RES 21-045 RELATING TO $2,970,000 GENERAL OBLIGATION BONDS SERIES 2021A

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SECTION 3. USE OF PROCEEDS. 3.01. Refunding. Proceeds of the Refunding Bonds in the amount of $907,259.17, together with a City equity contribution in the amount of $70,000, shall be deposited in the sinking fund established for the Series 2013B Bonds to be applied to the redemption of the Refunded Bonds on the Redemption Date, and proceeds of the Refunding Bonds in the amount of $20,887.71 shall be used to pay costs of issuance of the Refunding Bonds. The City Manager is hereby directed to advise Bond Trust Services Corporation, Roseville, Minnesota, as paying agent for the Refunded Bonds, to call the Refunded Bonds for redemption and prepayment on the Redemption Date, and to give thirty days' mailed Notice of Redemption, substantially in the form attached hereto, all in accordance with the provisions of the resolution authorizing the issuance of the Series 2013B Bonds. 3.02. General Obligation Bonds, Series 2021A Proiect Fund. There is hereby created a special bookkeeping fund to be designated as the General Obligation Bonds, Series 2021A Project Fund (the "Project Fund"), to be held and administered by the City Manager separate and apart from all other funds of the City. The Project Fund shall be credited with $2,124,229.79, representing the estimated cost of the 2021 Improvements ($2,087,942.50) and costs of issuance of the Improvement Bonds ($36,287.29), from the proceeds from the Improvement Bonds. Prepaid special assessments in the amount of $175,030 shall also be credited to the Project Fund. The City Manager shall maintain the Project Fund until payment of all costs and expenses incurred in connection with the construction of the 2021 Improvements have been paid. After payment of all construction costs and costs of issuance of the Improvement Bonds, the Project Fund shall be discontinued and any Improvement Bond proceeds remaining therein received shall be credited to the Improvement Bond subaccount in the Bond Fund described in Section 3.03 hereof 3.03. General Obligation Bonds, Series 2021A Bond Fund. The Bonds shall be payable from a separate General Obligation Bonds, Series 2021A Bond Fund (the "Bond Fund") of the City, which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. Within the Debt Service Account (described below) in the Bond fund shall be created the following two subaccounts: (a) Improvement Bond Subaccount. Into the Improvement Bond Subaccount shall be deposited: (i) any funds received from the Purchaser upon delivery of the Bonds in excess of the amounts specified in Section 3.02 above; (ii) Bond proceeds in the amount of $25,658.42; (iii) special assessments pledged to the payment of the Improvement Bonds by Section 4 herein; (iv) any taxes pledged to the payment of the Improvement Bonds by Section 5 herein; and 4813-3012-0929\4