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4852-6958-9943\3 8 SECTION 4. GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, SERIES 2020A BOND FUND; PLEDGE OF TAXING POWER. 4.01. General Obligation Street Reconstruction Bonds, Series 2020A Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the City Manager shall maintain a separate debt service fund on the official books and records of the City to be known as the General Obligation Street Reconstruction Bonds, Series 2020A Bond Fund (the “Bond Fund”), and the principal of and interest on the Bonds shall be payable from the Bond Fund. The City irrevocably appropriates to the Bond Fund [(i) the amount of $[_______] received from the Purchaser]; (ii) the amounts specified in Section 3 above, after payment of all costs of the Projects; (iii) all taxes levied and collected in accordance with this resolution; and (iv) all other moneys as shall be appropriated by the Council to the Bond Fund from time to time. There are hereby established two accounts in the Bond Fund, designated as the “Debt Service Account” and the “Surplus Account.” As set forth in the previous paragraph, there shall initially be deposited into the Debt Service Account upon the issuance of the Bonds the amount of $[_____]. Thereafter, during each bond year (each twelve month period commencing on February 2 and ending on the following February 1, a “Bond Year”), as monies are received into the Bond Fund, the City Manager shall first deposit such monies into the applicable subaccount within the Debt Service Account until an amount has been appropriated thereto sufficient to pay all principal and interest due on the Bonds through the end of the Bond Year. All subsequent monies received in the Bond Fund during the Bond Year shall be appropriated to the Surplus Account. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Account when the balance therein is sufficient, and the City covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. 4.02. Pledge of Taxing Powers. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce aggregate amounts not less than 5% in excess of amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City. The taxes will be levied and collected in the following years and amounts: Levy Years Collection Years Amount See attached levy computation Said taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce said levies from other legally available funds in accordance with the provisions of Minnesota Statutes, Section 475.61. SECTION 5. BOND FUND BALANCE RESTRICTION. In order to ensure compliance with the Internal Revenue Code of 1986, as amended (the “Code”), and applicable Treasury Regulations 22