Resolutions-2015-089 (2)

authorized, without further notice, hearing or other proceedings, to budget and appropriate Debt Service Tax Revenues annually to make the payments of the principal of and interest on the Bonds. The City presently intends to appropriate sufficient funds for each fiscal year to pay the principal of and interest due on the Bonds during such fiscal year; provided, however, that this expression of current intent does not create and shall not be construed as creating a general, legal or enforceable obligation of the City to appropriate such funds for any fiscal year, and the decision to appropriate such funds for a fiscal year shall be made in accordance with the City Council’s normal procedures for making decisions, and the then current City Council shall have the final responsibility for making such decisions. The City has declared the Projects to be urban renewal projects to be undertaken in the Tiffin Urban Renewal Area (the “Urban Renewal Area”). The City hereby reaffirms its intent to use increment property tax revenues (the “TIF Revenues”) from the Urban Renewal Area to pay some or all of the principal of and interest on the Bonds. On or before December 1 of each year, commencing December 1, 2015, the City Council by resolution shall determine whether or not to budget and appropriate funds for the next succeeding fiscal year to make the payments of principal of and interest due on the Bonds during such fiscal year. This determination shall include the identification of an amount, if any, of TIF Revenues to appropriate for the payment of principal and interest. If the City Council determines to budget and appropriate TIF Revenues for the foregoing purposes for such fiscal year, the City shall certify such amount to the Johnson County Auditor, pursuant to Section 403.19 of the Code of Iowa, by December 1 of the year in which the determination was made, as part of the City’s budget process, the City Administrator is instructed to include in the proposed budget, for consideration by the City Council, an amount necessary to make payments of principal of and interest due on the Bonds for such fiscal year. If the City Council determines to budget and appropriate Debt Service Tax Revenues for the foregoing purposes for such fiscal year, the City agrees to certify to the County Auditor of Johnson County the amount, if any (the “Debt Service Levy Amount”), of principal of and interest on the Bonds which is to be paid from Debt Service Tax Revenues for such fiscal year in the City’s budget submission. Notwithstanding anything in this resolution to the contrary, the payments of principal and interest due on the Bonds shall not constitute a mandatory charge or a requirement in any ensuing fiscal year beyond the then current fiscal year for which the City Council has appropriated funds for the payment thereof, and the City shall have no continuing obligation to appropriate money for the payment of interest and principal due on the Bonds whether from Debt Service Tax Revenues, amounts on deposit in the Bond Fund, or any other source, and no provision of this resolution or the Bonds shall be construed or interpreted as creating a continuing obligation of the City in any fiscal year beyond the fiscal year for which funds have been appropriated for the payment of the Bonds or a debt within the meaning of any constitutional or statutory debt limitation. The City’s obligation to make payments of interest and principal in respect of the Bonds shall be subject at all times to non-appropriation by the City Council. In the event that the City Council does not budget and appropriate funds for any fiscal year in an amount sufficient to meet the payments of interest on and principal of the Bonds during such fiscal year (a “non-appropriation”), the City’s obligation under the Bonds shall terminate and become null and void on the last day of the fiscal year for which the necessary