Agenda - Council - 08/13/2013 - Laserfiche WebLink

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Year (i.e. on July 30 of each year), commencing the Fiscal Year ending 30, 2014; provided that the School shall have certain options to cure any shortfall therein. (I -I) Maintain on its books, a separate, segregated fund balance to be funded on a best efforts basis from accuunulated cash surpluses (the "Fund Balance Account") of the School, if any, in an amount equal to 20% of the budgeted annual operating expenses of the School (the "Fund Balance Account Requirement"). The balance of the Fund Balance Account may be reduced below the Fund Balance Account Requirement by the School solely for the payment of ordinary and necessary expenses of the School (excluding salaries and benefits to staff or administrative personnel) which exceed annual budgeted expenditures by an amount not greater than 20% of the annually budgeted amounts for items including repair and replacements, capital improvements, utilities, educational program expenses, and special assessments. The fund balance as of 30, 2013 is projected to be $ million or % of the School's total operating budget. In the event the Fund Balance Account is reduced below the Fund Balance Account Requirement as of the end of the School's Fiscal Year according to the School's annual audit, the School shall provide notice thereof to the Trustee and EMMA and shall use its best efforts to replenish the Fund Balance Account. (I) Complete the Project in the event the cost of the Project exceeds the amount of Bond proceeds available for the Project. (J) Make all payments due under the Lease on account of debt service on the Bonds and any Additional Bonds prior to any payments of additional rent due under the Lease other than operating expenses of the School required under State or federal laws to provide required educational program expenditures. (K) Provide notice to the Issuer, Trustee and EMMA of (i) any notices from the School's authorizer to the School of noncompliance with or determination not to renew the Charter Agreement within 10 days of receipt of such notice by the School and (ii) any default under the Lease and the steps to be taken by the School to remedy such default, promptly after such default occurs. (L) On or before 30 of each year apply to the Minnesota Department of Education (or its successor) for Building Lease Aid as required by Minnesota Statutes and provide notice to the Trustee and EMMA of such application and approval thereof by the Minnesota Department of Education. (M) Provide insurance in the amounts required under the Loan Agreement and the Mortgage. (N) The School may, at its own expense and in its own name, in good faith contest any real estate taxes, assessments, utility and other charges. (0) Use its best efforts to generate Income Available for Debt Service of at least 110%© of the principal and interest due on the Bonds and any Additional Bonds. In the event the School's Income Available for Debt Service is less than 1 10%u of the principal and interest due on the Bonds and any Additional Bonds in any Fiscal Year, the School shall retain an 34