Trustee shall be entitled conclusively to rely on the City's written representation made pursuant to paragraph (d)(1) hereof. (5) If the City provides to the Trustee information relating to the City or the Bonds, which information is not designated as a Material Event Notice, and directs the Trustee to provide such information to information repositories, the Trustee shall provide such information in a timely manner to the MSRB and the SID, if any. (6) The Trustee shall determine each year prior to the Report Date the name and address of each NRMSIR and the SID, if any. (e) The continuing obligation hereunder of the City to provide Annual Financial Information, Audited Financial Statements, if any, and Material Event Notices shall terminate immediately once the Bonds no longer are Outstanding. This Letter Agreement, or any provision hereof, shall be null and void in the event that the City delivers to the Trustee an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this Letter Agreement, or any such provision, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds, provided that the Trustee shall have provided notice of such delivery and the cancellation of this Letter Agreement or any provision hereof to each then existing NRMSIR or the MSRB and the SID, if any. r 0 01/161965.3 4 • (f) This Letter Agreement may be amended by the City and the Trustee, without the consent of the Bondholders, but only upon the delivery by the City to the Trustee of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of this Letter Agreement and by the City with the Rule and that such amendment complies with this paragraph (f) , provided that the Trustee shall have provided notice of such delivery and of the amendment to each then existing NRMSIR or the MSRB and the SID, if any. Any such amendment shall satisfy the following conditions: (1) The amendment may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law or change in the identity, nature or status of the City, or type of business conducted; (2) This Letter Agreement, as amended, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (3) The amendment does not materially impair the interest of holders of the Bonds, as determined by nationally recognized bond counsel, or by approving vote of holders of the Bonds pursuant to the terms of the Indenture at the time of the amendment. The initial Annual Financial Information after the amendment shall explain, in narrative form, the reasons for the amendment and the effect of the change in the type of operating data or financial information being provided. (g) Any failure by the parties hereto to perform in accordance with this Letter Agreement shall not constitute an "Event of Default" under the Indenture or the Lease Purchase Agreement, and the rights and remedies provided by the Indenture upon the occurrence of an "Event of Default" shall not apply to any such failure. The Trustee shall not have the power or duty to enforce this Letter Agreement. If the City fails to comply herewith, any Bondholder may take such actions as may be necessary and appropriate, including seeking specific performance by court order, to cause the City to comply with its obligations hereunder. (h) This Letter Agreement shall be governed by and construed in accordance with the laws of the State of Nebraska, provided that to the extent this Letter Agreement addresses matters of federal securities laws, including the Rule, this Letter Agreement shall be construed in accordance with such federal securities laws and official interpretations thereof. (i) Article X of the Indenture is hereby made applicable to this Letter Agreement as if this Letter Agreement were (solely for this purpose) contained in the Indenture. The Trustee shall have only such duties as are specifically set forth in this Letter Agreement, and the City agrees, subject to the availability of appropriations of funds to it therefor and other moneys 01/161965.3 5 legally available for the purpose, to indemnify and hold harmless the Trustee from and against any and all claims, damages, losses, liabilities, costs or expenses whatsoever which the Trustee may incur (or which may be claimed against the Trustee by any person or entity whatsoever) arising out of or in the exercise or performance of its powers and duties hereunder, but excluding liabilities due to the Trustee's gross negligence or willful misconduct. (j) This Letter Agreement shall inure solely to the benefit of the City, the Trustee, 1 the Underwriter, the City of Omaha Parking Facilities Corporation and the holders from time to time of the Bonds and shall create no rights in any other person or entity. (k) This Letter Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Very truly yours, [SEAL] CITY OF 0 HA, SKA TTEST: / By 5 i-.6": (fir Mayo / f /C ai City Cler .d....,' (,... /:\it — ' . APPROVED AS TO FORM: Assistant City - o Acknowledged and Accepted as of the date first above written: FIRS'11hR BANK OMAHA, N.A., as Trustee By Authorized Signatory 01/161965.3 6 l P10TIOP1 BY COUi1CILMFMBER 41;;;CI:;..:77;444716"4"Zal> I hereby move to amend Council Document No . ;2 73 , Current Series , in the whole by deleting it in its entirety . and substituting , in lieu thereof, the attached Ordinance . APPROVED AS TO FORM : ssis ant ty A1- orne 3 ORDINANCE NO. • AN ORDINANCE AUTHORIZING AND APPROVING THE FORMATION OF CITY OF OMAHA PARKING FACILITIES CORPORATION, A NONPROFIT CORPORATION ORGANIZED UNDER THE LAWS OF THE STATE OF NEBRASKA(THE "CORPORATION"), FOR THE PURPOSE OF ASSISTING THE CITY WITH THE ACQUISITION, CONSTRUCTION, FURNISHING AND EQUIPPING OF PUBLIC PARKING FACILITIES WITHIN THE GEOGRAPHICAL BOUNDARIES OF THE CITY OF OMAHA, NEBRASKA; AUTHORIZING.AND APPROVING A LEASE-PURCHASE AGREEMENT (THE "AGREEMENT") BETWEEN THE CORPORATION AND THE CITY OF OMAHA, NEBRASKA (THE "CITY") TO PROVIDE FUNDS FOR THE LEASE-PURCHASE OF TWO PUBLIC PARKING GARAGES AS DESCRIBED THEREIN (THE "PROJECTS"), A COPY OF WHICH AGREEMENT IS ATTACHED HERETO AS EXHIBIT A AND INCORPORATED HEREIN BY THIS REFERENCE; AUTHORIZING AND APPROVING A GROUND LEASE AGREEMENT(THE "LEASE")BETWEEN THE CORPORATION AND THE CITY FOR THE LEASING OF THE PROJECT SITES BY THE CITY TO THE CORPORATION, A COPY OF WHICH LEASE, IS ATTACHED HERETO AS EXHIBIT B AND INCORPORATED HEREIN BY THIS REFERENCE; APPROVING AN INDENTURE OF TRUST (THE "INDENTURE") BY AND BETWEEN THE CORPORATION AND FIRSTIER BANK, OMAHA, N.A. AS TRUSTEE, A 01/160503.3 T y ORDINANCE NO. Page 2 COPY OF WHICH INDENTURE IS ATTACHED HERETO AS EXHIBIT C AND INCORPORATED HEREIN BY THIS REFERENCE; APPROVING THE TERMS AND CONDITIONS OF THE CORPORATION'S LEASE REVENUE BONDS (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS), SERIES 1995 (THE "BONDS") AS SET FORTH IN THE INDENTURE AND • THE ISSUANCE AND DELIVERY THEREOF; APPROVING THE FORM, CONTENT AND DISTRIBUTION OF THE PRELIMINARY OFFICIAL STATEMENT, A COPY OF WHICH PRELIMINARY OFFICIAL STATEMENT IS ATTACHED HERETO AS EXHIBIT D AND INCORPORATED HEREIN BY THIS REFERENCE AND INCORPORATED HEREIN BY THIS REFERENCE; AUTHORIZING AND APPROVING THE FORM AND CONTENT OF A LETTER AGREEMENT (THE "LETTER AGREEMENT") CONSTITUTING AN UNDERTAKING BY THE CITY TO PROVIDE ONGOING DISCLOSURE ABOUT THE CITY FOR THE BENEFIT OF THE HOLDERS OF THE BONDS, A COPY OF WHICH LETTER AGREEMENT IS ATTACHED HERETO AS EXHIBIT E AND INCORPORATED HEREIN BY THIS REFERENCE; SATISFYING APPLICABLE FEDERAL INCOME TAX LAW REQUIREMENTS AND APPROVING THE EFFECTIVE DATE HEREOF. 01/160503.3 ORDINANCE NO. Page 3 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA: ARTICLE I FINDINGS AND DETERMINATIONS The Mayor and Council of the City of Omaha hereby find and determine: (a) the City of Omaha, Nebraska (the "City") wishes to acquire, construct, equip and furnish certain facilities to be used for public parking (the "Projects"); and, (b) the City intends that certain parcels of real estate owned or-to be owned by the City and located within the geographical boundaries of the City.of Omaha, Nebraska and to be legally described in the hereinafter defined Lease (the "Project Sites"), constitute a part of and be the location of the Projects; and, (c) the City of Omaha Parking Facilities Corporation, a nonprofit corporation organised under Nebraska law (the "Corporation") has been, established for the purpose of assisting the City in the acquisition, construction, furnishing and equipping of public parking facilities within the geographical boundaries of the City of Omaha, Nebraska; and, (d) the Corporation is willing (i) to issue its lease revenue bonds in the aggregate principal amount not to exceed $8,475,000 (the "Bonds") on behalf of the City, the proceeds of which Bonds will be used, in part, to acquire, construct, furnish and equip the Projects and (ii) to lease the Projects to the City; and, 01/160503.3 ORDINANCE NO. Page 4 (e) the Corporation is willing to enter into an Indenture of Trust (the "Indenture") with FirsTier Bank Omaha, N.A., as trustee (the "Trustee"), setting forth the maturity, interest rate or rates and other terms and conditions of the Bonds; and, (f) the City and the Corporation, pursuant to Section 5.17 of the Home Rule Charter of the City of Omaha, 1956, as amended (the "Home Rule Charter"), contemplate entering into a Ground Lease Agreement (the "Lease") whereby the Corporation will lease the Project Sites from the City and a Lease Purchase Agreement (the "Agreement") whereby the City will lease the Projects from the Corporation and pay as rental payments the amounts. necessary timely to discharge the indebtedness created by the Corporation's issuance of the Bonds; and, (g) under applicable Internal Revenue Service rulings, approval by the City Council of the issuance of the Bonds by the Corporation is required in order that the interest on the Bonds be excluded from gross income of the holders for the purpose of federal income taxation, which exclusion will reduce the Corporation's interest costs and thereby reduce the rental payments to be made by the City under the Agreement; and, (h) the Corporation has requested Kirkpatrick Pettis Smith Polian, Inc., FirsTier Bank, National Association, Smith Barney Inc./Chiles Heider Division and Dain Bosworth Incorporated (collectively, the "Underwriters") to underwrite the Bonds; and, (i) in order that the Underwriters may comply with Section (b)(5)(i)of Securities and Exchange Commission Rule 15c2-12 (17 C.F.R., § 240.15c2-12) (the "Rule"), the City will enter into the Letter Agreement (the "Letter Agreement") with the Trustee pursuant to which the • 01/160503.3 ORDINANCE NO. Page 5 City will agree to provide ongoing disclosure about the City for the benefit of the holders of the Bonds; and, (j) the City has determined that it is in its best interest that the Corporation issue the Bonds and apply the proceeds thereof to the acquisition, construction, furnishing and equipping • of the Projects and that it is necessary for the City to enter into the Agreement, the Lease and the Letter Agreement, approve the Indenture, the Bond Purchase Agreement,,the form, content and distribution of the Preliminary Official Statement (the "Preliminary Official Statement") in connection with the marketing of the Bonds by the Underwriters, and satisfy certain requirements of federal income tax law in order that the interest on the Bonds shall be excluded from gross income of the holders for purposes of federal income taxation. ARTICLE II AUTHORIZATIONS AND APPROVALS Section 1. The previous formation of the Corporation is hereby acknowledged, approved and ratified by the City Council and the Corporation is authorized to do that which is necessary and appropriate in order that the Corporation may issue the Bonds on behalf of the City for the purpose of acquiring, constructing, furnishing and equipping the Projects. Section 2. The Agreement is hereby authorized and approved in accordance with the provisions of Section 5.17 of the Home Rule Charter and the Mayor of the City shall execute the Agreement by and on behalf of the City, with the official seal of the City impressed or imprinted thereon and attested by the City Clerk, in substantially the form presented to the City 01/160503.3 3. ORDINANCE NO. Page 6 Council and attached hereto as Exhibit A, subject to such changes, insertions and omissions and fillings-in of blanks as shall have been approved by the City officials executing the same pursuant to this Section. Section 3. The Lease is hereby authorized and approved and the Mayor of the City shall execute the Agreement by and on behalf of the City, with the official seal of the City impressed or imprinted thereon and attested by the City Clerk, in substantially the form presented to the City Council and attached hereto as Exhibit B, subject to such changes, insertions and omissions and fillings-in of blanks as shall have been approved by the City officials executing the same pursuant to this Section. Section 4. The Indenture and the Preliminary Official Statement, in substantially the respective forms presented to the City Council and attached hereto as Exhibits C and D, respectively, are hereby authorized and approved. Section 5. The distribution of the Preliminary Official Statement by the Underwriters is hereby approved, and the Preliminary Official Statement is hereby deemed final as of its date for the purposes of and with omissions permitted by Section (b)(1) of the Rule. Section 6. The Letter Agreement is hereby authorized and approved and the Mayor of the City shall execute the Letter Agreement by and on behalf of the City, with the official seal of the City impressed or imprinted thereon and attested by the City Clerk, in substantially the form presented to the City Council and attached hereto as Exhibit E, subject to such changes, 01/160503.3 ORDINANCE NO. Page 7 insertions and omissions and fillings-in of blanks as shall have been approved by the City officials executing the same pursuant to this Section. Section 7. Payment by the City of the lease-rental amounts from time to time due under and pursuant to the Agreement is hereby authorized and directed. Section 8. The issuance and delivery by the Corporation of the Bonds in the aggregate principal amount, bearing interest at the rates per annum and otherwise on the terms and conditions set forth in the Indenture is hereby preliminarily approved, subject to final approval of the terms of the Bonds, a bond purchase agreement, the final Official Statement and related matters by subsequent resolution of this City Council. Section 9. (a) The Mayor, City Clerk and Acting Finance Director (or any officer of the City authorized to act in the capacity of Mayor, City Clerk or Acting Finance Director) are hereby authorized and directed punctually to execute such instruments, certificates and documents as may be necessary and appropriate and to do all acts and things required therein by the terms, covenants, provisions and agreements of this Ordinance, the Bonds, the Agreement, the Lease, the Indenture and the Letter Agreement. (b) The officers, employees and agents of the City are hereby authorized and directed to do all acts and things necessary to carry into effect the provisions of this Ordinance. Section 10. The City will accept delivery of full legal and unencumbered title to the Projects at the end of the term of the Bonds. 01/160503.3 ORDINANCE NO. Page 8 ARTICLE III EFFECTIVE DATE This Ordinance shall be in full force and effect on the date of its passage, this Ordinance not being legislative in character and immediate effectiveness being within the provisions of Section 2.12 of the Home Rule Charter. INTRODUCED BY COUNCILMEMBER APPROVED BY: PASSED MAYOR OF THE CITY OF OMAHA DATE ATTEST: CITY CLERK OF THE CITY OF OMAHA APPROVED AS TO FORM: CITY ATT-ORNEY 01/160503.3 Cx / • CITY OF OMAHA PARKING FACILITIES CORPORATION, as Lessor to CITY OF OMAHA, NEBRASKA, as Lessee LEASE-PURCHASE AGREEMENT Dated as of September 1, 1995 01/160668.3 .4a LEASE-PURCHASE AGREEMENT TABLE OF CONTENTS (This Table of Contents is not a part of the Lease-Purchase Agreement and is for convenience of reference.) Page RECITALS 1 Section 1. Term of Lease 1 Section 2. Rental Payments 1 Section 3. Place of Payment and Assignment of Rentals 3 Section 4. Repairs and Maintenance 4 Section 5. Insurance, Damage or Destruction 4 Section 6. Condemnation 5 Section 7. Indemnification of Corporation 6 Section 8. Corporation's Right of Inspection 6 Section 9. Alterations, Additions and Improvements 6 Section 10. Use of Premises 7 Section 11. Subletting 7 Section 12. No Right of Surrender 7 Section. 13. Acquisition of the Projects 7 Section 14. Termination of Leasehold 9 Section 15. Default 10 Section 16. Donations to City 10 Section 17. Financing 10 01/160668.3 e r Section 18. Amendment of This Agreement 11 Section 19. Refund of Sales Tax 11 Section 20. Discrimination 11 Section 21. Authority of Parties 11 Section 22. Compliance With Laws 11 Section 23. Notices 12 Section 24. Waiver 12 Section 25. No Merger 12 Section 26. Benefit 12 Section 27. Section Captions 12 TESTIMONIUM, SIGNATURES, AND SEALS 12 Exhibit A—Schedule of Basic Rent Payable by the City of Omaha, Nebraska Appendix A—Leasehold Property Descriptions 01/160668.3 11 LEASE-PURCHASE AGREEMENT THIS LEASE-PURCHASE AGREEMENT is made and entered into as of this 1st day of September, 1995 by and between CITY OF OMAHA PARKING FACILITIES CORPORATION, a Nebraska nonprofit corporation •("Corporation"), and the CITY OF OMAHA, NEBRASKA, a municipal corporation ("City"). RECITALS: Corporation hereby leases to City the property described at Appendix A hereto, together with all improvements of every kind and description, including such buildings, structures, fixtures, equipment and personal property thereon and any property of every kind, whether real or personal, as may, during the term hereof, be situated thereon (the "Projects"). Section 1. .Term of Lease. The term of this Lease-Purchase Agreement (this "Agreement") shall be 20 years and 14 days beginning as of the date hereof and ending on September 15, 2015 unless sooner terminated as hereinafter provided. Section 2. Rental Payments. (a) Basic Rent. City shall pay to Corporation cash Basic Rent in the amounts and on or before the dates shown on Exhibit A which is attached hereto and made a part hereof by this reference. It is the intention of Corporation and City that the Basic Rent herein specified shall be net to Corporation in each year during the term of this Agreement, that all costs, expenses and obligations of every kind (except as otherwise specifically provided in this Agreement) which may arise or become due with respect to the Projects during the term of this Agreement shall be paid by City and that Corporation shall be indemnified by City against all such costs, expenses and obligations. In addition 01/160668.3 l i , to Basic Rent, City agrees to pay as Additional Rent the items set forth below under (b). If any Basic or Additional Rent (collectively, the "Rental Payments") is not paid when due, such rent shall draw interest at the rate of 10% per annum from the due date until paid. (b) Additional Rent. City acknowledges: (i) that under present law, no part of the Projects will be subject to taxation by the State of Nebraska or any political or taxing subdivision thereof; that Corporation has relied on this factor, among others, in making this Agreement but that, if the Projects should be subject to taxation, City shall pay such taxes so that the Basic Rent will be net to Corporation; (ii) that to raise the funds to pay for the Projects as 'provided in Section 13 hereof, Corporation will issue its lease revenue bonds in the aggregate principal amount of$8,475,000 (the "Bonds"), payable from the Basic Rent; that FirsTier Bank Omaha, N.A., as trustee ("Trustee"), will serve under the Indenture of Trust dated as of September 1, 1995. between Trustee and Corporation (the "Indenture") under which the Bonds shall be issued; and that there will be fees and expenses due to Trustee which shall be payable by City; and (iii) that there will be utility, operation, maintenance and other charges incurred in the use of the Projects which shall be paid by City. Accordingly, City agrees to pay, as Additional Rent, the following: . 01/160668.3 2 (A) all taxes and assessments, general and special, levied or assessed with respect to the Projects, or any part thereof, during the term hereof, including any taxes due on the commencement of the term hereof, and all water and sewer charges, assessments and other governmental charges and impositions whatsoever, foreseen and unforeseen, and all other utility, operation and maintenance charges incurred in the operation, maintenance and use of the Projects, with Corporation promptly forwarding to City any notice, bill or other advice received by Corporation regarding any such taxes, assessments or charges(provided that any failure by Corporation so to forward any such notice, bill or other advice shall not release City from its obligation to pay hereunder); (B) the fees and expenses of Trustee under the Indenture governing the issuance of the Bonds, with City paying such fees and expenses as statements are rendered by Trustee to City; and (C) the expenses in connection with any audit or examination of Corporation's records requested by City. Section 3. Place of Payment and Assignment of Rentals. All Basic Rent shall be paid directly to Trustee for the benefit of the owners of the Bonds issued by Corporation. Trustee is the assignee of all of Corporation's rights to collect Basic Rent due hereunder, and, as such assignee, Trustee may enforce Corporation's rights hereunder to collect and receive Basic Rent. City shall have the right at its option, exercisable at any time, to prepay the Basic Rent without prepayment penalty or premium and thereby to terminate this Agreement at any time while not in default of this Agreement upon 30 days' prior written notice to Corporation and the 01/160668.3 3 1 1 byCityto Corporation (or to Trustee while any of the Bonds are outstanding) of an payment rP amount sufficient to pay the principal of all then outstanding Bonds, plus any redemption premium due on such Bonds on their first permitted redemption date, plus interest to accrue on such Bonds to such redemption date. In such event, City shall continue to pay Trustee's fees and the Additional.Rent items as specified in Section 2(b) hereof until all Bonds are fully paid. Section 4. Repairs and Maintenance. Throughout the term of this Agreement, City shall, at its own expense (but insurance proceeds may be used), put and maintain the Projects in good and safe condition and will make or cause to be made all necessary repairs thereto, both interior and exterior, structural and nonstructural, ordinary and extraordinary, however the necessity or desirability for repairs may occur, and whether or not necessitated by fire, flood or other casualty, wear, tear, obsolescence or defects, latent or otherwise. When used in this Section, the term "repairs" shall include all necessary replacements, renewals, alterations and betterments. All repairs made by City shall be at least equal in quality and class to the original work. City shall also, at its own expense, put and maintain in good and safe order, and free from dirt, snow, ice, rubbish and other obstructions or encumbrances, the public sidewalks, gutters and curbs within and adjacent to the Projects. Section 5. Insurance, Damage or Destruction. (a) City shall obtain and keep in force during the term of this Agreement fire and extended coverage insurance with respect to the Projects in an amount at least equal to the full insurable value of the Projects. The term "full insurable value," as used herein, shall mean the actual replacement value or, at the option of City, any lesser amount which is equal to or greater than the amount of all of the Bonds then outstanding. Such insurance shall name City, Corporation and Trustee as insureds as their 01/160668.3 4 ' interest may appear. So long as City is not in default hereunder, any loss shall be adjusted by and paid to City. City shall maintain possession of the policies or certificates evidencing such insurance. (b) Notwithstanding the foregoing, if City shall insure properties similar to the Projects by self insurance, City may, at its option, insure the Projects, in whole or in part, by means of an adequate self-insurance fund set aside and maintained out of its revenues. (c) No damage to or destruction of any part of the Projects, whether by fire or any other casualty, shall entitle City to terminate this Agreement'or to fail to comply with any of its provisions or in any way suspend, abate or reduce the Rental Payments then due or thereafter becoming due under the terms of this Agreement as set forth in Section 2 hereof, unless City shall elect not to replace or restore the Projects and shall provide to Trustee funds sufficient to redeem a portion of the Bonds then outstanding in an amount equal to the ratio of the dollar amount of damage to or destruction of the Projects to the principal amount of the Bonds then outstanding in accordance with the Indenture. (d) City shall deliver to the Trustee as named insured at or prior to the issuance of the Bonds a mortgagee's title insurance insurance policy in the amount of $8,475,000 insuring that the City has fee simple title to the sites of the Projects. Section 6. Condemnation. If at any time during the term of this Agreement the whole or any part of the Projects, including the leasehold interest of the Corporation therein, shall be taken as a result of the exercise of the power of eminent domain or by private purchase in lieu thereof, such taking shall in no way affect the liability of City to pay the Rental Payments provided in Section 2 hereof and to perform all of the other obligations of City hereunder, and 01/160668.3 5 • City shall, at its own expense, comply with all of the requirements in connection with such taking. Proceeds of any such condemnation shall be paid to Corporation and applied on the last unpaid Basic Rent installment for the Projects, unless City shall elect to have a portion of the Bonds redeemed in an amount equal to the ratio of the dollar amount of the condemnation award to the principal amount of the Bonds then outstanding, as provided by the Indenture. Section 7. Indemnification of Corporation. City shall indemnify Corporation and any of its officers, directors, agents or employees (collectively, the "Indemnified Parties") against all liabilities, penalties, damages and expenses which may be imposed upon, incurred by or asserted against the Indemnified Parties as a result of (a) City's performance of, or the failure of City to perform, any obligation to be performed by City hereunder; (b) any use or condition of the Projects or any part thereof or any public street, alley, sidewalk, curb, passageway or space within or adjacent thereto; (c) any personal injury, including death resulting therefrom, or property damage occurring on or about the Projects or any adjacent street, alley, sidewalk, curb, passageway or space; (d) the failure of City to comply with any requirement of any governmental authority; and (e) any construction lien or security agreement filed against the Projects or any part thereof. Section 8. Corporation's Right of Inspection. Corporation, its agents and representatives shall have the right to enter upon the Projects at any reasonable time for the purpose of inspection. Section 9. Alterations, Additions and Improvements. City shall have the right to make any alterations, additions or improvements to the Projects, provided that any such alteration, addition or improvement shall not cause a diminution of the value of the Projects. Any 01/160668.3 6 alterations, additions or improvements to the Projects shall become a part of the Projects and be covered by this Agreement. In no event shall Corporation be obligated or required to make any alterations, additions or improvements except as provided in Section 13 hereof. Section 10. Use of Premises. The Projects shall be used by City as public parking facilities and other such uses as City shall deem appropriate from time to time; provided, however, that any other use of the Projects shall not impair City's use of the Projects as public parking facilities or the exclusion of interest on the Bonds from the gross income of the holders thereof for federal income tax purposes. Section 11. Subletting. City may sublet any part of the Projects for any public parking uses for a period not extending beyond the term of this Agreement; provided, however, that such subletting may not impair City's use of the Projects or the exclusion of interest on the Bonds from the gross income of the holders thereof for federal income taxation purposes. Such subletting shall not affect the obligation of City to pay the Rental Payments required under Section 2 of this Agreement. Section 12. No Right of Surrender. City shall have no right or privilege to surrender ct toCorporation, and City's abandonment of the or City's failure or inability Projects rp y Projectsry to use the Projects at any time shall not relieve City of its obligation to pay the Rental Payments required under Section 2 of this Agreement. Section 13. Acquisition of the Projects. Corporation agrees that it will acquire and construct, or cause the acquisition and construction of, the Projects, including the acquisition of such improvements and related fixtures, equipment and personal property as are necessary for the Projects to constitute public parking facilities suitable for City's use. The acquisition, 01/160668.3 7 construction, furnishing and equipping of the Projects shall be made in accord with plans and specifications prepared by such Project architects and engineers with such changes as may be made with the approval of City. Corporation shall have no responsibility for the sufficiency of the Projects or any part thereof. Corporation agrees to contribute toward the cost of acquisition, construction, furnishing and equipping of the Projects such proceeds of the sale of the Bonds as remain after the payment of expenses of issuing the Bonds. Promptly after execution of this Agreement, Corporation will deposit the net proceeds of the sale of the Bonds with Trustee to be disbursed in payment of costs of acquiring, constructing, furnishing and equipping the Projects. A leasehold interest in and to the Projects, including any and all buildings, improvements and other property (but not including the Project sites in which Corporation has a leasehold interest pursuant to the Ground Lease Agreement (the "Lease") dated as of September 1, 1995 between City and Corporation), shall vest in Corporation as such property becomes a part of the Projects, and Corporation shall continue to have such interest therein until City has satisfied all of its obligations to Corporation under this Agreement and the Projects are conveyed to City. Upon completion of the acquisition and construction of the Projects, City shall furnish to Corporation a complete description of all property, both real and personal, covered by this Agreement. City hereby confirms Corporation's ownership interest in such property, regardless of whether such property may be initially purchased by Corporation. Corporation shall have no responsibility to pay any costs of acquiring and constructing the Projects in excess of the net proceeds of the sale of the Bonds and other moneys provided by City to Corporation in respect of the Projects. 0 01/160668.3 8 1 City agrees that no delay, failure or insufficiency, for any reason whatsoever (including, in particular, but without limitation, an insufficiency in the amount of Bond proceeds to pay the cost of the Projects), in the acquisition, construction or operation of the Projects or any part thereof, shall entitle City to terminate this Agreement or operate in any way to suspend, abate or reduce the Rental Payments due or to become due under the terms of Section 2 of this Agreement. Corporation agrees that any and all amounts received by it from any contractor, supplier or other person (or any surety under any bond) by reason of breach of contract, failure of performance, refunds or other adjustments shall be applied toward the costs of the acquisition, construction or repair of the Projects. Corporation agrees to cooperate with City if City should request that Corporation issue its additional or completion bonds and apply the proceeds thereof to additions to or the completion of the Projects provided that City shall first agree to pay a sufficient additional amount of Rental Payments to provide for the timely payment of such additional or completion bonds and related costs and expenses. Section 14. Termination of Leasehold. Upon City's having paid all of the Rental Payments and moneys due Corporation hereunder and the termination of this Agreement, Corporation's leasehold interest in the Projects pursuant to the Lease shall terminate, and City shall have title to the Projects free and clear of such leasehold interest. Corporation further covenants and agrees that, after termination of this Agreement, Corporation will donate to City any Bond proceeds or other moneys provided to Corporation by 01/160668.3 9 City in respect of the Projects and remaining with Corporation after paying all of its debts and obligations in respect of the Projects. Section 15. Default. In the event City defaults in the performance of any of its obligations under this Agreement and such default continues for a period of 30 days after written notice thereof has been given by Corporation to City and Trustee, Corporation may declare this Agreement terminated, and City shall thereupon surrender possession of the Projects to Corporation or to the Trustee pursuant to Section 9.03 of the Indenture; provided, however, no such termination or surrender shall operate to relieve City of its obligation to Corporation to pay the Rental Payments due hereunder pursuant to Section 2 hereof, including, but not limited to, the Basic Rent on the dates and in the amounts shown in Exhibit A. Such remedy shall not be an exclusive remedy. Section 16. Donations to City. City may receive and accept donations from any person, firm, corporation or governmental body to assist in the acquisition, construction, furnishing and equipping of the Projects. Any such donations so received by City (where the use is not otherwise specified by the donor) shall be held in trust and used only to satisfy City's obligations under this Agreement and to pay costs of acquiring the Projects. Section 17. Financing. City consents to and approves of the issuance by Corporation of the Bonds in the aggregate principal amount of $8,475,000, dated September 15, 1995, on the terms and conditions specified in the Indenture. City has undertaken to provide ongoing disclosure for the benefit of Bondholders pursuant to Section (b)(5)(i) of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (17 C.F.R., 01/160668.3 10 § 240.15c2-12), in that certain Letter Agreement dated September 27, 1995 between the City and the Trustee. Section 18. Amendment of This Agreement. City and Corporation agree that, this Agreement being collateral for the Bonds, no amendment hereto shall be made without the consent of Trustee. Section 19. Refund of Sales Tax. Corporation acknowledges that any refund or rebate of sales or use taxes which it may receive will be attributable to the sales and use tax exemption of City, and, therefore, Corporation agrees to pay to City any refund or rebate of sales or use taxes attributable to the acquisition of the Projects. Corporation agrees to take such action, but at City's expense, as City may request to obtain any such refund or rebate of sales or use taxes. City agrees that any refund or rebate of sales or use taxes which it receives, including amounts remitted by Corporation pursuant to this Section 19, will be used to pay costs of acquiring the Project. Section 20. Discrimination. The contractor shall not, in performance of this contract, discriminate or permit discrimination in violation of federal or state or local ordinances because of race, color, sex, age, political or religious opinions, affiliations or national origin. Section 21. Authority of Parties. Each of the parties to this Agreement represents that it has full power and authority to execute, perform and carry out the terms of this Agreement. Execution of this Agreement has been authorized and directed by appropriate resolutions of the Board of Directors of Corporation and an ordinance of the City Council of City. Section 22. Compliance With Laws. Corporation shall comply with all applicable laws, ordinances, rules and regulations in connection with the acquisition of the Projects. 