01-25-1995 Council Agenda - Laserfiche WebLink

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SRN 19 '95 04:22PM EHLERS & ASSOCIATES P.19/28 There shall also be maintained in the Fund an account, to be designated the "Debt Service Account." (i) Construction Account. To the Construction Account heretofore created by the Prior Resolution there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of 477,800, plus any special assessments levied with respect to the Revolving Fund Improvements and not required to pay when due the principal of and interest on the Bonds and any Additional Bonds, after taking into account assessments, taxes and any other revenues and other sums herein or hereafter pledged and appropriated to the Debt Service Account and made available for that purpose. From the construction Account there shall be paid all costs and expenses of making the Bond Funded Improvements listed in paragraph 16, and any other Revolving Fund 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 said account 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 special assessments herein covenanted to be levied. (ii) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (a) all collections of special assessments herein covenanted to be levied or hereafter levied with respect to the Revolving Fund Improvements and required to pay when due the principal of and interest on the Bonds and any Additional Bonds, after taking into account assessments, taxes and any other revenues and other sums herein or hereafter pledged and appropriated to the Debt service Account and made available for that purpose; (b) all accrued interest received upon delivery of the Bonds; (c) all funds paid for the Bonds in excess of 477,800; (d) any collections of all taxes which may hereafter be levied in the event that the special assessments herein pledged to the payment of the principal and interest on the Bonds are insufficient therefor; (e) all funds remaining in the Construction Account after completion of all Revolving Fund Improvements and payment of the costs thereof; (f) all investment earnings on funds held in the Debt Service Account; and (g) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any Additional Bonds. 281035.1 20 Page 34