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and utility for the payment of other or additional obligations of the City, provided 5hat it has first been determined that the estimated Net Revenues will~b~ sufficient, in addition to all other sources, for the payment~' of the Bonds and such additional obligations, and any such pledge and appropriation of said Net Revenues may be made superior or subordinate to, or on a parity with, the pledge and appropriation herein. With respect to all currently outstanding obligations of the City which are payable from the Net Revenues, the Council hereby determines that the estimated Net Revenues will be sufficient, in addition to all other sources available for such purposes, for the payment of the Bonds and all such other obligations. 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 ~reater than the lesser of five percent (5%) of the "Sale Proceeds" of the Bonds (being the "issue price" of the Bonds less accrued interest). To this effect, any proceeds of the Bonds and any sums from time to time held in the Capital Account or 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 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 to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 17. 105% Debt Service Coveraqe. It is hereby determined and reasonably anticipated that the estimated collections of Net Revenues and the other revenues available to the Debt Service Account will produce at least 5% in excess of the amount needed to meet, when due, the principal of and interest on the Bonds. The City Clerk is directed to file a certified copy of this Resolution with the County Auditor of Sherburne County and to obtain the certificate of said official required by Minnesota Statutes, Section 475.63. 18. General Obligation Pledge. The full faith and credit and taxing powers of the City are hereby pledged to the payment of the principal of and interest on the Bonds, and in the event of any current or anticipated deficiency of funds in the Debt Service Account of amounts needed to make any such payment, when due, the Council shall levy ad valorem taxes on all taxable 321121.1 20