2009-09-23 CC Packet - Laserfiche WebLink

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City estimates that the revenues pledged in Section 12 of this Resolution will generate revenues in the amount of at least 105% of the amounts necessary to pay principal and interest on the Bonds in each year. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other accounts of the City which are available for such purpose, and such other funds may be reimbursed interest from the Debt Service Account when a sufficient balance is available therein. B. Tax Levv: Coverage Test: Cancellation of Certain Tax Levies. To provide moneys for payment of the principal of and interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levv Year of Tax Collection Amount See attached Exhibit B The tax levies are such that if collected in full they, together with the Assessments and other revenues herein pledged for the payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided, that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. Section 15. Redemption of 2006 Bonds. The 2006 Bonds, refunded hereunder which mature in 2011 and thereafter shall be redeemed and prepaid on March 1,2010, in accordance with the terms and conditions set forth in the Notice of Call for Redemption attached hereto as Exhibit A, which terms and conditions are hereby approved and incorporated herein by reference. Said Notice of Call for Redemption for the 2006 Bonds shall be mailed not less than 30 days prior to the date of redemption to the registered owner of each 2006 Bond at the address shown on the registration books kept by the registrar for the 2006 Bonds. Section 16. Escrow Agreement. On or prior to the delivery date of the Bonds the Mayor and Clerk are hereby authorized and directed to execute on behalf of the City an escrow agreement. All essential terms and conditions of such Escrow Agreement are hereby approved and adopted and made a part of this resolution, and the City covenants that it will promptly enforce all provisions thereof in the event of default thereunder by the Escrow Agent. 19 27