RES 05-072 - Laserfiche WebLink

Home Browse Search

. . . from time to time to make full and timely payment of the debt service on the Bonds, and said funds, when deposited into the Debt Service Account, are irrevocably pledged for such purposes. () Excess Net Revenues. Net Revenues in excess of those required for the foregoing purposes may be used for any proper purpose of the City, including without limitation capital and other costs of the Municipal Liquor Stores operation. Any proceeds of the Bonds and any sums from time to time held in the Debt Service Account in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Liquor Store Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds or any other bonds payable from the Debt Service Account to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 9. Covenants as to Maintenance. Rates and Charges. Sale. Insurance. Etc. The City hereby certifies and represents to, and covenants and agrees with, the Owners from time to time of the Bonds as follows: ( ) The City will complete and continue its ownership and operation of the Municipal Liquor Stores as revenue producing facilities and convenience, in the manner authorized and subject to the restrictions imposed by Minnesota Statutes, the laws of the State of Minnesota, including Minnesota Statutes, Section 340A.60 1, relating to elections on the licensing of intoxicating liquors. The City will maintain the Municipal Liquor Stores, their furnishings, equipment and merchandise in good condition, and free from all liens, provided that purchase money liens may be created on merchandise acquired for resale, or such merchandise may be acquired subject to liens existing at the time of acquisition. It should be noted that Minnesota Statutes, Section 426.20, would require the City Council to hold a public hearing as a condition to appropriating City funds, other than revenues of the Municipal Liquor Stores, to cover any shortfall of revenues necessary for operation costs, but this provision shall not apply to appropriations which may need to be made by the City in order to complete the Liquor Store and any other expenses expressly excepted by the foregoing Section of the Minnesota Statutes. It should also be noted that Minnesota Statues, Section 340A.602, requires that if the Municipal Liquor Stores operate at a loss for any two out of any three consecutive years, the City Council is required to conduct a public hearing on the question of whether or not the City should submit to voter referendum the question of the City's continued operation of the Municipal Liquor Stores; alternatively, a 5% voter petition may also call a referendum on that question in those circumstances. ( ) If any properties constituting capital assets of the Municipal Liquor Stores shall be sold and disposed of, it shall be only at their fair market value, and the proceeds of such sale or disposition shall be used either to produce other capital assets for the 9