2016-147 Council Resolution - Laserfiche WebLink

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Section 4. Payment; Security; Pledges and Covenants. 4.01. Debt Service Fund. The Bonds are payable from the General Obligation Tax Abatement Refunding Bonds, Series 2016C Debt Service Fund (the "Debt Service Fund") hereby created. The Debt Service Fund shall be administered by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. Following the redemption of the Prior Bonds on February 1, 2017 (the "Redemption Date"), the abatements (the "Abatements") for the abatement parcels pledged to the payment of the Prior Bonds pursuant to the resolution adopted by the City Council authorizing the issuance and sale of the Prior Bonds (the "Prior Resolution") are hereby pledged to the Debt Service Fund. There is appropriated to the Debt Service Fund amounts over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof. 4.02. Redemption Fund. The City hereby creates the General Obligation Tax Abatement Refunding Bonds, Series 2016C Redemption Fund (the "Redemption Fund"). Proceeds of the Bonds, less the appropriations made in Section 4.01 hereof, will be deposited in the Redemption Fund to be used solely to redeem and prepay on the Redemption Date the outstanding principal amount of the Bonds. 4.03. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient balance is available therein. 4.04. Debt Service Coverage. It is hereby determined that the estimated collection of Abatements for the payment of principal of and interest on the Bonds will produce at least five percent (5%) in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.05. Prior Debt Service Fund. Following the redemption of the Prior Bonds on the Redemption Date, the debt service fund heretofore established for the Prior Bonds pursuant to the Prior Resolution shall be terminated and all remaining funds therein shall be transferred to the Debt Service Fund herein created. 4.06. Registration of Resolution. The City Clerk is authorized and directed to file a certified copy of this resolution with the Manager of Property Records and Taxation of Anoka County, Minnesota and to obtain the certificate required by Section 475.63 of the Act. Section 5. Refunding; Findings; Redemption of Prior Bonds. 5.01. Purpose of Refunding. The Prior Bonds maturing after the Redemption Date will be called for redemption on the Redemption Date in the principal amount of $1,565,000. It is hereby found and determined that based upon information presently available from the City's municipal advisor, the issuance of the Bonds, a portion of which will be used to refund the Prior Bonds, is consistent with covenants made with the holders of the Prior Bonds. 5.02. Application of Proceeds of Bonds. It is hereby found and determined that the proceeds of the Bonds deposited in the Redemption Fund, along with any other funds on hand in the debt service fund 486866v2 JAE LN140-117 6