Agenda - Council - 04/22/2008 - Laserfiche WebLink

Home

_82_ ARTICLE III Operating Deficit Amounts Section 3.1. Cash Flow Projections. Pursuant to the Indenture, on or before August 1 of each year in which Bonds are Outstanding, commencing August 1, 2008, the Issuer is required to prepare, or cause to be prepared, on the basis of actual occupancy rates of the Project and the then - current Operating Costs (including for this purpose, scheduled or anticipated repairs and other capital expenditures) and Revenues and Issuer Pledge (with reasonably projected adjustments applicable to the next Fiscal Year) and taking into account moneys then on deposit with the Trustee for the payment of debt service on the allocable portion of the Bonds, a cash flow projection through the end of the next following calendar year The Issuer is required to deliver a copy of such projection to the Trustee, the City and the County of Anoka. In the event that such cash flow projection for the years 2009 through 2013 does not show Net Revenues Available for Payment of Operating Costs equal to at least 105% of projected Operating Costs for such year, the Trustee, on behalf of the Issuer shall notify the City and request that the City include in its budget for such next calendar year an amount which, together with projected Net Revenues Available for Payment of Operating Costs, will equal 105% of such Operating Costs; provided that for calendar year 2013, the City's obligation to budget for the payment of Operating Deficit Amounts shall be solely for the five -month period terminating on May 31. Section 3.2. City to Budget. The City will include in its annual budget for each Fiscal Year commencing with the Fiscal Year ending December 31, 2009 and terminating with the Fiscal Year ending December 31, 2013, moneys sufficient to pay and for the purpose of paying to the ACHRA all Operating Deficit Amounts and any other obligations of the City under this Agreement, and will take all actions necessary to provide moneys for the payment of the Operating Deficit Amounts by the City under this Agreement, provided that the City's agreement and obligation to pay Operating Deficit Amounts as set forth herein is absolute, unconditional and irrevocable and not subject to budgeting or appropriation, and further provided that for calendar year 2013, the City's obligation to budget for the payment of Operating Deficit Amounts shall be solely for the five -month period terminating on May 31. Section 3.3. Payment of Operating Deficit Amounts. (a) Upon receipt of a Certificate of the Trustee in the form set forth in Exhibit A relating to a period which terminates on or before May 31, 2013, the City agrees to deposit directly with the Trustee, to whom the ACHRA has irrevocably assigned its rights to receive such amounts, the amount of the deficiency set forth in such certificate. Such payment shall be made no later than ten (10) Business Days after the date of the Certificate. (b) Notwithstanding the provisions of subsection (a) of this Section 3.3, if the ACHRA determines to provide for the payment to the Trustee of the Operating Deficit Amounts from funds available to it from any source, and gives written notice of such determination to the City, the County and the Trustee within five (5) Business Days after the 6 OPERATING DEFICIT AGREEMENT CITY OF RAMSEY