03-26-08 Council Agenda - Laserfiche WebLink

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14. Delivery Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Administrator to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Funds. (a) The City has heretofore created two special funds designated the "Permanent Improvement Revolving Fund" and "Permanent Improvement Revolving Sinking Fund," respectively, administered and maintained by the Administrator as bookkeeping accounts separate and apart from all other funds maintained in the official financial records of the City. The funds shall continue to be maintained in the manner heretofore specified in the prior resolution and as herein and hereafter specified until all of the Bonds and any other obligations made payable from the Permanent Improvement Revolving Fund (the "Additional Bonds ") and the interest thereon and all improvements to be paid from the Permanent Improvement Revolving Fund have been fully paid. The Revolving Fund is intended for the payment, in whole or in part, of the costs (i) of "improvements" (as defined in Minnesota Statutes, Chapter 429) designated by the City for funding therefrom for which at least twenty percent of the costs thereof are to be assessed against benefited properties; (ii) of water works, sewer system, or storm sewer system improvements described in Minnesota Statutes, Section 444.075; and /or (iii) of such other improvements as may be permitted in accordance with the terms of Section 429.091. (i) Permanent Improvement Revolving Fund. To the Permanent Improvement Revolving Fund there shall be credited the proceeds of the sale of the Improvement Portion of the Bonds, less accrued and capitalized interest and any amount paid for the Bonds in excess of the minimum bid, plus any special assessments levied with respect to the Assessment Improvements and special assessments levied with respect to the Additional Improvements (as hereinafter defined). From the Permanent Improvement Revolving Fund there shall be paid all costs and expenses of making the Assessment Improvements and the System Improvements listed in paragraph 16 and such other improvements for which special assessments may be levied as the City Council may designate (the "Additional Improvements "), including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in the Permanent Improvement Revolving Fund shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes and special assessments herein levied or covenanted to be levied; and provided further that if upon completion of the Assessment Improvements and the System Improvements or any Additional Improvements there shall remain any unexpended balance in the Permanent Improvement Revolving Fund, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429, and provided further that any special assessments credited to the Permanent Improvement Revolving Fund shall only he applied towards payment of the costs of the Assessment Improvements or the Additional Improvements upon the determination by the Administrator that the application of the special assessments for such purpose will not cause the City to no longer be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. The City reserves the right granted by Minnesota Statutes, Section 429,091, Subdivision 7A to establish a separate construction account within the Permanent Improvement Revolving Fund into which the City may deposit the proceeds of the Improvement Portion of the Bonds or the proceeds of Additional Bonds. 2154193v1 16