CITY OF EAST LANSING (Counties of Ingham and Clinton, Michigan) Ordinance No. 1551 AN ORDINANCE SUPPLEMENTING ORDINANCE NO. 1296 TO AUTHORIZE AND PROVIDE FOR THE ISSUANCE OF ADDITIONAL SERIES OF REVENUE BONDS TO PAY THE COST OF ACQUISITION AND CONSTRUCTIO

CITY OF EAST LANSING

(Counties of Ingham and Clinton, Michigan)

Ordinance No. 1551

AN ORDINANCE SUPPLEMENTING ORDINANCE NO. 1296 TO AUTHORIZE ANDPROVIDE FOR THE ISSUANCE OF ADDITIONAL SERIES OF REVENUE BONDS TOPAY THE COST OF ACQUISITION AND CONSTRUCTION OF IMPROVEMENTS TOTHE CITY OF EAST LANSING'S SEWAGE DISPOSAL SYSTEM AND TO PROVIDEOTHER MATTERS RELATIVE TO THE ADDITIONAL REVENUE BONDS

Councilmember Altmann supported by Councilmember Mayor Brookover moved the adoption of thefollowing Ordinance:

WHEREAS, the City of East Lansing (the “City”) has previously enacted Ordinance No. 1296 authorizingthe issuance of revenue bonds to pay the cost of acquisition and construction of sewage disposal system improvementsto be operated as part of the City's Sewage Disposal System (the “System”) pursuant to Act 94, Public Acts ofMichigan, 1933, as amended (“Act 94”); and

WHEREAS, the City Council of has determined to make additional improvements to the System; and

WHEREAS, the improvements will enable the City to provide more efficient and better quality publicservices to the users of the System, and

WHEREAS, the improvements shall be financed in part by the issuance of revenue bonds in accordance with Act 94; and

WHEREAS, the bonds will be sold to the Michigan Finance Authority pursuant to the Clean Water StateRevolving Fund program; and

THE CITY OF EAST LANSING ORDAINS:

Section 1. DEFINITIONS. Except as provided in this Ordinance, the definitions contained in the PriorOrdinance (defined below) shall apply to the terms in this Ordinance. In addition, whenever used in this Ordinance except when otherwise indicated by context, the following definitions shall apply to the terms in thisOrdinance:

• “Authorized Officer” means the Mayor, the City Manager, the Treasurer, and the ChiefFinance Officer of the City, or any one of them acting alone or any number of them acting together.
• “Authority” means the Michigan Finance Authority created by Executive Order 2010-2,which, among other things, transferred to the Michigan Finance Authority the

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powers, duties and functions of the Michigan Municipal Bond Authority, created and established pursuant to Act 227,Public Acts of Michigan, 1985, as amended.

• “Bonds,” “Additional Revenue Bonds,” “Outstanding Revenue Bonds” and “RevenueBonds” as defined in the Prior Ordinance shall include the Series 2025 Bonds which are being issued as AdditionalRevenue Bonds under Section 20 of Ordinance
• “Construction Fund” shall mean the 2025 Sewage Disposal System Revenue BondsConstruction Fund created pursuant to Section 13 of this
• “Contract Documents” means the Purchase Contract between the City and the Authority,the Supplemental Agreement by and among the City, the Authority and the State of Michigan acting through the Department of Environment, Great Lakes, and Energy, and the Issuer's Certificate for the Series 2025 Bonds orsuch other closing documents required by the Authority for the issuance of the Series 2025
• “Improvements” means the design, acquisition and construction of improvements to theSystem, including without limitation: (1.) the separation of combined sewers in the River Street, Waters Edge,Woodmere Street, Gunson Street, Milford Street, and Wilmarth Area, through the conversion of eKisting combined sewers to either separate storm sewers or sanitary sewers and the construction of new complimentary stormsewers or sanitary sewers as appropriate, relocation of water mains as necessary, the reduction of sanitary sewer andcombined sewer overflows to the Red Cedar River, stormwater quality improvements, and the construction of a flowcontrol structure; (2.) improvements to the Water Resource Recovery Facility (WRRF) administration and controlsbuilding, including without limitation, repurposing of building spaces occupied by obsolete and abandonedequipment previously used for incineration, solids storage, solids dewatering, and handling processes in order toconstruct staff offices, a central control operations center, and laboratory improvements; provide ADAimprovements; provide equitable facilities for female employees; utilization of excess heat from the combined heatand power unit to heat the administration building and galleries; and upgrading the laboratory and the sampling system; and (3.) improvements to the WRRF treatment system's operations and controls, including without limitation, solids handling piping modifications and instrumentation improvements, improvements to the aeration tank instrumentation and controls, modifications to the WRRF effluent reaeration chamber, RAS headboxmodifications, construction of a vactor dump station,

