06-23-25 - City Council Agenda - Laserfiche WebLink

Home Search

any, of any portion of the Utility Portion of the Bonds made in accordance with Section 4.01 hereof), shall be deposited in the Utility Account of the Construction Fund to be used solely to pay costs of the Utility Project. Any balance remaining in the Utility Account of the Construction Fund after completion of the Utility Project may be used for any other public use authorized by law and approved by resolution adopted or vote taken in the manner required to authorize the application of the proceeds of the Utility Portion of the Bonds for such new use and purpose, or credited to the Utility Account of the Debt Service Fund or other City debt service fund, all in accordance with Section 475.65 of the Act. 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 and credit and taxing powers of the City are hereby irrevocably pledged. If a payment of principal of or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the Interim Finance Director must pay such principal or interest from the general fund of the City, and the general fund shall be reimbursed for those advances out of the proceeds of the Taxes (as hereinafter defined) levied herein, when collected. 4.04. Pledge of Taxes. (a) Street Portion. For the purpose of paying the principal of and interest on the Street Portion of the Bonds, there are levied direct, annual, irrepealable, ad valorem taxes upon all of the taxable property in the City (the "Taxes"), to be spread upon the tax rolls and collected with and as part of other general taxes of the City. The Taxes shall be credited to the Street Account of the Debt Service Fund above provided and shall be levied in the years and amounts set forth in EXHIBIT C attached to this Resolution and, in the event the Taxes so levied are ever insufficient to pay the principal of and interest on the Bonds, additional taxes are hereby authorized to be levied without limitation as to rate or amount. Said tax levies shall be irrevocable as long as any of the Street Portion of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by the Act (specifically, Section 475.61 of the Act). (b) Utility Portion. It is determined that the Assessments and the Net Revenues from the Utility Systems shall produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest on the Utility Portion of the Bonds and that no ad valorem tax levy is needed at this time. In the event of any deficiency of Assessments or Net Revenues pledged, additional taxes shall be levied on all taxable property in the City, which taxes may be levied without limitation as to rate or amount. Said tax levies shall be irrevocable as long as any of the Utility Portion of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by the Act (specifically, Section 475.61 of the Act). 4.05. City Covenants with Respect to the Pledge of Net Revenues to the Utility Portion of the Bonds. The Council covenants and agrees with the holders of the Bonds that so long as any of the Utility Portion of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The City will continue to maintain and efficiently operate the Utility Systems as public utilities and conveniences free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the Utility Fund, as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this Resolution. 0 Page 42 of 142