21-3283 - Series 2021 Capital Improvement Bond - Police Station - Sterling National Bank

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SECTION 8. COVENANT TO BUDGET AND APPROPRIATE. The City covenants and agrees to appropriate in its annual budget, by amendment, if necessary, from Non -Ad Valorem Revenues lawfully available in each fiscal year, amounts sufficient to pay the principal of and interest on the Series 2021 Bond when due, and all other amounts due hereunder, all in accordance with the provisions of the Bond Ordinance and this Resolution. Such covenant and agreement on the part of the City to budget and appropriate such amounts of legally available Non -Ad Valorem Revenues shall be cumulative to the extent not paid and shall continue until such legally available Non -Ad Valorem Revenues or other legally available funds in amounts sufficient to make all such required payments shall have been budgeted, appropriated and actually paid. Notwithstanding the foregoing covenant of the City, the City does not covenant to maintain any services or programs, now provided or maintained by the City, which generate Non -Ad Valorem Revenues. Such covenant to budget and appropriate does not create any lien upon or pledge of such Non -Ad Valorem Revenues, nor does it preclude the City from pledging in the future its Non -Ad Valorem Revenues, nor does it require the City to levy and collect any particular Non -Ad Valorem Revenues, nor does it give the Owner of the Series 2021 Bond a prior claim on the Non -Ad Valorem Revenues as opposed to claims of general creditors of such City. Such covenant to budget and appropriate legally available Non -Ad Valorem Revenues is subject in all respects to the payment of obligations secured by a pledge of such legally available Non -Ad Valorem Revenues heretofore or hereafter entered into (including the payment of debt service on bonds and other debt instruments). However, the covenant to budget and appropriate for the purposes and in the manner stated herein shall have the effect of making available for the payment of the Series 2021 Bond, in the manner described herein, legally available Non -Ad Valorem Revenues, and placing on the City a positive duty to appropriate and budget, by amendment, if necessary, amounts sufficient to meet ILS obligations hereunder; subject, however, to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the City ('Essential Government Services") and is subject further in all respects to the provisions of Section 166.241, Florida Statutes. Anything in this Resolution to the contrary notwithstanding, it is understood and agreed that all obligations of the City hereunder shall be payable from the portion of legally available Non -Ad Valorem Revenues budgeted and appropriated as provided for hereunder and nothing herein shall be deemed to pledge ad valorem tax revenues or to permit or constitute a mortgage or lien upon any assets owned by the City, and no Owner of the Series 2021 Bond, nor any other person, may compel the levy of ad valorem taxes on real or personal property within the boundaries of the City. Except as provided hereafter, neither this Resolution nor the obligations of the City hereunder shall be construed as a pledge of or a lien on all or any legally available Non -Ad Valorem Revenues of the City, but shall be payable solely as provided herein and is subject to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the City, and is subject further in all respects to the provisions of Section 166.241, Florida Statutes, provided that, except to the extent required to provide for Essential Government Services and payment of debt secured by a lien on specific non - ad valorem revenues, the City shall not be entitled to fail to budget and appropriate debt service on the Series 2021 Bond in order to balance its budget. SECTION 9. ANTI -DILUTION TEST. Before issuing additional Debt secured by Non - Ad Valorem Revenues, the City covenants that for so long as the Series 2021 Bond is outstanding, E