2006-176 Council Resolution - Laserfiche WebLink

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1 3.02. The City Administrator is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. The City will create and continue to operate its Water Fund to which will be credited all gross revenues of the water utility system and out of which will be paid all normal and reasonable expenses of current operations of the water utility system. Any balance therein will be deemed net revenues and will be transferred from time to time, to a General Obligation Water Revenue Refunding Bonds, Series 2006F Debt Service Fund (the "Debt Service Fund ") hereby created in the Water Fund, which fund will be used only to pay principal of and interest on the Bonds and any other bonds similarly authorized. The Water Fund Accounts established in the resolution awarding the sale of the Refunded Bonds (as defined in Section 5.01) are continued and will be maintained as therein provided. These accounts are the Operations Account, the Sinking Fund Account, the Construction Account and the Surplus Account. There will always be retained in the Debt Service Fund a sufficient amount to pay principal of and interest on all the Bonds, and the City Administrator will report any current or anticipated deficiency in the Debt Service Fund to the City Council. After payment of the principal and interest when due on the February 1, 2007 maturity of the Refunded Bonds, the debt service fund for the Refunded Bonds is terminated, and all monies therein are hereby transferred to the Debt Service Fund herein created. 4.02. It is determined that estimated collection of net revenues of the water utility system for the payment of principal and interest on the Bonds will produce at least five percent 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. 4.03. The City Clerk is directed to file a certified copy of this resolution with the Manager of Property Records and Taxation of Anoka County and to obtain the certificate required by Section 475.63 of the Act. 4.04. It is hereby determined that upon the receipt of proceeds of the Bonds (the "Proceeds ") for payment of the Refunded Bonds that an irrevocable appropriation to the debt service fund for the Refunded Bonds will have been made within the meaning of Section 475.61, subdivision 3 of the Act and the City Administrator is hereby authorized and directed to certify such fact to and request the Manager of Property Records and Taxation of Anoka County to cancel any and all tax levies made by the resolution authorizing and approving the Refunded Bonds. 4.05. The City Council covenants and agrees with the holders of the Bonds that so long as any 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 water utility system as public utilities and conveniences free from competition of other like utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the 299374v2 SJB LNI40 -97 11