1999-062 Council Resolution - Laserfiche WebLink

Home Search

Section 4. Payment; Security; Pledges and Covenants. 4.01. (a) Interest on the Bonds to and including February 1, 2001 is payable from the Escrow Account established pursuant to the Escrow Agreement described herein. Thereafter, the Bonds are payable from the Debt Service Fund created hereby. (b) The City will create and continue to operate its Water Fund, to which will be credited all gross revenues of the water system and out of which will be paid all normal and reasonable expenses of current operations of the water system. Any balance therein will be deemed net revenues and will be transferred from time to time, to a General Obligation Water Utility Revenue Refunding Bonds, Series 1999B 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 debt service fund (but not the construction fund), heretofore established for the Refunded Bonds in the resolution providing for the issuance and sale of the Refunded Bonds is terminated, and all monies therein are thereby transferred to the Debt Service Fund herein created; provided, however, that the City Clerk -Treasurer is hereby authorized and directed to transfer from said Debt Service Fund those amounts determined by actuarial calculation at the time of delivery of the Bonds to be necessary to properly fund the Escrow Account established by Section 5 of this resolution. The Water Fund Accounts established in the resolution awarding the sale of the Refunded Bond 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 Clerk - Treasurer will report any current or anticipated deficiency in the Debt Service Fund to the City Council. 4.02. It is determined that the net revenues 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 -Treasurer is directed to file a certified copy of this resolution with the County Auditor of Anoka County and to obtain the certificate required by Section 475.63 of the Act. 4.04. 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 system as a public utility and convenience free from competition of other like utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the water BMB-167651 LN 140-68