01/160668.3 11 0 Section 23. Notices. Any notices required or permitted under this Agreement shall be in writing and shall be sent by certified or registered mail, postage prepaid, return receipt requested, addressed to Corporation at City of Omaha Planning Department, 1819 Farnam Street, Suite 1100, Omaha, Nebraska 68183 and to City at Omaha-Douglas Civic Center, 1819 Farnam Street, Omaha, Nebraska 68183 or to such other address as a party shall designate. Any notice shall be deemed to have been given at the time it is duly deposited in any United States Post Office. Section 24. Waiver. Any waiver at any time by a party to this Agreement of its rights with respect to a default under this Agreement or with respect to any other matter arising out of or in connection therewith shall not be deemed a waiver with respect to any subsequent default or matter. Section 25. No Merger. Neither this Agreement, the Lease nor any provisions hereof or thereof shall be construed to effect a merger of the title of City to the Project sites and City's leasehold interest herein. Section 26. Benefit. This Agreement shall be binding upon and shall inure to the benefit of the parties and their successors or assigns. Section 27. Section Captions. The section captions contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 01/160668.3 12 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers as of the day and year first above written. [SEAL] CITY OF OMAHA PARKING FACILITIES CORPORATION ATTEST: By President Secretary [SEAL] CITY OF OMAHA, NEBRASKA ATTEST: By Mayor City Clerk APPROVED AS TO FORM: Assistant Ci ttorne 01/160668.3 13 1 STATE OF NEBRASKA ) ) ss. COUNTY OF DOUGLAS ) The foregoing,instrument was acknowledged before me this day of September, 1995 by GREGORY A. PETERSON, President, and LARRY LAHAIE, Secretary, of CITY OF OMAHA PARKING FACILITIES CORPORATION, on behalf of Corporation. Notary Public (SEAL) STATE OF NEBRASKA ) ) ss. COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged before me this day of September, 1995 by HAL DAUB, Mayor of the City of Omaha, Nebraska, and by MARY GALLIGAN CORNETT, City Clerk, of the CITY OF OMAHA, NEBRASKA, on behalf of City. Notary Public (SEAL) 01/160668.3 14 ' EXHIBIT A SCHEDULE OF BASIC RENT PAYABLE BY THE CITY OF OMAHA, NEBRASKA Date Principal Interest Total 03/15/96 $ 0 $224,461.25 $224,461.25 09/15/96 _ 265,000 224,461.25 489,461.25 03/15/97 • 0 219,426.25 219,426.25 09/15/97 275,000 219,426.25 494,426.25 03/15/98 0 213,857.50 213,857.50 09/15/98 285,000 213,857.50 498,857.50 03/15/99' 0 207,872.50 207,872.50 09/15/99 295,000 207,872.50 502,872.50 03/15/00 0 201,456.25 201,456.25 09/15/00 310,000 201,456.25 511,456.25 03/15/01 0 194,558.75 194,558.75 09/15/01 320,000 194,558.75 514,558.75 03/15/02 0 187,198.75 187,198.75 09/15/02 335,000 187,198.75 522,198.75 03/15/03 0 179,242.50 179,242.50 09/15/03 355,000 179,242.50 534,242.50 03/15/04 0 170,633.75 170,633.75 09/15/04 370,000 170,633.75 540,633.75 03/15/05 0 161,476.25 161,476.25 09/15/05 390,000 161,476.25 551,476.25 03/15/06 0 151,628.75 151,628.75 09/15/06 410,000 151,628.75 561,628.75 03/15/07 0 140,968.75 140,968.75 09/15/07 430,000 140,968.75 570,968.75 03/15/08 0 129,466.25 129,466.25 09/15/08 450,000 129,466.25 579,466.25 03/15/09 0 117,091.25 117,091.25 09/15/09 475,000 . 117,091.25 592,091.25 03/15/10 0 103,791.25 103,791.25 09/15/10 505,000 103,791.25 608,791.25 03/15/11 0 89,398.75 89,398.75 09/15/11 535,000 89,398.75 624,398.75 03/15/12 0 73,482.50 73,482.50 09/15/12 565,000 73,482.50 638,482.50 03/15/13 0 56,673.75 56,673.75 09/15/13 600,000 56,673.75 656,673.75 03/15/14 0 38,823.75 38,823.75 01/160668.3 0 09/15/14 635,000 38,823.75 673,823.75 03/15/15 0 19,932.50 19,932.50 09/15/15 670,000 19,932.50 689,932.50 01/160668.3 A-2 APPENDIX A LEASEHOLD PROPERTY DESCRIPTION Omaha-Park Four Project Lots 1 through 8 and the vacated alley in Block 176, original City of Omaha, Douglas County, Nebraska. Omaha-Park Five Project Lots 3, 4, 5, and 6 and the adjoining vacated alley in Block 79, original City of Omaha, Douglas County, Nebraska. } 01/160668.3 CITY OF OMAHA, NEBRASKA, as Lessor to CITY OF OMAHA PARKING FACILITIES CORPORATION, as Lessee GROUND LEASE AGREEMENT • Dated as of September 1, 1995 01/161018.3 GROUND LEASE AGREEMENT THIS GROUND LEASE AGREEMENT is made and entered into as of the 1st day of September, 1995 by and between the CITY OF OMAHA, NEBRASKA, a municipal corporation ("City"), as lessor, and CITY OF OMAHA PARKING FACILITIES CORPORATION, a Nebraska nonprofit corporation ("Corporation"), as lessee. RECITALS: City, in consideration of the covenants of Corporation hereinafter set forth, does by these presents lease to Corporation two parcels of ground, both located in the City of Omaha, Nebraska, more specifically described at Appendix A hereto. TO HAVE AND TO HOLD the same unto Corporation from, on and after the date hereof to and including the earlier of(i) September 15, 2015 and (ii) the termination date of that Lease-Purchase Agreement dated as of September 1, 1995 by and between Corporation, as lessor, and City, as lessee, and City warrants to Corporation the peaceful and quiet enjoyment of the premises hereby leased for and during the term hereof. Corporation, in consideration of the leasing of the premises as above set forth, has agreed with City to pay City as rent for the use of the same the sum of Ten Dollars ($10.00) per year, which rent has been paid by Corporation for the entire term, the receipt and sufficiency of which are hereby acknowledged by City. Corporation further covenants with City that at the expiration of the term of this Lease Agreement, peaceable possession of said premises, together with any buildings or improvements now or hereafter situated thereupon during the lease term, shall be given to City. It is further covenanted and agreed between the parties hereto that the leased premises shall be used only in_connection with the provision of public parking facilities and functions incidental thereto. ' The covenants herein shall extend to and be binding upon the successors and assigns of the parties to this Lease Agreement. 01/161018.3 IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed by their duly authorized officers as of the day and year first written above. [SEAL] CITY OF OMAHA, NEBRASKA ATTEST: By Mayor By City Clerk [SEAL] CITY OF OMAHA PARKING FACILITIES CORPORATION ATTEST: By By President Secretary APPROVED AS TO FORM: By Agistant oun ttorne 01/161018.3 2 STATE OF NEBRASKA 1 ) ) SS. COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged before me this day of September, 1995 by HAL DAUB, Mayor of the City of Omaha, Nebraska, and by MARY GALLIGAN CORNETT, City Clerk, of the CITY OF OMAHA, NEBRASKA, on behalf of City. [SEAL] Notary Public My commission expires: STATE OF NEBRASKA ) SS. COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged before me this day of September, 1995, by GREGORY A. PETERSON, President, and LARRY LAHAIE, Secretary, of CITY OF OMAHA PARKING FACILITIES CORPORATION, on behalf of Corporation. [SEAL] Notary Public My commission expires: • • 01/161018.3 3 APPENDIX A Legal Description of Omaha-Park Four Project Lots 1 through 8 and the vacated alley in Block 176, original City of Omaha, Douglas County, Nebraska. Legal Description of Omaha-Park Five Project Lots 3, 4, 5, and 6 and the adjoining vacated alley in Block 79, original City of Omaha, Douglas County, Nebraska. 01/161018.30 C DRAFT KUTAK ROCK 09/08/95 CITY OF OMAHA PARKING FACILITIES CORPORATION to FIRSTIER BANK OMAHA, N.A. as Trustee INDENTURE OF TRUST • Dated as of September 1, 1995 01/160667.4 TABLE OF CONTENTS (This Table of Contents is not part of the Indenture of Trust and is only for convenience of reference.) Page PARTIES 1 RECITALS 1 ARTICLE I DEFINITIONS 3 ARTICLE II ISSUANCE AND EXECUTION OF BONDS Section 2.01. Issuance of Bonds 5 Section 2.02. Terms, Medium and Place of Payment . 5 Section 2.03. Execution 6 Section 2.04. Form of Bonds 6 Section 2.05. Certificate of Authentication 6 Section 2.06. Authorization and Delivery 6 Section 2.07. Mutilated, Lost, Stolen or Destroyed Bonds 6 Section 2.08. Registration and Transfer of Bonds 7 Section 2.09. Additional Bonds 7 • Section 2.10. Refunding Bonds 8 Section 2.11. . Temporary Bonds 9 Section 2.12. Book-Entry-Only Bonds 9 ARTICLE III REDEMPTION OF BONDS BEFORE MATURITY Section 3.01. Bonds Redeemable 11 Section 3.02. Optional Redemption 11 Section 3.03. Sinking Fund Redemption • 11 Section 3.04. Extraordinary Optional Redemption 12 Section 3.05. Notice of Redemption 12 Section 3.06. Cancellation of Bonds 13 01/160667.4 ARTICLE IV GENERAL COVENANTS Section 4.01. Payment of Bonds 13 Section 4.02. Books and Records; Annual Accounting 13 Section 4.03. Trustee Enforcement of Agreement 13 Section 4.04. Reserved 13 Section 4.05. Parity Bonds 14 Section 4.06. Corporate Existence 14 Section 4.07. Arbitrage and Tax Covenants 14 ARTICLE V BOND FUND Section 5.01. Bonds Secured by Basic Rent Payments 15 Section 5.02. Creation of Bond Fund 15 Section 5.03. Deposits to Bond Fund 15 Section 5.04. Use of Moneys in Bond Fund 15 Section 5.05. Custody of Bond Fund; Withdrawals 15 Section 5.06. Unclaimed Moneys 15 Section 5.07. Additional Rent 16 ARTICLE VI ACQUISITION FUND Section 6.01. Creation of Acquisition Fund 16 Section 6.02. Use of Moneys in Acquisition Fund 16 Section 6.03. Requisitions 16 ARTICLE VU INVESTMENTS 16 ARTICLE VIII DISCHARGE OF URN AND DEFEASANCE 17 01/160667.4 ll ARTICLE IX DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND BONDHOLDERS Section 9.01. Events of Default 19 Section 9.02. Acceleration 19 Section 9.03. Other Remedies 20 Section 9.04. Limitation on Bondholders' Right To Institute Proceedings 20 Section 9.05. Possession of Bonds Not Required for Enforcement 20 Section 9.06. Waiver 20 Section 9.07. Application of Moneys 20 Section 9.08. Restoration to Former Position_ 22 Section 9.09. Bondholders' Right To Direct Proceedings 22 ARTICLE X THE TRUSTEE • Section 10.01. Acceptance of Trusts 22 Section 10.02. Limitations on Liability 23 Section 10.03. Dealings in Bonds 23 Section 10.04. Compensation 23 ARTICLE XI AMENDMENT OF INDENTURE Section 11.01. Supplemental Indentures Not Requiring Consent of Bondholders 23 Section 11.02. Supplemental Indentures Requiring Consent of Bondholders 24 Section 11.03. Consent of Trustee Required 25 ARTICLE XII AMENDMENT OF THE LEASE AGREEMENT Section 12.01. Amendment of Agreement Not Requiring Consent of Bondholders 25 Section 12.02. Amendment of Agreement Requiring Consent of Bondholders 25 Section 12.03. Consent of Trustee Required 25 01/160667.4 iil ARTICLE XIII MISCELLANEOUS Section 13.01. Execution of Instruments; Proof of Ownership 25 Section 13.02. Counterparts 26 Section 13.03. No Personal Liability of Corporation Officials; Limited Liability of Corporation to Bondholders 26 Section 13.04. Severability 26 EXHIBIT A—Form of Bond EXHIIBIT B—Form of Requisition EXHIBIT C—Form of Blanket Issuer Letter of Representations • 01/160667.4 iv INDENTURE OF TRUST THIS INDENTURE OF TRUST is made and entered into as of the 1st day of September, 1995 by and between CITY OF OMAHA PARKING FACILITIES CORPORATION, a Nebraska nonprofit corporation ("Corporation"), and FIRSTIER BANK OMAHA, N.A., a national banking association organized under the laws of the United States of America, with a corporate trust office in the City of'Omaha, Nebraska, as trustee ("Trustee"). RECITALS: WHEREAS, Corporation, as lessor, has entered into a Lease-Purchase Agreement dated as of September 1, 1995 (the "Agreement") with the City of Omaha, Nebraska ("City"), as lessee, under which Corporation has leased to City certain real and personal property situated in Omaha, Nebraska, the realty being described at Appendix A to the Agreement, which realty, together with the improvements, fixtures, equipment and such personal property as may be situated thereon, is herein referred to as the "Projects"; and WHEREAS, in order to obtain a portion of the funds for the acquisition, construction, furnishing and equipping of the Projects, it is necessary for Corporation to issue its Bonds in the aggregate principal amount of Eight Million Four Hundred Seventy-Five Thousand and 00/100 Dollars ($8,475,000) (the "Bonds"); the Bonds are secured by a pledge of the Basic Rent (as hereinafter defined) to become due under the Agreement, and Trustee has agreed to act as Trustee under this Indenture of Trust (this "Indenture") for the benefit of the owners of the Bonds issued as hereinafter provided; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: WITNESSETH: Corporation, in consideration of the premises, the acceptance by Trustee of the trusts hereby created, the purchase and acceptance of the Bonds by the original purchasers thereof, receipt of the sum of One Dollar ($1.00) lawful money of the United States of America to it duly paid by Trustee at or before the execution and delivery of these presents, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, in order to secure the payment of the principal of and interest on the Bonds issued as herein provided according to their tenor and effect, and the performance and observance by Corporation of all the covenants expressed or implied herein and in the Bonds, does hereby grant, bargain, sell, convey and pledge unto Trustee, and its successors in trust, and to them and their assigns forever, for the securing of the performance of the obligations of Corporation hereinafter set forth, the following: 1. All revenues and income derived by Corporation from the Projects, including, without limitation, all Rental Payments received by Corporation from City 01/160667.4 under the Agreement, such payments to be made by City directly to Trustee and deposited by Trustee in an account of Corporation designated "Bond Fund." 2. Any and all other property of every name and nature from time to time hereafter by delivery or by writing of any kind conveyed, mortgaged, pledged, assigned or transferred, as and for additional security hereunder by Corporation or by anyone in its behalf (or with its written consent) to Trustee, which is hereby authorized to receive any and all such property at any time and to hold and apply the same, subject to the terms hereof. TO HAVE AND TO HOLD all the same with all privileges and appurtenances hereby conveyed and assigned, or agreed or intended so to be, to Trustee and its respective successors in trust and to them and their assigns forever: IN TRUST, NEVERTHELESS, upon the terms and trusts herein set forth for the equal and proportionate benefit, security and protection of all owners of Bonds issued under and secured by this Indenture, without privilege, priority or distinction as to the lien or otherwise of any of the Bonds or interest thereon over any of the other said Bonds or interest thereon. PROVIDED, HOWEVER, that if Corporation, its successors or assigns shall well and truly pay, or cause to be paid, the principal of and interest on the Bonds due or to become due thereon, at the times and in the manner mentioned in the Bonds, according to the true intent and meaning thereof, and shall make the payments to the Bond Fund as required under Article V hereof, or shall provide as permitted hereby, for the payment thereof by depositing with Trustee the entire amount due or to become due thereon, and shall well and truly keep, perform and observe all the covenants and conditions pursuant to the terms of this Indenture to be kept, performed and observed by it, and shall pay or cause to be paid to Trustee all sums of money • due or to become due to it in accordance with the terms and provisions hereof, then upon such final payments this Indenture and the rights hereby granted shall cease, determine and be void, otherwise this Indenture to be and remain in full force and effect. -- THIS TRUST INDENTURE FURTHER WITNESSETH: that all Bonds issued and secured hereunder or to be issued, authenticated and delivered, and all the revenues, income and other property hereby pledged, including the Rental Payments due under the Agreement, are to be dealt with and disposed of under, upon and subject to the terms, conditions, trusts, uses and purposes hereinafter expressed, and Corporation has agreed and covenanted and does hereby agree and covenant with Trustee and with the respective owners, from time to time, of the Bonds, as follows. 01/160667.4 2 0 ARTICLE I DEFINITIONS In addition to the words and terms elsewhere defined in this Indenture, the following words and terms as used in this Indenture shall have the following meanings, unless the context or use indicates another or different meaning or intent. "Acquisition Fund" means the Fund created by Article VI of this Indenture, into which the net proceeds of the sale of the Bonds shall be deposited and out of which disbursements are to be made in the manner and for the purpose specified in Article VI of this Indenture. "Additional Rent" means the amounts City is required by the Agreement to pay with respect to the Projects, in addition to the Basic Rent. • "Agreement" means the Lease-Purchase Agreement dated as of September 1, 1995 by and between Corporation and City, together with any amendments thereto. "Basic Rent" means the amounts City is required by the Agreement to pay to Corporation as rent for the Projects. "Bond" or "Bonds" means any bond or bonds issued pursuant to, in accordance with, and secured by this Indenture. "Bond Fund" means the Fund created by Article V of this Indenture into which the funds specified in Article V are to be deposited. "Bondholder(s)" means the owner of any Bond. "Bonds" means the$8,475,000 of Corporation's Lease Revenue Bonds(Omaha-Park Four and Omaha-Park Five Projects), Series 1995. "Bonds of Other Series" means bonds issued hereunder other than the Bonds. "Bond Year" means the period of time beginning on September 15 of a given year and ending on September 14 of the immediately subsequent year (or the maturity date of the Bonds, whichever is earlier). "City" means the City of Omaha, Nebraska. "Code" means the Internal Revenue Code of 1986, as amended, including the United States Treasury Regulations proposed or in effect with respect thereto and applicable to the Bonds or the use of the proceeds thereof. • 01/160667.4 3 .e i L- "Corporation" means City of Omaha Parking Facilities Corporation, a Nebraska nonprofit corporation. "Indenture" means this Indenture of Trust, together with any'supplements hereto. "Letter of Instructions" means the letter of nationally recognized bond counsel describing the application of the rebate provisions of the Code. "Outstanding" or "Bonds outstanding hereunder" means all Bonds which have been authenticated, issued and delivered under this Indenture except: (a) bonds cancelled because of payment; (b) bonds for the payment or redemption of which cash funds or United States Government Obligations as provided in Article VIII shall have been theretofore deposited with Trustee, whether upon or prior to the maturity or redemption date of any of said Bonds; and (c) bonds in lieu of which others have been authenticated as provided under Article II hereof. "Person" includes natural persons, firms, associations, corporations and public bodies. "Projects" means the real and personal property described on the first page hereof and Exhibit A to the Agreement and the Lease and all property now or hereafter constructed or placed thereon. "Record Date" means the first day of any month containing an interest payment date, namely March 1 and September 1. "Rental Payments" means, collectively, the Basic Rent and the Additional Rent. "Trustee" or "Paying Agent" means FirsTier Bank Omaha, N.A., and its corporate successor or successors in trust under this Indenture. "United States Government Obligations" means direct general obligations of, or obligations the payment of the principal and interest of which are unconditionally guaranteed by, the United States of America, which are not subject to prior'redemption except at prices which will produce the amount of cash required for the purpose for which the obligations are held. 01/160667.4 4 ARTICLE II ISSUANCE AND EXECUTION OF BONDS Section 2.01.- Issuance of Bonds. The Bonds in the aggregate principal amount of Eight Million Four Hundred Seventy-Five Thousand Dollars ($8,475,000) shall be issued by Corporation as soon as practicable on or following the date of execution of this Indenture, and the proceeds thereof, net of accrued interest, if any, shall be delivered to Trustee to be deposited by Trustee in the Acquisition Fund. The Bonds shall not be a debt of City or a pledge of its faith and credit but, together with interest thereon, shall be payable solely out of the Rental Payments paid by City to Corporation under the Agreement. Section 2.02. Terms, Medium and Place of Payment. The Bonds shall be issued as fully registered bonds, without coupons, in the denomination of$5,000 or any integral multiple thereof. The Bonds shall be numbered in consecutive numerical order from one upwards in chronological order, as issued, or shall be numbered in any other manner as the Acting Finance Director of City shall determine. The Bonds shall be dated September 15, 1995 and shall become due and payable on September 15 of the years and shall bear interest at the rates per annum as shown below: Maturity Date Interest Rate (September 15) Amount 1996 $ 265,000 1997 275,000 1998 285,000 1999 295,000 2000 310,000 2001 320,000 2002 335,000 2003 • 355,000 2004 370,000 2005 390,000 2006 410,000 2007 430,000 2008 450,000 2009 475,000 2010 505,000 2015 3,005,000 R 01/160667.4 5 (1Eii) The Bonds shall bear interest from September 15, 1995 and shall be payable semiannually on March 15 and September 15 of each year, starting March 15, 1996. The principal of the Bonds shall be payable in lawful money of the United States of America at the principal office of Trustee in Omaha, Nebraska, or its successor. Payment of interest on the Bonds shall be made to the registered owner thereof and shall be paid (i) by check or draft mailed to the registered owner at his address as it appears on the registration books of Corporation on the Record Date or'at such other address as is furnished to Trustee in writing by such registered owner or (ii) by wire transfer to the registered owner of $1,000,000 in aggregate principal amount of the Bonds upon written notice by the registered owner given to Trustee not later than the close of business on the Record Date. Section 2.03. Execution. The Bonds shall be executed on behalf of Corporation by the President and Secretary of Corporation, each of whose signatures may be a facsimile of the signature, and the seal, or a facsimile thereof, of Corporation shall be placed on each Bond. In case any officer whose signature shall appear on the Bonds shall cease to be such officer before the delivery of such Bonds, such signature shall, nevertheless,be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Section 2.04. Form of Bonds. The Bonds shall be in substantially the form set forth • in Exhibit A hereto with such variations, omissions and insertions as are permitted or required by this Indenture and are deemed advisable by nationally recognized bond counsel to effectuate the purposes of this Indenture. Section 2.05. Certificate of Authentication. Only such Bonds as shall have endorsed thereon a Certificate of Authentication substantially in the form set forth in Exhibit A hereto, duly manually executed by Trustee, shall be entitled to any right or benefit under this Indenture. No Bond shall be valid or obligatory for any purpose unless and until such Certificate of Authentication shall have been duly executed by Trustee, and such executed Certificate shall be conclusive evidence that such Bond has been authenticated under this Indenture. Section 2.06. Authorization and Delivery. Upon the execution and delivery of this Indenture, Corporation shall execute the Bonds and deliver same to Trustee, who shall authenticate the Bonds. The Bonds shall then be delivered to the original purchasers of the Bonds upon the payment of the purchase price not less than % of the principal amount thereof, together with interest to the date of payment and delivery of the Bonds. Section 2.07. Mutilated, Lost, Stolen or Destroyed'Bonds. In case any Bond issued hereunder shall become mutilated, destroyed, stolen or lost, Corporation shall, if not then prohibited by law, cause to be executed, and Trustee may authenticate and deliver, a new Bond of like date, number, maturity and tenor in exchange and substitution therefor, and upon cancellation of such mutilated Bond, or in lieu of and in substitution for such lost Bond, upon the owner paying the reasonable expenses and charges of Corporation and Trustee in connection therewith, and, in case of a Bond destroyed or lost, the owner filing with Trustee evidence • O1/160667.4 6 satisfactory to it that such Bond was destroyed or lost, and furnishing Corporation and Trustee with indemnity satisfactory to them. Section 2.08. Registration and Transfer of Bonds. Corporation shall cause books for • the registration and for the transfer of the Bonds as provided in this Indenture to be kept by Trustee. At reasonable times and under reasonable regulations established by the Corporation, such list may be inspected and copied by the owners (or a designated representative thereof) of 25% or more in aggregate principal amount of Bonds then Outstanding. Upon surrender for transfer of any Bond at the principal office of Trustee, Trustee shall deliver in the name of the transferee or transferees a new fully authenticated and registered Bond of$5,000 principal amount (or integral multiple thereof) of the same maturity for the aggregate principal amount which the Bondholder is entitled to receive. All Bonds presented for transfer, redemption or payment shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature as set forth in the form of Exhibit A hereto or as may be satisfactory to Corporation and Trustee, duly executed by the Bondholder or by his duly authorized attorney. Trustee also may require payment from the Bondholder of a sum sufficient to cover any tax, or other governmental fee or charge that may be imposed in relation thereto. Such taxes, fees and charges shall-be paid before any such new Bond shall be delivered: Corporation and Trustee, on behalf of Corporation, shall not be required (a) to issue or register the transfer of any Bond during a period beginning on the Record Date and ending at the close of business on the business day next preceding any principal payment date or (b) to transfer any Bond selected, called or being called for redemption in whole or in part. Bonds delivered upon any transfer as provided herein, or as provided in Section 2.07 hereof, shall evidence the same debt as the Bond surrendered, shall be secured by this Indenture and shall be entitled to all of the security and benefits hereof to the same extent as the Bond surrendered. Corporation and Trustee shall treat the Bondholder, as shown on the registration books kept by Trustee, as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the Bondholder, except that all interest payments will be made to the Bondholder as of the Record Date. Section 2.09. Additional Bonds. Additional series of bonds having status and rank equal to the Bonds may be issued from time to time under the terms of this Indenture, providing for such interest rates and other characteristics as shall be fixed and determined by Corporation and as set forth in a supplemental indenture, and provided there must be compliance with each of the following:. 01n60667.4 7 (1) Corporation is not in default under this Indenture; (2) City is not in default under the Agreement; (3) Corporation and,City shall, prior to the issuance of such Bonds of Other Series, have entered into an amendment to the Agreement to increase the Basic Rent payable by City to provide sufficient additional funds at the times and in the amounts necessary to pay the principal of and interest on both the outstanding Bonds and the proposed Bonds of Other Series, including any principal due on the Bonds of Other Series due by mandatory redemption provisions and to provide that City will pay as Additional Rental the fees and expenses of Trustee with respect to the Bonds of Other Series; (4) each issue of Bonds of Other Series shall be designated by some name to indicate that such Bonds are of a different series than the Bonds; and (5) the issuance of such Bonds of Other Series shall have been approved by City. Section 2.10. Refunding Bonds. Bonds to refund all or any of the Bonds outstanding hereunder may be issued at any time provided there is compliance with each of the following: (1) Corporation is not in default under this Indenture, or the default will be cured immediately after issuance of the refunding bonds; (2) City is not in default under the Agreement; (3) Basic Rent payable by City under the Agreement shall be sufficient to pay, when due, the principal of and interest on all Bonds to be outstanding, including the refunding bonds; (4) the issuance of the refunding bonds shall in no manner adversely affect the - exclusion from gross income of the interest on the Bonds for federal income tax purposes; (5) the proceeds of the refunding bonds shall be applied in such manner that the Bonds being refunded are no longer outstanding hereunder after issuance of the refunding bonds; and (6) the issuance of such refunding bonds shall have been approved by City. Any such refunding bonds shall bear interest and be on such other terms and conditions as shall be determined by. Corporation. Refunding bonds issued in compliance with the foregoing provisions shall have rank and status equal to the Bonds. 01/160667.4 8 r; Section 2.11. Temporary Bonds. Until Bonds in definitive form are ready for delivery, Corporation may execute, and upon the request of Corporation, Trustee shall authenticate and deliver to the purchasers thereof, subject to the provisions, limitations and conditions set forth above, one or more Bonds in temporary form, whether printed, type-written, lithographed or otherwise produced, substantially in the form of the definitive Bonds, with appropriate omissions, variations and insertions, and in authorized denominations. Until exchanged for Bonds in definitive form, such Bonds in temporary form shall be entitled to the lien and benefit of this Indenture. Upon the presentation and surrender of any Bond or Bonds in temporary form, Corporation shall, without unreasonable delay, prepare, execute and deliver to Trustee, and Trustee shall authenticate and deliver to the owner or owners thereof, in exchange therefor, a Bond or Bonds in definitive form. Such exchange shall be made by Trustee without making any charge therefor to the owners of such Bonds in temporary form. Section 2.12. Book-Entry-Only Bonds. (a) The Bonds shall initially be issued in book-entry form. The Depository Trust Company, New York, New York (the "Depository") is hereby appointed the Depository for the Bonds. The Blanket Issuer Representations Letter, attached hereto as Exhibit C and incorporated herein by this reference, dated as of the date of delivery of the Bonds and signed by Corporation and the Depository, is hereby approved, and the execution by the President of Corporation is hereby authorized. The ownership of one fully registered Bond for each maturity as set forth. in Section 2.02 hereof, each in the aggregate principal amount of such maturity, shall be registered in the name of Cede & Co., as nominee for the Depository. Payment of semiannual interest on any Bond registered as of each Record Date in the name of Cede & Co. shall be made in same-day funds of its equivalent, by wire transfer to the account of Cede & Co. on the interest payment dates and the respective maturity dates for the Bonds, at the address indicated on the Record Date for Cede & Co. in the registration books of Corporation kept by Trustee. (b) Trustee and Corporation may treat the Depository (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of and interest on the Bonds, giving any notice permitted or required to be given to Bondholders under this Indenture, registering the transfer of Bonds, obtaining any consent or other action to - - -- - be taken by-Bondholders and for all other purposes whatsoever,- and neither Trustee nor Corporation shall be affected by any notice to the contrary. (c) Corporation and Trustee shall have no responsibility or obligation to any securities broker-dealer, bank, trust company, clearing corporation or other organization for which the Depository holds Bonds as securities depository (each, a "Participant") or to any Participant and the person for whom it acquires an interest in the Bonds'as nominee (each, a "Beneficial Owner") with respect to the following: (i) the accuracy of the records of the Depository, any nominees of the Depository or any Participant with respect to any ownership interest in the Bonds; 01/160667.4 9 (ii) the delivery to any Participant, any Beneficial Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption; or (iii) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the Bonds. Trustee shall make payments with respect to the Bonds only to or upon the order of the Depository or its nominee, and all such payments shall be valid and effective fully to satisfy and discharge the obligations with respect to such Bonds to the extent of the sum or sums so paid. No person other than the Depository shall receive an authenticated Bond. (d) Notwithstanding any other provision of this Indenture to the contrary, so long as any Bond is registered in the name of the Depository or any nominee thereof, all payments with. respect to such Bond and all notices with respect to such Bond shall be made and given, respectively, to the Depository as provided in the Blanket Issuer Representations Letter. (e) Upon receipt by Trustee of written notice from the Depository to the effect that the Depository is unable or unwilling to discharge its responsibilities or upon receipt by Trustee of written notice from Corporation to the effect that Corporation has determined that the Depository is incapable of discharging its responsibilities, Trustee shall issue, transfer and exchange Bonds requested by. the Depository in appropriate amounts. Whenever the Depository requests Trustee to do so, Trustee will cooperate with the Depository in taking appropriate action after reasonable notice (i) to arrange, with the prior written consent of Corporation, for a substitute depository willing and able upon reasonable and customary terms to maintain custody of the Bonds or (ii) to make available Bonds registered in whatever name or names the Beneficial Owners transferring or exchanging such Bonds shall designate. (f) If Corporation determines that it is desirable that certificates representing the Bonds be delivered to the Participants and/or Beneficial Owners of the Bonds and so notifies Trustee in writing, Trustee shall so notify the Depository, whereupon the Depository will notify the Participants of the availability through the Depository of bond certificates representing the Bonds. In such event, Trustee shall issue, transfer and exchange bond certificates representing the Bonds as requested by the Depository in appropriate amounts and in authorized denominations. • (g) Registered ownership of the Bonds may be transferred on the books of registration maintained by Trustee, and the Bonds may be delivered in physical form to the following: (1) any successor securities depository or its nominee; (2) any person, upon (A) the resignation of the Depository from its functions as depository or (B) termination of the use of the Depository pursuant to this Section. 