8.1. SR 08-19-2019 - Laserfiche WebLink

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Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Funds; Pledges and Covenants. 4.01. Debt Service Fund. The Bonds will be payable from the General Obligation Sales Tax Revenue Bonds, Series 2019A Debt Service Fund (the “Debt Service Fund”) hereby created, and the revenues generated by the Sales Tax are hereby pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the Finance Director will pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the revenues generated by the Sales Tax, when collected. There is appropriated to the Debt Service Fund (i) any amount over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03; and (ii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds, if any. 4.02. Construction Fund. The proceeds of the Bonds, less the appropriations made in Section 4.01, together with any other funds appropriated for the Project, will be deposited in a separate fund of the City (the “Construction Fund”). Amounts in the Construction Fund will be disbursed to (i) pay costs of the Project and costs of issuance of the Bonds; and (ii) finance capitalized interest on the Bonds during or after construction of the Project. Any balance remaining in the Construction Fund after completion of the Project may be used for any other public use authorized by the Special Legislation or credited to the Debt Service Fund. 4.03. Debt Service Coverage. Pursuant to Subdivision 1 of the Special Legislation, the City has imposed the Sales Tax. The revenues received from the Sales Tax are hereby pledged to the payment of the principal of and interest on the Bonds. It is determined that the estimated revenues of the Sales Tax authorized by the Special Legislation for the payment of principal and interest on the Bonds will produce at least 5% in excess of the amount needed to meet when due the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.04 General Obligation. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are irrevocably pledged. If the Sales Tax appropriated and pledged to the payment of principal and interest on the Bonds, together with other funds irrevocably appropriated to the Debt Service Account herein established, shall at any time be insufficient to pay such principal and interest when due, the City covenants and agrees to levy, without limitation as to rate or amount an ad valorem tax upon all taxable property in the City sufficient to pay such principal and interest as it becomes due. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other accounts of the City which are available for such purpose, and such other funds may be reimbursed without interest from the Debt Service Account when a sufficient balance is available therein 4.05. Registration of Resolution. The City Clerk is authorized and directed to file a certified copy of this resolution with the County Auditor/Treasurer of Sherburne County, Minnesota, and to obtain the certificate required by Section 475.63 of the Act. 603216v1EL185-44 6