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4.02. 2004A Improvement Bond Fund. So long as any of the Bonds are <br /> outstanding and any principal of or interest thereon unpaid, the Finance Director shall maintain a <br /> 1� separate and special bookkeeping fund designated"2004A Improvement Bond Fund"(the "Bond <br /> 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 /> $1,768,520 received from the Purchaser,plus capitalized interest in the amount of$44,189.10, <br /> (b) the collections of special assessments and other funds to be credited and paid thereto in <br /> accordance with the provisions of Section 4.01, (c) any taxes levied in accordance with this <br /> resolution, and (d) all such other moneys as shall be received and appropriated to the Bond Fund <br /> from time to time. If the balance in the Bond Fund is at any time insufficient to pay all interest <br /> and principal then due on all bonds payable therefrom, the payment shall be made from any fund <br /> of the City which is available for that purpose, subject to reimbursement from the Bond Fund <br /> when the balance therein is sufficient, and the Council covenants and agrees that it will each year <br /> levy a sufficient amount to take care of any accumulated or anticipated deficiency, which levy is <br /> not subject to any constitutional or statutory 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 /> -12- <br />