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

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(b) The City will also maintain the Utility Account of the Debt Service Fund as a separate account and will cause money to be credited thereto from time to time, out of Net Revenues from the Utility Systems in sums sufficient to pay principal of and interest on the Utility Portion of the Bonds when due. (c) The City will keep and maintain proper and adequate books of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the Utility Systems and which will be open to inspection and copying by any Bondholder, or the Bondholder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all Bondholders upon request. (d) The Council will cause persons handling revenues of the Utility Systems to be bonded in reasonable amounts for the protection of the City and the Bondholders and will cause the funds collected on account of the operations of such systems to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. (e) The Council will keep the Utility Systems insured at all times against loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for like plants, to protect the holders, from time to time, of the Bonds and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss. (f) The City and each and all of its officers will punctually perform all duties with reference to the Utility Systems as required by law. (g) The City will impose and collect charges of the nature authorized by Chapter 444, specifically Minnesota Statutes, Section 444.075, at the times and in the amounts required to produce Net Revenues adequate to pay all principal and interest when due on the Utility Portion of the Bonds and to create and maintain such reserves securing said payments as may be provided herein. (h) The Council will levy general ad valorem taxes on all taxable property in the City when required to meet any deficiency in Net Revenues. 4.06. City Covenants with Respect to the Pledge of Special Assessments to the Utility Portion of the Bonds. It is hereby determined that the Utility Project will directly and indirectly benefit certain abutting and other benefited property in the City, and the City hereby covenants with the holders from time to time of the Utility Portion of the Bonds as follows: (a) The City has caused or will cause the Assessments for the Street Project to be promptly levied so that the first installment will be collectible not later than 2025 and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The Council will cause to be taken with due diligence all further actions that are required for the construction of the Utility Project financed wholly or partly from the proceeds of the Utility Portion of the Bonds, and will take all further actions necessary for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Utility Portion of the Bonds and interest thereon when due. 10 Page 43 of 142