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event shall funds remain in the Project Fund later than three years following the date of issuance <br />of the Bonds. <br />SECTION 4. GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2022A BOND <br />FUND. The Bonds shall be payable from a separate General Obligation Improvement Bonds, <br />Series 2022A Bond Fund (the "Bond Fund") of the City, which shall be created and maintained <br />on the books of the City as a separate debt redemption fund until the Bonds, and all interest <br />thereon, are fully paid. Into the Bond Fund shall be paid (a) the amounts specified in Section 3 <br />above upon termination of the Project Fund; (b) any funds received from the Purchaser upon <br />delivery of the Bonds in excess of the amounts specified in Section 3 above ($49,848.99, <br />representing capitalized interest); (c) special assessments levied and collected in accordance with <br />this Resolution except prepaid assessments applied to the Project Fund; (d) any taxes collected <br />pursuant to Section 7 hereof; and (e) any other funds appropriated by this Council for the <br />payment of the Bonds. The principal of and interest on the Bonds shall be payable from the <br />Bond Fund, and the money on hand in the Bond Fund from time to time shall be used only to pay <br />the principal of and interest on the Bonds. On or before each principal and interest payment date <br />for the Bonds, the City Clerk is directed to remit to the Registrar from funds on deposit in the <br />Bond Fund the amount needed to pay principal and interest on the Bonds on the next succeeding <br />principal and interest payment date. <br />There are hereby established two accounts in the Bond Fund, designated as the "Debt <br />Service Account" and the "Surplus Account." There shall initially be deposited into the Debt <br />Service Account upon the issuance of the Bonds the amount set forth in clause (b) above. <br />Thereafter, during each bond year (each twelve month period commencing on February 1 and <br />ending on the following January 31, a "Bond Year"), as monies are received into the Bond Fund, <br />the City Clerk shall first deposit such monies into the Debt Service Account until an amount has <br />been appropriated thereto sufficient to pay all principal and interest due on the Bonds through the <br />end of the Bond Year. All subsequent monies received in the Bond Fund during the Bond Year <br />shall be appropriated to the Surplus Account. If at any time the amount on hand in the Debt <br />Service Account is insufficient for the payment of principal and interest then due, the City Clerk <br />shall 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 <br />time 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. The City hereby covenants and agrees that, for the <br />payment of the costs of the Project, the City has done or will do and perform all acts and things <br />necessary for the final and valid levy of special assessments an amount not less than 20% of the <br />cost of the Project. The principal of and interest on such special assessments are estimated to be <br />levied and collected in the years and amounts shown on EXHIBIT C attached hereto. The <br />4876-8449-2315\4 <br />