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• administrative services in the amount of 3% of the gross Tax receipts, shall be remitted by the State Treasurer to the Trustee monthly for deposit into the Revenue Fund. See THE AUTHORIZING ORDINANCE, The Revenue Fund. Historical Tax Receipts. The City currently collects a 1% sales and use tax(the "Existing Tax"). The Existing Tax went into effect on July 1, 2009. The Taxes will be collected at an aggregate rate of 1%. Collections of the Existing Tax have been as follows for the years indicated (taxes are collected in one month and received by the levying entity two months later): Year Existing Tax Collections 2010 $3,297,866 2011 3,331,175 Collections of the Existing Tax for the twelve-month period ended April 30 have been as follows for the periods indicated(taxes are collected in one month and received by the levying entity two months later): Period Existing Tax Collections May 1, 2010-April 30, 2011 $3,283,374 May 1, 2011 -April 30, 2012 3,381,981 Future Tax Receipts. Tax receipts will be contingent upon the sale and use of property and services within the City, which activity is generally dependent upon economic conditions within the City and surrounding trade areas. Also, Tax receipts may be affected by changes to transactions exempted from the Taxes made by legislation adopted by the General Assembly of the State or by the people of the State in the form of a constitutional amendment or initiated act. In the past the General Assembly of the State has considered new exemptions to the Taxes, such • as food sales, which, if adopted, would materially reduce Tax receipts. The City has no control over actions of the General Assembly or the people of the State and cannot predict whether changes to the Taxes may be made. Accordingly, the City cannot predict with certainty the expected amount of Tax receipts to be received and,therefore,there can be no assurance that Tax receipts will be sufficient to pay the principal of and interest on the Bonds. THE AUTHORIZING ORDINANCE Set forth below is a summary of certain portions of the Authorizing Ordinance. This summary does not purport to be comprehensive and reference is made to the full text of the Authorizing Ordinance for a complete description of its provisions. The City will covenant as set forth below in the Authorizing Ordinance. The Revenue Fund. The Trustee shall deposit all collections of the Taxes as and when received by it into a special fund of the City held by the Trustee which is created by the Authorizing Ordinance and designated "Sales and Use Tax Revenue Fund, Series 2012" (the "Revenue Fund"). There is created in the Revenue Fund the following accounts: Bond Account; and Permanent Account. Tax receipts received by the Trustee shall be deposited as follows: Tax receipts derived from the Bond Tax shall be deposited into the Bond Account and Tax receipts derived from the Permanent Tax shall be deposited into the Permanent Account. Moneys in the Bond Account in the Revenue Fund shall be applied each month in the following order of priority: (1) 1/6 of the interest on the Bonds next due - Debt Service Account in the Bond Fund; and (2) 1/12 of the principal of the Bonds next due at maturity or upon mandatory sinking fund redemption-Debt Service Account in the Bond Fund; and • 12