92-048 RES - Laserfiche WebLink

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. . . separate from other funds of the City. A separate account within the Common Debt Service Account is hereby established, designated the "Series 1992B State-Aid Road Bond Debt Service Account. II It is hereby pledged and there shall be credited to such separate account {i} all accrued interest received from the purchaser of the Bonds, {ii} proceeds, if any, in excess of $1,084,050, (iii) all state-aid allotments pledged and appropriated to payment of the Bonds, whether received before or after the completion of the Projects and payment of the cost thereof, (iv) all taxes levied for payment of the Bonds, and {v} all funds remaining in the Series 1992B State-Aid Road Bonds Construction Account after completion of the Projects and payment of the cost thereof and not spent on, or transferred by the Council to the payment of, the costs of approved projects or eligible reimbursement items. Such separate account shall be used solely to pay principal.and interest on the Bonds and any other general obligation bonds of the City heretofore or hereafter issued by the City and made payable from such separate account as permitted by law. If moneys in such separate account should at any time be insufficient to pay principal and interest due on Bonds, such amount shall be paid from the general fund of the City, which shall be reimbursed therefor when sufficient money becomes available in such separate account. If any moneys of the City other than moneys received from the Municipal State-Aid Street Fund are used for payment of the Bonds, the moneys so used shall be restored to the appropriate fund from the moneys next received from the City from the Construction Account~or Maintenance Account in the Municipal State-Aid Street Fund which are not required to be paid into the sinking fund established as the Series 1992B State-Aid Road Bond Debt Service Account pursuant to this Section 4.01. Any sums from time to time held in such separate account (or any other fund of the City which will be used to pay principal or interest to become due on the Bonds) in excess of amounts which under Section 148 of the Internal Revenue Code of 1986, as amended {the Code}, may be invested without regard to yield, shall not be invested at a yield in excess of applicable yield restrictions imposed by such provisions of the Code and regulations. 4.02. Limitation on Issuance and Debt Service. The City hereby covenants and agrees that the Bonds have been issued in an amount and on terms such that the average annual amount of principal and interest due in all subsequent calendar years on the City's state-aid road bonds, including the Bonds and any similar obligations of the City which are outstanding, shall not exceed fifty percent (50%) of the amount of the last annual allotment preceding the Bond issue received by the City from the Construction Account in the Municipal State-Aid Street Fund. 4.03. Pledge of Full Faith and Credit. The City pledges its full faith and credit to the payment of the Bonds. In the event that said special assessments do not prove sufficient to pay principal and interest on the Bonds, the City will promptly levy taxes as necessary for such payment without limitation as to rate or amount. 14.