01/160667.4 10 (h) In the event of any partial redemption of a Bond unless and until such partially redeemed Bond has been replaced in accordance with the provisions of Section 2.08 of this Indenture, the books and records of Trustee shall govern and establish the principal amount of such Bond as is then outstanding, and all of the Bonds issued to the Depository or its nominee shall contain a legend to such effect. (i) If for any reason the Depository resigns and is not replaced, Corporation shall immediately provide a supply of printed bond certificates for issuance upon the transfers from the Depository and subsequent transfers or in the event of a partial redemption pursuant to Section 2.08 of this Indenture. (j) In the event that the Bonds are no longer held in book-entry form, payment of interest on the Bonds shall be made to the registered owners thereof as provided by Section 2.02 hereof. ARTICLE III REDEMPTION OF BONDS BEFORE MATURITY Section 3.01. Bonds Redeemable. The Bonds are noncallable for redemption except pursuant to Sections 3.02, 3.03 and 3.04 hereof. Section 3.02. Optional Redemption. The Bonds maturing on and after September 15, 2006 are subject to redemption by Corporation from any source, in whole at any time, or in part on any interest payment date, in such order of maturities as determined by Corporation (and by lot or other random selection method within a maturity) on or after September 15, 2005, at the following redemption prices expressed as a percentage of the principal amount of the Bonds to be redeemed, plus interest accrued thereon to the date of redemption: Redemption Period (dates inclusive) Redemption Price September .15, 2005 to September 14, 2006 102% September 15, 2006 to September 14, 2007 101 September 15, 2007 and thereafter 100 Section 3.03. Sinking Fund Redemption. The Bonds maturing September 15, 2015 are subject to mandatory redemption from Basic Rent sinking fund.payments prior to their respective maturity dates, by lot (or other random selection method) selected by Trustee, at a price of par without premium on September 15, 2011, and on each September 15 thereafter in the years and principal amounts set forth below: 01/160667.4 11 - . . redemption date, provided funds for their redemption are on deposit at the place of payment at that time. Any funds paid for redemption of Bonds shall be applied first against any interest due and owing on the Bonds and then against the unpaid principal balance thereof. Section 3.06. Cancellation of Bonds. All Bonds which have been redeemed shall be cancelled by Trustee and destroyed by Trustee in accordance with its regular procedures. ARTICLE IV GENERAL COVENANTS Section 4.01.. Payment of Bonds. Corporation covenants that it will promptly pay the principal of and interest on every Bond issued under this Indenture at the place, on the dates and in the manner provided herein and in the Bonds according to the true intent and meaning hereof. Such principal and interest are payable solely from revenues in the Bond Fund derived from the Basic Rent payable under the Agreement or other funds deposited hereunder in the Bond Fund. Corporation further covenants faithfully to perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Indenture, and Corporation will do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, such indentures supplemental hereto and such further acts, instruments and transfers as Trustee may reasonably require for the better assuring, transferring, mortgaging, pledging, assigning and confirming unto Trustee the property herein described and the revenues, income and all other property pledged hereby to the payment of the principal of and interest on the Bonds. Section 4.02. Books and Records; Annual Accounting. Trustee agrees that, so long as any Bonds issued hereunder and secured by this Indenture shall be outstanding and unpaid, it will keep proper books of record and account in which full, true and correct entries will be made of all dealings or transactions of and in relation to the Projects and the revenues, income and all other property derived therefrom. Trustee agrees to furnish to City and Corporation an accounting annually, and at such other times as either may reasonably request, pertaining to the dealings and transactions of Trustee in relation to the Projects. All books and records of Trustee relating to the Projects and the revenues therefrom shall at all times be open to inspection by representatives of City and Corporation and the owners of the Bonds. Section 4.03. Trustee Enforcement of Agreement. The Agreement sets forth the covenants and obligations of Corporation and City and reference is hereby made to the Agreement for a detailed statement of the respective obligations. Corporation agrees that Trustee, in its own name or in the name of Corporation, may enforce all rights and obligations Corporation may have under and pursuant to the Agreement for and on behalf of the Bondholders, whether or not Corporation is in default in its covenants to enforce such rights and obligations. Section 4.04. Reserved. O1/160667.4 13 i • Section 4.05. Parity Bonds. Corporation covenants that, so long as any of the Bonds are outstanding, it will not issue other bonds payable from the Basic Rent due under the Agreement except as permitted in Article II of this Indenture, and in any event not without the specific consent to such issuance given by City. Section 4.06. Corporate Existence. Corporation covenants to maintain its corporate existence as a nonprofit corporation under the laws of the State of Nebraska. Section 4.07. Arbitrage and Tax Covenants. Corporation and Trustee jointly and severally covenant and certify to each other and for the benefit of the holders of the Bonds that no use will be made of the proceeds from the issuance and sale of the Bonds nor will use be made of moneys in the various funds and accounts established under this Indenture which would cause the Bonds to be classified as arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and the Regulations thereunder (the "Code"). Pursuant to such covenant, Corporation and Trustee obligate themselves to comply throughout the term of the Bonds with the requirements of said Section 148 of the Code. Corporation and Trustee acknowledge that, under Section 148 of the Code, investment of the proceeds of the Bonds, including investment.proceeds, is subject to and must comply with the provisions of Section 148 of the Code with respect to the acquisition of obligations the yield on which will be materially higher than the yield on the Bonds during the term of the Bonds. Corporation and Trustee further acknowledge that investments may be made in materially higher yield obligations during a temporary period if certain requirements set forth in the regulations applicable to Section 148 are met. Corporation and Trustee further acknowledge that, under certain circumstances, earnings on certain funds may be subject to rebate to the United States in accordance with Section 148 of the Code, and Corporation and Trustee hereby agree to comply with Section 148 of the Code and all applicable regulations thereunder. Except as permitted by the rules set forth in such regulations, as they may be revised from time to time, with respect to investments made during a temporary period, the proceeds of the Bonds shall not be invested in materially higher yielding investments. All terms used in this Article IV which are defined in Section 148 of the Code shall have the same meanings in this Article IV as in the Code. Trustee shall establish a trust fund (the "Rebate Fund") pursuant to this Indenture for the purpose of accepting deposits of rebate amounts which may occur by operation of Section 148 of the Code. Corporation shall provide not later than 60 days after the fifth Bond Year and every five years thereafter for payment to the United States of 90% of the amounts deposited to said fund and 100% of the investment earnings on said deposits. Not later than 60 days after the final retirement of the Bonds, Corporation shall pay 100% of the remaining balance of said fund to the United States. Each payment shall be filed with the Internal Revenue Service Center, Philadelphia, Pennsylvania 19255. Each payment shall be accompanied by a copy of the Form 8038 (or successor instrument) originally filed with respect to the Bonds and a statement summarizing the determination of the amounts paid and to be paid to the United States. 01/160667.4 14 y�� ARTICLE V BOND FUND Section 5.01. Bonds Secured by Basic Rent Payments. The Projects have been leased to City under the Agreement and the Basic Rent payments have been and are hereby assigned and shall be remitted directly to Trustee for the account of Corporation and deposited in the Bond Fund, and the entire amount of the Basic Rent payments is pledged to the payment of the principal of and interest on the Bonds and other Bonds issued as permitted by Article II. Section 5.02. Creation of Bond Fund. There is hereby created by Corporation and ordered established with Trustee a trust fund to be designated "Bond Fund" which shall be used to pay the interest on and principal of the Bonds. Section 5.03. Deposits to Bond Fund. There shall be deposited in the Bond Fund all accrued interest received, if any, at the time of the issuance, sale and delivery of the Bonds, all Basic Rent payments, as and when received, made under the Agreement and all other moneys received by Trustee under and pursuant to any of the provisions of the Agreement directing such moneys to be paid into the Bond Fund. Section 5.04. Use of Moneys in Bond Fund. Moneys in the Bond Fund shall be used solely for the payment of the interest on the Bonds and for the retirement of the Bonds at or prior to maturity. Section 5.05. Custody of Bond Fund; Withdrawals. The Bond Fund shall be in the custody of Trustee, and Corporation hereby authorizes and directs Trustee to withdraw funds from the Bond Fund in amounts sufficient to meet installments of interest on or principal of the Bonds when due. Section 5.06. Unclaimed Moneys. In the event any Bonds shall not be presented for payment when the principal thereof becomes due, if funds sufficient to pay such Bonds shall have been made available to Trustee for the benefit of the owners thereof, all liability of Corporation to the Bondholders for the payment of such Bonds and the interest thereon shall forthwith cease, determine and be completely discharged and thereupon it shall be the duty of Trustee to hold such fund or funds, without liability for interest thereon, for a period of six years after all Bonds shall have matured, for the benefit of the owners of such Bonds, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on their part under this Indenture or with respect to such Bonds. At the expiration of such period, any unclaimed principal or interest shall be paid to City and thereafter all claimants shall be restricted exclusively to making claim against City for such principal or interest. City.shall have no liability for interest on any such funds paid to it and shall not be required to hold such funds in trust nor to, in any manner, segregate such funds on its books. 0i/160667.4 15 Section 5.07. Additional Rent. It is understood and agreed that, pursuant to the provisions of the Agreement, City agrees to pay costs and expenses as Additional Rent (as that term is defined in the Agreement), including the fees and expenses of Trustee. ARTICLE VI ACQUISITION FUND Section 6.01. Creation of Acquisition Fund. A special fund is hereby created with Trustee to be designated "Acquisition Fund." Upon the issuance and sale of the Bonds, the proceeds thereof, excluding accrued interest, if any, shall be deposited into the Acquisition Fund. Section 6.02. Use of Moneys in Acquisition Fund. Moneys in the Acquisition Fund shall be disbursed for the following purposes: (1) the payment of expenses of issuing and selling the Bonds, including printing, legal and financial expenses; and (2) the amount remaining after payment or provision for payment of the expenses mentioned in (1) above shall be applied to the payment of the costs of the Projects, including the reimbursement of City for any such costs incurred after May 18, 1995, in the case of Omaha-Park Four Project, and May 25, 1995, in the case of the Omaha-Park Five Project, as provided in the Agreement. Section 6.03. Requisitions. Trustee shall disburse funds in payment of expenses permissible under Section 6.02(1) and Section 6.02(2) upon receipt of requisitions signed by the President or Secretary of Corporation. Requisitions submitted to Trustee shall be in the form attached hereto as Exhibit B. Trustee shall maintain complete and accurate records relating to each such disbursement for Projects' costs. ARTICLE VII INVESTMENTS Moneys for the credit of any fund or account under this Indenture shall be invested and reinvested by Trustee upon the written direction of Corporation, but only in investments authorized by Reissue Revised Statutes of Nebraska, 1943, Section 14-563, viz. securities of the United States, the State of Nebraska, the City, Douglas County, Nebraska, a school district of the City, municipality owned and operated public utility property and parts of the City, and certificates of deposit from and make time deposits in bank or capital stock financial institutions selected as depositories of City funds; provided that moneys deposited from Basic Rent payments 01/160667.4 16 1 f' to the credit of the Bond Fund shall only be invested or reinvested by Trustee in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America. Any such investment shall mature at such time and in such amounts so that funds will be available when required. Obligations so purchased as an investment of moneys shall be held by or under the control of Trustee and shall be deemed at all times part of the fund or account from which invested, and the interest accruing thereon and any profit realized from such investments shall be credited to such fund or account and any loss resulting from such investments shall be charged to such fund or account. ARTICLE VDT • DISCHARGE OF LIEN AND DEFEASANCE If Corporation shall pay or cause to be paid to the owners of the Bonds the principal and interest to become due thereon at the time and in the manner stipulated therein, and if Corporation shall keep, perform and observe all and singular the covenants and promises in the Bonds and in this Indenture expressed as to be kept, performed and observed by it or on its part, then these presents and the estate and rights hereby granted shall cease, determine and be void, and thereupon Trustee shall cancel and discharge the lien of this Indenture and execute and deliver to Corporation such instruments in writing as shall be requisite to satisfy the lien hereof and assign and deliver to Corporation any property at the time subject to the lien of this Indenture which may then be in its possession, except cash held by Trustee for the payment of interest on and retirement of the Bonds, or as otherwise provided for herein. It is specifically understood and agreed that the release of the lien of this Indenture shall not affect nor cancel the provisions of this Indenture relating to Bonds issued or the rights of owners of the Bonds, Trustee or Corporation, which provisions shall continue in full force and effect according to their terms. Corporation may at any time surrender to Trustee for cancellation by it any Bonds previously authenticated and delivered hereunder which Corporation may have acquired in any manner whatsoever, and such Bonds, upon surrender and cancellation, shall be deemed to be paid and retired. For the purposes of this Indenture, any Bond issued hereunder shall be deemed to be fully discharged and satisfied and no longer outstanding when: (1) a Bond is cancelled whether by reason of payment or redemption prior to maturity; (2) a Bond is surrendered to Trustee for cancellation; (3) a Bond for which the payment of the principal of and all interest accrued and to accrue through the due date of payment (regardless of whether such due date 01/160667.4 17 • arises by reason of maturity, upon redemption or by declaration as provided herein) has been made; such payment will be deemed to have been made when there has been deposited with Trustee sufficient moneys to make such payment or United States Government Obligations maturing, as to principal and interest, in such amount and at such times as will insure the availability of sufficient moneys to make any such payment and all necessary and proper fees, compensation and expenses of Trustee pertaining to such Bond with respect to which such deposit is made have either been paid or payment provided for to the satisfaction of Trustee; provided, however, no deposit of cash or United States Government Obligations shall constitute discharge and satisfaction as to any Bond to be redeemed prior to their maturity unless: (a) such Bond has been irrevocably called or designated for redemption on the first date thereafter on which such Bond may be redeemed in accordance with the provisions of Article III of this Indenture; and (b) proper notice of the redemption of such Bond has been mailed as required by Article III hereof, or irrevocable provision, satisfactory to Trustee, shall have been made for the mailing of such notice; (4) a Bond is mutilated, destroyed or lost and, subsequently, a new Bond is issued as provided under Section 2.07 of this Indenture. At such time as a Bond shall no longer be deemed to be outstanding hereunder, as provided in this Section, such Bond shall no longer be secured by or entitled to the benefits of this Indenture except for the purpose of payment from the cash or United States Government Obligations deposited with and held by Trustee for such purpose. Moneys deposited with Trustee under this Section and the proceeds of any United States Government Obligations held under this Section may be invested and reinvested in United States Government Obligations which mature in the amounts and at the times required to comply with the provisions of this Section. Any income from such investments in excess of the requirements for principal of and interest on any Bond not being outstanding under the provisions of this Section shall be paid into the Bond Fund to be disbursed or held as provided thereby. If cash or United States Government Obligations shall have been deposited with Trustee in accordance with this Section, in trust for the purpose and sufficient and available to pay the principal of any Bond, together with all interest due thereon to the due date thereof or to the date fixed for the redemption thereof, all liability of Corporation'for such payments shall terminate and be discharged, whether or not such Bond shall be presented for payment on the due date, whether at maturity or upon redemption or by declaration, and Trustee shall hold such moneys or United States Government Obligations without liability to the owner of such Bond for interest thereon, in trust for the benefit of the owner of such Bond, who thereafter shall be restricted exclusively to such moneys or United States Government Obligations for any claim for such payment of whatsoever nature on his part, except as is provided in Section 5.06 hereof. 01/160667.4 18 t��- ARTICLE IX DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND BONDHOLDERS Section 9.01. Events of Default. If any of the following events occur, it is hereby defined as and declared to be and to constitute an "Event of Default": (1) default in the due and punctual payment of the principal of or the interest on any Bond hereby secured and outstanding and the continuance thereof for a period of five days; (2) default in the due and punctual payment of moneys required to be paid to Trustee under the provisions of Article V hereof and the continuance thereof for a period of five days; or (3) default in the performance or observance of any other of the covenants, agreements or conditions on Corporation's part contained in this Indenture, or in the Bonds, and the continuance thereof for a period of 30 days after written notice thereof to Corporation by Trustee, or by the owners of not less than 20% in aggregate principal amount of Bonds outstanding hereunder. The term "default," as used in Section 9.01 hereof, shall mean default by Corporation in the performance or observance of any of the covenants, agreements or conditions on its part contained in this Indenture, or in the Bonds, exclusive of any period of grace required to constitute a default as an "Event of Default," as hereinabove provided, after giving the respective notice for the respective periods above stated. Section 9.02. Acceleration. Upon the occurrence of an Event of Default, Trustee may, and, upon the written request of the owners of 20% in aggregate principal amount of Bonds outstanding hereunder, shall, by notice in writing delivered to Corporation, declare the principal of all Bonds hereby secured then outstanding, and the interest accrued thereon, immediately due and payable. This provision is subject, however, to the condition that, if at any time after such declaration of principal and interest to be immediately due, and before any further action has been taken other than such declaration, the principal amount of all Bonds which have matured and all arrears of interest, together with the reasonable charges and expenses of Trustee, shall be paid or caused to be paid, then the owners of a majority of principal amount of the Bonds then outstanding, by notice in writing delivered to Trustee, may require Trustee to waive such default and its consequences and rescind such declaration. Until it is required to make the declaration hereinabove in this Section provided, Trustee shall have power to waive any default arising hereunder if, in the opinion of Trustee, the same shall have been cured or adequate satisfaction made therefor or if Trustee deems the declaration not to be in the best interest of the Bondholders. No suchwaiver shall extend to or affect any subsequent default. • 01/160667.4 19 I j Section 9.03. Other Remedies. Upon the occurrence and a continuation of an Event of Default, Trustee may on its own initiative, and shall upon the written request of the owners of not less than 20% in principal amount of the Bonds then outstanding hereunder, and upon being indemnified to its reasonable satisfaction against any and all costs, expenses, outlays, counsel fees and other reasonable disbursements and against all liability, exercise any remedies available under the Agreement and, to the extent consistent therewith, may sell, lease or manage any portion of the Projects and apply the net proceeds thereof in accordance with Section 9.07 of this Article, and whether or not it has done so, proceed to take any other steps needful for the protection and enforcement of its rights and the rights of the owners of the Bonds as shall be provided by law, including a suit, action or special proceeding in equity or at law. . Section 9.04. Limitation on Bondholders' Right To Institute Proceedings. No owner of any of the Bonds shall have any right to institute any suit, action or proceeding in equity or at law hereunder or for any other remedy hereunder unless such owner previously shall have given to Trustee written notice of an Event of Default as herein provided and unless the owners of not less than 20% in principal amount of the Bonds then outstanding shall have made written request of Trustee, after the right to exercise such powers or rights of action, as the case may be, shall have accrued, either to proceed to exercise the powers herein granted or to institute such action, suit or proceeding in the name of Trustee and Trustee shall have refused or neglected to comply with such request within a reasonable time and after being afforded a reasonable opportunity to do so and after having been offered security and indemnity satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby as aforesaid. All actions to enforce any provision of this Indenture shall be instituted and maintained for the equal benefit of all owners of the Bonds, except that nothing herein contained shall impair the right of any owner of any Bond at or after the maturity thereof to reduce the same to judgment. Section 9.05. Possession of Bonds Not Required for Enforcement. All rights of action under this Indenture or under any of the Bonds secured hereby enforceable by Trustee may be _ enforced without the possession of any of the Bonds or the production thereof at the trial or other proceedings relative thereto, and any such suit or proceeding instituted by Trustee shall be brought for the ratable benefit of the owners of the Bonds, subject to the provisions of this Indenture. Section 9.06. Waiver. In the event the Bondholders or Trustee waive any default or breach of duty, such waiver shall not impair any right or power exercisable hereunder by the Bondholders or Trustee nor shall such waiver be construed to be or be a waiver of any subsequent default or breach. Section 9.07. Application of Moneys. Anything in this Indenture to the contrary notwithstanding, if at any time the moneys in the Bond Fund shall not be sufficient to pay the interest on or the principal of the Bonds as the same shall become due and payable (either by their terms or by acceleration of maturities under the provisions of Section 9.02 of this Article), such moneys, together with any moneys then available or thereafter becoming available for such 01/160667.4 • 20r purpose, whether through the exercise of the remedies provided for in this Article or otherwise, shall be applied as follows: (1) unless the principal of all the Bonds shall have become or shall have been declared due and payable, all such moneys shall be applied as follows: (a) FIRST: to the payment to the persons entitled thereto of all installments of interest then due and payable in the order in which such installments became due and payable and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment, ratably, _ according to the amounts due on such installment, to the persons entitled thereto, without any discrimination or preference; - (b) SECOND: to the payment to the persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due and payable (other than Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of this Indenture), in the order of their stated payment dates, with interest on the principal amount of such Bonds from the respective dates upon which such Bonds became due and payable, and, if the amount available shall not be sufficient to pay in full the principal of the Bonds by their stated terms due and payable on any particular date, together with such interest, ratably, according to the amount of such interest due on such date, and then to the payment of such principal, ratably, according to the amount of such principal due on such date, to the persons entitled thereto without any discrimination or preference; and (c) THIRD: to the payment of the interest on and the principal of the Bonds, to the purchase and retirement of Bonds and to the redemption of Bonds, all in accordance with the provisions of Articles II and III of this Indenture; (2) if the principal of all the Bonds shall have become or shall have been declared due and payable, all such moneys shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, without preference or priority of principal over interest or of interest over principal, or of any installment of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the"amounts due respectively for principal and interest, to the persons entitled thereto without any discrimination or preference; and (3) if the principal of all the Bonds shall have been declared due and payable and if such declaration shall thereafter have been rescinded and annulled under the provisions of Section 9.02 of this Article, then, subject to the provisions of paragraph (2) of this Section, in the event that the principal of all of the Bonds shall later become or be declared due and payable, the moneys remaining in and thereafter accruing to the 01/160667.4 ' 21 Bond Fund shall be applied in accordance with the provisions of paragraph (1) of this • Section. Whenever moneys are to be applied by Trustee pursuant to the provisions of this Section, such moneys shall be applied by Trustee at such times, and from time to time, as Trustee in its sole discretion shall determine, having due regard to the amount of such moneys available for application and the likelihood of additional moneys becoming available for such application in the future, and the deposit of such moneys, or otherwise setting aside such moneys, in trust for the proper purpose shall constitute proper application by Trustee; and Trustee shall incur no liability whatsoever to any Bondholder or to any other person for any delay in applying any such moneys, so long as Trustee acts with reasonable diligence, having due regard to the circumstances, and ultimately applies the same in accordance with such provisions of this Indenture as may be applicable at the time of application by Trustee. Whenever Trustee shall exercise such discretion in applying such moneys, it shall fix the date (which shall be an interest payment date unless Trustee shall deem another date more suitable) upon which such application is to be made and upon such date interest on the amounts of principal to be paid on such date shall cease to accrue. Trustee shall give such notice as it may deem appropriate of the fixing of any such date, and shall not be required to make payment to the owner of any Bond until such Bond shall be surrendered to Trustee for appropriate endorsement, or for cancellation if fully paid. Section 9.08. Restoration to Former Position. In case any proceedings taken by Trustee on account of any default shall have been discontinued or abandoned for any reason, then and in every such case Corporation, Trustee and the Bondholders shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and duties of Trustee shall continue as though no proceeding had been taken. Section 9.09. Bondholders' Right To Direct Proceedings. Anything in this Indenture to the contrary notwithstanding, the owners of a majority in principal amount of the Bonds then outstanding hereunder shall have the right, by an instrument or concurrent instruments in writing executed and delivered to Trustee, to direct the method and place of conducting all remedial proceedings to be taken by Trustee hereunder, provided that such direction shall not be otherwise than in accordance with law.and the provisions of this Indenture. ARTICLE X THE TRUSTEE Section 10.01. Acceptance of Trusts. Trustee hereby accepts the trusts imposed upon it by this Indenture and agrees to perform said trusts as an ordinarily prudent trustee under a corporate mortgage. Trustee may resign at any time by giving not less than 60 days' notice to Corporation and to City and, within five days after giving such notice, by mailing to each Bondholder of record by first-class mail a copy of such notice. Trustee may be removed at any time upon the written request or upon the affirmative vote of the owners of 51% in principal 01/160667.4 22 amount of Bonds outstanding. In the event of such resignation or removal, a successor may be appointed by the owners of 51% in principal amount of the Bonds outstanding, and such successor shall. have all the powers and obligations of Trustee theretofore vested in its predecessor, provided that, unless and until the successor trustee shall have been appointed by the owners of the Bonds as aforesaid, Corporation shall forthwith appoint a trustee to fill such vacancy. Any successor trustee shall be a bank or trust company in either of the cities of Lincoln or Omaha, Nebraska, and having a capital and surplus of not less than $10,000,000. Section 10.02. Limitations on Liability. The duties and obligations of Trustee shall be determined solely by the express provisions of this Indenture, and Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture. Trustee shall be protected when acting in good faith upon the advice of its counsel, who may be bond counsel to Corporation. Trustee may conclusively rely upon any certificate of Corporation executed by any two of the directors of Corporation and upon any requisition. certificate satisfying the requirements of Section 6.03 hereof. Trustee may require of Corporation full information and advice as to the performance of all covenants, conditions and agreements of Corporation contained in this Indenture or any supplement hereto, but Trustee shall not be required to ascertain or inquire as to the correctness of any information, statements, conclusions or opinions expressed in any certificate, resolution, report, opinion or other document furnished to it pursuant to any provision of this Indenture. Section 10.03. Dealings in Bonds. Trustee in its individual capacity may become the owner or pledgee of the Bonds with the same rights it would have if it were not Trustee hereunder. Section 10.04. Compensation. Trustee shall be entitled to reasonable compensation for all services rendered by it in the execution, exercise or performance of any of the powers and duties to be exercised or performed by it pursuant to the provisions of this Indenture and for the reasonable expenses, charges and other disbursements incurred in connection with the exercise and performance of said powers and duties, all of which under the Agreement are to be paid to Trustee by City. ARTICLE XI AMENDMENT OF INDENTURE Section 11.01. Supplemental Indentures Not Requiring Consent of Bondholders. Corporation may without the consent of the Bondholders, but'with the consent of Trustee, from time to time and at any time, amend or supplement this Indenture in such manner as not to be inconsistent with the terms and provisions hereof, so as to thereby (a) cure any ambiguity or formal defect or omission in this Indenture, including any subsequent amendments thereto; (b) grant to and confer upon Trustee for the benefit of the Bondholders any additional rights, remedies, powers, authority or security that may be lawfully granted to or conferred upon the Bondholders or Trustee, or surrender any right, power or privilege reserved to or conferred- .