Resolution - #23-268 - 10/24/2023

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There shall be maintained in the Fund the following two (2) separate accounts, to be designated the "Capital Account" and "Debt Service Account," respectively. (a) Capital Account. To the Capital Account there shall be credited the proceeds of the sale of the Bonds. From the Capital Account there shall be paid all costs and expenses of the acquisition and construction of the Project, including all costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. The 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 anticipated date of commencement of the collection of taxes herein levied or the receipt of Tax Increments; and provided further that if upon completion and acquisition of the Project,there shall remain any unexpended balance in the Capital Account,the balance may be transferred to the Debt Service Account. (b) Debt Service Account. There shall be maintained separate subaccounts in the Debt Service Account to be designated the "Tax Increment Debt Service Subaccount" and the "Equipment Debt Service Subaccount." There are hereby irrevocably appropriated and pledged to, and there shall be credited to the separate subaccounts of the Debt Service Account: (i) Tax Increment Debt Service Subaccount. There are hereby irrevocably appropriated and pledged to, and there shall be credited to the Tax Increment Debt Service Subaccount: (A) Tax Increments, in an amount sufficient, together with other sums herein pledged,to pay the annual principal and interest payments on the Tax Increment Portion of the Bonds; (B) all collections of taxes herein or hereafter levied for the payment of the Tax Increment Portion of the Bonds and interest thereon; (C) a pro rata share of all funds remaining in the Capital Account after completion of the Project and payment of the costs thereof, (D) all investment earnings on funds held in the Debt Service Account; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Tax Increment Debt Service Subaccount. The amount of any surplus remaining in the Tax Increment Debt Service Subaccount when the Tax Increment Portion of the Bonds and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4. The Tax Increment Debt Service Subaccount shall be used solely to pay the principal and interest on the Tax Increment Portion of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. (ii) Equipment Debt Service Subaccount. To the Equipment Debt Service Subaccount there shall be credited: (A) all collections of taxes herein or hereafter levied for the payment of the Equipment Portion of the Bonds; (B) a pro rata share of all funds remaining in the Capital Account after the payment of all costs of acquisition of the Equipment; (C) all investment earnings on funds held in the Equipment Debt Service Subaccount; and(D) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Equipment Debt Service Subaccount. The amount of any surplus remaining in the Equipment Debt Service Subaccount when the Equipment Portion of the Bonds and interest thereon 15 129376828v1