08-28-2000 Council Packet - Laserfiche WebLink

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(b) for the purpose of refunding the principal of and interest on outstanding Bonds not paid when due for lack of available net revenues. So long as any of the Bonds are outstanding, the City covenants with and for the benefit of each Bond holder that: (a) The City will establish, maintain and collect such charges of the nature authorized by Section 444.075, Minnesota Statutes, at the times and in the amounts necessary so that the net revenues of the Sewer System, together with pledged special assessments, will be sufficient to make the required payments into the Improvement Bonds of 2000 Fund. (b) The City will continue to own, operate and maintain the Sewer System of the City as a revenue- producing utility free from all liens on the property thereof and income therefrom other than the liens herein described or provided. (c) The City will use its best efforts to comply with all applicable laws and regulations of the United States of America and the State of Minnesota and each department and agency thereof, including laws and regulations relating to public health and water and sewer quality. The City will continue to use and operate the System to the extent such use and operation is not prohibited by court order or regulation, but the City may contest the validity or applicability of any law or regulation so long as the System is not thereby subject to unreasonable penalties or risk of damage or forfeiture. The City shall construct the improvements or extensions ultimately determined to be necessary to comply with applicable laws or regulations so that the System may be used and operated as a revenue-producing utility, and the City may issue additional obligations secured by a parity lien on and ratably payable from the net revenues of the System, as provided in paragraph 12 hereof, for the purpose of providing money for said necessary improvements or extensions. It is hereby found and determined that the foregoing revenues, will, together with the estimated collection of pledged special assessments, produce at least five percent in excess of the amount needed to meet when due the payments of principal and interest on the Bonds; but the Bonds are general obligations of the City to which the full faith, credit and unlimited taxing powers of the City have been and are hereby pledged; and the City Council shall levy general ad valorem taxes on all taxable property in the City, if necessary, to pay the principal of and interest on the Bonds when due. 14. The City Clerk is authorized and directed to prep.tre and furnish to the purchaser and to the attorneys approving the Bonds, certified copies of all proceedings and -15-