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paid all construction costs and expenses incurred by the City in construction of the Projects. <br /> After payment of all construction costs,the Construction Fund shall be discontinued and any <br /> Bond proceeds remaining therein received shall be credited to the Bond Fund described in <br /> Section 4.02 hereof. <br /> 4.02. 2008A Street Reconstruction 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 /> separate and special bookkeeping fund designated"2008A Street Reconstruction Bond Fund" <br /> (the"Bond Fund")to be used for no purpose other than the payment of the principal of and <br /> interest on the Bonds and on such other Street Reconstruction Bonds of the City as have been or <br /> may be directed to be paid therefrom. The City irrevocably appropriates to the Bond Fund(a) <br /> capitalized interest in the amount of$47,003.33, (b) any taxes levied in accordance with this <br /> resolution, and(c)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"Debt <br /> Service Account"and the"Surplus Account." All money appropriated or to be deposited in the <br /> Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, <br /> the Finance Director shall determine the amount on hand in the Debt Service Account. If such <br /> amount is in excess of one-twelfth of the debt service payable from the Bond Fund in the <br /> immediately preceding 12 months,the Finance Director shall promptly transfer the amount in <br /> excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be <br /> transferred thereto from the Debt Service Account as herein provided and all income derived <br /> from the investment of amounts on hand in the Surplus Account. If at any time the amount on <br /> hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the <br /> Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus <br /> Account to the extent necessary to cure such deficiency. <br /> 4.03. Additional Bonds. The City reserves the right to issue additional bonds payable <br /> from the Bond Fund as may be required to finance costs of the Projects not financed hereby; <br /> provided that the City Council shall,prior to the delivery of such additional bonds, levy or agree <br /> to levy by resolution sufficient additional ad valorem taxes,if any,which,together with other <br /> moneys or revenues pledged for the payment of said additional obligations,will produce <br /> revenues at least five percent(5%)in excess of the amount needed to pay when due the principal <br /> and interest on all bonds payable from the Bond Fund. The additional ad valorem taxes and <br /> moneys or revenues so pledged, levied or agreed to be levied shall be irrevocably appropriated to <br /> the Bond Fund in the manner provided by Minnesota Statutes, Section 475.61. <br /> 4.04. Ad Valorem Taxes. The full faith and credit and taxing powers of the City are <br /> irrevocably pledged for the prompt and full payment of the principal of and interest in the Bonds <br /> • as the same become respectively due. For the purpose there is hereby levied upon all of the <br /> -12- <br />