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until completion and payment of all costs of the Improvement. The Construction <br />• Fund shall be used solely to defray expenses of the Improvements, including but not <br />limited to the transfer to the Bond Fund, created in Section 4.02 hereof, of amounts <br />sufficient for the payment of interest and principal, if any, due upon the Bonds prior <br />to the completion and payment of all costs of the Improvement and the payment of <br />the expenses incurred by the City in connection with the issuance of the Bonds. <br />Upon completion and payment of all costs of the Improvement, any balance of the <br />proceeds of Bonds remaining in the Construction Fund may be used to pay the cost, <br />in-whole or in part, of any other improvements instituted pursuant to the Act, as <br />directed by the City Council, but any balance of such proceeds not so used shall be <br />credited and paid to the Bond Fund. <br />4.02. 1993 Improvement Bond Fund. So long as any of the Bonds are <br />outstanding and any principal of or interest thereon unpaid, the City Clerk shall <br />maintain a separate and special bookkeeping fund designated "1993 Improvement <br />Bond Fund" (hereinafter referred to as the Bond Fund) to be used for no purpose <br />other than the payment of the principal of and interest on the Bonds and on such <br />other improvement bonds of the City as have been or may be directed to be paid <br />therefrom. The City irrevocably appropriates to the Bond Fund (a) the collections of <br />special assessments and other funds to be credited and paid thereto in accordance <br />with the provisions of Section 4.01, (b) any taxes levied in accordance with this <br />resolution, and (c) all such other moneys as shall be received and appropriated to <br />the Bond Fund from time to time. If the balance in the Bond Fund is at any time <br />insufficient to pay all interest and principal then due on all bonds payable <br />therefrom, the payment shall be made from any fund of the City which is available <br />for that purpose, subject to reimbursement from the Bond Fund when the balance <br />therein is sufficient, and the Council covenants and agrees that it will each year levy <br />a sufficient amount to take care of any accumulated or anticipated deficiency, which <br />levy is not subject to any constitutional or statutory tax limitation. <br />4.03. Additional Bonds. The City reserves the right to issue additional <br />bonds payable from the Bond Fund as may be required to finance costs of the <br />Improvements not financed hereby; provided that the City Council shall, prior to <br />the delivery of such additional bonds, levy or agree to levy by resolution sufficient <br />additional special assessments and ad valorem taxes, if any, which, together with <br />other moneys or revenues pledged for the payment of said additional obligations, <br />will produce revenues at least five percent (5%) in excess of the amount needed to <br />pay when due the principal and interest on all bonds payable from the Bond Fund. <br />The additional special assessments, ad valorem taxes and moneys or revenues so <br />pledged, levied or agreed to be levied shall be irrevocably appropriated to the Bond <br />Fund in the manner provided by Minnesota Statutes, Section 475.61. <br />4.04. Levy of Special Assessments. The City hereby covenants and <br />agrees that for payment of the cost of the Improvement it will do and perform all <br />• -14- <br />