03-26-08 Council Agenda - Laserfiche WebLink

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(ii) Tax Increment Debt Service Account. To the Tax Increment Debt Service Account there shall be credited: (a) Tax Increments not otherwise pledged and applied to the payment of other obligations of the City, in an amount sufficient, together with other sums herein pledged, to pay the annual principal and interest payments on the Tax Increment Portion of the Bonds; (5) any collection of all taxes hereafter levied for the payment of the "fax Increment Portion of the Bonds; (e) a pro rata share of all accrued interest received upon delivery of the Bonds; (d) capitalized interest in the amount of $ (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Tax Increment Portion of the Bonds on or before ); (e) a pro rata share of all funds paid for the Bonds in excess of the minimum bid; (0 a pro rata share of all funds remaining in the Account after completion of the Development District Improvement Projects and payment of the costs thereof; (g) all investment earnings on funds held in the Tax Increment Debt Service Account; and (h) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Tax Increment Debt Service Account. The Tax Increment Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Tax Increment Portion of the Bonds. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Permanent Improvement Revolving Sinking Fund or the 'Fax Increment Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Permanent Improvement Revolving Fund or the Capital Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code "). 16. Covenants Relatin T to the Im s rovement Portion of the Bonds. (a) Assessments. It is hereby determined that no less than twenty percent of the cost to the City of each of the Assessment Improvements financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land henefitted by any of the Assessment Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let within one year after ordering each of the Assessment Improvements financed hereunder unless the resolution ordering the Assessment Improvements specifies a different time limit for the letting of construction contracts. The City hereby further covenants and agrees that it will do and perform as soon as they may be done all acts and things necessary for the final and 2154193v1 19