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• Fund") to be used for no purpose other than the payment of the principal of and interest on the <br /> Bonds and on such other improvement bonds of the City as have been or may be directed to be <br /> paid therefrom. The City irrevocably appropriates to the Bond Fund(a) all amounts in excess of <br /> $ received from the Purchaser, (b) the collections of special assessments and other <br /> funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (c) any <br /> taxes levied in accordance with this resolution, and (d) all such other moneys as shall be received <br /> and appropriated to the Bond Fund from time to time. If the balance in the Bond Fund is at any <br /> time insufficient to pay all interest and principal then due on all bonds payable therefrom, the <br /> payment shall be made from any fund of the City which is available for that purpose, subject to <br /> reimbursement from the Bond Fund when the balance therein is sufficient, and the Council <br /> covenants and agrees that it will each year levy a sufficient amount to take care of any <br /> accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory <br /> tax limitation. <br /> There are hereby established two accounts in the Bond Fund, designated as the <br /> "Debt Service Account"and the"Surplus Account." All money appropriated or to be deposited <br /> in the Bond Fund shall be deposited as received into the Debt Service Account. On each <br /> February 1,the Finance Director shall determine the amount on hand in the Debt Service <br /> Account. If such amount is in excess of one-twelfth of the debt service payable from the Bond <br /> Fund in the immediately preceding 12 months, the Finance Director shall promptly transfer the <br /> amount in excess to the Surplus Account. The City appropriates to the Surplus Account any <br /> amounts to be transferred thereto from the Debt Service Account as herein provided and all <br /> income derived from the investment of amounts on hand in the Surplus Account. If at any time <br /> the amount on hand in the Debt Service Account is insufficient to meet the requirements of the <br /> Bond Fund,the Finance Director shall transfer to the Debt Service Account amounts on hand in <br /> the Surplus Account to the extent necessary to cure such deficiency. <br /> 4.03. Additional Bonds. The City reserves the right to issue additional bonds <br /> payable from the Bond Fund as may be required to finance costs of the Improvements not <br /> financed hereby;provided that the City Council shall,prior to the delivery of such additional <br /> bonds, levy or agree to levy by resolution sufficient additional special assessments and ad <br /> valorem taxes, if any, which, together with other moneys or revenues pledged for the payment of <br /> said additional obligations,will produce revenues at least five percent (5%) in excess of the <br /> amount needed to pay when due the principal and interest on all bonds payable from the Bond <br /> Fund. The additional special assessments, ad valorem taxes and moneys or revenues so pledged, <br /> levied or agreed to be levied shall be irrevocably appropriated to the Bond Fund in the manner <br /> provided by Minnesota Statutes, Section 475.61. <br /> 4.04. Levy of Special Assessments. The City hereby covenants and agrees that <br /> for payment of the cost of each of the Improvements it will do and perform all acts and things <br /> necessary for the full and valid levy of special assessments against all assessable lots, tracts and <br /> parcels of land benefited thereby and located within the area proposed to be assessed therefor, <br /> based upon the benefits received by each such lot, tract or parcel, in an aggregate principal <br /> amount not less than twenty percent(20%) of the cost of the Improvements. In the event that <br /> any such assessment shall be at any time held invalid with respect to any lot,piece or parcel of <br /> • land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by <br /> -13- <br />