03-26-08 Council Agenda - Laserfiche WebLink

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interest requirements of the System Improvement Portion of the Bonds as the same become due. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the System for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of the System will be sufficient, in addition to all other sources, for the payment of the System Improvement Portion of the Bonds and such additional obligations and any such pledge and appropriation of' the net revenues may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. 17. Covenants Relating to the Tax Increment Portion of the Bonds. (a) Original Net Tax Capacity; 'fax Increments. Use of Tax Increments. The County Auditor of Ramsey County has certified the original net tax capacity of property in the Tax Increment District. The County Auditor shall determine in each year if the then current net tax capacity of property in the Tax Increment District exceeds the original net tax capacity, and shall calculate, in the manner provided in Minnesota Statutes, Section 469.177, Subdivision 3, the captured net tax capacity (as defined therein) attributable to the Tax Increment District. The City hereby determines to retain one hundred percent of the captured tax capacity for purposes of tax increment financing. The County Auditor shall, in each such year, compute the local tax rate to be extended against the captured net tax capacity in the manner provided in Minnesota Statutes, Section 469.177, Subdivision 3, and the tax generated thereby shall constitute the Tax Increments for the year in which it is received. The County Auditor will remit to the City the Tax Increments so received. The City hereby appropriates the Tax Increments to the Tax Increment Debt Service Account, which appropriation shall continue until all of the Tax Increment Portion of the Bonds and any additional bonds payable from the Tax Increment Debt Service Account, are paid or discharged. (b) Reservation of Rights. Notwithstanding any provisions herein to the contrary, the City reserves the right to terminate, reduce, or apply to other lawful purposes the Tax Increments herein pledged to the payment of the Tax Increment Portion of the Bonds and interest thereon to the extent and in the manner permitted by law. (c) Coverage `Pest. The estimated collections of Tax Increments and other revenues herein pledged for the payment of the Tax Increment Portion of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Tax Increment Portion of the Bonds. (d) Future Tax Levies. In the event that it is anticipated that the aggregate of Tax Increments and any other funds appropriated to and then held in the Tax Increment Debt Service Account and the estimated collections of Tax Increments to be received in the next succeeding year will not be sufficient to pay the principal and interest on the Tax Increment Portion of the Bonds to become due in the first calendar year after such determination and the first six months of the succeeding calendar year, the City Council shall pass a resolution requesting the County Auditor of Ramsey County to levy an ad valorem tax in an amount as is necessary, together with the aforementioned funds then held in the Tax Increment Debt Service Account and said estimated collections of Tax Increments, to pay the principal and interest on the Tax Increment Portion of the Bonds to become due during said period. 2154193v1 21