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and modifications to the equalization basin; as well as all work, equipment, and appurtenances necessary orincidental to these improvements and such other improvements to the System as the City may determine to make.

• “Prior Bonds” means the Series 2013 Bond, Series 2015 Bond, Series 2017 Bond, Series2019 Bond and Series 202 l
• “Prior Ordinance” refers collectively to Ordinance No. 1296, as supplemented byOrdinance No. 1345, Ordinance 1410, Ordinance No. 1452, and Resolution No. 2021-11.
• “Ordinance” means this Ordinance and all amendments
• “Series 2013 Bond” means the City's Sewage Disposal System Revenue Bond, Series 2013.
• “Series 2015 Bond” means the City's Sewage Disposal System Revenue Bond, Series 2015.
• “Series 2017 Bond” means the City's Sewage Disposal System Revenue Bond, Series 2017.
• “Series 2019 Bond” means the City's Sewage Disposal System Revenue Bond, Series 2019.
• “Series 2021 Bond” means the City's Sewage Disposal System Revenue Bonds, Series 2021 (Junior Lien).
• “Series 2025 Bonds” means the City's Sewage Disposal System Revenue Bonds, Series2025 issued pursuant to this

Section 2.  NECESSITY, PUBLIC PURPOSE: It is hereby determined to be necessary for the public health,safety, and welfare of the City to acquire and construct the Improvements to the System in accordance with the maps,plans, and specifications therefor prepared by the City's engineers, which are hereby approved.

Section 3.  ESTIMATED COST: PERIOD OF USEFULNESS: The cost of the portion of the Improvementsto be financed pursuant to this Ordinance has been estimated by the engineers not to eKceed $46,000,000 includingthe payment of legal, engineering, financial, and other

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expenses, which estimate of cost is approved and confirmed, and the period of usefulness of the Improvements isestimated to be greater than forty (40) years.

Section 4.  ISSUANCE OF BONDS. To pay a portion of the cost of designing, acquiring, andconstructing the Improvements and to pay the legal and financial expenses and all other expenses incidental to theissuance of the Series 2025 Bonds, the City shall issue its revenue bonds pursuant to the provisions of Act 94.The balance of the costs of the Improvements shall be paid by other bonds, grants, and other funds appropriated bythe City. The Series 2025 Bonds shall be issued in the aggregate principal sum of not to exceed $46,000,000, asfinally determined by the Authorized Officer at the time of sale, or such lesser amount thereof as shall have been advanced to the City pursuant to the Contract Documents.

The City Council determines that if the Series 2025 Bonds are issued within the parameters of thisOrdinance with interest as provided in the Contract Documents, then during the preceding operating year theAdjusted Net Revenues of the System shall be at least equal to one hundred percent of the maximum amount ofprincipal and interest thereafter maturing in any operating year on the Outstanding Revenue Bonds and the Series2025 Bonds as required by Section 20 of Ordinance No. 1296 for the issuance of Additional Revenue Bonds, andthe Adjusted Net Revenues of the System for the last two preceding twelve-month operating years or the Adjusted Net Revenues for the last preceding twelve-month operating year, if the same shall be lower than the average, shall be equal to at least one hundred percent of the maximum amount of principal and interest thereafter maturing in any operating year on the Outstanding Revenue Bonds and the Series 2025 Bonds as required bySection 15 of Resolution No. 2021- 11. The City Council determines that the City is not in default in making itsrequired payments to the Operation and Maintenance Fund or the Revenue Bond Redemption Fund established byOrdinance No. 1296. Therefore, the City Council finds that the conditions of the Prior Ordinance for the issuance of the Series 2025 Bonds as Additional Revenue Bonds have been met.

