Resolution 12-22 - Laserfiche WebLink

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maintained in the manner herein specified until all of the Bonds herein authorized and the interest thereon shall have been fully paid. The Operation and Maintenance Account (the "Operation and Maintenance Account") heretofore established by the City shall continue to be maintained in the manner heretofore provided by the City. All moneys remaining after paying or providing for the items set forth in the resolution establishing the Operation and Maintenance Account shall constitute and are referred to as "net revenues" until the Bonds have been paid. There shall be maintained in the Fund the following separate accounts to which shall be credited and debited all net revenues of the System as hereinafter set forth. The Clerk-Treasurer and all officials and employees concerned therewith shall establish and maintain financial records of the receipts and disbursements of the System in accordance with this resolution. In such records there shall be established and maintained accounts of the Fund for the purposes as follows: 16. Payment Account. The proceeds of the Bonds, less any accrued interest, shall be deposited in the Payment Account. On or prior to the Call Date,the Clerk-Treasurer shall transfer $1,220,343.42 of Bond proceeds from the Payment Account and$150,000.00 cash contribution from the City to the United States of America, Department of Agriculture, Baxter, Minnesota, Rural Development Office, which sum is sufficient to pay the principal and interest due on the Refunded Bonds on the Call Date, including the principal of the Refunded Bonds called for redemption on that date. Any monies remaining in the Payment Account after payment of all costs of issuance and payment of the Refunded Bonds shall be transferred to the Debt Service Account. 17. Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (i) any accrued interest; (ii)the net revenues of the System not otherwise pledged and applied to the payment of other obligations of the City, in an amount,together with other funds which may herein or hereafter from time to time be irrevocably appropriated sufficient to meet the requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and interest of the Bonds; (iii) any collections of all taxes which may hereafter be levied in the event that the net revenues of the System and other funds herein pledged to the payment of the principal and interest on the Bonds are insufficient therefor; (iv) any balance remaining after the Call Date, in the Prior Bonds General Obligation Bonds, Series 2000A Fund established by the Prior Resolution; (v) all investment earnings on funds in the Debt Service Account; and(vi) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except(1)for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and(2) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or$100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Debt Service Account (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested in excess of the applicable yield 15 4767714v1