----, 01/160667.4 23 E upon Corporation by this Indenture or any amendment thereto; (c) issue other Bonds in accordance with the provisions of Article II hereof; (d) comply with such requirements of the Code as are necessary in the opinion of nationally recognized bond counsel to make the interest on the Bonds excludable from gross income of the Bondholders for federal income tax purposes; or (e) to modify, alter, amend or supplement this Indenture in any other respect which in the judgment of Corporation, as concurred in by Trustee, is not materially adverse to the Bondholders. Section 11.02. Supplemental Indentures Requiring Consent of Bondholders. With the consent of the owners of not less than two-thirds of the Bonds then outstanding, Corporation, from time to time and at any time, may amend this Indenture in any manner; provided, however, that, without the specific consent of the owner of each Bond which would be affected thereby, no such amendment shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any Bond issued hereunder, or (b) a reduction in the principal amount of any Bond or a reduction in the rate of interest thereon, or (c) creation of any different privilege or priority of any Bond or Bonds over any other Bond or Bonds, or (d) a reduction in the aggregate principal amount of the Bonds required for consent to such amendment to this Indenture, or (e) any release or lessening of the pledge and assignment of the Basic Rent payable by City under the Agreement:. If the owners of not less than two-thirds in aggregate principal amount of the Bonds then outstanding shall have consented to the amendment proposed, no owner of any Bond shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or in any manner to question the propriety of the execution thereof, or to enjoin or restrain Trustee or Corporation from taking any action pursuant to the provisions thereof. After the owners of the required percentage of Bonds shall have filed their consents to the amending of this Indenture, Corporation shall mail to each Bondholder a copy of the amendment together with a notice of such amending. If Trustee and Corporation shall so determine, new Bonds conforming to the amendment shall be executed and delivered in exchange for Bonds then outstanding upon surrender of the outstanding Bonds without charge to the owners thereof. Upon delivery to Trustee of a copy of the amendment to this Indenture certified by the Secretary of Corporation, together with an opinion of counsel to Corporation that such amendment is in proper form and was duly adopted in accordance with the provisions hereof and applicable law, this Indenture as it then exists and the Bonds'shall be modified and amended in accordance with such amendment, and thereafter the respective rights and duties under this Indenture of Corporation and the Bondholders shall be determined under this Indenture as so amended. ovi7.a 24Lz..:)/ Section 11.03. Consent of Trustee Required. No amendment amending, changing or modifying any of the rights or obligations of Trustee hereunder may be adopted without the written consent of Trustee. ARTICLE XII AMENDMENT OF THE LEASE AGREEMENT Section 12.01. Amendment of Agreement Not Requiring Consent of Bondholders. Corporation or Trustee, or each of them, may from time to time, without the approval of the Bondholders, consent to any amendment, change or modification of the Agreement between Corporation and City for the purpose of curing any ambiguity, formal defect or omission or h judgment of Trustee, is not to the prejudice of makinganyother change therein which, in the gJ g Trustee or materially adverse to the Bondholders. Section 12.02. Amendment of Agreement Requiring Consent of Bondholders. Except for amendments, changes or modifications as provided in Section 12.01 hereof, no amendment, change or modification of the Agreement shall be made without the written consent of the owners of two-thirds in principal amount of all the Bonds outstanding, except for the purpose of increasing the Basic Rent payable thereunder and making such other provisions as shall be required to permit the issuance of Bonds of Other Series as authorized under this Indenture; provided, however, that in no event shall the Agreement be amended to reduce the Basic Rent payable by City or extend the date when such Basic Rent shall be due, without the consent of the owners of all Bonds outstanding. The proportionate reduction of the amount of Basic Rent due by City under the Agreement by reason of City's having prepaid a portion of the Bonds shall not constitute an amendment of the Agreement. Section 12.03. Consent of Trustee Required. No amendment, change or modification to the Agreement shall be made without the written consent of Trustee. ARTICLE XOT MISCELLANEOUS Section 13.01. Execution of Instruments; Proof of Ownership. Any request, direction, consent or other instrument in writing required by this Indenture, or any supplement hereto, to be signed or executed by owners of Bonds may be in any number of concurrent instruments of similar tenor and may be signed or executed by such owners in person or by an agent duly appointed by an instrument in writing. Proof of the execution of any such instrument and of the ownership of such Bonds shall be,sufficient for any purpose of this Indenture, and shall be conclusive in favor of Trustee and Corporation with regard to any action taken by them under such instrument, if made in the following manner: • 01/160667.4 25 • (7w: (1) the fact and date of the execution by any person of any such instrument may be proved by the certificate of any officer in any jurisdiction who, by the laws thereof, has power to take acknowledgments of deeds to be recorded within such jurisdiction, to the effect that the person signing such instrument acknowledged to him the execution thereof, or by an affidavit of a witness to such execution; (2) the fact of the holding of a Bond by any holder and the amount and numbers or other descriptive details of such Bonds and the date of his holding the same may be proved by the affidavit of the person claiming to be such holder, if such affidavit shall be deemed by Trustee to be satisfactory or by a certificate issued by any trust company, bank or other depository, wherever situated, if such certificate shall be deemed by Trustee to be satisfactory, showing that at the date therein mentioned such person had on deposit with such trust company, bank or other depository the Bond described in such certificate. Trustee may, nevertheless, in its discretion require further proof in cases where it shall deem further proof desirable. For all purposes of this Indenture and of the proceedings for the enforcement thereof, such persons shall be deemed to continue to be the holder of such Bond until Trustee shall have received notice in writing to the contrary. Section 13.02.. Counterparts. This Indenture may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 13.03. No Personal Liability of Corporation Officials; Limited Liability of Corporation to Bondholders. No covenant or agreement contained in the Bonds or in this Indenture shall be deemed to be the covenant or agreement of any present or future official, officer, agent or employee of Corporation, and neither the members of Corporation nor any official executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. Except for the payment when due of the payments and the observance and performance - - of-the other agreements, conditions; covenants and terms required to -be performed by it - --- contained in this Indenture, Corporation shall not have any obligation or liability to the Bondholders with respect to this Indenture or the preparation, execution, delivery, transfer, - exchange or cancellation of the Bonds or the receipt, deposit or disbursement of the payments by Trustee or with respect to the performance by Trustee of any obligation required to be performed by it contained in this Indenture. Section 13.04. Severability. If any provisions of this Indenture shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case, for any reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance or of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable to any extent fr:\ ,1 Ji 01/160667.4 26 • whatever. The invalidity of any one or more phrases, sentences, clauses or paragraphs in this Indenture contained shall not affect the remaining portions of this Indenture or any part thereof. IN WITNESS WHEREOF, City of Omaha Parking Facilities Corporation has caused this Indenture to be executed in its behalf by its President and Secretary and its corporate seal hereunto affixed, and to evidence its acceptance of the trusts hereby created FirsTier Bank Omaha, N.A. has caused this Indenture to be executed in its name and behalf by duly authorized officers and its official seal to be hereunto affixed, all as of the first day of September, 1995. [SEAL] CITY OF OMAHA PARKING FACILITIES CORPORATION By By President Secretary [SEAL] FIRSTIER BANK OMAHA, N.A., Trustee ATTEST: By By Authorized Officer STATE OF NEBRASKA ] ] SS. • COUNTY OF DOUGLAS ] The foregoing instrument was acknowledged before me this day of September, 1995 by GREGORY A. PETERSON and LAWRENCE E. LAHAIE of CITY OF OMAHA PARKING FACILITIES CORPORATION, a Nebraska nonprofit corporation, on behalf of the corporation. • WITNESS my hand and seal this day of September, 1995. • Notary Public 01/160667.4 27 , STATE OF NEBRASKA ] ] SS. COUNTY OF DOUGLAS ] The foregoing instrument was acknowledged before me this day of September, 1995 by and of FIRSTIER BANK . OMAHA, N.A., a national banking association, on behalf of-the bank. WITNESS my hand and seal this day of September, 1995. Notary Public • 01/160667.4 28 EXHIBIT A (FORM OF BOND) • Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to City of Omaha Parking Facilities Corporation or its agent for registration and transfer, exchange or payment, and any certificate 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 CITY OF OMAHA PARKING FACILITIES CORPORATION LEASE REVENUE BOND (OMAHA-PAR ( FOUR AND OMAHA-PARK FIVE PROJECTS) SERIES 1995 No. R- $ MATURITY INTEREST DATED DATE RATE DATE CUSIP September 15, % September 15, 1995 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS AND NO CENTS ($ ) KNOW ALL MEN BY THESE PRESENTS that City of Omaha Parking Facilities Corporation ("Corporation"), a nonprofit corporation organized under the laws of the State of Nebraska,_ for value received, promises to pay, but only out of the Bond Fund created under Article V of the Indenture-of Trust dated as of September 1, 1995 (the "Indenture") by and between Corporation and FirsTier Bank-Omaha, N.A., as trustee ("Trustee"), to the order of the-Registered Owner identified above, or registered assigns, on the Maturity Date specified above, upon surrender hereof, the Principal Amount specified above, and in like manner to pay interest on said sum from the Dated Date specified above at the Interest Rate per annum 01/160667.4 �1 specified above (based on a year of 360 days and twelve 30-day months) per annum semiannually on March 15 and September 15 of each year, commencing on March 15, 1996, until said principal sum is paid, except as the provisions hereinafter set forth with respect to redemption of this Bond prior to maturity may become applicable hereto. Both principal of and interest on this Bond are payable in lawful money of the United States of America. Payment of principal shall be made at the corporate trust office of Trustee in Omaha, Nebraska or its successor. Payment of interest on any Bond interest payment date shall be made to the ' Registered Owner hereof as of the Record Date (defined in the Indenture) and shall be paid (i) by check or draft mailed on the Bond interest payment date to the Registered Owner as of the close of business on the Record Date at its address as it appears on the registration books of Corporation kept by Trustee on the Record Date or at such other address as is furnished to Trustee in writing by such Registered Owner not later than the close of business on the Record Date or (ii) by wire transfer to the Registered Owner of $1,000,000 in aggregate principal amount of the Bonds upon written notice by the Registered Owner given to Trustee not later than the close of business on the Record Date. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE SIDE HEREOF AND SUCH FURTHER PROVISIONS SHALL, FOR ALL PURPOSES, HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. • The Bonds are not a debt of the City of Omaha, Nebraska or a pledge of its faith and credit but, together with interest thereon, are payable solely from the Rental Payments. This Bond shall not be valid for any purpose until the Certificate of Authentication hereon shall have been signed by Trustee. IN WITNESS WHEREOF, Corporation has caused this Bond to be executed in its name by the manual or facsimile signature of its President, to be impressed with its corporate seal and to be attested by the manual or facsimile signature of its Secretary, all as of this 15th day of September, 1995. (SEAL) CITY OF OMAHA PARKING FACILITIES CORPORATION ATTEST: By President By Secretary • (e; 01/160667.4 A-2 • FORM OF REVERSE OF BOND This Bond is one of an authorized issue of bonds limited to and in the total amount of Eight Million Four Hundred Seventy-five Thousand Dollars and No Cents ($8,475,000) (the "Bonds"), dated as even date and like tenor except as to maturity date and interest rate, issued for the purpose of providing funds for the acquisition, construction, furnishing and equipping of two public parking garages (the "Projects"), which are leased to the City of Omaha, Nebraska ("City"). The Projects have been leased to City under the Lease-Purchase Agreement dated as of September 1, 1995 (the "Agreement") by and between Corporation and City. The principal of and interest on the Bonds are to be paid out of Rental Payments (as that term is defined in the Agreement) payable by City pursuant to the Agreement, which Rental Payments have been assigned to Trustee under the Indenture, under which this Bond is issued; the provisions of the Indenture, govern the rights of the owners of the Bonds. The Rental Payments are in an amount sufficient to pay the principal of and interest on the Bonds as the same become due. The Bonds maturing on and after September 15, 2006 are subject to redemption by Corporation from any source, in whole at any time or in part, on any interest payment date, in such order of maturities as determined by Corporation (and by lot or other random selection method within a maturity) on or after September 15, 2005 at the redemption prices (expressed as a percentage of principal amount of the Bonds to be redeemed), respectively, set forth below, plus accrued interest to the date of redemption: Redemption Period (dates inclusive) Redemption Price September 15, 2005 to September 14, 2006 102% September 15, 2006 to September 14, 2007 101 September 15, 2007 and thereafter 100 The Bonds maturing September 15, 2015 are subject to mandatory redemption from Basic Rent sinking fund payments prior to their respective maturity dates, by lot (or other random selection method) selected by Trustee, at a price of par, without premium, on September 15, 2011 and on each September 15 thereafter in the years and the principal amounts set forth below: Year Principal Amount 2011 - $ 2012 2013 2014 2015 (maturity) 01/160667.4 A-3 The Bonds, of whatever maturity, shall also be subject to redemption, in whole, at any time in the event of damage to or destruction of one or both of the Projects or the condemnation . thereof and the election by City that any proceeds resulting from such damage, destruction or condemnation award shall not be used to rebuild or restore the affected Project or Projects; any such redemption shall be at the principal amount of the Bonds equal to the ratio of the dollar amount of such damage, destruction or condemnation award to the principal amount of the Bonds then Outstanding, without premium, plus accrued interest to the redemption date. If a Bond in book-entry-only form is to be called for redemption, notice will be mailed to the Depository not less than 30 days nor more than 60 days prior to the redemption date. If a Bond not in book-entry-only form is to be called for redemption, notice will be given by mailing a copy of the redemption notice by first class mail not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the'registration books of Corporation kept by Trustee. All maturities of the Bonds so called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment at that time. This Bond is transferable by the registered owner hereof by execution of an assignment in the form appearing on this Bond, and upon delivery of this Bond and completed assignment to Trustee, but subject to the limitations imposed by law and upon payment of all charges incurred by Corporation and Trustee. TRUSTEE'S CERTlr'ICATE OF AUTHENTICATION . This Bond is one of the bonds designated herein and issued under the provisions of the within-mentioned Indenture. • • Date: FIRSTIER BANK OMAHA, N.A., Trustee By Authorized Officer , e 01/160667.4 A-4r. EXHIBIT B FORM OF REQUISITION 01/160667.4 Requisition No. REQUISITION FROM ACQUISITION FUND FOR CITY OF OMAHA PARKING FACILITIES CORPORATION. LEASE REVENUE BONDS (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS) SERIES 1995 TO: FirsTier Bank Omaha, N.A., Trustee FROM: City of Omaha Parking Facilities Corporation Pursuant to Section 6.03 of the Indenture of Trust (the "Indenture") dated as of September 1, 1995 by and between City of Omaha Parking Facilities Corporation ("Corporation") and you, you are hereby directed to disburse from the Acquisition Fund referred to in the Indenture (the "Acquisition Fund") the amount indicated below. 1. The name and address of the person, firm or corporation to whom payment is due: 2. Amount to be disbursed: $ Previous disbursements Cumulative disbursements after this requisition $ 3. The disbursement herein requested is for expenses properly incurred, pursuant to Sections 6.02(1) and (2) of the Indenture, and is a proper charge against the Acquisition Fund and has not been the basis of any previous disbursement. 4. A bill or bills or other evidence of each such obligation of Corporation is hereby attached. • s 01/160667.4 r'`_ • Dated this day of , 19 . CITY OF OMAHA PARKING FACILITIES CORPORATION By Title • • 01/160667.4 B-2 t' ' EXHIBIT C FORM OF BLANKET ISSUER LETTER OF REPRESENTATIONS • 01/160667.4 ' , . Blanket Issuer Letter of Representations [To be Completed by Issuer) • City of Omaha Parking Facilities Corporation [Name of Issuer] • September , 1995 [Date] Attention: Underwriting Department— Eligibility The Depository Trust Company 55 Water Street; 50th Floor New York, NY 10041-0099 Ladies and Gentlemen: • This letter sets forth our understanding ‘‘ith respect to all issues (the "Securities") that Issuer • shall request be made eligible for deposit by The Depository Trust Company("DTC"). To induce DTC to accept the Securities as eligible for deposit at DTC, and to act in accordance with DTC's Rules with respect to the Securities, Issuer represents to DTC that Issuer will comply with the requirements stated in DTC's Operational Arrangements, as they may be amended from time to time. • Note: Very truly yours, Schedule A contains statements that DTC believes accurately describe DTC, the method of effecting book- entry transfers of securities distributed through DTC,and City of Omaha Parking Facilities Corporation certain related matters. (Issuer) By: (Authorized Officer's Signature) Received and Accepted: City of Omaha Parking Facilities Corporation City of Omaha Planning Department THE DEPOSITORY TRUST COMPANY Suite 1100 1819 Farnam Street Omaha, NE By: • SCHEDULE A SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING BOOK-ENTRY-ONLY ISSUANCE (Prepared by DTC—bracketed material may be applicable only to certain•issues) 1. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully-registered Security: certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue exceeds S200 million, one certificate will be issued with respect to each 8200 million of principal amount and an additional certificate will be issued with respect to any remaining principal amount of such issue.) 2. DTC is a limited-purpose trust company organized under the New York Banking Law, a '"banling organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation"within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section_17A of the Securities Exchange Act of • 1934. DTC holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates • the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock.Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations prodding details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers.of ownership interests in the Securities are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities,except in the event that use oldie book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Participants with DTC are registered in the name.of DTC's partnership nominee, Cede & Co. The deposit of Securities with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are'credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. E 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory • requirements as may be in effect from time to time. • [6. Redemption notices shall be sent to Cede & Co. If less than all of the Securities within an issue are• being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.] 7. Neither DTC nor Cede & Co. will consent or vote with respect to Securities. Under its usual procedures, DTC mails an Omnibus Prow to the Issuer as soon as possible after the record date. The Omnibus Prow assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose • accounts the Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Principal and interest payments on the Securities will be made to DTC. DTC's practice is to credit Direct Participants' accounts on payable date in accordance with their respective holdings shown on . DTC's records unless DTC has reason to believe that it will not receive payment on payable date. Payments by Participants to Beneficial Owners VAll be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Agent, or the. - Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the Issuer or the Agent, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. • [9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant,to the [Tender/Remarketing]Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest-in the Securities, on DTC's records, to the [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with a demand for purchase or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records.] 10. DTC may discontinue providing its services as securities depository with respect to the Securities at any time by giving reasonable notice to the Issuer or the Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Security certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry transfers through DTC(or a successor securities depository). In that event, Security certificates will be printed and delivered. 12.The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the issuer takes no responsibility for the accuracy thereof. • • • LxJ • ,:- a . , - t. .t ._ i E _ =` PRBLIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 12,1995 - , v NEW ISSUE • RATINGS: Moody's: '_ m BOOK-ENTRY-ONLY Standard&Poor's: E (Sec"RATINGS' herein) w >, U r, O a .n o = In the opinion of Bond Counsel,under Basting laws,regulations,rulings and judicial decisions,interest on the Bonds is excluded from gross income of the owners thereof -E •n 3 for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations,creeps that such E • y d interest must be included in the "adjusted current earnings"of certain corporations for purposes of calculating alternative minimum taxable income. Bond Counsel also is of the •,, :: opinion that,under casting laws of the State of Nebraska,such interest it exempt from Nebraska state income taxation as long as it is exempt for purposes of the federal income tax. o F6 See"LEGAL MATTERS-Tax Exemption"herein. N 2 H p $8,475,000* d o - d CITY OF OMAHA PARKING FACILITIES CORPORATION .` 5 LEASE REVENUE BONDS c o 0 (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS) d - o SERIES 1995 E., = o o uu Dated: September 15, 1995 - Due: September 15,as shown below m r The Series 1995 Bonds(the'Bonds")are issuable in fully registered form in the denominations of$5,000 and integral multiples thereof. Interest is payable semiannually >. 3 on March 15 and September 15 of each year,commencing March 15, 1996,by check,draft or wire of the trustee on each interest payment date to the registered owner as of the d E applicable record date as shown on the books of registration of the Corporation(as hereinafter defined)maintained by FirsTier Bank Omaha,N.A.,as Trustee and Paying Agent. ° Principal of the Bonds is payable upon presentation and surrender of the Bonds at the corporate office of the Trustee,in Omaha,Nebraska. The Bonds are subject to optional redemption,mandatory sinking fund redemption and extraordinary optional redemption prior to maturity,as more fully set forth herein. d r in oo .. m The Bonds initially will be registered in the name of Cede&Co.,as nominee for The Depository Trust Company,New York,New York('DTC'),which will act as e w securities depository for the Bonds. Purchases of the Bonds may be made only in book-entry form in authorized denominations by credit to participating broker-dealers and other E �'gO institutions on the books of DTC as described herein. Purchasers will not receive certificates evidencing the Bonds. Principal of,premium,if any,and interest on the Bonds will c 2 > be payable by the Paying Agent directly to DTC as the registered owner thereof. Disbursement of such payments to the DTC Participants is the responsibility of DTC,and disbursement of such payments to the beneficial owners is the responsibility of the DTC Participants and the Indirect Participants,as more fully described herein. Any purchaser `o •4g of a beneficial interest in the Bonds must maintain an account with a broker or dealer who is,or acts through,a DTC Participant to receive payment of the principal of,premium, °, `a„ 1;-' if any,and interest on such Bonds. Sec'THE BONDS—Book-Entry-Only System"herein. N a) = c . The Bonds are being issued to provide funds for the City of Omaha Parking Facilities Corporation(the"Corporation")to pay all or a portion of the costs of acquiring, °e o 1"' constructing,furnishing and equipping two public parking garages to be located in the City of Oinaha,Nebraska. m ° o E = o MATURITY SCHEDULE' 2 5 :TE $5,470,000 Serial Bonds •V b . mo s; Maturity Date Principal Interest Price or Maturity Date Principal Interest Price or d = 3 (September 15) Amount Rate Yield (September 15) Amount Rate Yield v ° F co x o 1996 5265,000 2004 S370,000 • c 2 % 1997 275,000 2005 390,000 d Zi •0 '0 °-' 1998 285,000 2006 410,000 E a c3i 1999 295,000 2007 430,000 o 0 w o 2 . 2000 310,000 2008 450,000 E, a 2001 320,000 2009 475,000 c 3 E o a 2002 335,000 2010 505,000 o 2 .2 2 a n 2003 355,000 . t~ a U rr c $3,005,000' %Term Bonds due September 15,2015 "(Price %Plus Accrued Interest) c r'•° .L = E The Bonds are being issued pursuant to the provisions of an Indenture of Trust dated as of September 1, 1995 by and between City of Omaha Parking Facilities ,.=ti Corporation(the'Corporation")and the Trustee. THE BONDS ARE NOT A DEBT OF THE CITY OF OMAHA,NEBRASKA OR A PLEDGE OF ITS FAITH AND CREDIT. L p BUT ARE PAYABLE SOLELY FROM THE CASH RENTALS TO BE PAID BY THE CITY OF OMAHA,NEBRASKA UNDER A LEASE-PURCHASE AGREEMENT c = ° DATED AS OF SEPTEMBER 1, 1995 BY AND BETWEEN THE CORPORATION AND THE CITY. c • S •c This cover page contains information for convenient reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain e _ information essential and material to the making of an informed investment decision. O =r 3 m 3 The Bonds are being offered when,as and if issued by the Corporation and accepted by the Underwriters,subject to the approval of legality of the Bonds by E o c c Kutak Rock,Bond Counsel,and to certain other conditions. Certain matters will be passed upon for the Underwriters by their counsel,Kutak Rock. It is expected that delivery •O 3 of the Bonds will be made on or about September , 1995,at DTC against payment therefor. c r o •- 4 .n o E _ s c 'a ° Q O KIRKPATRICK PETTIS FIRSTIER BANK,NATIONAL ASSOCIATION SMITH BARNEY INC. DAIN BOSWORTH INCORPORATED d - ° CHILES HEWER DIVISION &5 ° ., 2i Q •6. ,o :a y Dated: September , 1995 • 4 = y .a O t._ _ *Preliminary;subject to change. a c.. ." ° •) H 2 y - o E U - P ...-2 3 c°i 01/161215.5 • r No dealer, broker, salesperson or other person has been authorized by the City, the Corporation or the Underwriters to give any information or to make any representations in connection with the Bonds or the matters described herein, other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by the City, the Corporation or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer,solicitation or sale. The information and expressions of opinion contained herein are subject to change,without notice,and neither the delivery of this Official Statement, nor any sale made hereunder,shall, under any circumstances,create any implication that there has been no change in the matters described herein since the date hereof. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used,in whole or in part, for any other purpose. The Underwriters may offer and sell Bonds to certain dealers and others at prices lower than the offering prices stated'on the cover page hereof. The offering prices may be changed from time to time by the original purchasers. TABLE OF CONTENTS INTRODUCTION 1 THE AGREEMENT 9 THE CORPORATION 1 THE INDENTURE 11 THE PROJECTS 2 UNDERWRITING 13 ESTIMATED SOURCES AND USES OF CONTINUING DISCLOSURE 14 FUNDS 2 LITIGATION 14 SECURITY FOR THE BONDS 3 LEGAL MATTERS 14 THE BONDS ' 4 Tax Exemption 14 Description of the Bonds 4 Statutory Property Tax Receipts Limitation . . 15 Place of Payment 4 Revaluation of Residential Real Property . . . 16 Book-Entry Only System 4 Legal Opinions 16 Optional Redemption 7 RATINGS 16 "Mandatory Sinking Fund Redemption 7 FINANCIAL STATEMENTS 17 Extraordinary Optional Redemption 8 MISCELLANEOUS 17 Additional Bonds 8 APPENDIX A—City of Omaha Refunding Bonds 9 APPENDIX B—Form of Letter Agreement THE LEASE 9 APPENDIX C—Form of Opinion of Bond Counsel IN CONNECTION WITH THEIR REOFFERING OF 1HJ BONDS, 1'Hl UNDERWRITERS OF ME BONDS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN MARKET PRICES OF THE, BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN TM, OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. 01/161215.5 • O11141CIAL STATEMENT $8,475,000* CITY OF OMAHA PARKING FACILITIES CORPORATION LEASE REVENUE BONDS (OMAHA-PARK FOUR AND OMAHA-PARK FIVE PROJECTS) SERIES 1995 INTRODUCTION This Official Statement and the cover page (excluding prices) are furnished in connection with the offering by City of Omaha Parking Facilities Corporation, a nonprofit corporation organized under the laws of the State of Nebraska (the "Corporation") of$8,475,000* aggregate principal amount of its Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects), Series 1995, to be issued pursuant to the Indenture of Trust dated as of September 1, 1995 (the "Indenture") by and between the Corporation and FirsTier Bank Omaha, N.A., as trustee and paying agent (the "Trustee"). The proceeds of the Bonds will be provided to the Trustee for deposit in the Acquisition Fund pursuant to the Indenture and used to finance all or a portion of the costs of acquisition, construction, furnishing and equipping of two public parking garages, one such garage to be located at 10th and Jackson Streets, Omaha, Nebraska, known as Omaha-Park Four (the "Omaha-Park Four Project") and the other such garage to be located adjacent to the Omaha Civic Auditorium at 1804 Capitol Avenue, Omaha, Nebraska, known as Omaha-Park Five (the "Omaha-Park Five Project" and, collectively with the Omaha-Park Four Project, the "Projects"). The Bonds will be secured by'a pledge of the cash rents payable by the City of Omaha, Nebraska (the "City") under the Lease-Purchase Agreement dated as of September 1, 1995 (the "Agreement") by and between the Corporation and the City and assigned by the Corporation to the Trustee under the Indenture. The Trustee will receive such cash rentals and act as paying agent for the Bonds. THE CORPORATION The Corporation was incorporated on September , 1995 under the Nebraska Nonprofit Corporation Act, Sections 21-1901 - 21-1991, R.R.S. Neb. 1943, as amended. The only purpose for which the Corporation was organized is to assist the City with the acquisition, `Preliminary; subject to change. 01/161215.5 construction, furnishing and equipping of public parking facilities within the geographical boundaries of the City of Omaha, Nebraska. The Corporation has three directors, who serve without compensation. Their names and principal occupations are as follows: Name and Office Occupation Gregory A. Peterson, President Assistant Planning Director for the City of Omaha Joseph A. Mangiamelli, Vice President Director of the Administrative Services Department of the City of Omaha Larry Lahaie, Secretary/Treasurer Public Events Manager for the City of Omaha The three directors named above hold office until death or resignation, in which case the City may designate a successor, but if the City does not designate a successor within 30 days after the death or resignation, the remaining directors shall appoint a successor. THE PROJECTS The Corporation will use the proceeds of the Bonds to pay all or a portion of the costs of acquiring, constructing, furnishing and equipping the Projects. The Project sites are owned by the City, which is leasing the Project sites to the Corporation under the Ground Lease Agreement,dated as of September 1, 1995 (the "Lease") by and between the City and the Corporation for a term ending on September 15, 2015, at a rental of$10 per year which was prepaid upon the delivery of the Bonds. See "THE LEASE." ESTIMATED SOURCES AND USES OF FUNDS Following are the estimated sources and uses of the Bond proceeds: Sources of Funds Bond Proceeds $ Interest from September 15 to date of closing Total $ 01/161215.5 2 The Bonds are payable from and secured solely by the cash rentals payable by the City. The Corporation has no assets other than the Projects, or revenues other than such cash rentals. Section 13 of the Agreement contains the following provision: • City agrees that no delay, failure or insufficiency, for any reason whatsoever (including, in particular, but without limitation, an insufficiency in the amount of Bond proceeds to pay the cost of the Projects), in the acquisition, construction or operation of the Projects, or any part thereof, shall entitle City to terminate this Agreement or operate in any way to suspend, abate or reduce the Rental Payments due or to become due under the terms of . . . this Agreement. THE BONDS Description of the Bonds The Bonds, in aggregate principal amount of$8,475,000,* will be dated September 15, 1995, will be issued in fully registered form, and will mature as set forth on the cover page of this Official Statement. Interest is payable semiannually on March 15 and September 15 of each year commencing March 15, 1996. Place of Payment The principal of the Bonds will be payable in lawful money of the United States of America at the corporate trust office of FirsTier Bank Omaha, N.A., as trustee and paying agent (the "Trustee"), in Omaha, Nebraska. Interest on the Bonds will be paid by wire transfer of the Trustee to the registered owner of$1,000,000 in aggregate principal amount of the Bonds upon written notice by the registered owner given to the Trustee not later than the close of business on February 1 or August 1, as the case may be, or by check or draft mailed to the person in whose name a Bond is registered as of the February 1 or August 1, as the case may be, next preceding each interest payment date. Book-Entry Only System The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be initially issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully registered Bond certificate will be issued for each maturity of the Bonds and Will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform `Preliminary; subject to change. r r. 01/161215.5 4 Commercial Code and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct Participants") deposit with DTC. DTC also facilitates the settlement among Participants (as defined hereinafter) of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a Direct Participant either directly or indirectly ("Indirect Participants"). (Direct Participants and Indirect Participants are referred to herein collectively as the "Participants.") The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of the Bonds under the DTC system must be made in authorized denominations by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond (a "Beneficial Owner") is in turn to be recorded on the Direct Participants' and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of beneficial ownership interest in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. For every transfer and exchange of beneficial ownership interests in the Bonds, DTC and the Participants may charge the Beneficial Owner a sum sufficient to pay any tax, fee or other governmental charge that may be imposed in relation thereto. