Resolution 9364 - Laserfiche WebLink

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The City will continue to maintain and operate its Water Utility Fund, to which will be credited all gross revenues of the water utility system (the "Utility System"), and out of which will be paid all normal and reasonable expenses of current operations of such Utility System. Any balances therein are deemed net revenues (the "Net Revenues") and will be transferred, from time to time, to the Debt Service Fund hereby created, which fund will be used only to pay principal of and interest on the Bonds, and any other bonds similarly authorized. There will be deposited in the Debt Service Fund from time to time sufficient amounts to pay principal of and interest on the Bonds when due, and the City Finance Director must report any current or anticipated deficiency in the Debt Service Fund to the City Council. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for the advances out of the proceeds of Net Revenues of the Water Utility Fund and taxes when collected. There is also appropriated to the Debt Service Fund (i) capitalized interest financed from the Bond proceeds, if any; (ii) any amount over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 2.03; (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds, if any; (iv) all investment earnings on amounts in the Debt Service Fund; and (v) any other funds appropriated for the payment of principal or interest on the Bonds. 4.02. Construction Fund. The City hereby creates the General Obligation Water Revenue Bonds, Series 2020A Construction Fund (the "Construction Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. Proceeds of the Bonds, less the appropriations made in Section 4.01 hereof, together with any other funds appropriated during the construction of the Utility Improvements financed by the Bonds will be deposited in the Construction Fund to be used solely to defray expenses of the Utility Improvements. Any balance remaining in the Construction Fund, after the Utility Improvements are completed and the cost thereof have been paid, may be used as provided in Minnesota Statutes, section 475.65, under the direction of the City Council. Thereafter, the Construction Fund is to be closed and any balance remaining therein is to be deposited in the Debt Service Fund. 4.03. Qijy Covenants. 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 Utility System as public utilities and conveniences free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the Utility System accounts as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain the Debt Service Fund as a separate account and will cause money to be credited thereto from time to time, out of Net Revenues from the Utility System in sums sufficient to pay principal of and interest on the Bonds when due. MU210-280-685657.v2 7