CC PACKET 08251992 - Laserfiche WebLink

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as they become due. The trend of net revenues generated by the City's liquor store operations for the past five years is shown on page 3 of this Official Statement. The City further covenants to maintain all buildings,furnishings, equipment and merchandise in good condition and free from all liens; to not sell or dispose of any of the capital assets of the liquor enterprise unless any such proceeds are used to procure equivalent capital assets or are applied toward payment of the principal of and interest on the Bonds; to carry adequate insurance; and to keep proper books, records and accounts. Uquor Store Funds and Accounts The foregoing is a summary of certain covenants in the "Resolution Relating To $405,000 Liquor Store Revenue Refunding Bonds, Series 1992A: Awarding the Sale, Fixing the Form and Details, Providing for the Execution and Delivery Thereof and the Security Therefor" which incorporates the provisions of the resolution adopted May 26, 1987 upon the sale of the 1987 Bonds (the "Resolution"). This is not to be considered a full statement of the provisions of the Resolution and is qualified by reference to the Resolution. Pertinent sections of the proposed resolution, as well as portions of the resolution for the 1987 Bonds, are included as Appendices II and III of this Official Statement. The Resolution will provide for the continuation of the Liquor Store Fund into which shall be deposited all income and receipts from the operation of the City's three municipal liquor store facilities, and in which the following accounts shall be maintained: Costs of Issuance Account into which shall be deposited that portion of the Bond proceeds which has been established to be used for costs of issuance and unused discount, if any. Any balance remaining after payment of all costs of issuance of the Bonds will be transferred to the Revenue Bond Account and the Costs of Issuance Account will then be closed. Operation and Maintenance Account into which all payments received by the City from its ownership and operation of its liquor enterprise will be deposited. These gross revenues shall be used to pay all those disbursement items which, according to generally accepted accounting principles, constitute normal, reasonable and current costs of operation and maintenance of the liquor enterprise, including employee compensation, insurance, utilities and maintenance of inventory, but excluding depreciation, capital improvements, extraordinary repairs and debt service. Any gross revenues received in excess of amounts necessary to fund the operation and maintenance of the liquor enterprise are considered the net revenues of the enterprise. Revenue Bond Account into which initially will be deposited any accrued interest on the Bonds. Net revenues will also be credited to this account monthly in an amount equal to at least one- sixth of the total interest due within the next six months and one-twelfth of the total principal due during the next 12 months on the Bonds. Moneys in the Revenue Bond Account shall be used only for the payment of principal of and interest on the Bonds and any additional obligations payable therefrom in accordance with the Resolution. Provided the Reserve Account is fully funded, as described in the ensuing paragraph, all net revenues remaining after satisfaction of the above requirements may be used for any lawful corporate purpose selected by the City. Reserve Account into which $40,500 will be deposited from proceeds of the Bonds. Thereafter, all available net revenues remaining after the required monthly deposit to the Revenue Bond Account shall be deposited in the Reserve Account until the balance therein equals the maximum annual debt service requirement on the Bonds. The money in the Reserve Account shall be used to pay the principal of and interest on the Bonds payable from the Revenue Bond Account whenever the amount on hand in the Revenue Bond Account is insufficient, but, if - 2 -