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book entry for the Bonds is discontinued. SO LONG AS CEDE & CO., AS NOMINEE FOR DTC, IS THE REGISTERED OWNER OF THE BONDS, THE CITY AND THE PAYING AGENT WILL TREAT CEDE & CO. AS THE ONLY OWNER OF THE BONDS FOR ALL PURPOSES UNDER THE ORDINANCE (AS HEREINAFTER DEFINED), INCLUDING RECEIPT OF ALL PAYMENTS OF PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS, RECEIPT OF NOTICES AND VOTING. To facilitate subsequent transfers, the Bonds deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of the Bonds with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC will have no knowledge of the actual Beneficial Owners of the Bonds. DTC's records will reflect only the identity of the Direct Participants to whose accounts such Bonds are O1/161215.5 5 f c° credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants and by Direct Participants and Indirect Participants to Beneficial Owners, will be governed by arrangements.among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices will be sent to Cede & Co. If less than all of the Bonds are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant to be redeemed. Neither DTC nor Cede & Co. will consent or vote with respect to the Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to the City, as issuer of the Bonds, as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal, premium, if any, and interest payments on the Bonds will be made by the Paying Agent to DTC. DTC's practice is to credit Direct Participants' accounts on payment dates in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on a payment date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Trustee, the Corporation or any other party under the Indenture, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium, if any, and interest to DTC is the responsibility of the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the Corporation and the Trustee. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be delivered as described in the Indenture. Upon (i) the written direction of the Corporation or (ii) the written consent of 100% of the Bondholders, the Trustee shall withdraw the Bonds from DTC and authenticate and deliver Bond certificates fully registered to the assignees of DTC or its nominee. If the request for such withdrawal is not the result of any Corporation action or inaction, such withdrawal, authorization and delivery shall be at the cost and expense of the persons requesting such withdrawal, authentication and delivery. 01/161215.5 6 Redemption Period (dates inclusive) Redemption Price September 15, 2005 to September 14, 2006 102% September 15, 2006 to September 14, 2007 101 September 15, 2007 and thereafter 100 Mandatory Sinking Fund Redemption The Bonds maturing September 15, 2015 are subject to mandatory sinking fund redemption from cash rental sinking fund payments prior to their respective maturity dates, by lot (or other random selection method) selected by the Trustee, at a price of par, without premium, on September 15, 2011, and on each September 15 thereafter in the years and principal amounts set forth below: Year Principal Amount 2011 $ 2012 2013 2014 2015 (maturity) To the extent that such Bonds have been previously called for redemption in part and otherwise than from the sinking fund, each related aforesaid annual sinking fund payment for the Bonds of such maturity shall be reduced by the amount obtained by multiplying the principal amount of such Bonds of such maturity so called for redemption, by the ratio which each annual sinking fund payment for the Bonds of such maturity bears to the total sinking fund payments of such Bonds subject to sinking fund redemption, and by rounding each sinking fund payment to the nearest $5,000 multiple. In case a Bond subject to sinking fund redemption is of a denomination larger than $5,000, a portion of such Bond ($5,000 or any multiple thereof) may be redeemed, but Bonds shall be redeemed only in the principal amount of$5,000 each or any integral multiple thereof. On or before the thirtieth day prior to each such sinking fund payment date, Trustee shall proceed to select for redemption (by lot in such manner as Trustee may determine), from all outstanding Bonds subject to sinking fund redemption, a principal amount of such Bonds equal to the aggregate principal amount of such Bonds redeemable with the required sinking fund payment, and shall call such Bonds or portions thereof ($5,000 or any integral multiple thereof) for redemption from such sinking fund on the next September 15, and give notice of such call. 01/161215.5 8 1 Extraordinary Optional Redemption The Bonds are also subject to redemption at any time, in whole or in part, in the event of damage to or destruction to one or both of the Projects or condemnation thereof and election by the City that the proceeds of such damage, destruction or condemnation shall not be used to rebuild or restore the affected Project or Projects. Any such redemption shall be at a principal amount of the Bonds equal to the ratio of the dollar amount of such damage, destruction or - condemnation award to the principal amount of the Bonds then outstanding, plus accrued interest to the redemption date. Additional Bonds Additional Bonds on parity with the Bonds may be issued only if the Agreement is amended to increase the cash rentals payable by the City to provide sufficient funds at the times and in the amounts necessary to pay principal of and interest when due on both the outstanding Bonds and the proposed Additional Bonds. Refunding Bonds Other Bonds to refund all or any of the Bonds may be issued at any time so long as the cash rentals payable by the City are sufficient to cover the principal and interest requirements on all Bonds outstanding, including the refunding Bonds. THE LEASE Following is a summary of certain provisions of the Lease. Reference should be made to the Lease itself for a complete statement of its provisions. Pursuant to the Lease, the City agrees to lease to the Corporation the respective parcels of land upon which the Projects will be constructed, in consideration of which the Corporation agrees to pay the City rent in the amount of $10.00 per year, to and including September 15, 2015, when the Lease expires by its terms. Upon the expiration of the Lease, the Corporation will return the land, together with any buildings or improvements thereupon, to the City. The Lease is binding upon any successors or assigns of the City or the Corporation. • 01/161215.5 9 • 'J. i THE AGREEMENT Following is a summary of certain provisions of the Agreement. Reference should be made to the Agreement itself for a complete statement of its provisions. Term. The term of the Agreement is for 20 years and 14 days, beginning on September 1, 1995 and ending on September 15, 2015. Rental. The City agrees to pay to the Corporation cash basic rent in the amounts and on or before the dates shown in the Agreement. The due dates of the cash rental payments are the principal and interest payment dates of the Bonds, and the amount of each rental installment is equal to the principal and interest next due. The City agrees that the cash rent shall be net to the Corporation and that all costs, expenses and obligations of every kind which may arise or become due with respect to the Projects during the term of the Agreement shall be paid by the City. Assignment of Rentals. The Trustee is the assignee of all of the Corporation's rights to collect basic rent due under the Agreement, and such basic rent shall be paid by the City directly to the Trustee for the benefit of the owners of the Bonds. Prepayment. The City has the right to prepay the basic rent at any time and without penalty and thereby purchase the Projects upon 30 days' prior written notice to the Corporation, provided that the City is not in default under the Agreement. Any such prepayment must be in an amount sufficient to pay the principal of all outstanding Bonds, plus redemption premium, if any, and accrued interest, if any, to the first permitted redemption date. Additional Payments by City. As additional rental, the City has agreed to pay all taxes on the Projects and all utility charges incurred in the operation, maintenance and use of the Projects, the fees and expenses of the Trustee under the Indenture and the expenses of any audit or examination of the Corporation's records requested by the City. Repairs and Maintenance. The City has agreed, at its own expense, to put and maintain the Projects in good and safe order and condition and to make all necessary repairs required for any reason. Insurance, Damage or Destruction. The City has agreed: (a) to obtain and keep in force during the term of the Agreement fire and extended-coverage insurance with respect to the Projects in an amount at least equal to the full insurable value thereof, with the City, the Corporation and the Trustee, as their interests may appear, to be named as insured parties, but with any loss to be adjusted by and paid to the City so long as the City is not in default; 01/161215.5 10 No Right of Surrender by the City. The City has no right to surrender the Projects to the Corporation, and no abandonment of the Projects or failure or inability of the City to use the Projects at any time shall relieve the City of its obligation to pay the agreed rentals for the entire term of the Agreement. Conveyance of Project to the City. The Corporation has agreed to convey the Projects to the City upon full payment of the rentals due under the Agreement. Default. The Corporation has the right to terminate the Agreement and take possession of the Projects in the event the City defaults in the performance of any of its obligations under the Agreement and such default continues for a period of 30 days after written notice to the City. No such termination shall operate to relieve the City of its obligation to the Corporation to pay the cash rentals due under the Agreement, and the City shall continue to be liable for payment of the basic cash rent. Donations Held as Trust Fund. The City has agreed that any donation received by the City to assist in acquiring, constructing, furnishing and equipping the Projects shall be held in trust and (unless the use is otherwise specified by the donor) used only to satisfy the City's obligations under the Agreement, to apply to the purchase of the Projects from the Corporation and to pay costs of acquiring the Projects. THE INDENTURE • Following is a summary of certain provisions of the Indenture not summarized elsewhere in this document. Reference should be made to the Indenture itself for a complete statement of its provisions. Investment of Funds. All moneys held by the Trustee for the credit of any fund or account under the Indenture shall be invested and reinvested by the Trustee upon the written direction of the Corporation, but only in investments authorized by Reissue Revised Statutes of Nebraska, 1943, Section 14-563, viz. securities of the United States, the State of Nebraska, the City, Douglas County, Nebraska, a school district of the City, municipality owned and operated public utility property and parts of the City, and certificates of deposit from and time deposits in bank or capital stock financial institutions selected as depositories of City funds, provided that moneys deposited from cash rental payments to the credit of the Bond Fund shall only be invested and reinvested by the Trustee in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America. Any such investment shall mature at such time and in such amounts so that funds will be available when required. Income from all investments shall be credited to the fund from which the investment was made. Amendment of Indenture. An amendment which would extend the maturity of or reduce the interest rate on any Bond or affect the pledge and assignment of the cash rentals payable by the City or permit any priority of any Bond over any other Bond or reduce the percentage of 01/161215.5 12 . to the Corporation by the Trustee, or by the owners of not less than 20% in aggregate principal amount of Bonds outstanding. Default Remedies. Upon the occurrence of an event of default under the Indenture, the Trustee may, and upon the written request of the owners of 20% in principal amount of the Bonds, shall, accelerate the principal of and the interest on the Bonds. The Trustee may rescind its declaration of acceleration and waive any default under the Indenture under certain circumstances. The owners of not less than 20% in principal amount of Bonds then outstanding shall have the right to request the Trustee, upon being indemnified to its satisfaction, to exercise any remedies available under the Agreement and, to the extent consistent therewith, may sell, lease or manage any portion of the Projects and apply the net proceeds thereof as provided in the Indenture and, whether or not it has done so, proceed to take any other steps needful for its protection and that of the owners of the Bonds subject to the right in all events of the owners of a majority in principal amount of Bonds outstanding to direct the Trustee's action. UNDERWRITING Under a Bond Purchase Agreement (the "Bond Purchase Agreement") entered into by the Corporation and Kirkpatrick, Pettis, Smith, Polian, Inc.; FirsTier Bank, National Association; Smith Barney Inc./Chiles Heider Division; and Dain Bosworth Incorporated, as Underwriters (the "Underwriters"), the Bonds are being purchased at a price of $ . The Agreement provides that the Underwriters will purchase all of the Bonds if any are purchased. The obligation of the Underwriters to accept delivery of the Bonds is subject to various conditions contained in the Bond Purchase Agreement, including the absence of pending or threatened litigation questioning the validity of the Bonds or any proceedings in connection with the issuance thereof and the absence of material adverse changes in the financial or business condition of the Corporation or the City. The Underwriters intend to offer the Bonds to the public initially at the offering prices set forth on the cover page of this Official Statement, which prices may subsequently change without any requirement of prior notice. The Underwriters reserve the right to join with dealers and other underwriters in offering the Bonds to the public. The Underwriters may offer and sell Bonds to certain dealers (including dealers depositing Bonds into investment trusts) at prices lower than the public offering price. CONTINUING DISCLOSURE The City has entered into an undertaking (the "Undertaking") for the benefit of the holders of the Bonds to send certain financial information and operating data to certain information repositories annually and to provide notice to the Municipal Securities Rulemaking Board or certain other repositories of certain events, pursuant to the requirements of Section (b)(5)(i) of Securities and Exchange Commission Rule 15c2-12 (17 C.F.R., § 240.15c2-12) (the "Rule"). See APPENDIX B—FORM OF LETTER AGREEMENT. O1/161215.5 14 • The City's Undertaking is its first under the Rule. A failure by the City to comply with the Undertaking will not constitute an Event of Default under the Indenture or the Agreement, although any Bondholder will have any available remedy at law or in equity, including seeking specific performance by court order, to cause the City to comply with its obligations under the Undertaking. Any such failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. LITIGATION No litigation is pending or, to the knowledge of the Corporation, threatened in any court to restrain or enjoin the issuance or delivery of any of the Bonds or in any way contesting or affecting the validity of the Bonds, the related resolution of the Corporation, the Agreement, the Indenture, or the City's related ordinance, or contesting the powers or authority of the Corporation to issue the Bonds or to adopt the related resolution or of the city to execute and deliver the Agreement or pass its related ordinance. LEGAL MATTERS Tax Exemption In the opinion of Kutak Rock, Bond Counsel, to be delivered at the time of original issuance of the Bonds, under existing laws, regulations, rulings and judicial decisions, interest on the Bonds is (a) excluded from gross income for federal income tax purposes and (b) is not a specific item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. Interest on the Bonds, however, will be included in the "adjusted current earnings" (i.e., alterative minimum taxable income as adjusted for certain items including those items that would be included in the calculation of a corporation's earnings and profits under Subchapter C of the Internal Revenue Code of 1986, as amended(the "Code")) of certain corporations for taxable years beginning after 1989 and such corporations are required to include in the calculation of alternative minimum taxable income 75% of the excess of each such corporation's adjusted current earnings over its alternative minimum taxable income (determined without regard to this adjustment and prior to reduction for certain net operating losses). The opinions set forth above are subject to continuing compliance by the City and the Corporation with their respective covenants regarding federal tax laws in the Ordinance and the Indenture. Failure to comply with such covenants could cause interest on the Bonds to be included in gross income retroactive to the date of issue of the Bonds. The accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of certain recipients, such as banks, thrift institutions, property and casualty insurance companies, corporations (including S corporations, foreign corporations operating 01/161215.5 15 "�* existing as of the date of issuance of the Bonds and in reliance upon general legal presumptions in favor of the constitutionality of statutes and upon the holdings of existing case law. Revaluation of Residential Real Property The Douglas County Assessor has completed two years of a three-year project to revalue residential real property in Douglas County to provide for equalization of assessments of such property for taxation in compliance with the Constitution and statutes of the State. In 1994, the ' State Board of Equalization and Assessment also imposed a general 10% valuation increase on residential real property in Douglas County for assessment equalization purposes. The initial valuation increases were effective for ad valorem taxes levied in 1994 for collection in 1995. The general effect of the revaluations is to shift to owners of residential real property a portion of the property tax burden previously shouldered by the owners of other classes of real property, such as business and agricultural properties. In order to avoid a windfall of property tax revenues from the general 10% valuation increase, Douglas County, after making allowance for actual growth in taxable real and personal property, set its 1994 levy at a level designed to limit 1995 collections to an amount estimated not to exceed the amount that would have been collected but for such revaluation. The levies with respect to each separate issue of the Bonds will be set in accordance with the revaluations. Legal Opinions Legal matters incident to the authorization and issuance of the Bonds are subject to the unqualified approving opinion of Kutak Rock, Bond Counsel, a copy of whose approving opinion will be delivered with the Bonds. See "APPENDIX C—FORM OF OPINION OF BOND COUNSEL." Certain legal matters will be passed upon for the Underwriters by their counsel, Kutak Rock. RATINGS Moody's Investors Service ("Moody's") and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P"), have assigned the Bonds the ratings of " " and " ," respectively. Such credit ratings of the Bonds by Moody's and S&P reflect only the views of such credit rating agencies. An explanation of the significance of such credit ratings may be obtained from Moody's or S&P, as the case may be. There is no assurance that such credit ratings will continue for any given period of time or that they will not be reviewed or withdrawn entirely by such credit rating agencies, if in their judgment circumstances so warrant. Neither the City nor the Underwriters have undertaken any responsibility-either to bring to the attention of the owners of the Bonds any proposed change in or withdrawal of such credit ratings or to oppose any such proposed revision. Any such downward change in or withdrawal of such credit ratings may have an adverse effect on the market price of the Bonds. 01/161215.5 17 `� • FINANCIAL STATEMENTS The audited financial statements for the City for the fiscal year ended December 31, 1994 are included in this Official Statement as a part of Appendix A and should be read in their entirety. Financial statements for the City for fiscal years ending prior to December 31, 1994 are available for inspection at the offices of the City in Omaha, Nebraska. The financial statements of the City as of December 31, 1994 included as Appendix A of this Composite Official Statement have been audited by Deloitte & Touche, L.L.P. and Hayes & Associates, independent certified public accountants, as stated in their report appearing therein. MISCELLANEOUS Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. This Official Statement is not to be construed as a contract or agreement between the Corporation and the purchasers or owners of any of the Bonds. The information contained in this Official Statement has been taken from the City, DTC and other sources considered to be reliable, but is not guaranteed. To the best of the knowledge of the undersigned, this Official Statement does not include any untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were • made, not misleading. The execution and delivery of this Official Statement have been duly authorized by the , Corporation as of the date shown on the cover hereof. CITY OF OMAHA PARKING FACILITIES CORPORATION By President 01/161215.5 18 g a • APPENDIX A CITY OF OMAHA CITY OF OMAHA—General Information Form of Government Omaha operates with a Mayor-Council form of government. As a home-rule city, Omaha has all of the powers available to a home-rule city under the Nebraska Constitution. The Mayor and Council, consisting of seven members, are elected for four-year terms. The Mayor is elected in a city-wide election while the City Council members are elected by district. City Administration • The executive and administrative powers of the City are vested in the Mayor, who is popularly elected for four years on a nonpartisan basis. The Honorable Hal Daub, Omaha's Mayor, was elected on December 13, 1994 to complete the term ending in June 1997 of the former Mayor who resigned in September 1994. Mayor Daub assumed his office on January 9, 1995. Prior to December, 1994, Mayor Daub, an attorney and businessman in his private capacity, served four terms as a Congressman in the United States House of Representatives from 1981-1989 and, most recently, as a principal and international trade specialist with the accounting firm of Deloitte and Touche. The head of the City's Finance Department is the Acting Finance Director of the City, Louis A. D'Ercole, who assumed the position upon the resignation of the City's former Finance Director in March 1995. Following his graduation from the University of Nebraska at Omaha and service in the United States Army, Mr. D'Ercole joined the Finance Department of the City in 1968 and has held the positions of Accountant/Auditor, Budget Analyst, Budget and Accounting Manager and City Comptroller. Location and General Background Omaha, founded in 1854, is the largest city in the State of Nebraska. Omaha is the hub of a vast transportation network leading to all parts of the nation and thus offers significant advantages to business and industry competing in regional arid national markets. This fact is substantiated by the growth of population, employment and income during recent years. 01/161215.5 I • Area and Population The population of the five-county Omaha Metropolitan Statistical Area ("MSA"), comprising four Nebraska counties and one Iowa county, numbered an estimated 662,801 as of July 1994. Residing within the City itself in 1994 were an estimated 342,862 people. Transportation Eleven major airlines and five commuter airlines currently handle flights in and out of Eppley Airfield. In 1994, 2,561,110 passengers used Eppley Airfield, located less than 15 minutes driving time from downtown Omaha. Omaha is general headquarters for the Union Pacific Railroad. Five other mainline railroads and a terminal railway combine to make Omaha an important rail center. Two interstate highways (Interstate 80 and Interstate 29), five federal highways and seven state highways provide fast all-weather routes within Nebraska and to and from the rest of the nation. In addition, Interstate 480 (downtown spur) and Interstate 680 (circumferential route) provide quick access to all parts of the metropolitan area. More than 85 motor common carriers haul freight to and from Omaha and all parts of the nation, making Omaha a major midwestern trucking center. Greyhound Bus Lines furnishes Omaha with transcontinental passenger service. Several smaller bus lines operate between Omaha and points in Iowa and Nebraska. Utility Services • Residential, commercial and industrial electric service rates in Omaha historically have been below the national averages, according to reports of the Edison Electric Institute in its Statistical Yearbook of the Electrical Utility Industry. In addition to low rates, the Omaha Public Power District, a Nebraska political subdivision, assures its customers ample power with a net generating capability of 1,926,000kW. The Metropolitan Utilities District("MUD"), a Nebraska political subdivision, distributes natural gas and water in the Omaha area. Rates compare favorably with those prevailing in other metropolitan areas in the nation. Omaha has a plentiful water supply (Missouri River and Platte River wells) and a water system designed to the standards of the National Board of Fire Underwriters, with a current capacity of 218 million gallons a day. MUD's supply of natural gas is purchased wholesale from Northern Natural Gas Company. This supply is supplemented with peak-shaving storage facilities which can provide up to approximately 30% of peak demand. There have been no interruptions of natural gas service to firm commercial and residential customers and no interruptions are expected in the foreseeable future. MUD continues to add new natural gas customers. 01/161215.5 A-2 reservation and direct-response center industry. Currently, there are 27 such firms located within the City. In total they employ a labor force in excess of 20,000. Major employers in this group include First Data Resources, Hyatt Reservations, Idelman Telemarketing, Inc., Marriott Reservations, Wats Marketing of America, West Telemarketing and 900 Services, Inc. Omaha is the home of 32 insurance companies, including Mutual of Omaha, the world's largest mutual health and accident company, and Woodmen of the World Life Insurance Society, the largest fraternal life insurance company. The district offices of the Farm Credit System for Nebraska, Iowa, South Dakota and Wyoming are headquartered in Omaha. The Farm Credit Bank of Omaha, among the largest in the system, has loans outstanding of over $3.8 billion. A branch Federal Reserve Bank and 20 commercial banks are located within the city limits of Omaha. First Data Resources, Union Pacific Railroad, Northern Natural Gas Company, Peoples Natural Gas Company and ConAgra, Inc. maintain their headquarters in Omaha. During 1994, the annual average unemployment rate for the Omaha MSA was, 3.0%, compared with 6.0% for the United States as a whole. The Omaha MSA unemployment rate in May 1995 was 2.4%, compared with a rate of 5.8% for the United States as a whole. CITY OF OMAHA—Selected Economic Indicators Largest Employers—City of Omaha August 1994 United States Strategic Command Department of Defense 11,600 First Data Reources Credit Card Processors 7,000 Mutual of Omaha/United of Omaha Insurance 6,200 University of Nebraska Medical Center University,Hospital, Clinics 5,800 Omaha Public Schools School System 5,525 Methodist Health System Health Care 4,800 Union Pacific Railroad Railroad 3,500 U S West Communications Communications 3,200 City of Omaha Municipal Government 3,000 AT&T Network Systems Cable and Wire Division 2,800 Bergan Mercy Health Care 2,600 01/161215.5 A-4 t` f • Omaha MSA Nonagricultural Wage and Salary Employment 1995 First Five 1994 Months % of % of Number Total Number Total Industry Manufacturing 37,156 10.30 38,016 10.30 Construction and Mining 16,423 4.55 15,861 4.30 Transportation,Communications and Utilities 25,144 6.97 . 25,823 7.00 Trade 88,776 24.60 84,229 24.18 Finance, Insurance and Real Estate 31,868 8.83 32,102 8.70 Services 111,888 31.01 119,601 32.40 Government 49,578 13.74 48,463 13.13 Total 360,833 100.00 369,095 100.01 Source: Estimated annual averages based on place of employment,from Reports of Nebraska Department of Labor,Division of Employment and Research Statistics. Omaha MSA Effective Buying Income* Year Total(000) Per Household 1950 $ 558,006 $ 4,978 1960 966,698 6,856 1970 1,956,095 11,734 1980 4,991,836 21,524 1990 9,527,248 31,166 1991 9,728,236 34,898 1992 10,572,879 35,980 1993 11,001,262 37,227 Source:Annual surveys of buying power,Sales and Marketing Management. -Effective Buying Income:personal income(wages,salaries, interest,dividends,profits and property income)minus federal,state and local taxes. 01/161215.5 A-5 � " Retail Sales—Douglas County Retail Retail Year Sales(000) Year Sales (000) 1977 $1,659,304 1986 $3,163,571 1978 1,771,647 1987 3,074,692 1979 1,848,774 1988 3,311,816 1980 1,873,004 1989 3,481,232. 1981 2,017,847 1990 3,717,333 1982 2,250,087 1991 3,567,814 1983 3,073,914 1992 4,266,146 1984 2,739,494 1993 4,739,758 1985 2,904,388 Source:Sales and Marketing Management. Banking Activity Year Bank Clearings Year Bank Clearings 1950 $ 6,833,253,983 1986 $32,704,050,362 1960 9,796,472,675 1987 34,704,749,145 1970 16,751,962,240 1988 39,836,595,615 1980 31,915,078,877 1989 38,372,075,646 1981 37,294,813,955 1990 38,383,435,837 1982 33,933,485,920 1991 38,119,116,503 1983 32,048,543,360 1992 40,931,943,464 1984 32,684,214,958 1993 34,940,684,074* 1985 32,884,571,411 1994 31,868,830,077 Source:Federal Reserve Bank of Kansas City. 'Effective July 1,1993,the Federal Reserve Bank changed its policy with respect to the amounts that are included in this total. The effect of the change was a reduction in Bank Clearings reported rather than a reduction in activity. Value of Building Permits—City of Omaha Year Amount Year Amount 1950 $ 24,105,401 1986 $229,321,621 1960 46,927,523 1987 245,621,274 1970 61,626,242 1988 ' 249,985,556 1980 136,736,312 1989 ' 269,1'68,245 1981 99,180,317 1990 318,473,517 1982 98,758,516 1991 286,025,269 1983 141,773,718 1992 284,328,785 1984 227,776,399 1993 301,972,761 1985 236,167,683 1994 313,879,897 Source:Department of Permits and Inspections,City of Omaha. 01/161215.5 A-6 CITY OF OMAHA—Financial Statistics City of Omaha General Fund Statement of Revenue, Expenditures and Changes in Fund Balance Five Years Ended December 31, 1994 Year Ended December 31 1990 1991 1992 1993 1994 Revenue: Property taxes $ 39,052,636. $ 40,440,017 S 42,915,687 $42,526,712 . $44,043,664 City sales and use tax 54,829,680 56,694,789 58,505,433 60,931,372 66,875,807 Business taxes 15,649,244 18,115,070 18,963,884 20,957,900 21,610,354 Licenses and permits 2,701,627 2,498,699 2,987,276 3,740,715 4,075,181 Intergovernmental revenue 5,255,936 5,183,680 5,104,383 5,256,442 5,206,806 Charges for services 7,807,466 7,475,075 8,352,013 7,059,864 7,603,140 Investment income 4,530,855 4,705,686 3,398,404 2,312,140 2,357,026 Rents and royalties 780,077 824,541 578,176 428,853 320,148 • Miscellaneous 409,591 183,282 315,749 372,780 589,431 Total revenue S131,017,112 $136,120,839 $141,121,005 $143,586,778 $152,681,557 Expenditures: General government 11,240,199 14,382,623 19,394,754 18,444,824 19,918,688 Parks, recreation&public property 16,176,670 16,474,303 12,332,951 12,849,361 13,990,023 Public safety 58,480,036 55,266,989 60,604,640 61,265,388 61,900,314 Public works 12,843,922 14,199,764 16,258,303 14,569,119 13,636,165 Public library 4,720,424 4,639,116 4,525,992 4,798,539 3,992,385 Employee benefits 20,954,105 21,509,669 22,250,349 24,652,517 25,647,435 Lease-purchase agreements 1,754,321 2,987,760 1,857,903 1,841,261 1,950,602 . Other 5,760,577 3,256,318 2.749,586 2.920,330 5,135,731 Total expenditures $131,930,254 $132,716,542 $139,974,478 5141.341,339 $146,171,343 Excess(deficiency)or revenues , over expenditures (913,142) 3,404,297 1,146,527 2.245,439 6,510,214 Other sources(uses)of financial resources: Initial credit 2,030,264 1,113,918 1,124,009 1,403,471 1,102,618 Operating transfers(net) 553,861 (3,114,744) (1,167,918) ,(2,187,664) (5.948,869) Net other sources(uses) of financial resources 2,584,125 (2,000,826) (43,909) (784,193) (4,846.251) Excess(deficiency)of revenues over expenditures and other sources (uses)of financial resources* 1,670,983 1,403,471 1,102,618 1,461,246 1,663,963 Fund balance,beginning of year 3,144,182 2,237,927 2,527,480 2,505,089 2,563,864 Residual equity transfer out (546,974) -0- • -0- -0- -0- Less—initial credit (2,030,264) (1,113,918) (1.124,009) (1.403,471) (1.102,618) Fund balance,end of year $ 2.237,927 S 2,527,480 $ 2.506,089 $ 2.563.864 $ 3,125,209 Source:Records of the Finance Department,City of Omaha. *City of Omaha procedure in General Fund budgeting is as follows: at the end of each fiscal year the excess, if any, of revenues and adjustments over expenditures and encumbrances is determined. Any such excess,less extraordinary transfers out,if any,is used as the initial credit to the General Fund Budget for the second year following the year in which the excess has arisen. . " a 01/161215.5 A-7 purchase agreements executed by the City as vendee or as lessee is not chargeable against the City debt limit. Under terms of a lease purchase agreement with the Omaha Pollution Control Corporation, the City is required to pay basic rental of $360,000 annually, payable in semiannual installments of $180,000. The term of the lease is for a period of 30 years, terminating in 1997. The payments under this agreement are made from the Sewer Revenue Fund. City of Omaha and Local Authorities and Districts. Revenue and Special Obligation Bonds Outstanding* as of December 31, 1994 City of Omaha: Sanitary Sewerage System Revenue Bonds $ 24,300,000 Tax Increment Bonds and Notes 26,633,132 Special Tax Revenue Bonds 3,870,000 Omaha Public Power District 1,020,327,000 Metropolitan Utilities District of the City of Omaha -0- • Airport Authority of the City of Omaha 60,015,849 Omaha Housing Authority 10,219,000 *Revenue bond indebtedness is not general obligation debt of the City. Principal and interest are paid solely from revenues arising from'operations of the respective City facilities or of the Authority or District issuing such revenue bonds. No taxes are levied for payment of either principal or interest. Nor are the Tax Increment Bonds and Notes and • Special Tax Revenue Bonds referred to above general obligations of the City. Principal and interest are paid (1) either from that portion of the ad valorem tax on real property in a redevelopment project which is in excess of that portion of the ad valorem tax upon real property in such redevelopment project produced by the levy at the rate fixed each year by or for each public body levying a tax in such redevelopment project on the valuation for assessment of the taxable real property as last certified for the year prior to the providing for division of such taxes pursuant to the redevelopment plan or (2) from special tax revenues collected pursuant to redevelopment laws. ANTICIPATED ISSUANCE In the fourth quarter of 1995, the City plans to issue lease revenue bonds secured on the same basis as the Bonds in the aggregate principal amount of approximately $16,000,000 to finance a portion of the cost of improvements-to the City's auditorium and general obligation bonds in the principal aggregate amount of$14,000,000 to finance various public improvement. projects of the City. I ry 01/161215.5 A-10 AUTHORITY TO LEVY TAXES • Under the City Charter, the tax levy of the City in any year for all purposes shall not exceed the total of (i) $.6125 per $100 of actual taxable value plus (ii) whatever tax levy is necessary to provide for principal and interest payments on the indebtedness of the City, for the administrative expenses incurred in issuing and maintaining bonds, and for the satisfaction of judgments and litigation expenses in connection therewith, plus (iii) whatever amount is required to finance certain overtime and holiday pay for members of the police force. In addition, the Omaha-Douglas Public Building Commission Act pursuant to which the Commission issues bonds empowers the City to levy a tax on all the taxable property in the City, except intangible property, of$.017 per $100 of actual valuation in excess of the Charter limitation if and to the extent necessary to make the City's payments to the Commission. The City's tax levy during its current fiscal year ending December 31, 1995 is shown in the table below. No separate levy above the Charter limitation was made for payments to the Omaha-Douglas Public Building Commission. A levy of the additional $.017 authorized by the ' Omaha-Douglas Public Building Commission Act would have meant an additional levy of $1,714,759. Set forth in the table below is a detailed summary of the property tax levied on real and personal property in the City. Total Property Tax Levies in the City of Omaha (Levied on Real and Tangible Personal Property) 1991 1992 1993 1994 1995 (amount per$100 of actual valuation) City of Omaha General Fund $ .4107 $. .4257 $ .4237 $ .4266 $ .4163 Debt Service Fund .2298 .2203 .2176 .2148 .1963 Judgment Fund .0050 .0000 .0044 .0044 .0045 Riverfront Redevelopment Fund .0049 .0044 .0047 .0046 .0046 Total for City of Omaha $ .6504 $ .6504 $ .6504 $ .6504 $ .6217 • 1990-91 1991-92 1992-93 1993-94 1994-95 (amount per$100 of actual valuation) Other Taxing Units M.U.D.