During the time funds are being drawn down by the City under the Series 2025 Bonds, the Authority willperiodically provide the City a statement showing the amount of principal that has been advanced and the date of eachadvance, which statement shall constitute prima facie evidence of the reported information; provided that no failure onthe part of the Authority to provide such a statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the

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City of its obligation to repay the outstanding principal amount actually advanced, all accrued interest thereon, and anyother amount payable with respect thereto in accordance with the terms of the Series 2025 Bonds.

Section 5.  SERIES 2025 BOND TERMS. The Series 2025 Bonds shall be issued as one fully registered manuscript bond, shall be sold and delivered to the Authority in any denomination. The Series 2025 Bonds shall be dated the date of delivery to the Authority, or such other date approved by the Authorized Offlcer, and shall be payable on thedates and in the amounts determined by the Authorized Officer at the time of sale provided the final maturity shall be no later than forty years after the date of issuance. The Series 2025 Bonds shall bear interest at a rate as provided in the Contract Documents, payable semiannually on the dates determined by the Authorized Officer at the time of sale. Within thelimitations provided above, the final amount of any maturity and the terms of the Series 2025 Bonds shall be as provided in the Contract Documents and will be finally determined by the Authorized Officer.

Section 6.        PAYMENT OF BONDS.  PLEDGE OF NET REVENUES.      The Series

2025 Bonds and the interest thereon shall be payable solely and only from the Net Revenues, and to secure such payment, there is hereby created a statutory lien upon the whole of the Net Revenues which shall continue until payment in full ofthe principal of and interest on the Series 2025 Bonds, or, until sufficient cash or Sufficient Government Obligations havebeen deposited in trust for payment in full of the principal of and interest on the Series 2025 Bonds to maturity, or, if called for redemption, to the date fixed for redemption, together with the amount of the redemption premium, if any. Upondeposit of cash or Sufficient Government Obligations, as provided in the previous sentence, the statutory lien shall be terminated with respect to the Series 2025 Bonds, the holder of the Series 2025 Bonds shall have no further rights underthis Ordinance or the Prior Ordinance except for payment from the deposited funds, and the Series 2025 Bonds shall beconsidered to be defeased and shall no longer be considered to be outstanding under this Ordinance or the PriorOrdinance. As an Additional Revenue Bond the Series 2025 Bonds shall have equal standing and priority of lien as to the Net Revenues of the System with the outstanding Prior Bonds.

The Series 2025 Bonds, including both principal and interest thereon, shall not be a general obligation of theCity and shall not constitute an indebtedness of the City for the purpose of any debt limitations imposed by any applicableconstitutional, statutory, or charter provisions.

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Section 7. PRIOR REDEMPTION: The Series 2025 Bonds issued and sold to the Authority shall besubject to redemption prior to maturity by the City only with the prior written consent of the Authority and on such terms as may be required by the Authority.

Section 8.        PAYING AGENT AND REGISTRATION.

• The initial bond registrar, paying agent, and transfer agent for the Series 2025 Bonds shall bethe City
• Registration of the Bonds shall be recorded in the registration books of the City to be kept bya Paying Except as may be provided for Additional Revenue Bonds in the ordinance authorizing issuance ofthose Bonds, Bonds may be transferred only by submitting the same, together with a satisfactory instrument oftransfer signed by the Registered Owner or the Registered Owner's legal representative duly authorized in writing, tothe Paying Agent, after which a new Bond or Bonds shall be issued by the Paying Agent to the transferee (new registered owner) in any denomination, in the same aggregate principal amount as the Bond submitted for transfer. No transfer of Bonds shall be valid unless and until recorded on the bond registration books in accordance with the foregoing. The person in whose name any Bond is registered may for all purposes, notwithstanding any noticeto the contrary, be deemed and treated by the City and the Paying Agent as the absolute owner thereof, and any payment of the principal of and interest on any Bond to the Registered Owner thereof shall constitute a validdischarge of the City's liability upon such Bond to the extent of such payment. No Bond shall be transferred less than fifteen (15) days prior to an interest payment date nor after the Bond has been called for redemption.
• Notwithstanding any other provision of this Ordinance, so long as the Authority is theowner of the Series 2025 Bonds, (a) the Series 2025 Bonds are payable as to principal, premium, if any, andinterest in lawful money of the United States of America at S. Bank Trust Company, National Association, or atsuch other place as shall be designated in writing to the City by the Authority (the “Authority's Depository”); (b) theCity agrees that it will deposit with the Authority's Depository payments of the principal of, premium, if any, andinterest on the Series 2025 Bonds in immediately available funds by 12:00 noon at least five business days prior tothe date on which any such payment is due whether by maturity, redemption or otherwise; in the event that theAuthority's Depository has not received the City's deposit by 12:00 noon on the

