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Section 11. Assessments; Tax Levy A. The Bonds are payable in part from the <br /> proceeds of special assessments (the "Assessments ") levied or to be levied against properties <br /> benefited by the Project. The City hereby covenants and agrees that, for the payment of the cost <br /> of the Project, the City has done or will do and perform all acts and things necessary for the final <br /> and valid levy of special assessments in an amount not less than 20% of the costs of each of the <br /> improvements financed by the Bonds. It is estimated that collections of the Assessments will be <br /> as shown on Exhibit C attached hereto. In the event any such assessment shall at any time be <br /> held invalid with respect to any lot or tract of land, due to any error, defect or irregularity in any <br /> action or proceeding taken or to be taken by the City or by the City Council or by any of the <br /> officers or employees of the City, either in the making of such assessment or in the performance <br /> of any condition precedent thereto, the City hereby covenants and agrees that it will forthwith do <br /> all such further things and take all such further proceedings as shall be required by law to make <br /> such assessment a valid and binding lien upon said property. Collections of special assessments <br /> shall be deposited in the Debt Service Account or Construction Account as directed by the City <br /> Council. <br /> B. Tax Levy; Coverage Test; Cancellation of Certain Tax Levies To provide <br /> moneys for payment of the principal of and interest on the Bonds there is hereby levied upon all <br /> of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the <br /> tax rolls and collected with and as part of other general property taxes in the City for the years <br /> and in the amounts as follows: <br /> Year of Tax Year of Tax <br /> Levy Collection Amount <br /> See attached Exhibit C <br /> The tax levies are such that if collected in full they, together with special assessments and <br /> other revenues herein pledged for the payment of the Bonds, will produce at least five percent <br /> (5 %) in excess of the amount needed to meet when due the principal and interest payments on <br /> the Bonds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and <br /> unpaid, provided, that the City reserves the right and power to reduce the levies in the manner <br /> and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. <br /> Section 12. Defeasance When all Bonds have been discharged as provided in this <br /> paragraph, all pledges, covenants and other rights granted by this Resolution to the registered <br /> holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its <br /> obligations with respect to any Bonds which are due on any date by irrevocably depositing with <br /> the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if <br /> any Bond should not be paid when due, it may nevertheless be discharged by depositing with the <br /> Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date <br /> of such deposit. If applicable, the City may also discharge its obligations with respect to any <br /> 17 <br />