-water Hydrants $ .0115 $ .0115 $ .0115 ' $ .0115 $ .0110 Douglas County .2912 .2912 .2915 .2912 .2775 School District of Omaha' 1.4691 1.4349 1.5293 1.6477 1.6673 School District No. 66 of Douglas County' 1.5658 1.5837 1.5758 1.6193 1.5355 School District of Ralston' 2.0415 2.0194 . 1.8789 1.8837 1.9023 School District of Millard' 1.4313 1.4420 1.4111 1.4718 1.5736 State Educational Service Units .0180 .0186 .0197 .0197 .0382 Omaha-Douglas Public Building Commission .0170 .0170 .0170 .0170 .0149 Papio Missouri River Natural Resources District .0322 .0321 .0357 .0357 .0350 Metropolitan Technical Community College .0662 .0700 .0773 .0767 .0776 Omaha Transit Authority .0700 .0700 .0700 .0700 .0635 'Residents in Omaha reside in one of the above four school districts and pay taxes only to that school district. 01/161215.5 A-11 •`'e', R Major Taxpayers' The following are firms located within the City of Omaha with the greatest 1995 real estate valuations. Value of Taxpayer Real Property United Benefit Life Insurance Co. (Mutual/United) $77,427,400 Prudential Insurance Company of America 60,421,300 Creighton Saint Joseph Regional Healthcare System 57,049,700 Oak View Mall Corporation 49,636,400 Crossroads Joint Venture 44,975,000 California Public Retirement System (Two Towers) 28,300,000 Woodmen of the World Life Insurance Society 24,500,000 Regency Associates 20,855,100 Omaha Hotel Inc. 20,624,200 Immanuel Inc. 17,634,900 Vanderbilt Ltd. 17,125,900 AT&T Communications Inc. 16,997,700 Kellogg USA Inc. 16,563,000 Physicians Mutual Insurance Co. 16,525,000 PDM Inc. 16,310,200 Nebraska Furniture Mart 16,039,700 SFI Ltd. Partnership 13 etal 16,005,000 First National of Nebraska Inc.. 15,640,000 First Data Resources Inc. 14,977,500 Shorenstein Realty Investors 13,950,000 Red Lion Inns Operating Limited Partnership 13,829,500 State Street Bank and Trust 13,500,000 Guarantee Mutual Life 13,088,500 SFI Ltd. Partnership 12 12,809,500 Construction Developers Inc. 11,890,000 Consolidated Capital Prop. 11,807,200 Norwest Bank Nebraska 11,600,400 Loyal Katskee 11,198,900 Comfre-Dodge Fund VII 11,164,800 Camelot Village Dev. Co. 10,455,400 C F T Company 10,435,000 Clarkson Memorial Hospital 10,295,400 Federal Reserve Bank 10,265,300 Thomasville Inc. 10,230,000 Bernard Taulborg 10,190,200 Prefco XI Limited Partnership 10,121,800 Source: Records of the Tax Control Supervisor, Office of the Douglas County Clerk. 'In 1986,valuations for Northwestern Bell Telephone Co.(predecessor in interest to US WEST)and Union Pacific Corp. were$52,368,000 and$14,212,600,respectively. Since 1987, valuations for these taxpayers have been determined on a statewide basis and taxes are collected by the Nebraska Department of Revenue. The centrally collected taxes are distributed to local taxing.units in proportion to property valuations therein. 01/161215.5 A-12 �"` PROPERTY TAX COLLECTIONS Property taxes on tangible property, real and personal, are levied by the City of Omaha, collected by the Douglas County Treasurer and remitted to the City. Real property taxes are levied September 1 of each year and become due December 31. The first half of tax payable becomes delinquent the following April 1 and the second half August 1. Personal property taxes are levied September 1 of each year and become due November 1. The first half of tax payable becomes delinquent December 1 and the second half the following July 1. Taxes for Year Shown Prior Years' Year Ended Amount % Taxes Total December 31 Certified Collected Collected Collected Collections 1990 $60,388,288 $58,072,932 96.2 $2,851,616 $60,924,548 1991 63,130,966 ' 61,035,328 96.7 3,002,703 64,038,031 1992 64,533,711 62,482,543 96.8 3,077,626 65,560,169 1993 64,001,413 62,062,689 97.0 3,209,644 65,272,333 1994 65,753,953 64,153,434 97.6 2,996,534 67,149,968 Source: Records of Finance Department, City of Omaha. CASH RESERVE FUND At a special City election held on November 6, 1984, voters of the City approved an amendment to Section 5.03 of the City Charter to provide in subsection (10) for the establishment of a cash reserve fund ("Cash Reserve Fund") for the purpose of meeting emergencies arising from: (a) the loss or partial loss of a revenue source; (b) an unanticipated expenditure demand due to a natural disaster, casualty loss or act of God; (c) expenditure demand for the satisfaction of judgments and litigation expenses when the Judgment Levy Fund balance is inadequate; or - (d) conditions wherein serious loss of life, health or property is threatened or has occurred. The 1984 amendment to the City Charter authorized the appropriation at the close of any fiscal year for credit to the Cash Reserve Fund of any amount, or portion thereof, held as General Fund surplus. Income earned on amounts credited to the Cash Reserve Fund is retained 01/161215.5 A-13 in the fund. The maximum size of the Cash Reserve Fund was established at an amount equal to 4% of General Fund appropriations. The ordinance adopted by the City Council to close Fiscal 1984 Accounts provided that the sum of$1,600,000 be transferred from 1984.available budgetary balances as the initial credit to the Cash Reserve Fund to be held as provided in Section 5.03(10) of the City Charter. An additional $1,000,000 was credited to the Cash Reserve Fund from budgetary balances as of December 31, 1985. In 1986, the City Council approved a transfer of$1,620,000 of the fund balance to build a court-ordered recreation facility. The 1994 year end transfer ordinance credited $500,000 to the Cash Reserve Fund, increasing the balance as of December 31, 1994 to $2,434,885. • 01/161215.5 A-14 CITY OF OMAHA, NEBRASKA General Purpose Financial Statements for the Year Ended December 31, 1994 and Independent Auditors' Report CITY OF OMAHA, NEBRASKA TABLE OF CONTENTS. Exhibit Page INDEPENDENT AUDITORS' REPORT 1 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet-All Fund Types and Account Groups 1 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 2 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -General and Special Revenue Funds (Budget Basis) 3 7 Combined Statement of Revenues, Expenses and Retained Earnings/Fund Balances - All Proprietary Fund Types and Similar Trust Funds 4 8 Combined Statement of Cash Flows -All Proprietary Fund Types 5 9 Notes to General Purpose Financial Statements 10 a n - -r r m-m m,r woo b N r a a .om vr;a-mono-�n�; o.e. c aN o:n-r.ea .cr-•oN e0 ro: .oe re 0 rerr.oamm a e-rQ --r oa n . W m e r.Dr+.a n e^t_m m 0 O e —Y Cl `JC v p oo a N e M? 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Z � �^eu� y4o" �� 3 °� o � ..m � 3: >`h6/ Zox � �,ccdu '_ u fL W Jil -lillilir :a e d =. .6° �buu,F:4 e„Aeo ia_ir ° Oa ac�u. 4C/ 8.x0 Q ci w rn • / Exhibit 4 CITY OF OMAHA, NEBRASKA COMBINED STATEMENT OF REVENUES,EXPENSES AND RETAINED EARNINGS/FUND BALANCES- ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS YEAR ENDED DECEMBER 31,1994 Proprietary Fund Types Fiduciary Totals Infernal Fund Type (Memorandum Only) Enterprise Service Pension Trust 1994 1993 Revenues: Sewerage service charges S30,652,873 $ - S - $ 30,652,873 $ 28,119,920. Other user charges 3,093,799 - 3,093,799 2,833,586 Miscella.,..:c.;: ..ues 137,956 438,741 129,390 706,087 322,985 Contributions - - 15,851,363 15,851,363 16,112,979 Investment income - - 28,197,943 28,197,943 33,794,468 Charges for services - - - - 168,725 Total revenues 33,884,62g 438,741 44,178,696 78,502,065 81,352,66J Expenses: Payroll and related taxes and benefits 12,514,976 - - 12,514,976 12,145,831 Outside services 5,978,566 - - 5,978,566 5,899,565 Commodities 2,609,028 380,595 - 2,989,623 3,231,233 Depreciation and amortization 8,447,227 34,765 - 8,481,992 8,150,407 Pension plan benefits - - 16,825,831 16,825,831 15,611,232 Contribution refunds - - 399,776 399,776 416,598 Trustee's fees - - 1,656,957 1,656,957 1,535,968 Other operating expenses 260,608 - 67,610 328,218 168,890 Total expenses 29,810,405 415,360 18,950,174 49,175,939 47,159,724 Operating income 4,074,223 23,381 25,228,522 29,326,126 34,192,939 Nonoperating revenue(expenses): Interest income 576,918 - - 576,918 671,739 Interest on revenue bonds (1,421,704) - - (1,421,704) (2,151,837) • Interest on capitalized lease obligations (65,252) - - (65,252) (80,565) Total nonoperating expenses (910,038) - - (910,038) (1,560,66J) Transfers: In 1,012,100 - 1,012,100 592,476 Out - - - - (619,007) Net transfers 1,012,100 - - 1,012,100 (26,531) Net income before extraordinary loss 4,176,285 23,381 25,228,522 29,428,188 32,605,745 Extraordinary loss on defeasance(Note 7) (1,856,186) - - (1,856,186) - Net income 2,320,099 23,381 25,228,522 27,572,002 32,605,745 Retained earnings/find balar+cPq, beginning of year 69,592,318 545,963 305,891,782 376,030,063 338,069,380 Depreciation transferred on contributed capital 5,454,883 - - 5,454,883 5,354,938 Retained earnings/fund balances,end of year S77,367,300 $569,344 $33 t,120,304 $409,056,948 S376,030,063 See notes to general purpose financial statements. il . Exhibit 5 CITY OF OMAHA, NEBRASKA COMBINED STATEMENT OF CASH FLOWS-ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31,1994 Totals Internal (Memorandum Only) Enterprise Service 1994 193 Cash flows from operating activities: Operating income S 4,074,223 $ 23,381 $ 4,097,604 S 1,858,570 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation and amortization 8,447,227 34,765 8,481,992 8,150,407 Changes in assets and liabilities: Receivables (748,913) (5,693) (754,606) (701,246) Inventory 2,088 - 2,088 3,291 Warrants payable (2,854,076) 16,587 (2,837,489) 228,637 Accounts payable (477,701) 3,550 (474,151) 551,323 Deposits payable (81,581) - (81,581) 93,383 Workers'compensation claims 420,041 - 420,041 (48,707) Accrued compensated absences (21,409) - (21,409) 50,364 Accrued liabilities (1,486) - (1,486) 34,788 Deferred revenue (29,260) - (29,260) 29,260 Accrued payroll (12,882) - (12,882) 54,199 Net cash flows from operating activities 8,716,271 72,590 8,788,861 10,304,269 Cash flows from noncapital financing activities: Operating transfer in 1,012,100 1,012,100 592,476 Operating transfer out - - (619,007) Net cash flows from noncapital financing activities 1,012,100 - 1,012,100 (26,531) Cash flows from capital and related financing activities: • Principal payments under capital lease obligation (294,748) - (294,748) (279,435) Principal payments on long-term debt - - - (1,930,000) Interest paid on capital lease obligations (65,252) - (65,252) (80,565) ' Principal payments on note payable (1,424,200) - (1,424,200) (1,269,500) Interest paid on long-term debt (897,800) - (897,800) (2,151,837) Capital expenditures (11,947,972) (16,639) (11,964,611) (6,958,043) • Proceeds from notes payable 4,110,125 - 4,110,125 1,843;500 Proceeds from long-term debt issuance 26,452,912 - 26,452,912 Transfer to escrow due to defeasance (28,092,228) - (28,092,228) - Return of grant proceeds (101,019) - (101,019) - Contributions from grants - - - 206,494 Contributions from other funds - (23,150) - - (23,150) (23,151) • - Net cash flows from capital and related financing activities (12,283,332) (16,639) (12,299,971) (10,642,537) Cash flows from investing activities: Change in investments,net 770,455 - 770,455 1,043,170 Interest received on investments 622,360 - 622,360 668,923 Net cash flows from investing activities 1,392,815 - 1,392,815 1,712,093 • Net increase(decrease)in cash and cash equivalent (1,162,146) 55,951 (1,106,195) 1,347,294 • Cash and cash equivalents at beginning of year 5,517,923 386,469 5,904,392 4,557,098 Cash and cash equivalent at end of year S 4,355,777 S442,420 $ 4,798,197 $ 5,904,392 See notes to general purpose financial statements. • 9 i1 • CITY OF OMAHA, NEBRASKA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1994 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES was incorporated on February 2, 1857. The City operates under a The City of Omaha,Nebraska(City)Home Rule Charter and has a mayor-council form f�e Councint with an l,1, composed oef seven members. The full-time chief executive,the Mayor, and an elected legislativey, seven Council members each represent one of the City's districts. The Mayor and members of the Council are elected through popular vote to four-year The City, as a political subdivision of the State of Nebraska, is exempt from state and Federal income taxes. The Financial Reporting Entity-The City's general purpose financial n for including a governmental all funds and account groups of the financial reporting entity. The basic department, agency, institution,commission,public authority, or other governmental organization in the al City's financial reporting entity is the significanceseveral potential governmentalunitslity forto incluseon in its e governmental unit. The City has evaluated to do so. financial reporting entity and has determined it would be inappropriate Related Organizations -The City's officials are responsible for appointing members of the boards of • other organizations,but the City's accountability for theset extend beyond making board member of the Omaha Housing Authority,the appointments. The Mayor or City Council appoin the Omaha Airport Authority,the Metro Area Transit Authority and the Omaha-Douglas Public Building Commission. Basis ofPresentation- Fund Accounting-The accounts of the City are organized on the peration basis of of funds and account groups,each of which is considered a separate accounting ty . The sets, each fund are accounted for with a separaterevenues self-balancing and expenditures/expenunts ses The various its asfunds are liabilities, fund balance/retained earnings, and account summarized by type in the general purpose financial statements. The following fund types groups are used by the City: • Governmental Fund Types -Governmental funds are thosetughsehich ich mostbala generals the City's governmental functions of the City are financed: Theacquisition, expendable financial resources and the related liabilities (excepte me those ant antfocued for s r in Proprietary Funds) are accounted for through governmental determination of changes in financial position, rather than upon net income. The following are the City's governmental fund types: • General Fund -The General Fund is the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. . 10 i ? . • Special Revenue Funds- Special revenue funds are used to account for the proceeds of specific revenue sources(other than expendable trusts or major capital projects)that are legally restricted to expenditures for specified purposes. • Debt Service Funds -Debt service funds are used to account for the accumulation of resources for, and the payment of,general long-term debt principal, interest and related costs. • Capital Projects Funds - Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and similar trust funds). • Proprietary Fund Types -Proprietary funds are used to account for the City's ongoing organizations and activities which are similar to those often found in the private sector. The measurement focus is upon determination of net income and capital maintenance. The following are the City's Proprietary Fund types: • Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises: (a)where the intent of the governing body is that the costs (expenses, including depreciation)of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or(b)where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. • Internal Service Funds -Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City or to other governmental units on a cost-reimbursement basis. • Fiduciary Fund Types - Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. • Trust and Agency Funds-The City's Trust and Agency Funds include Expendable,' Pension Trust and Agency Funds. Pension Trust funds are accounted for and reported essentially in the same manner as proprietary funds. Expendable trust funds are accounted for and reported essentially in the same manner as governmental funds. Agency funds are - custodial in nature and do not involve measurement of results of operations. • Account Groups -Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term liabilities. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. The following are the City's account groups. • General Fixed Assets Account Group -This account group is established to account for all fixed assets of the City, other than those accounted for in the Proprietary Funds and Trust Funds. • General Long-term Debt Account Group -This account group is established to account for all long-term liabilities of the City except those accounted for in the Proprietary Funds and similar trust funds. Fixed assets used in governmental fund type operations are accounted for in the general fixed assets account group. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Public domain(infrastructure)general fixed assets consisting of certain improvements other than buildings, including roads,bridges,curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not accounted for with general fixed assets. Such assets normally are immovable and of value only to the City. Therefore,the purpose of stewardship for capital expenditures is satisfied without recording these assets. No depreciation has been provided for on general fixed assets nor has interest been capitalized. All general fixed assets are valued at historical cost or estimated historical cost if actual historical cost 1J liot available. Donated general fixed assets are valued at their estimated fair value on the date donated. Property, plant and equipment owned by the Proprietary Funds is stated at cost or estimated historical cost. Contributed fixed assets are recorded at fair value at the time received. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Facilities in service 20 -75 years All others 3 - 10 years Because of their spending measurement focus,expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such • long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-term Debt Account Group. All Proprietary Funds and Pension Trust Funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Their reported fund equity(net total assets) is segregated into contributed capital and retained earnings components. Proprietary Fund type operating statements present increases (revenues)and decreases (expenses) in net total assets. In Proprietary Funds, grants, entitlements or shared revenues received for operations and/or for either capital acquisitions or construction are reported as "nonoperating" revenues. Such resources externally restricted for capital acquisitions or construction are reported as contributed capital. Operating expenses include depreciation on all depreciable fixed assets. Depreciation recognized on assets acquired or constructed through such resources externally restricted for capital acquisitions is transferred to the appropriate contributed capital account and reported in the operating statement. The net income(loss) is adjusted by the amount of depreciation on fixed assets acquired or constructed through such resources externally restricted for this purpose and closed to retained earnings. Contributed capital at December 31, 1994 is net of accumulated depreciation. • 12 • Basis of Accounting-Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the general purpose financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds, agency funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Major revenue sources and the City's basis of accounting are as follows: • Sales taxes collected by the state through December, property taxes levied and business and occupation taxes due for the current year and remitted to the City within 60 days are considered available and are therefore, recognized as revenues even though a portion of the taxes may be collected in the subsequent year. However, it is the City's policy, in accordance with City Charter requirements,to account for these types of revenues when received for budgetary purposes. In applying the measurable and available concept to intergovernmental revenues,the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of these revenues. For one type,monies must be expended on the specific purpose or project before any amounts will be paid to the City;therefore, revenues are recorded based upon expenditures incurred. For the other type, monies are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the measurable and available criteria are met. Licenses and permits, charges for services, fines and forfeits and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are measurable. Special assessments are recorded as revenues in the year assessments become current; those amounts receivable after one year are recorded as deferred revenue. Annual installments not yet due are reflected as special assessment receivables and deferred revenues. • The accrual basis of accounting is used by Proprietary Funds and Pension Trust Funds. Budget and Budgetary Accounting-The Mayor is required by City Charter to prepare and submit an annual budget to the City Council. A budget is prepared for the General Fund and all Special Revenue Funds, exclusive of all grant funds and the service type special assessments fund. These budgets are prepared primarily on a cash basis for revenues except as described above and accrual basis for expenditures. In addition, encumbrance accounting is employed. Under this system, purchase orders, contracts and other commitments for the expenditure of funds are recorded as encumbrances in order to , reserve a portion of the applicable appropriation. 13 j Budgetary control is maintained by department/division and by the following All egoryet of exprn dints must tures: personnel services, nonpersonnel services, capital outlay and debtservice. be approved by the Mayor and/or City Council. Unencumbered appropriations lapse at the end of the fiscal year. Encumbered funds are carried over to the ensuing fiscal year until utilized or cancelled. Budgets are prepared by department or division and by fund. The City Charter also requires the City Council each year to make an ad valorem tax levy for a sinking fund(Debt Service Fund)which shall provide for principal and interest payments on the general obligation bonded indebtedness of the City. Appropriations for certain Special Revenue Funds and Capital Projects Funds are controlled on a project r•,�;� •nd are carried forward each year until the project is completed or grant funds are expended. Budgets are also prepared for the Proprietary Funds as a management control device. The budgets for these funds are prepared on a revenue and expenditure basis, similar to the budgets for the governmental fund types. Encumbrances-Encumbrance accounting is employed in the governmental funds. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditures of funds are recorded in order to reserve that portion of the applicable appropriation. Encumbrances are reported as reservations of fund balances since they o not have been tute reported eportedil�ies. As expenditupes on the budge in the tbas bget asis above, December 31, 1994 encumbrances statements. Pooled Cash and Investments-The City maintains a pooled cash and investment account for all funds. These funds are placed in the custody of the City Treasurer.Interest earned on the Cityach fund reports its s pooled cash and investments is creditedstribut terest in the principal balance of the pool. to the General Fund of the City. Investments-Investments, except for deferred compensation fund investments, are stated at cost or amortized cost,which approximates market. Deferred compensation fund investments are stated at fair value. Income from investments held by the individual funds is recorded in the respective funds as it is earned. Inventory-Inventory of materials and supplies are stated at the lower of cost or market. Cost is determined on a first-in,first-out basis, consumption method. Compensated Absences-Employees earn annual vacation and sick leave at specific rates during the periods of employment. In the event of termination, an employee is reimbursed for accumulated vacation time up to a maximum allowed carryover of 240 hours for civilian bargaining employees and 280 hours for civilian management employees, 240 hours for uniformed police and firefighters assigned to a 40- hour shift and 360 hours for firefighters assigned to 24-hour shifts, plus the current year's earnings. Additionally, civilian employees are reimbursed,depending on employee,'from one-sixteenth to one- and fourth of accumulated sick leave to a maximum of 1,600 hours (100 to 400 hours),uniformed police fire department employees are reimbursed for one-eighth of accumulated sick leave. Compensation for future vacation and sick leave rights is accrued as earned. 14 .. Self-Insurance-The City self-insures all claims related to personal liability and property damage claims related to City owned vehicles, medical and workers'compensation claims and the first$100,000 of buildings and contents coverage. In addition,the City maintains certain insurance coverage on its sewer treatment plants as required by revenue bond covenants. Capitalized Interest-Interest costs incurred on specific construction of proprietary fund plant and equipment is capitalized. The rate used in determining the capitalized interest amount was the effective rate during the year of the outstanding debt. Capitalized interest is offset by interest income of construction funds. Comparative Data -Comparative total data for the prior year has been presented in the accompanying general purpose financial statements in order to provide an understanding of changes in the City's • financial position and operations. However, comparative(i.e.,presentatiu...:r.for year totals by fund type)data has not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Total Columns on Combined Statements-Total columns on the combined statements are captioned "memorandum only" to indicate they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles, nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregate of this data. Unbilled Sewer Revenues - Sanitary sewer charges are billed for the City by the Metropolitan Utilities District. Unbilled revenues, representing estimated consumer usage for the period between the last billing date and the end of the period, are not recorded. Had this amount, approximately$977,000 at December 31, 1994,been recorded, revenue for 1994 would have been higher by approximately $11,000. The City Council sets the rate schedule for the sewer charges. A revised rate structure was developed and approved in June 1990 establishing the sewer service charges for the period September 1990 through December 1994. In the absence of subsequent revisions,the 1994 rate structure will remain in effect. Cash Equivalents -For purposes of the statements of cash flows,the City considers all highly liquid debt instruments with a maturity of three months or less when purchased to be cash equivalents. 2. PROPERTY TAXES • The Home Rule Charter of the City of Omaha imposes a tax ceiling for general revenue purposes. The tax levy certified in any year shall not exceed$.6125 per$100 of actual valuation plus whatever tax levy is necessary to provide for principal and interest payments on,the indebtedness of the City, and for administrative expenses incurred in issuing and maintaining bonds, and for satisfaction of judgments and litigation expenses in connection therewith. The 1994 general tax levy ($.42657 per$100 of actual valuation)was below the legal limit by$.18593 or$18,797,098. The assessed value upon which the 1994 levy was based was approximately$10,109,771,409. 15 ��� The tax levies for all political subdivisions in Douglas County are certified by the County Board on or before September 15. Real estate taxes are due and become an enforceable lien on property on December 31. The first half of real estate taxes become delinquent on April 1 and the second half becomes delinquent on August 1 following the levy date. Personal property taxes are due on November 1 and become delinquent on December 1 and July 1 following the levy date. Delinquent taxes bear 14% interest. Motor vehicle taxes are due when an application is made for registration of a motor vehicle. 3. FUND DEFICITS Deficits exist in the fund balance of the Judgment Levy Fund-$392,439, the Federal Disaster Fund- $98,0.4 and the Western Heritage Fund-$1,580, Special Revenue Fund types and the 1984 Street& Highway Bond Fund HR-3299 -$255,the Capital Avenue East Parking Fund-$190,991,the Rosenblatt Stadium Expansion Fund-$1,173,711,the 1989 Street Bond Fund-$180,655, the Recreation and Culture Bond Fund-$54,080,the Redevelopment Projects Fund-$359,505,the Capital Type Special Assessments Funds -$1,164,059,the Sewer Bond-$150,890, the Civic Auditorium Barking Fund-S19,906 and the Civic Auditorium Renovation Fund-$411,478, Capital Projects Fund types. These fund balance deficits will be eliminated through collection of special assessments and pledges, additional financing or operating transfers. 4. INTERFUND RECEIVABLES AND PAYABLES Interfund receivables and payables at December 31, 1994 were as follows: Interfund Interfund Receivables Payables General Fund $3,734,352 $ - Special Revenue Funds: 7 Jugment Levy 311,517 _ 1,580 Western Heritage _ 37,796 1993 Federal Assistance - 528,002 Governmental Grants _ 878,895 Total Special Revenue Funds Capital Project Funds: 1,159,893 Rosenblatt Stadium Expansion 5893 Capital Avenue Parking _ 190,917 Civic Auditorium Renovation - 311,052 Civic Parking Renovation _ 17,8462 ,86 1986 Recreation and Culture Bond _ 48939 Downtown Redevelopment#4 McKesson Robbins 359,5059, 0 1989 Street and Highway Bond _ 6 2,750,888 Total Capital Project Funds Fiduciary Funds: 104,569 Police and Fire Retirement Reserve Total -All Funds $3,734,352 $3,734,352 16 t 5. CASH AND INVESTMENTS Statute and bond covenants authorize the City to invest in"investments of the nature which individuals of prudence, discretion and intelligence acquire or retain in dealing with the property of another". Investments throughout the year were substantially the same as those held at year-end. Deposits-The amount of total bank deposits are classified in these three categories of credit risk: (1) Insured or collateralized with securities held by the entity or by its agent in the entity's name. (2) Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name. (3) Uncollateralized. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent,but not in the entity's name.) The collateralization of the City's deposits with banks at December 31, 1994 is as follows: Bank deposits per banks $ 1,064,128 Time deposits per banks 5,557,471 Total deposits 6,621,599 Less FDIC coverage(category 1) (500,000) Remaining deposits (category 2) $ 6,121,599 Pledged securities at market value $15,255,267 The deposits which are not covered by FDIC coverage or pledged securities are considered to be category 3. Investments-The City's investments,except those of the deferred compensation fund, are held by the counterparty in the counterparty's customer account at the Federal Reserve. Deferred compensation fund investments of$17,929,088 consists of mutual funds and are not subject to categorization. 17 / Idle Fund Investment Pool-Investments of the Idle Fund Investment Pool are made from available cash of all city funds and are not identified with any specific fund. The pooled cash and investment account at December 31, 1994 consisted of: Carrying Fair Amount Value U.S. Government and government agency securities $58,944,862 $58,488,435 Bank deposits 1,632,285 1,632,285 Time deposits 5,500,000 5,500;000 $66,077,147 $65,620,720 Pension Funds Civilian Plan Uniformed Plan Fair Fair Cost Value Cost Value Short-term investments $ 9,265,201 $ 9,265,201 $ 19,637,847 $ 19,637,847 U.S. Government and government agency securities 32,775,590 32,768,811 56,120,969 55,621,346 Foreign securities - - 1,000,000 934,700 Corporate bonds 32,298,433 30,148,076 37,485,738 35,774,107 Corporate stocks 62,425,599 70,162,891 77,263,939 81,646,132 $136,764,823 $142,344,979 $191,508,493 $193,614,132 Reconciliation of Investments Fair Cost Value U.S. government and government agency securities $ 16,076,641 $ 15,868,449 Certificates of deposit 57,471 57,471 Pension funds 328,273,202 335,929,111 Less investments included in restricted assets {2,680,000) (2,686,700) $341,727,314 $349,168,331 18 6. RESTRICTED ASSETS . Restricted assets at December 31, 1994 were comprised of the following: 1 Bond Reserve Construction Accounts Account Total Enterprise Funds: Sewer Revenue Fund: Equity in pooled cash and investments $ - $ 697,536 $ 697,536 Investments 2,680,000 - 2,680,000 $2,680,000 $ 697,536 $3,377,536 7. BONDS PAYABLE AND OTHER LONG-TERM OBLIGATIONS A summary of long-term debt is as follows: Balances at Retirements Balances at January 1, or Other December 31, 1994 Additions Reductions 1994 General Long-term Debt Account Group: General obligation bonds S139,110,000 $18,010,000 S13,845,000 S143,275,000 Tax increment notes and bonds 28,865,258 922,089 3,154,215 26,633,132 Special tax revenue bond,Series 1989 4,030,000 - 160,000 3,870,000 Lease-purchase contracts payable 3,905,000 2,260,000 3,000,000 3,165,000 Accrued compensated absences 9,234,366 912,451 - 10,146,817 Workers compensation claims 10,266,664 - 406,553 9,860,111 Other accrued liabilities 4,185,333 1,209,884 - 5,395,217 Total General Long-term Debt Account Group 199,596,621 23,314,424 20,565,768 202,345,277 Enterprise Funds: Revenue bonds 26,230,000 26,800,000 26,230,000 26,800,000 Less unamortized discount - (353,128) - (353,128) J�qi.