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scheduled day, the City shall immediately pay to the Authority as invoiced by the Authority an amount to recover the Authority's administrative costs and lost investment earnings attributable to that late payment; and (c) written notice of any redemption of the Series 2025 Bonds shall be given by the City and received by the Authority's Depository at least 40 days prior to the date on which such redemption is to be made.

Section 9.  SALE OF BONDS. The Series 2025 Bonds shall be sold by a negotiated sale to the Authority. TheCity determines that a negotiated sale is in the best interest of the City because the terms offered by the Authority are morefavorable than those available from other sources of funding.

Section 10. BOND FORM: The Series 2025 Bonds shall be substantially in the form attached hereto as Exhibit A, and incorporated herein, with such completions, changes and additions as may be required by the Authority oras recommended by the City's Bond Counsel and approved by the officers of the City signing the Series 2025 Bonds.

Section 11.  AUTHORIZED OFFICER: The Authorized Officer is hereby designated, for and on behalf of theCity, to do all acts and to take all necessary steps required to effectuate the sale, issuance, and delivery of the Series 2025 Bonds to the Authority. The City hereby approves the Contract Documents in the form presented by the Authoritywith such changes as are approved by the Authorized Officer. The Authorized Officer is hereby authorized to execute and deliver the Contract Documents in substantially the form presented to the City, with such changes, additions, and completionsas are approved by the Authorized Officer.

Notwithstanding any other provision of this Ordinance, the Authorized Officer is authorized within thelimitations of this Ordinance to determine the specific interest rate or rates to be borne by the bonds, not exceeding the maximum rate allowed by law, the principal amount, interest payment dates, dates of maturities, and amount of maturities,redemption rights, the title of the Series 2025 Bonds, date of issuance, and other terms and conditions relating to the Series2025 Bonds and the sale thereof provided, however, the last annual principal installment shall not be later than provided in theContract Documents. The Authorized Officer is further authorized to alter or adjust the covenants made pursuant to thisOrdinance and the Prior Ordinance, including without limitation the covenants provided in Sections 11 and 20 of the PriorOrdinance. The Authorized Officer's approval of the terms shall be evidenced by his or her signature on the

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document or agreement stating such terms. The Authorized Officer is hereby authorized for and on behalf of theCity, without further City Council approval, to do all acts and take all necessary steps required to effectuate the sale,issuance, and delivery of the Series 2025 Bonds. The Authorized Officer, or any one or more of them, are authorizedto execute any orders, receipts, agreements, pledge agreements, documents or certificates necessary to complete the transaction, including, but not limited to, any issuers certificate, any certificates relating to federal or state securitieslaws, rules or regulations, any election or designation under the Internal Revenue Code of 1986, as amended orany regulation promulgated thereunder, any applications to the Michigan Department of Treasury, and anyrevenue sharing pledge agreement and to make any elections or designations under the Code. The City hereby approves the Revenue Sharing Pledge Agreements in the form presented by the Authority, with such changes as areapproved by the Authorized Officer, and authorizes the Authorized Officer to execute and deliver the Revenue Sharing Pledge Agreement if it is required by the Authority or if the Authorized Officer determines it is in the best interests of the City.

Section 12. EXECUTION OF BONDS: The Mayor or the Mayor Pro Tern and the Clerk or the Deputy Clerk of the City are hereby authorized and directed to sign the Series 2025 Bonds, either manually or by facsimile signature, on behalf of the City. Upon execution, the Series 2025 Bonds shall be delivered to the purchaser thereof.

