03-26-08 Council Agenda - Laserfiche WebLink

Home Browse Search

The funds described in paragraph 15(ii) above are hereby pledged to the Permanent Improvement Revolving Sinking Fund, but only in such amounts and at such times as may be necessary, together with the other available funds therein and available for such purposes, (and the same shall be used solely) to pay the principal of and interest on the Improvement Portion of the Bonds, or allocable portions thereof, when due, subject to the following additional conditions and limitations: (I) Under applicable Minnesota law or City procedures, certain of the sources of funds described above may be used or pledged only for specified purposes, and it is the intent of the Council to abide by such restrictions and further to allocate the appropriate revenues to pay for the funding to which the generation of those revenues relates. Accordingly, the general dedication of revenues hereinabove to the Permanent Improvement Revolving Sinking Fund shall be subject to such restrictions, and such pledges are hereby limited by such applicable provisions of law and City procedures, without, however, affecting in any way the City's pledge of its full faith and credit and general ad valorem taxing powers to the payment of all of the Bonds, when due. (2) The Net Revenues shall be used only for the payment of the debt service on the System Improvement Portion, and no other monies in the Permanent Improvement Revolving Sinking Fund (except for any tax levies which may hereafter be made for that express purpose) shall be used for payment thereof. (3) The assessments from Revolving Fund Improvements (including the Assessment Improvements) shall not be used for payment of the System Improvement Portion. (b) Accounts. There is hereby established for the Tax Increment Portion of the Bonds the following two accounts to be administered and maintained by the Administrator as bookkeeping accounts separate and apart from all other funds and accounts maintained in the official financial records of the City. The accounts shall be maintained in the manner herein specified until the Tax Increment Portion of the Bonds and any other general obligation tax increment bonds hereafter made payable from thee accounts and issued for the Development District Improvement Projects; including any modifications or additions thereto, and the interest thereon have been fully paid: (i) Capital Account. To the Capital Account there shall be credited the proceeds of the sale of the "Tax Increment Portion of the Bonds, less accrued and capitalized interest received thereon. From the Capital Account there shall be paid all costs and expenses of the Development District Improvement Projects, 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. Moneys in the Capital Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Tax Increment Portion of the Bonds may also be used to the extent necessary to pay interest on the Tax Increment Portion of the Bonds due prior to the anticipated date of commencement of the collection of the taxes herein levied or the receipt of Tax Increments. 2154193v1 18