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be maintained in the Fund two (2) separate accounts, to be <br /> 111 <br /> designated the "Construction Account" and "Debt Service Account" , <br /> respectively. <br /> (i) Construction Account. To the Construction Account <br /> there shall be credited the proceeds of the sale of the Bonds, <br /> less accrued interest received thereon, and less any amount paid <br /> for the Bonds in excess of $2,837, 625. From the Construction <br /> Account there shall be paid all costs and expenses of making the <br /> Improvements, including the cost of any construction contracts <br /> heretofore let and all other costs incurred and to be incurred of <br /> the kind authorized in Minnesota Statutes, Section 475. 65; and <br /> the moneys in said account shall be used for no other purpose <br /> except as otherwise provided by law. <br /> (ii) Debt Service Account. There are hereby irrevocably <br /> appropriated and pledged to, and there shall be credited to, the <br /> Debt Service Account: (a) the net revenues of the City's <br /> municipal water system (as hereinafter described, the "Net <br /> Revenues") , but only in amounts and at such times as will be <br /> sufficient (together with other amounts in the Debt Service <br /> Account) to pay, when due, the principal of and interest on the <br /> Bonds; (b) all accrued interest received upon delivery of the <br /> Bonds; (c) all funds paid for the Bonds in excess of $2,837, 625; <br /> (d) any collections of all taxes hereafter levied for the payment <br /> of the Bonds and interest thereon; (e) all investment earnings on <br /> funds held in the Debt Service Account; and (f) any and all other . <br /> moneys which are properly available and are appropriated by the <br /> Council to the Debt Service Account. The Debt Service Account <br /> shall be used solely to pay the principal and interest and any <br /> premiums for redemption of the Bonds and any other general <br /> obligation bonds of the City hereafter issued by the City and <br /> made payable from said account as provided by law. <br /> As used in this paragraph, Net Revenues shall mean the gross <br /> revenues derived by the City from the operation of its municipal <br /> water system, including all charges for service, use, <br /> availability, and connection to said system, and all monies <br /> received from the sale of any facilities or equipment of said <br /> system oranyby-products thereof, less all normal, reasonable, <br /> or current costs of owning, operating, and maintaining the <br /> system. If any payment of principal or interest on the Bonds <br /> shall become due when there are not sufficient funds in the Debt <br /> Service Account to pay the same, the City Finance Director shall <br /> pay such principal or interest from the general fund or other <br /> available fund of the City, and such fund shall be reimbursed for <br /> such advances from the proceeds of the Net Revenues or of any <br /> general ad valorem taxes hereafter levied for such purpose, when <br /> collected. The City hereby covenants that it will impose and <br /> collect charges for the service, use, and availability of and <br /> connection to the City's municipal water system, at the times and <br /> in the amounts required to produce Net Revenues adequate, 111 <br /> 16244 <br /> 16 <br />