-purchase contracts payable 984,750 - 310,901 673,849 Workers'compensation claims 922,467 393,789 1,316,256 Total Enterprise Funds 28,137,21/ 26,840,661 26,540,901 28,436,97/ Total-All Funds S227,733,838 S50,155,085 $47,106,669 S230,782,254 19 (/T") r Long-term debt at December 31, 1994 is comprised of the following individual issues: Effective Interest Rate at Issuance- First Original Payable Series Date Amount Issued Issue Semiannually Due Callable Outstanding General Obligation Bonds $ 8,675,000 3/15/76 Various purpose - 5.18763% 1977- 1995 1986 $ 450,000 6,000,000 3/15/77 Various purpose 4.71691 1979- 1996 1987 660,000 20,120,000 6/15/78 Various purpose-refund series 5.05974 1979- 1998 1988 1,200,000 12,800,000 6/15/79 Various purpose 5.25000 1980- 1999 1989 3,20,E 9,465,000 11/1/85 Various purpose 7.84500 1986-205 1995 535,000 28,500,000 12/1/85 G.O.defeasance bonds 7.71800 1986-2002 1995 1,620,000 13,615,000 11/1/86 Various purpose 6.23019 1987-206 1996 5,905,000 14,600,000 5/1/90 Various purpose 7.000-7.005 1991 -2010 2000 11,680,000 18,940,000 9/1/91 Various purpose-refund series 6.0622 1992-2011 2004 14,690,000 18,270,000 9/15/91 G.O.-defeasance bonds °6.0465 1992-2009 2002 14,280,000 12,765,000 11/1/92 Various purpose-refund series 5.25-6.10 1993-2012 2002 11,250,000 13,660,000 11/1/92 G.O.-defeasance bonds 5.00-6.20 1993-2010 2002 11,395,000 16,895,000 10/1/93 Various purpose-refund series 4.30-4.75 1994-2013 2013 15,520,000 32,090,000 10/15/93 Various purpose-refund series 4.10-4.80 1994-2008 2008 30,940,000 13,000,000 12/1/94 Various purpose 5.75-6.25 1995 -2014 2004 13,000,000 • Total General Bonds 136,325,000 Annexed Area Bonds 2,500,000 7/15/73 S.I.D.#188 5.81224 1974- 1998 1978 . 715,000 40,000 410,000 9/15/87 S.I.D.#230 Registered 4 967.8 8 1988- 1999 1992 - 1996 1992 40 ,00 3,000,000 5/15/78 S.I.D.#261 1,100,000 1/15/92 S.I.D.#230 Registered 5.5-7.0 1995-2004 1996 1,000,000. 1,350,000 11/15/93 S.I.D.#368 Registered 3.2-5.70 .1995-2008 1996 1,310,000 930,000 9/15/89 S.I.D.#243 Registered 6.5-8.0 1995-2004 1994 815,000 1,130,000 5/1/90 S.I.D.#265A Registered 7.0-8.5 1995-2005 1996 1,00 ,000 00 1,200,000 1/1/93 S.I.D.#265B Registered 4.25-6.75 1995-2013 1998 1,180, Total Annexed Area Bonds 6,950,000 Total General Obligation Bonds $143,275,000 20 • • Tax Increment Notes and Bonds Tax Increment Notes Effective Original Interest Rate Amount Issue • at Issuance Outstanding $ 580,000 Orpheum Theater 10.25 % $ 160,122 670,000 18th Street- Skywalk 6.75 430,000 80,000 1102 Harney 14.00 44,188 200,000 Lackawanna Leather Co. - 85,467 10,087,270 Beta West 8.85 12,480,000 700,000 Scoular Redevelopment 10.25 555,000 160,000 New Idea Building 9.25 8,553 700,000 First National Bank Building- RPI Services 10.38 700,000 760,000 Stockyards -Phase 1 9.00 686,565 80,000 Roseland Theater 10.50 49,604 115,000 Leo Vaughn Manor 10.25 54,170 140,000 Mason School 10.50 98,535 310,000 Lozier 8.25 70,857 669,375 Spring Valley Plaza 10.25 416,716 70,016 Vinton School 11.25 45,856 87,520 Park School 11.25 59,637 450,000 Redick Tower 11.00 17,951 205,000 Nogg Bros. Paper Co. 8.25 124,329 284,796 John Day 8.25 161,036 702,250 Spring Valley#2, Phase II 10.25 582,983 48,600 Hanighen Square 8.00 31,455 231,068 K B Foods 10.75 -147,200 387,027 Millard Refrigerator Services 11.00 299,053 280,000 Stockyards - Phase II 9.30 278,549 750,000 Joseph Terrace 10.00 489,668 300,000 Hill Hotel 10.75 283,160 200,000 Sleepy Partnership/Sleep Inn 10.00 196,090 164,000 MedCentre Villa 10.25 63,371 225,290 Columbian School 10.25 103,939 412,500 Spring Valley#2 10.25 216,164 210,000 Aspen Ridge Apartments 9.50 199,618 88,250 Central Supply Rubber 10.00 57,620 84,500 Omaha Bolt,Nut & Screw 10.00 74,942 246,250 Eggress - O'Flying Building 10.00 299,000 180,015 National Building 7.50 180,015 180,000 Cannonball Express 10.00 171,719 Total Tax Increment Notes $19,923,132 Ce") 21 • Tax Increment Notes and Bonds, cont. Tax Increment Notes, cont. Effective Interest Rate at Issuance- First Original Payable Series Date Amount Issued Issue Semiannually Due Callable Outstanding Total Tax Increment.Notes brought forward $19,923,132 $ 5,730,000 1/15/91 Riverfront Redevelopment- Project No. 1 -Tax-e.xempt Refunding Bonds 5.9-6.9% 1994-2004 1996 5,410,000 1,385,000 1/15/91 Riverfront Redevelopment- Project No. 1 -Taxable Refunding Bonds 8.2-9.25 1994 -2004 1996 1,300,000 Total Tax Increment Bonds 6,710,000 Total Tax Increment Notes and Bonds $26,633,132 Special Tax Revenue Bonds $ 4,700,000 12/1/88 Riverfront Redevelopment- 5.8-7.3 1989-2003 1998 $ 2,040,000 Project 7.625 2008 1,830,000 Total Special Tax Revenue Bonds $ 3,870,000 Revenue Bonds Sewer Revenue Bonds $26,800,000 8/1/94 Regular Sanitary Sewer Revenue 3.5-5.25 1995-2003 - $26,800,000 • j 22 rz !. A i . As of December 31, 1994, the bonded debt service requirements of the City for principal and interest in future years were as follows: General Obligation Bonded Debt Years Ending December 31, Principal Interest Total 1995 $ 15,785,000 $ 7,795,615 $ 23,580,615 1996 12,465,000 6,934,644 19,399,644 1997 11,950,000 6,299,838 18,249,838 1998 11,410,000 5,678,635 17,088,635 1999 11,045,000 5,086,921 16,131,921 2000 and thererafter - 80,620,000 25,893,986 106,513,986 $143,275,000 $57,689,6i9 $200,964,639 Enterprise Funds Years Ending December 31,. Principal Interest Total 1995 $ 2,500,000 $ 1,165,064 $ 3,665,064 1996 2,900,000 1,116,638 4,016,638 1997 3,020,000 987,788 4,007,788 1998 3,160,000 845,578 4,005,578 1999 3,310,000 690,223 4,000,223 2000 and thereafter 11,910,000 1,035,556 12,945,556 $ 26,800,000 $ 5,840,847 $ 32,640,847 General obligation bonds have been approved by the voters and issued by the City for various municipal improvements. These bonds represent indebtedness supported by the full faith and credit of the City. At December 31, 1994,the City also had$45,180,000 of authorized but unissued general obligation bonds. In December, 1994,the City issued$13,000,000 of series 1994 general obligations -various purpose bonds. The bonds have interest rates ranging from 5.75%to 6.25%and have annual maturities of $650,000 from 1995 to 2014. The City also annexed several area sanitary and improvement districts (SID)during the current year. SID. #368, bonds originally issued during November, 1993 were assumed at$1,310,000 by the City during 1994. The bonds have interest rates of 3.8%to 5.7%and mature in amounts ranging from$45,000 to$155,000 from 1995 to 2008. Also during 1994,the City assumed$815,000 of SID. #243, originally issued during September, 1989. The bonds have interest rates of 7.25%to 8.0%and mature in amounts ranging from$50,000 to$100,000 from 1995 to 2004. In addition,the City assumed$1,075,000 of SID. 4265, originally issued during May, 1990. The bonds have interest rates of 7.5%to 8.5%and mature in amounts ranging from$25,000 to$200,000 from • 1995 to 2005. Finally,the City assumed$1,180,000 of SID. #265 bonds, originally issued during January, 1993. The bonds have interest rates of 4.5%to 6.75%and mature in amounts ranging from $20,000 to$200,000 from 1995 to 2013. r 23 In addition to the above,the City has tax increment notes totaling$19,923,132 and tax increment bonds totaling$6,710,000 which are payable solely from the property taxes collected on certain redeveloped areas. These obligations are retired over a maximum fifteen-year period. According to the City Charter,the total amount of general obligation indebtedness outstanding at any time,which shall include bonds issued but shall not include bonds authorized until they are issued, shall not exceed 3.5%of the actual value of taxable real and personal property in the City. At December 31, 1994 the maximum debt limit was$353,841,999, general obligation debt less available fund balance in debt service was $125,532,945, leaving a debt margin of$228,309,054. Revenue bonds and certain other long-term obligations are the obligation of specific Enterprise Funds and are payable solely from the revenues of the respective funds. Provisions in the revenue bond -ordinances contain limitations and restrictions on annual debt service requirements,maintenance of and flow of monies through various restricted accounts and minimum amounts to be maintained in various accounts. it is management's opinion the City is in compliance with all such significant provisions. In August 1994,the City issued$26,800,000 in revenue refunding bonds to advance a refund of $26,230,000 of outstanding 1985 and 1986 Sewer Revenue Bonds. The net proceeds of$26,481,024 (after payment of$375,200 in other issuance costs)plus an additional $1,605,162 were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1985 and 1986 bonds. As a result,the 1985 and 1986 bonds are considered to be defeased and the liability and the related assets placed in the escrow for those bonds have been removed from the balance sheet. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of$1,856,186. The difference is reported in the accompanying financial statements as an extraordinary loss on defeasance. The City completed the advance refunding to reduce its total debt service payments over the next nine years by$1,477,884 and to obtain an economic gain (difference between the present value of the old and new debt service payments) of$2,180,468. In prior years,the City defeased certain outstanding general obligation and revenue bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly,the trust account assets and the liability for the defeased bonds are not included in the City's general purpose financial statements. The amount of in-substance defeased debt outstanding at December 31, 1994 is shown below: General Obligation Bonds: 1985 Various Purpose Bonds $ 4,115,00014, ,000 1985 Refund 1987 Various Purpose 6,500,0006, 00,000 1988 Various Purpose 28,145,000 Annexed Area Bonds: 640,000 S.I.D. #134 2,995,000 S.I.D. #290 3,635,000 Sewer Revenue Fund Revenue Bonds: 6,170,000 1973 Series, Revenue Bonds 1980 Series, Revenue Bonds 3,140,0003, ,000 1983 Series, Revenue Bonds 1985 (Defeasance of Series 1973, 1980 and 1983) Series, Revenue Bonds 12,230,00012, 0,000 1986 Series, Revenue Bonds 39,125,000 $70,905,000 24 i � if • 8. LEASES General Obligation -The City is leasing the Orpheum Theatre, a waste disposal facility and several libraries and other buildings under noncancellable lease-purchase agreements expiring at various times through 2006, at which time title will be conveyed to the City. The rental payments are designed to equal the debt service requirements of certain nonprofit organizations that financed the construction of the facilities. The City has an option to purchase the facilities at any time by paying an amount equal to the total of all remaining unpaid lease obligations to the lessor at that time. The following is a schedule by years of future minimum lease payments under the lease-purchase agreements together with the present value of the net minimum lease payments as of December 31, 1994: Fiscal Year Ending 1995 $1,078,913 1996 - 462,700 1997 357,385 1998 254,235 1999 251,330 Later years 1,559,140 Total minimum lease payments 3,963,703 Less amount representing interest 798,703 Total obligation under capital leases with rates of interest from 5%to 7.75% $3,165,000 The City leases space in the Omaha-Douglas Civic Center and the adjoining Hall of Justice under a noncancellable operating lease that expires only upon payment of all outstanding bonds of the Omaha- Douglas Public Building Commission(see Note 11). The annual rental payments are determined based upon actual space occupied by the City for operation and maintenance. The City currently has no plans which would materially affect the amount of space it occupies in the buildings. At the expiration of the lease term,title will be conveyed to the City for that portion of the building occupied during the immediately preceding twelve months. Actual rental payments for 1994 were$791,112. Enterprise Funds-The City is a party to a noncancellable lease-purchase agreement with the Omaha Pollution Control Corporation involving the use of a packing house waste treatment facility. The agreement expires in 1997, at which time the City can purchase thefacility for$1. The agreement provides for annual rentals of$360,000 and is accounted for as a capital lease. The facility is presently _ not in use. 25 The following is a schedule by years of future minimum lease payments under this capital lease, together with the present value of the net minimum lease payments as of December 31, 1994: Fiscal Year Ending 1995 $ 360,000 1996 360,000 1997 360,000 Later years Total minimum lease payments 1,080,000 Less amount representing interest 95,250 Total obligation under capital lease with an interest rate implicit in the agreement of 5.4% $ 984,750 9. NOTES PAYABLE At December 31, 1994,the City had outstanding a$3,800,000 special assessment note payable at 7.00% interest due December 14, 1995. Revolving loan contracts between the City and the Nebraska Department of Environmental Quality (NDEQ), for the purpose of improving wastewater treatment facilities, dated April 1, 1992, May 6, 1992 and August 26, 1993 were entered into for amounts not to exceed$3,015,000, $2,205,000 and $3,500,000, respectively, at interest rates of 3.5%during construction and 4.0%thereafter, 3.5% throughout and 3.5%throughout, respectively,with amounts to be repaid from user charges within five years,ten years and five years, respectively, and with outstanding balances at December 31, 1994 of $372,925, $1,183,900 and$2,317,500, respectively Due to the revolving nature of the loan contracts, such balances are classified as current liabilities. 10. DUE FROM OTHER GOVERNMENTS The total due from other governments of$8,664,278 includes the following significant items: Fund/Fund Type Amount Due From/Source General $2,521,953 State of Nebraska, state aid distribution General 4,911,450 State of Nebraska,November sales and use tax General 360,826 Douglas County, property tax collections Debt Service/General Debt Service 181,651 Douglas County, property tax collections Debt Service/General Debt Douglas County, special assessment Service 31,059 collections Capital Projects Type Special 23,183 Douglas County, special assessment Assessments/Capital Projects collections City Street Maintenance/ 232,973 Special Revenue Douglas County,wheel tax Municipal Infrastructure 388,993 State of Nebraska cigarette taxes Redevelopment, Special Revenue 26 t A I . 11. CONTRIBUTED CAPITAL The changes in the City of Omaha's contributed capital accounts for its proprietary funds were as follows: Enterprise Sewer Municipal Revenue Dock Beginning balance, contributed capital $150,140,627 $255,942 Contributing sources: Other funds 7,995,611 - Less: Depreciation transfer (5,454,883) (23,150) Return of grant (101,019) - Ending balance, contributed capital $152,580,336 $232,792 12. JOINT VENTURE The City of Omaha and Douglas County have entered into a joint venture to construct and maintain certain facilities used to provide services to their constituents. The joint venture,the Omaha-Douglas Public Building Commission(Commission), is considered a separate reporting entity by the City. Accordingly,the Commission has not been included in these general purpose financial statements. The Commission was formed by a joint resolution of the City and Douglas County in 1972. Management of the Omaha-Douglas Civic Center and the,adjoining Hall of Justice is vested in the Commission. The City's ownership in the joint venture is based upon the percentage of space occupied. The city occupied approximately 47%of the space in 1994. Total joint venture debt at June 30, 1994 was$11,085,000, including a current portion of$1,460,000. The Commission has entered into lease agreements with the City of Omaha and Douglas County to provide adequate funding for operation of the Civic Center and, with taxes to be levied by the Commission,to provide for the retirement of principal and interest on the debt. - -A summary-of certain joint venture financial information as of and for the year ended June 30, 1994 is shown below: Total assets $31,785,215 Total liabilities 12,641,950 Total equity 19,143,265 Total revenues 4,461,849 Total expenses 3,612,350 Net increase in retained earnings . 849,499 13. EMPLOYEES' RETIREMENT PLANS The employees of the City are covered by two single-employer retirement plans. The City of Omaha Employees' Retirement System(Civilian Plan)and the City of Omaha Police and Firefighters Retirement System(Uniformed Plan), as described below, are accounted for-by the City as Pension Trust Funds. 27 04°' 1 • Civilian Plan Plan Description -The Civilian Plan became effective on January 1, 1949. Its provisions are governed by Chapter 22 of the Omaha Municipal Code. All City employees except the following are covered by the Civilian Plan: police; firefighters; persons paid on a contractual or fee basis; seasonal,temporary, part-time employees; and elected officials who do not make written application. For the year ended December 31, 1994, the City's total payroll was $97,340,971 of which$43,961,577 was covered under the Civilian Plan. The Civilian Plan, as of the last actuarial valuation date, July 1, 1993, had 2,210 members consisting of: • Retirees currently receiving benefits 469 Beneficiaries 247 Disability retirements 59 Current active employees: Vested(City's and employee's portion of benefit) 1,093 Nonvested (employee portion only) 342 2,210 An employee with at least five years of service may retire as early as age 55. If an employee retires prior to age 60 his/her benefit shall be reduced by 8%for each year his/her pension commences prior to the year of his/her 60th birthday. If at retirement an employee's age plus service is greater than or equal to 85,the 8%per year reduction is not applied. An employee's monthly pension equals, for each year of service credit, 1.667%of the average final monthly compensation of the highest annual equivalent in pay periods of the last five years of compensation upon which a 4%contribution was made pursuant to the Code. An employee who terminates before obtaining pension eligibility receives a refund of his/her contributions plus interest(currently 5%per annum). If employment terminates after five years of service, the employee may elect a deferred pension instead of a contribution refund. An employee is. _ treated as an active employee if he or she dies before the pension becomes payable. Employees contribute, by payroll deduction, 4%of their total calendar year compensation. Employees are 100%vested in their contributions. An employee who has participated in the plan for twenty-five years may elect to discontinue his contributions and receive no pension credits for service thereafter. The City makes quarterly payments equal to the amount contributed by employees plus the remaining cost of membership service plus an amount sufficient to amortize the past service cost over thirty years from July 1, 1989. Prior service credit is granted for employment with the City before January 1, 1949, and membership service credit is granted for employment thereafter. Compulsory military duty and voluntary military duty in time of war count as service. The Civilian Plan also provides for certain disability and death benefits. 28 if A I - Funding Status and Progress -The actuarial present value(APV)of credit projected benefits is a standardized disclosure measure of the accrued pension benefit obligation(PBO). It is the discounted amount of benefits estimated to be payable in the future as a result of employee service through the valuation date,computed by attributing an equal benefit amount(including the effects of projected salary increases and step-rate benefits)to each year of credited and expected future employee service. The APV of credited projected benefits at July 1, 1993 was determined through an actuarial valuation. Significant actuarial assumptions used in the valuation include (a)a rate of return on the investment of present and future assets of 7%a year compounded annually, (b)projected salary increases of 4.5%a year, compounded annually, attributable to inflation and seniority merit,and(c) life expectancies before and after retirement based on the 1984 Unisex Pension Mortality Table. Pension Benefit Obligation as of July 1, 1993 Vested Benefits: 4,853,98,982 4,8 5 53 Participants currently receiving benefits $ 2 30,286,166 Accumulated employee contributions - including interest Active participant benefits attributable to employer 109,684,602 Nonvested benefits 2,409,028 Pension benefit obligation(PBO) 112,093,630 Net assets available for benefits at cost(with a market value of 116,848,751 $140,689,071 in 1993) Assets in excess of pension benefit obligation $ 4,755,121 Annual covered payroll $ 44,254,510 Net assets available for benefits at fair value as a percentage of PBO 104 % Assets in excess of PBO as a percentage of annual covered payroll " 11 % Contribution Required and Contribution Made -The City uses the Entry Age Normal Cost valuation method to determine its required contribution to the Plan. The significant actuarial assumptions used to determine the required contribution are the same as those used to compute the PBO. 29 � I . The actuarially determined City contribution requirement for the year ended June 30, 1993 was $2,108,226, including$1,184,755 of normal cost plus $923,471 of underfunded past service cost, based on a projected covered payroll of$44,254,510, or 4.764%as a percentage of payroll. The Funds are allocated a portion of the normal cost based on percentages of payroll. Expense of$394,432 and $386,433 for 1994 and 1993, respectively, was incurred and paid by the Funds. Actual City contributions are based on the percentage of payroll calculated by the actuary. Actual contributions at December 31, 1994 and 1993 include the following: 1994 1993 As a Percentage As a Percentage of Current Year of Current Year In Dollars Covered Payroll In Dollars Covered Payroll Employer $2,286,002 5:2 % $2,383,293 5.2 % Employee-required 1,758,463 4.0 1,833,302 4.0 Special contributions: Employer - - - - Employee 70,328 - 2,757 - Total $4,114,793 9.2 % $4,219,352 9.2 % Three-year historical trend information, as available, is as follows: Assets in Excess (Deficit) of Pension Col. 1 Pension Annual Col.4 Net Assets Benefit as%of Benefit Covered as%of for Benefits Obligation Col. 2 Obligation Payroll Col.5 (Col. 1) (Col. 2) (Col. 3) (Col. 4) (Col.5) (Col. 6) July 1, 1992 No Valuation Available • July 1, 1993 $116,848,751 $112,093,630 . 104 % $4,755,121 $44,254,510 11 % . July 1, 1994 No Valuation Available Required ten-year historical trend information, as available, is presented in Tables 1 and 2 of the supplemental information. Uniformed Plan Plan Description -The Uniformed Plan became effective July 1, 1961. Its provisions are covered by • Chapter 22 of the Omaha Municipal Code. The Uniformed Plan covers all probationary and regular uniformed personnel of the police and fire divisions of the public safety department of the City. For the year ended December 31, 1994,the City's payroll covered under the Uniform Plan was $53,379,264. 30 41) 1 As of July 1, 1994, the date of the last actuarial valuation, the Uniformed Plan had membership as • follows: Retirees currently receiving benefits 359 Beneficiaries 245 Disability retirements 237 Vested terminations 3 Current active employees 1,202 2,046 An employee with at least twenty-five years of service may retire as early as age 50. An employee's monthly pension is a percentage (from 20 to 60)of the employee's highest average monthly compensation during any consecutive twelve paid months during the employee's last five years of service. Prior to September 1989 the maximum monthly pension compensation percentage was 50%. In September 1989 the City agreed to increase the percentage by 1%for each year of service over twenty-five years of service to the current maximum of 60%. The Uniformed Plan also provides for certain disability and death benefits. An employee who terminates prior to obtaining pension eligibility receives a refund of his contributions plus interest. If employment terminates before age 50 with more than twenty years of service and prior to obtaining pension eligibility, the employee may elect to receive, in lieu of a refund, a deferred monthly pension beginning at age 50. Employees are required to contribute, by payroll deduction, 9.1%(previously 8.15%through mid- September 1989) of total monthly salary. The City is required by the Municipal Code to contribute 10.4%(9.45%through mid-September 1989)of each eligible employee's total monthly salary and the ' City shall make contributions to fund the cost of pensions accrued for prior service in an amount equal to (a) required interest on the unfunded actuarial liability for prior service,or(b)the actual amount of such pensions as they become due and payable. As a result of litigation,the City has agreed to contribute to the Uniform Plan$1,327,600 per year,which fulfills the City's requirement(b) above. 31 k` j • • Funding Status and Progress -The APV of credited projected benefits at July 1, 1994 was determined through an actuarial valuation. Significant actuarial assumptions used in the valuation included(a)a rate of return on the investment of present and future assets of 8.5%, and(b)projected annual salary increases for inflation plus merit increases based on age. Pension Benefit Obligation as of July 1,1994 Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them $103,588,878 Accumulated employee contributions -including interest 54,000,910 participant benefits attributable to employer 50,582,163 L air- - 208,171,951 Nonvested benefits 35,886,659 Pension benefit obligation 244,058,610 Net assets available for benefits at cost (with a market value of $191,282,653 in 1994) 183,255,226 Unfunded pension benefit obligation $ 60,803,384 Annual covered payroll $ 53,379,264 Net assets available for benefits at cost as a percentage of PBO 75 % Unfunded PBO as a percentage of annual covered payroll 114 % Contribution Required and Contribution Made -The City uses the Aggregate Cost valuation method to determine its required contribution to the Plan. The significant actuarial assumptions used to determine the required contribution are the same as those used to compute the PBO. • • 32 The Plan's contribution was based on the most recent actuarial determination plus an increase resulting from a change in the Plan's provisions made in September 1990. Actual contributions for the year ended December 31, 1994 include: As a Percentage of Current Year In Dollars Covered Payroll City: Current $ 5,551,457 10.40 % Prior service 1,327,600 2.49 Employee-required 4,857,513 9.10 Total $11,736,570 21.99 % Additional historical trend information to analyze the strength of the Uniformed Plan is available in Tables 3 and 4 of the supplemental information. 14. DEFERRED COMPENSATION PLAN The City of Omaha has a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan permits eligible employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, unforeseeable emergency, or permanent disability. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are(until paid or made available to the employee or other beneficiary) solely the property and rights of the City(without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The plan's assets are held by an external administrator, and are recorded in the general purpose financial statements at fair market value. rt It is the City's opinion that the City has no liability for losses which may arise under any legally permitted investment of funds under the plan, but does have the duty of due care that would be required of an ordinary prudent investor. The City has not used these assets to pay general creditors and the City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 11/747' 33 15. SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains five Enterprise Funds which provide sewer, marina, dock, parking and golf concession services. Segment information for the year ended December 31, 1994 is as follows: Downtown Golf Dodge Park Redevelopment Concession Sewer Marina Municipal Project Revenue Revenue Fund Fund Dock Fund No.1 Fund Fund Total Operating revenues $ 30,652,873 S282,307 $ 55,597 $ - $2,893,851 $ 33,884,628 . Operating expenses: Depreciation and amortization $ 8,304,026 S 39,432 $ 38,716 $ - $ 65,053 $ 8,447,227 Other 18,785,372 157,353 549 19,437 2,400,467 21,363,178 $ 27,089,398 S196,785 $ 39,265 $ 19,437 S2,465,520 $ 29,810,405 Operating income(loss) $ 3,563,475 S 85,522 $ 16,332 $(19,437) $ 428,331 $ 4,074,223 Net income(loss) $ 1,500,959 S 93,914 $ 16,332 $(19,437) $ 728,331 $ 2,320,099 Net working capital $ 13,247,514 $261,824 $ 99,281 $78,975 $ 859,133 S 14,546,727 Total assets $262,872,602 S849,996 $401,063 $ 82,817 $1,747,800 S265,954,278 Bonds and notes payable-net of unamortized discount $ 30,321,197 S - $ - S - $ - $ 30,321,197 Current year contributed capital $ 2,439,709 S - $(23,150) $ - $ - $ 2,416,559 Fund equity $227,149,621 S849,163 $401,063 $78,975 $1,701,606 $230,180,428 Net acquisition(disposal)of property,plant and equipment $ 11,462,200 S (3,394) $ - S - S 482,378 $ 11,941,184 16. FIXED ASSETS General Fixed Assets-All assets are valued at estimated historical cost or, if donated,estimated value at time of donation. The City has elected not to record infrastructure assets or to depreciate general fixed assets. A summary of changes in general fixed assets follows: Balance Balance December 31, January 1, 1994 Additions • Deletions 1994 Land $ 25,269,814 $ 391,626 $ - $ 25,661,440 Buildings and improvements 107,769,941 9,720,629 12,635,228 104,855,342 Equipment 26,051,354 4,052,616 5,772,534 24,331,436 $159,091,109 $14,164,871 $18,407,762 $154,848,218 • • 34 "c"--N, - F r. q R 4,, i 5 Proprietary Fund Types-A summary of Proprietary Fund Type property, plant and equipment at December 31, 1994 follows: internal Enterprise Service Land $ 2,311,178 $ Buildings 440,032 - Improvements other than buildings 919,017 - Equipment, machinery and fixtures 7,927,376 293,029 Sewerage treatment plants and other facilities 320,419,867 - Construction in progress 13,285,450 - 345,302,920 293,029 Less accumulated depreciation 104,115,050 115,658 $241,187,870 $177,371 Construction in progress at December 31, 1994 is composed of the following: Sewer Fund: Street Sewer Separation Project $ 2,243,680 Missouri River Treatment Works 2,004,998 Geographic Information Mapping System 2,082,084 Construction on various sewer facilities 6,743,916 Golf Revenue Fund: Elmwood Renovation Project 210,772 Total construction in progress $13,285,450 17. RECONCILIATION OF BUDGET BASIS REVENUES AND EXPENDITURES TO GAAP Revenue and expenditures presented on a non-GAAP budget basis of accounting differ from the revenues and expenditures presented in accordance with generally accepted accounting principles (GAAP) because - - - - of the different treatment of encumbrances and accruals-(revenue recognition). - In addition, Section 5.14 of the City of Omaha's Home Rule Charter requires that the year-end general - fund balance"be applied as general fund revenue in the budget for the fiscal year two years subsequent to that fiscal year". Therefore, the amount of the general fund carryover coming into a particular fiscal year has already been determined. Any general fund encumbrances at the end of a fiscal year are not included in the year-end general fund balance because those encumbrances will normally need to be paid in the following fiscal year and cannot be held until the fiscal year two years subsequent to the fiscal year when the encumbrance was incurred. 35 • c 1 ' 0 L 0 .0 • it _ _ —V C) 0 ai Q O 5 O c0 'Q O 0, of �O 'Y j, ms 0 0 >- N a N 10 l N en ' O O O.) C C ' v0 c0 N_ en en coo ' ' 00 v N � .0 o ° 7 IL s i 0 Q'V' — 00 N N ON 41 c0 _N m • en c0 N c 4 CN. N O` en t'"' W 69 69 69 69 • , 0 N O ` 0 00 O �i d c w 00 � w "b to -i 'ot oa w • 3 5 CI,. e 1 1 0 I I 1 1 N ' ' I , 1 eA = •C v es.7 O 3 a> U c c c o fH 69 69 69 O m A. Ca en en 0000 N t� 00 '0 c, .�-. so 'n y,,; .0 to CO 7 m = 1O 10 vY O 10 v1 NO N Q en c 0 N d ._.. _ ON CTen tr NO 00 en - NO a> U. Cl, d 7 .p 0 en en. N ^ N , r- N ep� t� 00 'r y X 0 = mi d ' s '0 en N CO O� en O' 00 en N el " W > a. C `' e' en en en ai 'C ti CC llx.! 0 69 69 69 69 C a> .0 > 0 4. g N O 'r 47 r. .. e., .- 'C �O a CO N N 0 '0 —oo - 000 CO0 C en taO V V' t., 'O en a' o' a> ++ ^C .0 4" ..0 O 0 d No 0 O" en 4. 4] c i vi 6-i N .-. en .• t'� eel Li.. O EA v ' 69 69 69 cn Ct. c 0 O al N 0 3 w o o C N ` N N N N N O • Cl) U MI I I CO CO co" N 0000 NO N C ON ON O' en N Q O O aL0> K C eenn t- vNi ti 3 W 69 0. 69 69 69 _ s q Cs ON en �'' 4r v'^ v' en — NO `n en Ems-' O c • , co 0o een , , , , v rn 0 CS c0 10 10 O '. c0 N O > .. b0 4) CC CC I .— en ..s al --. - 69 69 69 69 0 c� .0 cn = P. e, ++ 5 to -N co C! kr)05 Cs .• N Cs -ti ti C U U C d _ C w' Q W C } O V h O'CV h- 1 ' , N ern N CS 1/40 00 C �> m CI 0 O -- -- N .0 .- -- en ..0 0 m 69 69 69 69 0 c '0 > 'a:, v co - ycr .FI, '.5 7 • y ONCs rn . =b O 0 4 - CO 0 0 0 m e0 _,CDLL y 5 ,• .� -0 - es 4. I- ).. 'd cn H o0o d ai en a) a C w 0 > > > .00 U ., N co I. ' CO 0 Q C 'U a) C n O O O y 3 ;b en V .en C• y C cn OA O d L' Ln S V Lr e' V. h N Q7 1@. N w O U ccc 1•_, p N .o N C .a p o .1- u = c. a. a i FW ¢ 4 •CO •- p 0 p ct 36 e i 18. POST-RETIREMENT HEALTH CARE BENEFITS In addition to providing the pension benefits described in Note 13, the City provides health insurance covrage, in accordance with the City's Municipal Code and the City's contracts with the Omaha Police Union Local No. 101,the Professional Firefighters Association of Omaha Local No. 385 and the Omaha City Employees Local No. 251. Currently, 1,091 individuals meet these eligiblity requirements. The cost of health insurance coverage is recognized as an expense as premiums are paid. For 1994,these costs approximated$2,400,000. 19. EXCESS OF EXPENDITURES OVER APPROPRIATIONS Excess of expenditures over appropriations in individual funds or general fund/departments are as follows: Excess Fund/Department Expenditures General Fund: General Government $ 173,002 Parks, Recreation and Public Property 297,714 Other 391,173 Special Revenue Funds: Municipal Infrastructure Redevelopment Fund 276 Police/FBI Seized Assets Fund 41,271 Emergency Telephone Communications 333,097 Interceptor Sanitory Sewer Fund 240,133 Parks and recreation 494,438 Other 562,984 20. COMMITMENTS The City is a defendant in a number of lawsuits in its normal course of operations. The majority of these lawsuits relate to condemnations for street and utility construction projects which are not included in tax supported funds. In addition to amounts recorded by the City as other accrued liabilities,the City Attorney is of the opinion that there is a reasonable possibility that the City will incur additional losses on these lawsuits not to exceed$9,000,000. The City is a party to numerous contracts related to design and construction projects within the Wastewater Collection and Treatment System. At December 31, 1994, approximately$4,522,992 of such contracts were not recorded as liabilities as the related construction had not been performed. The City participates in a number of Federally assisted grant programs, principally Federal Highway Construction Grants, Community Development Block Grant, Job Training Partnership Act and other local improvement programs. The programs are subject to financial audits. The amount of expenditures, if any,which may be disallowed by granting agencies is not determinable at this time; however, City management does not believe that such amounts, if any,would be significant. 