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manner herein specified until all of the Bonds and the interest thereon have been fully paid. The Operation and Maintenance Accounts heretofore established by the City for the municipal water system and the sanitary sewer system shall continue to be maintained in the manner heretofore provided by the City. All moneys remaining after paying or providing for the items set forth in the resolution establishing the Operation and Maintenance Accounts shall constitute or are referred to as "net revenues" until the System Revenue Portion of the Bonds have been paid. There shall be maintained in the Fund the following separate accounts to which shall be credited and debited all income and disbursements of the System as hereinafter set forth. The Finance Director of the City and all officials and employees concerned therewith shall establish and maintain financial records of the receipts and disbursements of the System in accordance with this resolution. In such records there shall be established accounts or accounts shall continue to be maintained as the case may be, of the Fund for the purposes and in the amounts as follows: (a) Construction Account. To the Construction Account there shall be credited the proceeds of the sale of the Bonds, less any amount paid for the Bonds in excess of the minimum bid. From the Construction Account there shall be paid all costs and expenses of the Project, 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 Construction 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 taxes herein levied or covenanted to be levied or net revenues; and provided further that if upon completion of the Project there shall remain any unexpended balance in the Construction Account, the balance shall be transferred to the Debt Service Account. (b) Debt Service Account. There shall be maintained two separate subaccounts in the Debt Service Account to be designated the "Capital Improvement Debt Service Subaccount" and the "System Improvements Debt Service Subaccount." There are hereby irrevocably appropriated and pledged to, and there shall be credited to the separate subaccounts of the Debt Service Account: (i) Capital Improvement Debt Service Subaccount. To the Capital Improvement Portion Debt Service Subaccount there shall be credited: (A) any collections of all taxes herein or hereinafter levied for the payment of the Capital Improvement Plan Portion of the Bonds and interest thereon; (B) a pro rata share of any amount paid for the Bonds in excess of the minimum bid; (C) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Capital Improvement Debt Service Subaccount; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Capital Improvement Debt Service Subaccount. The Capital Improvement Debt Service Subaccount shall be used solely to pay the principal and interest and any premiums for redemption of the Capital Improvement Plan Portion of the Bonds. (ii) System Improvements Debt Service Subaccount. To the System Improvements Debt Service Subaccount there shall be credited: (A) the net revenues of the System not otherwise pledged and applied to the payment of other obligations of the 16 5962970x1