2006-08-09 CC Packet - Laserfiche WebLink

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extent desigJUried for deposit in the Debt Service Fund in accordance with Section 1.03 and (ill) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds, if any. (b) The proceeds of the Bonds, less the appropdations made in paragraph (a), together with any other fbnds appropriated for the Improvements and Assessments and Taxes collected during the construction of the Improvements will be deposited in a separate construction fund (which may contain separate accounts for each Improvement) to be used sOlely to defray expenses of the Improvements and the payment of principal and interest on the Bonds prior to the completion and payment of all costs of the Improvement. Any balance remllining in the construction fund after completion of the Improvements may be used to pay the cost in whole or in part of any other improvement instituted under the Act. When the Improvements are completed and the cost thereof paid, the construction account is to be closed and subsequent collections of Assessments and Taxes for the Improvements are to be deposited in the Debt Service Fund. 4.02. City Covena.nbI, It is hereby determined that the Improvements will directly and indirectly benefit abutting property, and the City hereby covenants with the holders ftom time to time of the Bonds as follows: (a) The City bas caused or will cause the Assessments for the Improvements to be promptly levied so that the first installment will be collectible not 1ater than 2008 and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The City Council will cause to be taken with due diligence all fbrther actions that are required for the construction of each Improvement financed wholly or partly ftom the proceeds of the Bonds, and will take all further actions necessary for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any CUlTent or anticipated deficiency in Assessments and Taxes, the City Council will levy additional ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing: receipts and disbursements in connection with the Improvements, Assessments and Taxes levied therefore and other funds appropriated for their payment, collections thereof and disbursements therefrom, monies on hand and, the balance ofuupaid Assessments. (d) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to any interested person upon request. 4.03. Pledae of Tax Le~. It is determined that at least 200.4 of the cost of the Improvements will be specially assessed against benefited properties. For the purpose of paying the principal of and interest on the Bonds, th~ is levied a direct "",,,aI irrepealable ad valorem tax (Taxes) upon all of the taxable property in the City, which will be spread upon the tax rolls and collected with and as part of other general taxes of the City. The taxes will be credited to the Page 12of22 5J-