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(a) IxnDrovement Construction Account. The Improvement Construction Account shall be credited with $1,600.000 fr om the proceeds of the Improvement Bonds. Every item of expense made for the Improvement Project shall be deducted from Improvement Construction Account to the extent paid from proceeds of the Improvement Bonds. The City Administrator shall maintain the Improvement Construction Account until Payment of all costs and expenses incurred in connection with the construction of the Improvement Project have been paid. (b) UtilityConstructionAccount. The Utility Construction Account shall be credited With- $4,000,00o from the proceeds of the Utility Bonds, an amount equal to the estimated cost of the Utility Projects. The City Administrator shall maintain the Utility Construction Account until all costs and expenses incurred by the C' il u Projects have been paid. City in connection with the construction of the Utility All funds on hand in the Construction Fund when terminated shall b cr dit to the -eof, unless and except as such proceeds may be transferred Bond Fund described in Section 4 hei e ed to some other fund or account as to which the City has received from bond counsel an opinion that such other transfer is permitted by applicable laws and does not impair the exemption of interest oil the Bonds from federal income taxes. SECTION 4. GENERAL OBLICATIO BQL-,MS. SEEMS 2013A BOND FUND. So long as any of the Bonds are outstanding and any principal or interest thereon unpaid, the City Administrator shall maintain on the official books and records of the City a, separate fund designated as the General Obligation Bonds, Series 201' )A Bond Fund (the Bond Fund). Into the Bond Fund shall be paid (a) the amounts specified in Section 3 above, (b) any amount in excess of the amounts credited to the Construction Fund as provided in Section 3 hereof received from the Purchaser upon delivery of the Bonds, (c) the special assessments and net revenues described in Sections 5 and 6 hereof-, (d) any taxes collected pursuant to Section 7 hereof, and (e) any other funds appropriated by the City Council for the payment of the Bonds. The principal of and interest on the Bonds shall be payable from the Bond Fund, and the money on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. If the balance on hand in the Bond Fund is at any time insufficient to pay principal and interest then due on the Bonds, such amounts shall be paid from other money on hand in other funds of the City, which other funds shall be reimbursed therefor when sufficient money becomes available in the Bond Fund. The City Council also covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to pay any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. There are hereby established, two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account,- There shall initially be deposited into the Debt Service Account upon the issuance of the Bonds the amount set forth in (b) above. Thereafter. during each Bond Year (i.e., each twelve month period commencing on July 16 and ending on I the following July 15), as monies are received into the Bond Fund, the City Administrator shall first deposit such monies into the Debt Service Account until an amount has been appropriated thereto sufficient to pay all principal and interest due on the Bonds through the end of the Bond Year. All subsequent monies received in the Bond. Fund during the Bond Year shall be appropriated to the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient for the payment of principal and interest then due, the City Administrator Is