Resolution 2541 - Laserfiche WebLink

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. . . Section 5. Bond Fund and Accounts, Appropriations, Pledge. 5.01. There is hereby created a special fund of the Issuer designated "General Obligation Tax Increment Bonds, Series 1989B Fund" (the "Bond Fund") held and administered by the City Finance Director separate and apart from all other Funds of the Issuer. The Bond Fund shall be maintained in the manner specified until all of the Bonds herein authorized, any refunding bonds issued to refund the Bonds, and any other general obligation tax increment bonds hereafter issued and made payable from the Bond Fund, and the interest thereon, have been fully paid and the Issuer has been fully reimbursed from the pledge of tax increment for any of the principal and interest of the Bonds paid by the Issuer from general ad valorem taxes levied on property in the Issuer. In the Fund there shall be maintained two separate accounts, to be designated as the "Capital Account" and the "Debt Service Account," respectively. Capital Account. The' proceeds from the sale of the Bonds, less the amount of the proceeds of the Bonds deposited in the Debt Service Account, and less any accrued interest received thereon, shall be credited to the Capital Account, from which there shall be paid all costs and expenses of the Issuer's Development District No.2, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred, of the kind authorized in Minnesota Statutes, Sections 475.65, 469.176, subdivision 4, and Minnesota Statutes, Sections 469.123 to 469.134. Debt Service Account. There is hereby pledged and there shall be credited to the Debt Service Account (a) all unused discount and accrued interest received upon delivery of and payment for the Bonds, (b) tax increment derived from the District in amounts sufficient from time to time to pay principal of and interest on the Bonds then due (or previously due and paid from a source other than tax increment), (c) any taxes from time to time levied for the payment of the Bonds, and revenues derived from any other sources available and pledged to pay principal, premium, if any, and interest on the Bonds, (d) proceeds of the Bonds in the amount of $194,558 to be used to pay interest on the Bonds prior to the collection of tax increment and other revenues sufficient to pay debt service on the Bonds, and (e) all funds remaining in the Capital Account after completion of the public improvements to be undertaken by the City within Development District No.2 and payment of the costs thereof. The Debt Service Account herein created shall be used solely to pay principal of, premium, if any, and interest on the Bonds and any other general obligation tax increment bonds hereafter issued and made payable from said Debt Service Account, except that upon discharge of the Bonds and such already outstanding or additional Bonds, the Issuer may use any remaining funds in the Debt Service Account to reimburse the Issuer as provided above. 5.02. The Issuer hereby finds and deterimes that estimated collections of tax increment from the District and the other amounts herein pledged to the payment of the Bonds, will produce at least five percent (596) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. Accordingly no taxes are herein levied with respect to the Bonds. The full faith and credit and taxing powers of the Issuer are hereby irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds and such other general obligation indebtedness as may be made payable from the Bond Fund, as such principal and interest respectively become due. 9 t.