37 11 APPENDIX B FORM OF LETTER AGREEMENT September , 1995 FirsTier Bank Omaha, N.A., as Trustee 1700 Famam Street Omaha, Nebraska 68102-2183 $8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects) Series 1995 Dear Ladies and Gentlemen: (a) This Letter Agreement is executed and delivered by the City of Omaha, Nebraska (the "City") and FirsTier Bank Omaha, N.A., as Trustee (the "Trustee") under that certain Indenture of Trust dated as of September 1, 1995 (the "Indenture"), for the benefit of the holders of$8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects), Series 1995 (the "Bonds") and to facilitate compliance with Section (b)(5)(i)of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (17 C.F.R. § 240.15c2-12) (the "Rule"). This Letter Agreement is being executed and delivered to assist Kirkpatrick. Pettis Smith Pollan, Inc., FirsTier Bank, National Association, Smith Barney Inc./Chiles Heider Division and Dain Bosworth Incorporated (collectively, the "Underwriter"), as Participating Underwriters under the Rule, to comply with the Rule. Capitalized terms used in this Letter Agreement and not otherwise defined in the Indenture shall have the meanings assigned such terms in paragraph (b) hereof. (b) The following are the definitions of the capitalized terms used herein and not otherwise defined in the Indenture: "Annual Financial Information" means the financial information or operating data with respect to the City, provided at least annually, of the type included in Appendix A hereto. The fmancial statements included in the Annual Financial Information shall be prepared in accordance with generally accepted accounting principles ("GAAP") for governmental units as prescribed by the Government Accounting Standards Board ("GASB"). Such financial statements may, but are not required to, be Audited Financial Statements. 01/161215.5 "Audited Financial Statements" means the City's annual financial statements, prepared in accordance with GAAP for governmental units as prescribed by GASB, which financial statements shall have been audited by the City Council Audit Committee. "Material Event" means any of the following events, if material, with respect to the Bonds: (i) Principal and interest payment delinquencies; (ii) Non-payment related defaults; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions or events affecting the tax-exempt status of • the Bonds; (vii) Modifications to rights of Bondholders; (viii) Bond calls (other than mandatory sinking fund redemptions); (ix) Defeasances; (x) Release, substitution or sale of property securing repayment of the Bonds; and (xi) Rating changes. "Material Event Notice" means written or electronic notice of a Material Event. "NRMSIR" means a nationally recognized municipal securities information repository, as recognized from time to time by the Securities and Exchange Commission by no-action letter for the purposes referred to in the Rule. The NRMSIRs as of the date of this Letter Agreement are Bloomberg Municipal Repositories, Post Office Box 840, Princeton, New Jersey 08542-0840, Phone: (609) 279-3200 and Fax: (609) 279-5962; The Bond Buyer, Attention: Municipal Disclosure, 395 Hudson Street, New York, New York 10014, Phone: (212) 807-3814, Fax: (212) 989-9282 and Internet: Disclosure Muller.com; Kenny Information Systems,Inc., 16th Floor, 65 Broadway, New York, 01/161215.5 B-2 New York 10006, Attention: Kenny Repository Service, Phone: (212) 770-4595 and Fax: (212) 797-7994;Moody's NRMSIR, Public Finance Information Center, 99 Church Street, New York, New York 10007, Phone: (800) 339-6306 and Fax: (212) 553-1460; and Disclosure Inc., 5161 River Road, Bethesda, Maryland 20816, Attention: Document acquisitions/Municipal Securities, Phone: (301) 951-1450 (for issuer related questions) and Fax: (301) 718-2329 (for issuers to fax in documents). "SID" means a state information depository as operated or designated by the State of Nebraska and recognized by the Securities and Exchange Commission by no-action letter as such for the purposes referred to in the Rule. There is not a SID as of the date of this Letter Agreement. (c) The City undertakes to provide the following information as provided in this Letter Agreement: (1) Annual Financial Information; (2) Audited Financial Statements, if any; and (3) Material Event Notices. (d)(1) The City shall while any Bonds are Outstanding provide the Annual Financial Information on or before the date which is 270 days after the end of each fiscal year of the City (the "Submission Date"), beginning in 1997, to the Trustee, who shall provide such Annual Financial Information to each then existing NRMSIR and the SID, if any, on or before the date which is five days after the Submission Date (the "Report Date") while any Bonds are Outstanding or, if not received by the Trustee by the second Business Day prior to the Report Date, then within five Business Days of its receipt by the Trustee. The City shall include with _each submission of Annual Financial Information to the Trustee a written representation addressed to the Trustee to the effect that the Annual Financial Information is the Annual Financial Information required hereby and that it complies with the applicable requirements hereof. If the City changes its fiscal year, it shall provide written notice of the change of fiscal year to the Trustee and to each then existing NRMSIR or the Municipal Securities Rulemaking Board ("MSRB") and the SID, if any. It shall be sufficient if the City provides to the Trustee and the Trustee provides to each then existing NRMSIR and the SID, if any, any or all of the Annual Financial Information by specific reference to documents previously provided to each NRMSIR and the SID, if any, or filed with the Securities and Exchange Commission and, if such a document is a final official statement within the meaning of the Rule, available from the MSRB. (2) If not provided as part of the Annual Financial Information;the City shall provide the Audited Financial Statements to the Trustee when and if available while any Bonds are Outstanding and the Trustee shall then promptly provide each then existing NRMSIR and the SID, if any, with such Audited Financial Statements. 01/161215.5 B-3 I (3)(i) If a Material Event occurs while any Bonds are Outstanding, the City shall provide written or electronic notice of a Material Event in a timely manner to the Trustee. The Trustee shall promptly prepare a Material Event Notice, which shall be so captioned and shall • prominently state the date, title and CUSIP numbers of the Bonds, and shall promptly provide the Material Event Notice to each then existing NRMSIR or the MSRB and the SID, if any. (ii) The Trustee shall promptly advise the City whenever, in the course of performing its duties as Trustee hereunder or under the Indenture, the Trustee identifies an occurrence which, if material, would require the City to provide a Material Event Notice pursuant to subparagraph (d)(3)(i), provided that the failure of the Trustee to so advise the City shall not cause a breach by the Trustee of any of its duties and responsibilities hereunder. (4) The Trustee shall, without further direction or instruction from the City, provide in a timely manner to each then existing NRMSIR or the MSRB and to the SID, if any, notice of any failure by the City while any Bonds are Outstanding to provide to the Trustee Annual Financial Information on or before the Report Date (whether caused by failure of the City to provide such information to the Trustee by the Submission Date or for any other reason). For the purposes of determining whether information received from the City is Annual Financial Information, the Trustee shall be entitled conclusively to rely on the City's written representation made pursuant to paragraph (d)(1) hereof. (5) If the City provides to the Trustee information relating to the City or the Bonds, which information is not designated as a Material Event Notice, and directs the Trustee to provide such information to information repositories, the Trustee shall provide such information in a timely manner to the MSRB and the SID, if any. (6) The Trustee shall determine each year prior to the Report Date the name and address of each NRMSIR and the SID, if any. (e) The continuing obligation hereunder of the City to provide Annual Financial Information, Audited Financial Statements, if any, and Material Event Notices shall terminate immediately once the Bonds no longer are Outstanding. This Letter Agreement, or any provision hereof, shall be null and void in the event that the City delivers to the Trustee an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this Letter Agreement, or any such provision, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds, provided that the Trustee shall have provided notice of such delivery and the cancellation of this Lcetter Agreement or any provision hereof to each then existing NRMSIR or the MSRB and the SID, if any. (f) This Letter Agreement may be amended by the City and the Trustee, without the consent of the Bondholders, but only upon the delivery by the City to the Trustee of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of this Letter Agreement and by the City with the Rule and that such amendment complies with this 01/161215.5 B-4 i paragraph (f), provided that the Trustee shall have provided notice of such delivery and of the amendment to each then existing NRMSIR or the MSRB and the SID, if any. Any such amendment shall satisfy the following conditions: (1) The amendment may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law or change in the identity, nature or status of the City, or type of business conducted; (2) This Letter Agreement, as amended, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (3) The amendment does not materially impair the interest of holders of the Bonds, as determined by nationally recognized bond counsel, or by approving vote of holders of the Bonds pursuant to the terms of the Indenture at the time of the amendment. • The initial Annual Financial Information after the amendment shall explain, in narrative form, the reasons for the amendment and the effect of the change in the type of operating data or financial information being provided. (g) Any failure by the parties hereto to perform in accordance with this Letter Agreement shall not constitute an "Event of Default" under the Indenture or the Lease Purchase Agreement, and the rights and remedies provided by the Indenture upon the occurrence of an "Event of Default" shall not apply to any such failure. The Trustee shall not have the power or duty to enforce this Letter Agreement. If the City fails to comply herewith, any Bondholder may take such actions as may be 'necessary and appropriate, including seeking specific performance by court order, to cause the City to comply with its obligations hereunder. (h) This Letter Agreement shall be governed by and construed in accordance with the laws of the State of Nebraska, provided that to the extent this Letter Agreement addresses matters of federal securities laws, including the Rule, this Letter Agreement shall be construed in accordance with such federal securities laws and official interpretations thereof. • (i) Article X of the Indenture is hereby made applicable to this Letter Agreement as if this Letter Agreement were (solely for this purpose) contained in the Indenture. The Trustee shall have only such duties as are specifically set forth in this Letter Agreement, and the City agrees, subject to the availability of appropriations of funds to it therefor and other moneys legally available for the purpose, to indemnify and hold harmless the Trustee from and against any and all claims, damages, losses, liabilities, costs or expenses whatsoever which the Trustee may incur (or which may be claimed against the Trustee by any person or entity whatsoever) arising out of or in the exercise or performance of its powers and duties hereunder, but excluding liabilities due to the Trustee's gross negligence or willful misconduct. t , 01/161215.5 B-5 f '' ate) (j) This Letter Agreement shall inure solely to the benefit of the City, the Trustee, the Underwriter, the City of Omaha Parking Facilities Corporation and the holders from time to time of the Bonds and shall create no rights in any other person or entity. (k) This Letter Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Very truly yours, [SEAL] CITY OF OMAHA, NEBRASKA ATTEST: By Mayor City Clerk APPROVED AS TO FORM: Assistant City Attorney Acknowledged and Accepted as of the date first above written: FIRS TIER BANK OMAHA, N.A., as Trustee By Authorized Signatory OI/141215.5 B-6 1 • APPENDIX C FORM OF OPINION OF BOND COUNSEL September , 1995 • City of Omaha Parking Facilities Corporation City of Omaha Planning Department Suite 1100, 1819 Farnam Street Omaha, NE 68183 $8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects) Series 1995 Gentlemen: We have acted as Bond Counsel in connection with the issuance and sale by City of Omaha Parking Facilities Corporation, a nonprofit corporation organized under the laws of the State of Nebraska (the "Corporation"), of its Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects), Series 1995, on behalf of the City of Omaha, Nebraska (the "City"), in the aggregate principal amount of$8,475,000 (the "Bonds"). The Bonds are issued as fully registered bonds without coupons, are dated September 15, 1995, bear interest semiannually on March 15 and September 15 of each year commencing.March 15, 1996 at the rates per,annum set forth below and mature on September 15 of the.years and in the principal amounts set forth below: Year Principal Amount Interest Rate 1996 $ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015 . • 01/161215.5 f r 1 The Bonds maturing on September 15, 2006 and thereafter are subject to redemption at the option of the Corporation in whole at any time or in part on any interest payment date on or after September 15, 2005 and to extraordinary mandatory redemption in whole at any time. The Bonds have been issued under and pursuant to the Constitution and laws of the State of Nebraska and in accordance with (i) the provisions of a resolution (the "Resolution") adopted by the Board of Directors of the Corporation that authorized the issuance of the Bonds and the execution and delivery of the Lease-Purchase Agreement dated as of September 1, 1995 (the "Agreement") by and between the Corporation and the City, the Indenture of Trust dated as of September 1, 1995 (the "Indenture") by and between the Corporation and FirsTier Bank Omaha, N.A., as trustee (the "Trustee"), the Ground Lease dated as of September 1, 1995 (the "Lease") between the Corporation and the City and the Bond Purchase Agreement dated September 19, 1995 between the Corporation and Kirkpatrick Pettis Smith Polian, Inc., FirsTier Bank, National Association, Smith Barney, Inc./Chiles Heider Division and Dain Bosworth Incorporated (collectively, the "Underwriter"); and(ii) the provisions of Ordinance No. (the "Ordinance") passed by the City Council of the City on September 12, 1995, which Ordinance authorized the execution and delivery of the Agreement, the Lease and the Letter Agreement dated September 27, 1995 between the City and the Trustee and approved the Indenture and the terms of and the issuance of the Bonds. The Bonds have been issued to provide the funds for all or a portion of the cost of acquiring, constructing; furnishing and equipping two public parking garages to be located in the City of Omaha, Nebraska (the "Projects"). The Project sites are leased by the City to the Corporation pursuant to the Lease. Under the Agreement, the City will be granted possession of the Projects and the right to acquire all of the Corporation's interest in and to the Projects. The Corporation has covenanted in the Indenture to comply with all necessary restrictions of the Internal Revenue Code of 1986, as amended, and the Regulations thereunder (the "Code") to preserve the exclusion of interest on the Bonds from gross income for the purposes of federal income taxation. Noncompliance by the Corporation with such restrictions may cause the interest on the Bonds to be subject to federal income taxation retroactive to their date of issue. In connection with the issuance of the Bonds, we have examined the following: (a) the Articles of Incorporation and Bylaws of the Corporation; (b) the Resolution; (c) the Ordinance; (d) executed counterparts of the Agreement; (e) executed counterparts of the Indenture; (f) an executed counterparts of the Lease; 01/161215.5 C-2 • (g) an executed counterparts of the Letter Agreement; (h) the form of Bond No. R-1; and (i) such other proceedings, opinions, records, documents, Code provisions and statutes as we deemed necessary and appropriate in rendering this opinion. In connection with the issuance of the Bonds, we are of the opinion that: (1) The Corporation is a nonprofit corporation validly created and existing in the State of Nebraska. (2) The Corporation has the power to issue the Bonds for the purpose and in the manner and to apply the proceeds of the sale of the Bonds as set forth in the Indenture. (3) The Agreement has been duly authorized, executed and delivered by the Corporation and, assuming due authorization, execution and delivery by the City, represents a valid and binding agreement of the Corporation and the City, enforceable in accordance with its terms. (4) The Indenture has been duly authorized, executed and delivered by the Corporation and, assuming due authorization, execution and delivery by the Trustee, represents the valid and binding agreement of the Corporation and the Trustee, enforceable in accordance with its terms. (5) The Lease has been duly authorized, executed and delivered by the Corporation and, assuming due authorization, execution and delivery by the City, represents the valid and binding agreement of the Corporation and the City, enforceable in accordance with its terms. (6) The Bonds are in proper form and have been executed by proper officers of the Corporation. The Bonds constitute valid and legally binding obligations of the Corporation payable, as to principal and interest, solely and only from the Rental Payments (as that term in defined in the Agreement) from the City's use of the Projects. (7) The Rental Payments payable by the City under the terms of the Agreement are general obligations of the City and are payable from the City's General Fund each.year of the term of the Agreement on the same basis as operating expenses • and other contractual obligations of the City. Rental Payments are payable out of the funds of the City which may be raised, among other sources, by taxes levied by valuation on all the taxable property within the boundaries of the.City and by sales taxes, subject to applicable taxing limitations. 01/161215.5 C-3 . (8) The Agreement represents unconditional obligations of the City and is not subject to annual renewal. (9) The obligations of the parties and the enforceability of the provisions contained in the Agreement, the Indenture and the Lease relating to the parties may be subject to general principles of equity which permit the exercise of judicial discretion and are subject to bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting creditors' rights generally. (10) Assuming compliance by the Corporation with the covenant referred to in the fourth paragraph of this letter, interest on the Bonds is excluded from gross income for the purposes of federal income taxation and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. However, for certain corporations, interest on the Bonds is included in the "adjusted current earnings" (i.e., alternative minimum taxable income as adjusted for certain items, including those items that would be included in the calculation of a corporation's earnings and profits under Subchapter C of the Code) for taxable years beginning after 1989, and such corporations are required to include in the calculation of alternative minimum taxable income 75% of the excess of each such corporation's adjusted current earnings over its alternative minimum taxable income (determined without regard to this adjustment and prior to reduction for certain net operating losses). Although the interest in the Bonds is excluded from gross income for federal income tax purposes, the accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the recipient. The extent of these other tax consequences will depend upon the recipient's particular tax status or other items of income or deduction. We express no opinion regarding any such consequences. Purchasers of the Bonds, particularly purchasers that are corporations (including S corporations, foreign corporations operating branches in the United States and corporations subject to the environmental tax imposed by Section 59A of the Code), property or casualty insurance companies, banks, thrifts or other financial institutions, certain recipients of Social Security or Railroad Retirement benefits or individuals who itemize deductions are advised to consult their tax advisors as to the tax consequences of purchasing or holding the Bonds. Interest of the Bonds is exempt from Nebraska state income taxation so long as it is exempt for purposes of the federal income tax. We express no opinion as the title to, or the sufficiency in, the Agreement, the Indenture or the Lease or otherwise of the description of the Projects or the priority of any liens, charges or encumbrances on the Projects. Very truly yours, 01/161215.5 C-4 e / i Supplement to Preliminary Official Statement Dated September 12, 1995 Relating To: $8,475,000* City of Omaha Parking Facilities Corporation T past. Revenue Bonds (Omaha-Park Four and Omaha Park-Five Projects) Series 1995 The Preliminary Official Statement is hereby amended and supplemented as follows: (1) The references on the cover page and under 'THE BONDS-Place of Payment" to the corporate office of the Trustee in Omaha, Nebraska shall instead be to the principal corporate trust office of the Trustee in Lincoln, Nebraska. (2) The references under "THE BONDS-Place of Payment" to February 1 and ' August 1 shall instead be to March 1 and September 1, respectively. (3) The caption for the text under "LEGAL MATTERS-Statutory Property Tax Receipts Limitation" shall instead be "-Validity of State Property Tax System." (4) The text under "LEGAL MATTERS-Statutory Property Tax Receipts Limitation" shall be: Nebraska law imposes a 0% limit on the annual increase of anticipated property tax receipts budgeted by local political subdivisions such as the City. Several exceptions from the limitation exist, including property taxes collected for the retirement of bonded indebtedness (which exception does not include the Bonds) and collected as a result of growth, e.g., improvements to real property which increase the value of such property. In addition, the anticipated receipts may be increased (i) upon an affirmative majority vote of the governing body of the political subdivision, by up to 4% by the percentage change in the previous calendar year's Consumer Price Index-All Urban Consumers, (ii) upon a 75% affirmative vote of the governing body, by the additional increment between such percentage change and 4% and (iii) upon an affirmative majority vote of those voting in a special election called by the governing body, by the amount approved. September 12, 1995. Gyl LETTER AGREEMENT September 27, 1995 FirsTier Bank Omaha, N.A., as Trustee 1700 Farnam Street Omaha, NE 68102-2183 $8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects) Series 1995 Dear Ladies and Gentlemen: (a) This Letter Agreement is executed and delivered by the City of Omaha, Nebraska (the "City") and FirsTier Bank Omaha, N.A., as Trustee (the "Trustee") under that certain Indenture of Trust dated as of September 1, 1995 (the "Indenture"), for the benefit of the holders of$8,475,000 City of Omaha Parking Facilities Corporation Lease Revenue Bonds (Omaha-Park Four and Omaha-Park Five Projects), Series 1995 (the "Bonds") and to facilitate compliance with.Section (b)(5)(i)of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (17 C.F.R. § 240.15c2-12) (the "Rule"). This Letter Agreement is being executed and delivered to assist Kirkpatrick, Pettis, Smith, Pollan, Inc., __ . . _ _ _FirsTier Bank,- National Association, Smith _Barney Inc./Chiles_Heider Division .and Dain. _ . Bosworth Incorporated (collectively, the "Underwriter"), as Participating Underwriters under the Rule, to comply with the Rule. Capitalized terms used in this Letter Agreement and not otherwise defined in the Indenture shall have the meanings assigned such terms in paragraph (b) hereof. (b) The following are the definitions of the capitalized terms used herein and not otherwise defined in the Indenture: "Annual Financial Information" means the financial information or operating data with respect to the City, provided at least annually, of the type included in Appendix A hereto. The financial statements included in the Annual Financial Information shall be prepared in accordance with generally accepted accounting principles ("GAAP") for 01/161965.3 I• governmental units as prescribed by the Government Accounting Standards Board ("GASB"). Such financial statements may, but are not required to, be Audited Financial Statements. "Audited Financial Statements" means the City's annual financial statements, prepared in accordance with GAAP for governmental units as prescribed by GASB, which financial statements shall have been audited by the City Council Audit Committee. "Material Event" means any of the following events, if material, with respect to the Bonds: (i) Principal and interest payment delinquencies; (ii) Non-payment related defaults; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (vii) Modifications to rights of Bondholders; (viii) Bond calls (other than mandatory sinking fund redemptions); (ix) Defeasances; (x) Release, substitution or sale of property securing repayment of the Bonds; and (xi) Rating changes. "Material Event Notice" means written or electronic notice of a Material Event. "NRMSIR" means a nationally recognized municipal securities information repository, as recognized from time to time by the Securities and Exchange Commission by no-action letter for the purposes referred to in the Rule. The NRMSIRs as of the date of this Letter Agreement are Bloomberg Municipal Repositories, Post Office Box 840, 01/161965.3 2 • Princeton, New Jersey 08542-0840, Phone: (609) 279-3200 and Fax: (609) 279-5962; The Bond Buyer, Attention: Municipal Disclosure, 395 Hudson Street, New York, New York 10014, Phone: (212) 807-3814, Fax: (212) 989-9282 and Internet: Disclosure @ Muller.com; Kenny Information Systems, Inc., 16th Floor, 65 Broadway, New York, New York 10006, Attention: Kenny Repository Service, Phone: (212) 770-4595 and Fax: (212) 797-7994; Moody's NRMSIR, Public Finance Information Center, 99 Church Street, New York, New York 10007, Phone: (800) 339-6306 and Fax: (212) 553-1460; and Disclosure Inc., 5161 River Road, Bethesda, Maryland 20816, Attention: Document acquisitions/Municipal Securities, Phone: (301) 951-1450 (for issuer related questions) and Fax: (301) 718-2329 (for issuers to fax in documents). "SID" means a state information depository as operated or designated by the State of Nebraska and recognized by the Securities and Exchange Commission by no-action letter as such for the purposes referred to in the Rule. There is not a SID as of the date of this Letter Agreement. (c) The City undertakes to provide the following information as provided in this Letter Agreement: (1) Annual Financial Information; • (2) Audited Financial Statements, if any; and • (3) Material Event Notices. (d)(1) The City shall while any Bonds are Outstanding provide the Annual Financial Information on or before the date which is 270 days after the end of each fiscal year of the City (the "Submission Date"), beginning in 1997, to the Trustee, who shall provide such Annual Financial Information to each then existing NRMSIR and the SID, if any, on or before the date which is five days after the Submission Date (the "Report Date") while any Bonds are Outstanding or, if not received by the Trustee by the second Business Day prior to the Report _ Date, then.within five_Business Days of its receipt by.the Trustee. The City shall include with .. each submission of Annual Financial Information to the Trustee a written representation addressed to the Trustee to the effect that the Annual Financial Information is the Annual Financial Information required hereby and that it complies with the applicable requirements hereof. If the City changes its fiscal year, it shall provide written notice of the change of fiscal year to the Trustee and to each then existing NRMSIR or the Municipal Securities Rulemaking Board ("MSRB") and the SID, if any. It shall be sufficient if the City provides to the Trustee and the Trustee provides to each then existing NRMSIR and the SID, if any, any or all of the Annual Financial Information by specific reference to documents previously provided to each NRMSIR and the SID, if any, or filed with the Securities and Exchange Commission and, if such a document is a final official statement within the meaning of the Rule, available from the MSRB. 01/161965.3 3 (2) If not provided as part of the Annual Financial Information, the City shall provide the Audited Financial Statements to the Trustee when and if available while any Bonds are Outstanding and the Trustee shall then promptly provide each then existing NRMSIR and the SID, if any, with such Audited Financial Statements. (3)(i) If a Material Event occurs while any Bonds are Outstanding, the City shall provide written or electronic notice of a Material Event in a timely manner to the Trustee. The Trustee shall promptly prepare a Material Event Notice, which shall be so captioned and shall prominently state the date, title and CUSIP numbers of the Bonds, and shall promptly provide the Material Event Notice to each then existing NRMSIR or the MSRB and the SID, if any. (ii) The Trustee shall promptly advise the City whenever, in the course of performing its duties as Trustee hereunder or under the Indenture, the Trustee identifies an occurrence which, if material, would require the City to provide a Material Event Notice pursuant to subparagraph (d)(3)(i), provided that the failure of the Trustee to so advise the City shall not cause a breach by the Trustee of any of its duties and responsibilities hereunder. (4) The Trustee shall, without further direction or instruction from the City, provide in a timely manner to each then existing NRMSIR or the MSRB and to the SID, if any, notice of any failure by the City while any Bonds are Outstanding to provide to the Trustee Annual Financial Information on or before the Report Date (whether caused by failure of the City to provide such information to the Trustee by the Submission Date or for any other reason). For the purposes of determining whether information received from the City is Annual Financial Information, the Trustee shall be entitled conclusively to rely on the City's written representation made pursuant to paragraph (d)(1) hereof. (5) If the City provides to the Trustee information relating to the City or the Bonds, which information is not designated as a Material Event Notice, and directs the Trustee to provide such information to information repositories, the Trustee shall provide such information in a timely manner to.the MSRB and the SID, if any. (6) The Trustee shall determine each year prior to the Report Date the name and address of each NRMSIR and the SID, if any. (e) The continuing obligation hereunder of the City to provide Annual Financial Information, Audited Financial Statements, if any, and Material Event Notices shall terminate immediately once the Bonds no longer are Outstanding. This Letter. Agreement, or any provision hereof, shall be null and void in the event that the City delivers to the Trustee an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this Letter Agreement, or any such provision, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds, provided that the Trustee shall have provided notice of such delivery and the cancellation of this Letter Agreement or any provision hereof to each then existing NRMSIR or the MSRB and the SID, if any. 01/161965.3 4 , (f) This Letter Agreement may be amended by the City and the Trustee, without the consent of the Bondholders, but only upon the delivery by the City to the Trustee of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto; will not adversely affect the compliance of this Letter Agreement and by the City with the Rule and that such amendment complies with this paragraph (f) , provided that the Trustee shall have provided notice of such delivery and of the amendment to each then existing NRMSIR or the MSRB and the SID, if any. Any such amendment shall satisfy the following conditions: (1) The amendment may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law or change in the identity, nature or status of the City, or type of business conducted; (2) This Letter Agreement, as amended, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (3) The amendment does not materially impair the interest of holders of the Bonds, as determined by nationally recognized bond counsel, or by approving vote of holders of the Bonds pursuant to the terms of the Indenture at the time of the amendment. The initial Annual Financial Information after the amendment shall explain, in narrative form, effect of the change in the .type of operating the reasons for the amendment and the g p g data or financial information being provided. (g) Any failure by the parties hereto to perform in accordance with this Letter Agreement shall not constitute an "Event of Default" under the Indenture or the Lease Purchase Agreement, and the rights and remedies provided by the Indenture upon the occurrence of an "Event of Default" shall not apply to any such failure. The Trustee shall not have the power or duty to enforce this Letter Agreement. If the City fails to comply herewith, any Bondholder - may take such actions as may be necessary and appropriate, including seeking specific performance by court order, to cause the City to comply with its obligations hereunder. (h) This Letter Agreement shall be governed by and construed in accordance with the laws of the State of Nebraska, provided that to the extent this Letter Agreement addresses matters of federal securities laws, including the Rule, this Letter Agreement shall be construed in accordance with such federal securities laws and official interpretations thereof. (i) Article X of the Indenture is hereby made applicable to this Letter Agreement as if this Letter Agreement were (solely for this purpose) contained in the Indenture. The Trustee shall have only such duties as are specifically set forth in this Letter Agreement, and the City agrees, subject to the availability of appropriations of funds to it therefor and other moneys 01/161965.3 5 1 r" 1 legally available for the purpose, to indemnify and hold harmless the Trustee from and against any and all claims, damages, losses, liabilities, costs or expenses whatsoever which the Trustee may incur (or which may be claimed against the Trustee by any person or entity whatsoever) arising out of or in the exercise or performance of its powers and duties hereunder, but excluding liabilities due to the Trustee's gross negligence or willful misconduct. • (j) This Letter Agreement shall inure solely to the benefit of the City, the Trustee, the Underwriter, the City of Omaha Parking Facilities Corporation and the holders from time to time of the Bonds and shall create no rights in any other person or entity. (k) This Letter Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Very truly yours, [SEAL] CITY OF OMAHA, NEBRASKA ATTEST: By Mayor. City Clerk APPROVED AS TO FORM: /2 Assistant Ci or Acknowledged and Accepted as of the date first above written: FIRS I hR BANK OMAHA, N.A., as Trustee By Authorized Signatory 01/161965.3 6 � r.., Sat Z S� CD CD ( , . �n rt rt A O 5 co �� % • i. (D - n h CD AN G CD CD rt CD Cr A. - -.' --j- ' -3rAff—..."'-- ----6' --k.,- tr.' Li _.-..,- ,x7:zr-j--7- r•,,, ,-. - m ....--.. -. ... N... ' -' ‘ -l-N-: ic L jo • 1- w 'tea _ - _ ;C �? --� 1 6 1 ti. - ; ...,. . T ,� CD �i \cs X, ‘eN.. . ':•:**_'',.._ 2 j _ _ _ .0- ,� - Ft, ,> �y 0, =- G0 'c5 =- ^ 0 0 'OO E i= _- _ - '-c 0r, c C) Z 0 0 ,. ]\tee l ro �'� 0CD (D CD 11 '0 Wiz- = _ z- - ao- . o 0oa'tito I (D ti H ti (D (D N (D (D G 0 'b 0 0 C: 0 £ - _ r;- N .. O 1� H. 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