Laserfiche WebLink
<br />Section II. Assessments; Tax Levv. 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 the 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 Councilor 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 the Assessments <br />shall be deposited in the Debt Service Account or Construction Account as directed by the City <br />Council. <br /> <br />B. Tax Levv: 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 /> <br />Year of Tax <br />Levv <br /> <br />Year of Tax <br />Collection <br /> <br />Amount <br /> <br />See attached Exhibit C <br /> <br />The tax levies are such that if collected in full they, together with the 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 /> <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 />prepayable Bonds called for redemption on any date when they are prepayable according to their <br />terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the <br /> <br />16 <br />