Resolution - #05-12-433 - 12/13/2005

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14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Clerk to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Taxable Tax Increment Bonds, Series 2006A Fund" (the "Fund") to be administered and maintained by the Clerk as a bookkeeping account separate and apart fi.om all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner heroin specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund the following separate accounts: (a) Capital Account. To the Capital Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon. From the Capital Account there shall be paid all costs and expenses of the Project, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. Moneys in the Capital Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the receipt of Tax Increments. (b) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there shall be credited: (i) Tax Increments not otherwise pledged and applied to the payment of other obligations of the City, in an amount sufficient, together with other sums herein pledged, to pay the annual principal and interest payments on the Bonds; (ii) all accrued interest received upon delivery of the Bonds; (iii) any collections of all taxes hereafier levied for the payment of the Bonds and interest thereon; (iv) all funds remaining in the Capital Account after completion of the Project and payment of the costs thereof; (v) all investment earnings on funds held in the Debt Service Accmmt; and (vi) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable fi.om said account as provided by law. 16. Original Net Tax Capacity; Tax Increments; Use of Tax Increments. The Director of Property Tax and Public Records of Anoka County has certified the original net tax capacity of property in the Tax Increment District. The Director of Property Tax and Public Records shall determine in each year if the then current net tax capacity of property in the Tax Increment District exceeds the original net tax capacity, and shall calculate, in the manner provided in Minnesota Statutes, Section 469.177, Subdivision 3, the captured net tax capacity (as defined therein) attributable to the Tax Increment District. The City hereby determines to retain 100% of the captured tax capacity for purposes of tax increment fmancing. The Director of Property Tax and Public Records shall, in each such year, compute the local tax rate to be extended against the captured net tax capacity in the manner provided in Minnesota Statutes, Section 469.177, Subdivision 3, and the tax generated thereby shall constitute the Tax Increments for the year in which it is received. The Director of Property Tax and Public Records will remit to the City the Tax Increments so received. The City hereby appropriates the Tax Increments to the Debt 13 1849055vl