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pursuant to paragraph 16(ii) below. From the Capital Account <br />there shall be paid all cos~ and expenses of making the <br />Improvements, including the cost of any construction contracts <br />heretofore let, the costs of issuing the Bonds and all other <br />costs incurred and to be incurred of the kind authorized in <br />Minnesota Statutes, Section 475.65; and the moneys in said <br />account shall be used for no other purpose except as otherwise <br />provided by law. <br /> <br /> (ii) Debt Service Account. There are hereby irrevocably <br />appropriated and pledged to, and there shall be credited to, the <br />Debt Service Account: (a) the net revenues of the City's <br />municipal wastewater treatment system and utility (as hereinafter <br />described, the "Net Revenues"), but only in amounts and at such <br />times as will be sufficient (together with other amounts in the <br />Debt Service Account) to pay, when due, the principal of and <br />interest on the Bonds; (b) all accrued interest received upon <br />delivery of the Bonds and all other funds paid for the Bonds in <br />excess of $2,615,175; (c) any collections of all taxes hereafter <br />levied for the payment of the Bonds and interest thereon; (d) all <br />investment earnings on funds held in the Debt Service Account; <br />and (e) any and all other moneys which are properly available and <br />are appropriated by the Council to the Debt Service Account. The <br />Debt Service Account shall be used solely to pay the principal of <br />and interest on the Bonds and any other general obligation bonds <br />of the City hereafter issued by the City and made payable from <br />said account as provided by law. <br /> <br /> As used in this Resolution, the term Net Revenues means <br />the gross revenues derived by the City from the operation of its <br />municipal wastewater treatment system and utility, including all <br />charges for service, use, availability, and connection to said <br />system, and all monies received from the sale of any facilities <br />or equipment of said system or any by-products thereof, less all <br />normal, reasonable, or current costs of owning, operating, and <br />maintaining the system. If any payment of principal or interest <br />on the Bonds shall become due when there are not sufficient funds <br />in the Debt Service Account to pay the same~ the City Finance <br />Director shall pay such principal or interest from the general <br />fund or other available fund of the City, and such fund shall be <br />reimbursed for such advances from the proceeds of the Net <br />Revenues or of any general ad valorem taxes hereafter levied for <br />such purpose, when collected. The City hereby covenants that it <br />will impose and collect charges for the service, use, and <br />availability of and connection to the City's municipal wastewater <br />treatment system and utility at the times and in the amounts <br />required to produce Net Revenues adequate, together with other <br />sources of funding available to the Debt Service Account, to pay <br />all principal of and interest on the Bcnds, when due. <br /> <br /> Nothing contained herein shall be deemed to preclude <br />the City from making further pledges and appropriations of the <br />Net Revenues of the City's municipal wastewater treatment system <br /> <br />321121.1 19 <br /> <br /> <br />