06-16-70 Special Mtg. - Laserfiche WebLink

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537 r-, 8. There has heretofore been created a Water 'Fund of the City in connection with said municipal waterworks plant and system. Said fund contains a "Capital Expenditure Account", into which shall be paid the proceeds of the sale of the bonds herein authorized, less accrued interest received thereon and less any amount paid for said bonds in excess of $98,040. From such account there shall be paid all cost and expenses of improving the waterworks plant and system of the City for which these bonds are issued, and the moneys so paid into said account shall be used for no other purpose provided that if upon completion of said improve- ments there shall remain any unexpended balance of the proceeds of this issue in said Capital Expenditure Account, said balance shall be trans- ferred to the General Obligation Water Revenue Bonds of 1970 Sinking Fund. 9. There shall be credited to the General Obligation Water Rev- enue Bonds of 1970 Sinking Fund accrued interest payable at the time of delivery of said bonds, any amount paid for said bonds in excess of $98,040, all collections of taxes which may hereafter be levied for the payment of the interest on and principal of the bonds of this issue, together with other funds which may from time to time be credited to said fund to meet the principal and interest requirements of this issue, including but not limited to net revenues of said waterworks plant and system not otherwise pledged to the payment of outstanding obligations. 10. In accordance with M.S.A. 444.075, the City of Hastings hereby convenants and agrees with the holders oft the bonds'herein author- ized that it will impose and collect chargesJ,for the ,service, use, availability and connection to said water utility at the times and in the amounts required to produce net revenues adequate to pay all principal and saidbond issues of 1953, 1960, 1961 and 1968. ,---- 11. The full faith and credit of the City is hereby irrevocably pledged for the prompt and full payment of the principal and interest on the bonds herein authorized. If the neu'-<revenues oj ,the municipal water utility appropriated and pledged to the payment of principal and interest on the bonds herein authorized shall at any time be insufficient to pay such principal and interest when due, the City covenants and agrees to levy, without limitation as to rate or amount an ad valorem tax upon all property in the City sufficient to pay such principal and interest as it becomes due. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the water utility for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of said utility will be sufficient in add- ition to all other sources, for the payment of the bonds herein authorized and such additional obligations and any such pledge and appropriation of said net revenues may be made superior to or subordinate to, or on a parity with the pledge and appropriation herein. 12. To provide moneys for the payment of said principal and interest there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in said City for the years and in the amounts as follows: Year of Tax Year of Tax Levy Collection AmCiunt 1970 1971 $17,756 1971 1972 16,470 1972 1973 15,892 r 1973 1974 15,288 1974 1975 14,679 1975 1976 14,060 1976 1977 18,680 1977 1978 17,719 1978 1979 16,743 Said tax shall be irrepealable so long as any of said bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extenb permitted by Sec. 475.61(3) M.S.A. 13. The City Clerk is hereby directed to file a certified copy "'