Ordinance - #84-08 - 09/25/1984 - Laserfiche WebLink

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- 16 - their face the purpose of the issue and the fund from which they are payable. The amount of any obligations issued hereunder shall not be included in determining the net indebtedness of the City under the provisions of any law limiting such indebtedness. Subdivision 4. Funds. The proceeds from the sale of each issue of obligations an--~from collections of special assessments levied and other monies appropriated for each improvement to be financed wholly or partly from such proceeds shall be credited to a separate construction fund which shall be used solely to defray expenses of such improvements and payment of principal and interest due upon the obligations prior to completion and payment of all costs of the improvements so financed. Any balance of the proceeds of bonds remaining therein may be used to pay the cost, in whole or in part, of any other improvement instituted pursuant to this chapter. A separate account shall be maintained in the construction fund to record expenditures for each improvement, and when the total cost thereof has been paid, all subsequent collections of special assessments levied for the improvements shall be credited and paid into the debt service fund for the obligations issued to finance the improvement, as provided in Minnesota Statutes 475.61. Any taxes levied for improvements financed by an issue of obligations shall be credited directly to the debt service fund. Subdivision 5. Temporary Improvement Bonds. In anticipation of the issuance of improvement bonds, the Council may by resolution issue and sell temporary improvement bonds maturing within not more than three years from their date of issue to pay any part or all of the cost of one or more improvements. To the extent that the principal of and interest on the temporary improvement bonds cannot be paid when due from receipts of special assessments, taxes, or other funds appropriated for the purpose, they shall be paid from the proceeds of improvement bonds or additional temporary improvement bonds which the Council shall offer for sale in advance of their maturity but the indebtedness funded by an issue of temporary improvement bonds shall not be extended by the issue of additional temporary improvement bonds for more than six years from the date of the first issue. The holders of any temporary improvement bonds shall have and may enforce, by mandamus or other appropriate proceedings, all rights respecting the levy and collection of sufficient special assessments and taxes to pay the cost of the improvements financed by them which are granted by law to holders of improvement bonds, except the right to.require the levies to be collected prior to the maturity of the temporary improvement bonds. If any temPorary improvement bonds are not paid in full at maturity, the holders may require the issuance in exchange for them, at par, of new temporary improvement bonds maturing within one year from their date of issue (but not subject to any other maturity limitation), and bearing interest at the maximum rate permitted by law.