Section 13. CONSTRUCTION FUND. The proceeds of the Series 2025 Bonds shall be deposited in theConstruction Fund. Such moneys shall be used solely for the purpose for which the Series 2025 Bonds were issued. Any unexpected balance in the Construction Fund remaining after completion of the Improvements may beused for such purposes as allowed by law. After completion of the Improvements and disposition of remaining Series2025 Bond proceeds, if any, pursuant to the provisions of this Section, the Construction Fund shall be closed.

Section 14. RATES AND CHARGES. The rates and charges for the services of the System shall be thosein effect on the date of adoption of this Ordinance or as may be adopted prior to the issuance of the Series 2025 Bonds. The rates and charges are in amounts that are sufficient to pay the expenses of administration and the costsof operation and maintenance of the System, to provide an amount of revenues adequate for the payment of principal of and interest on

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the Bonds, reserve, replacement, and improvement requirements and to otherwise comply with all requirements andcovenant provided herein.

Section 15.      CONDITIONS PERMITTING ISSUANCE OF SENIOR LIEN BONDS.

The City reserves the right to issue Additional Revenue Bonds of senior standing and priority of lien on the NetRevenues of the System to the Series 2025 Bonds (the “Senior Lien Bonds”). If Senior Lien Bonds are issued, thenNet Revenues of the System would be used first to pay debt service on the Senior Lien Bonds prior to providing forpayment of the Series 2025 Bonds.

Section 16. TAX COVENANT. The City covenants to comply with all requirements of the Code necessaryto assure that the interest on the bonds will be and will remain eKclUdable from gross income for federal income taxpurposes. The Authorized Officer and other appropriate officials of the City are authorized to do all things necessary (including the making of such covenants of the City as shall be appropriate) to assure that the interest onthe Series 2025 Bonds will be and will remain excludable from gross income for federal income tax purposes.

Section 17. APPOINTMENT OF BOND COUNSEL. The firm of Dickinson Wright PLLC is herebyapproved as bond counsel to the City.

Section 18. MUNICIPAL ADVISOR. MFCI, LLC is hereby employed as municipal advisor for theSeries 2025 Bonds.

Section 19. PRIOR ORDINANCE. Except to the extent supplemented or otherwise provided in thisOrdinance, all of the provisions and covenants provided in the Prior Ordinance shall apply to the Series 2025Bonds issued pursuant to this Ordinance.

Section 20. PUBLICATION AND RECORDATION. This Ordinance shall be published once in full in anewspaper of general circulation in the City qualified under state law to publish legal notices, and the same shall berecorded in the records of the City and such recording authenticated by the signature of the City Clerk.

Section 21. ORDINANCE SUBJECT TO MICHIGAN LAW. The provisions of this Ordinance are subject to the laws of the State of Michigan.

Section 22. SECTION HEADINGS. The section headings in this Ordinance are furnished for convenience of reference only and shall not be considered to be a part of this Ordinance.

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Section 23. SEVERABILITY. If any section, paragraph, clause or provision of this Ordinance shall beheld invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisionsof this Ordinance.

Section 24. CONFLICT. Except as provided above, all Ordinances or parts thereof, insofar as the samemay be in conflict herewith, are hereby repealed to the extent of the conflict; provided, that the foregoing shall notoperate to repeal any provision thereof, the repeal of which would impair the obligation on the Series 2025 Bonds orthe Prior Bonds.

Section 25. EFFECTIVE DATE OF ORDINANCE. Pursuant to Section 6 of Act 94, this Ordinance shallbe approved on the date of first reading and this Ordinance shall be effective immediately upon its adoption.

ORDINANCE DECLARED ADOPTED.

e Brookover, Mayor Ci           of EatLans

Amy Gord   ( Interim Clerk City of East Lansing

CERTIFICATION

1, Amy Gordon, the duly qualified and acting Interim Clerk of the City of East Lansing, Ingham and Clinton Counties, Michigan do hereby certify that the foregoing is a true and complete copy of an Ordinance adopted by theCity Council at a regular meeting held on June 17, 2025, and that notice of said meeting was given pursuant to Act267, Public Acts of Michigan, 1976, as amended.

Dated: June 17, 2025

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Amy Gordon, Interim Clerk City of East Lansing

CP#25-199

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Amy Gordon

East Lansing Interim City Clerk

CP#25-199