98-23RESOLUTION NO. 98-23
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
A RESOLUTION DESCRIBING THE USE OF FUNDS FROM THE
1998 SEWER & WATER BOND, ESTABLISHING RESERVES,
AND THE POLICIES GOVERNING THEM
WHEREAS, the City of Otsego bonded for $4,500,000,
in July, 1998 with the purpose of using those funds
to improve the health, safety, and welfare of the
community by constructing a water system and
sanitary sewer system, and;
WHEREAS, the City of Otsego General Fund has
previously incurred costs of $71,020.93 as of
01/01/98 in planning, engineering, land
acquisition, and legal expenses related to
establishing the sanitary sewer and water systems,
which will be re-imbursed by proceeds from this
bond, and;
WHEREAS, the City of Otsego General Fund has
previously incurred costs of $84,408 as of 01/01/98
with regard to the establishment of Well #1 which
will be re-imbursed by proceeds from this bond.
All future debt service payments for Well #1 will
be paid for from these bond proceeds, and;
WHEREAS, the City of Otsego has determined that the
following policies shall govern the use of bond
funds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF OTSEGO, MINNESOTA:
1. That the account for paying the debt service on
these bonds shall be known as the 1998 Sewer &
Water Bond Fund.
2. That all revenues received from trunk sanitary
sewer & water access charges shall be deposited in
the 1998 Sewer & Water Bond Fund and be used to pay
the yearly debt service.
3. That the money re-imbursed to the General Fund
to pay expenses occurred prior to 01/01/98 shall be
set aside in an account known as the Sewer & Water
Reserve Account. Said account shall be a back up
source of financing in the event that there are not
enough funds in the 1998 Sewer & Water Bond Fund to
pay the yearly debt service on the bonds.
4. That those costs incurred after 01/01/98 in
planning, engineering, land acquisition, and legal
expenses that are related to establishing the
sanitary sewer and water systems will be re-
imbursed to the General Fund by proceeds from this
bond.
Dated this 28th day of September, 1998
ATTEST:
Elaine Beatty, City C rk
CITY OF OTSEGO
ar% ournier, Mayor