26-59 - Resolution - GO Bond Sale 2026A

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3.02. Approving Legal Opinion. The City Administrator is authorized and directed to obtain a copy of the proposed approving legal opinion of Kutak Rock LLP, Minneapolis, Minnesota, and cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. Debt Service Fund. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds, and to provide adequate and specific security for the Purchaser and holders from time to time of the Bonds, there is hereby created a special fund to be designated the General Obligation Bonds, Series 2026A Debt Service Fund (the "Debt Service Fund") hereby created. The Debt Service Fund shall be administered and maintained bythe Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Citywill maintain the following accounts in the Debt Service Fund: the "Abatement Project Account" and the "Utility Improvements Account." Amounts in the Abatement Project Account are irrevocably pledged to the Abatement Bonds, and amounts in the Utility Improvements Account are irrevocably pledged to the Utility Revenue Bonds. (a) Abatement Project Account. Abatements from the Abatement Parcels and ad valorem taxes levied for the Abatement Project are hereby pledged to the Abatement Account of the Debt Service Fund. There is appropriated to the Abatement Account a pro rata portion of any amounts over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Abatement Account of the Debt Service Fund in accordance with Section 1.03 hereof. There also shall be deposited to the Abatement Project Account of the Debt Service Fund all investment earnings on amounts in the Abatement Project Account of the Debt Service Fund and any other funds appropriated for the payment of principal of or interest on the Abatement Bonds. (b) Utility Improvements Account. The City will continue to maintain and operate its Water Fund and Sewer Fund to which will be credited all gross revenues of the water system and sewer system, respectively, and out of which will be paid all normal and reasonable expenses of current operations of such systems. Any balances therein are deemed net revenues (the "Net Revenues") and will be transferred, from time to time, to the Utility Improvements Account of the Debt Service Fund, which Utility Improvements Account will be used only to pay principal of and interest on the Utility Revenue Bonds and any other bonds similarly authorized. There will always be retained in the Utility Improvements Account of the Debt Service Fund a sufficient amount to pay principal of and interest on all the Utility Revenue Bonds, and the Finance Director must report any current or anticipated deficiency in the Utility Improvements Account of the Debt Service Fund to the City Council. There is also appropriated to the Utility Improvements Account of the Debt Service Fund (i) any collections of taxes hereafter levied for the payment of the Utility Revenue Bonds and interest thereon; and (ii) a pro rata portion of any amounts over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Utility Improvements Account of the Debt Service Fund in accordance with Section 1.03 hereof. There also shall be deposited to the Utility Improvements Account of the Debt Service Fund all investment earnings on amounts in the Utility Improvements Account of the Debt Service Fund and any other funds appropriated for the payment of principal of or interest on the Utility Revenue Bonds. 4931-4985-5651.3 6