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(b) the City is authorized by Minnesota Statutes, Section 444.075 (Act) to finance all or a portion of the cost of the Project (Project Costs) by the issuance of general obligation bonds of the City payable from the net revenues of the water system. The Project Costs are presently estimated by the engineer to be as follows: Project Project Costs Less: City Share Net Costs to be Financed 88-11 - Water $171,600 Tower Painting $1 71 , 600 90-05 - County 53,400 Road H. Watermain 53,400 90-09 - Vehicle Storage Facility 165,000 (55,000) 110,000 91-08 - Water Booster System 456,000 456,000 Subtotal $846,000 Plus: Allowance for Discount Less: Investment Earnings ($55,000) $791,000 Total Bond Issue: 6,360 (2,360) $795,000 (c) it is necessary and expedient to the sound financial manage- ment of the affairs of the City to issue $795,000 General Obligation Water Revenue Bonds, Series 1991B (Bonds) pursuant to the Act to provide financing for the Project. 2. In order to provide financing for the Proj ect, the City will therefore issue and sell Bonds in the amount of $788,640. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $6,360. The excess of the purchase price of the Bonds over the sum of $788,640 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Terms of Offering: