Resolution 2001-083 - Laserfiche WebLink

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accounts in the Project Fund shall be credited, respectively, with any special assessments levied with respect to the respective Improvements and collected prior to completion of the Improvements and payment of the costs thereof. From the accounts in the Project Fund there shall be paid all costs and expenses of constructing the respective Improvements and providing long term financing for the Improvements and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. The moneys in the Project Fund shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of receipt of municipal state - aid funds pursuant to Minnesota Statutes, Chapter 162 and of commencement of the collection of special assessments herein levied or covenanted to be levied. Any special assessments credited to the Project Fund shall only be applied toward payment of the costs of the Improvements upon adoption of a resolution by the Council determining that the application of the special assessments for such purpose will not cause the Issuer to no longer be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. Upon issuance of the Bonds, the City Finance Director is hereby directed to use proceeds in the Project Fund to pay the costs of constructing the Improvements and costs of issuance of the Bonds. Immediately upon issuance of the Bonds, the Issuer shall pay from the Project Fund all costs of issuance, including, but not limited to bond counsel fees to Best & Flanagan LLP. Prior to and including October 1, 2004 investment earnings on the Project Fund shall be deposited in the Debt Service Fund to pay interest due on the Bonds. On October 1, 2004, amounts remaining in the Project Fund shall be transferred to the Debt Service Fund established in Section 5.01 hereof or may be transferred by the Council to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 162 or Chapter 429. Section 5. Debt Service Fund, Pledge of General Obligation and Special Assessments. 5.01 All of the Bonds shall be payable from a separate City of Lake Elmo General Obligation State -Aid and Improvement Bonds Debt Service Fund (the "Debt Service Fund ") which shall be created and maintained on the books of the Issuer until the Bonds, and all interest thereon, are fully paid. All investment earnings on the Project Fund and the Debt Service Fund, and, all excess amounts under the Project Fund transferred pursuant to Section 4.01 hereof are pledged to the Debt Service Fund. All moneys allotted or to be allotted to the Issuer from its account in the municipal state -aid street fund under Minnesota Statutes, Chapter 162 are hereby pledged and appropriated to the Debt Service Fund. The State -Aid Bonds shall be issued such that the average annual amount of principal and interest due in all subsequent calendar years on the State -Aid Bonds, and any other state -aid bonds of the Issuer currently outstanding, shall not exceed fifty percent (50 %) of the amount of the last annual allotment preceding this bond issuance received by the Issuer from the construction account in the municipal state -aid street fund. All interest on the State -Aid Bonds shall be paid from deposits made to the Debt Service Fund from the Issuer's normal maintenance account in the municipal state -aid street fund. All collections of special assessments herein covenanted to be levied with respect to the Improvements and either initially credited to the accounts in the Project Fund and not already spent as permitted above and required to pay any principal and interest due on the Bonds or collected subsequent to the completion of the Improvements and payment of the costs thereof, and any collections of all taxes which may hereafter be levied in the event that the special assessments -7-