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Account is insufficient for the payment of principal and interest then due, the City Manager shall <br />transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent <br />necessary to cure such deficiency. Investment earnings (and losses) on amounts from time to time <br />held in the Debt Service Account and Surplus Account shall be credited or charged to said <br />accounts. <br />If the balance in the Bond Fund is at any time insufficient to pay all interest and principal <br />then due on all Bonds payable therefrom, the payment shall be made from any fund of the City <br />which is available for that purpose, subject to reimbursement from the Surplus Account when the <br />balance therein is sufficient, and the City covenants and agrees that it will each year levy a <br />sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, <br />which levy is not subject to any constitutional or statutory limitation. <br />SECTION 5. SPECIAL ASSESSMENTS. For the payment of the cost of each of the <br />improvements financed by the Improvement Bonds, the City has levied special assessments against <br />all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed <br />to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an <br />aggregate principal amount not less than twenty percent (20%) of the cost of the Improvement <br />Project. In the event that any such assessment shall be at any time held invalid with respect to any <br />lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken <br />or to be taken by the City or this Council or any of the City's officers or employees, either in the <br />making of such assessment or in the performance of any condition precedent thereto, the City and <br />this Council hereby covenant and agree that they will forthwith do all such further acts and take <br />all such further proceedings as may be required by law to make such assessments a valid and <br />binding lien upon such property. <br />SECTION 6. PLEDGE OF TAXING POWERS. For the prompt and full payment of the principal <br />of and interest on the Bonds as such payments respectively become due, the full faith, credit and <br />unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to <br />produce aggregate amounts which, together with the collections of other amounts as set forth in <br />Section 4, will produce amounts not less than 5% in excess of the amounts needed to meet when <br />due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all <br />taxable property in the City, the taxes to be levied and collected in the following years and <br />amounts: <br />Levy Years Collection Years Amount <br />See attached schedules in Exhibit C <br />The taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, <br />provided that the City reserves the right and power to reduce the tax levies from other legally <br />available funds, in accordance with the provisions of Minnesota Statutes, Section 475.61. <br />SECTION 7. DEFEASANCE. When all of the Bonds have been discharged as provided in this <br />Section, all pledges, covenants and other rights granted by this Resolution to the Holders of the <br />Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are <br />10 <br />4837-9618-8312\5