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....- 5.04. In order to insure the efficient and economical operation of the Facility and the proper maintenance thereof, the City will provide for and insure the employment of experienced personnel to operate and maintain the same. The compensation of such personnel is deemed an operating expense. 5.05. Except for special promotional purposes to encourage use of the Facility, the City will permit no free use by any person or group. The fees for all users ofthe Facility by the residents of the City and all other customers will be reasonable and just, taking into account the cost and value of the facilities, the cost of maintaining and operating and the proper and necessary allowances depreciation and the amounts required for the payment of principal of and interest on the Bonds payable from the revenues pledged therefor. 5.06. The City will annually, prior to July 1, estimate the Gross Revenues of the Facility available for operation and maintenance of the Project in the next ensuing calendar year. If that estimate shows a deficiency in Gross Revenues available for operation and maintenance of the Facility in that ensuing year the City will: (i) adjust the rates and charges for the use of the Facility to cover the deficiency, (ii) provide for transfer of fimds from other available sources to cover the estimated deficiency, (iii) levy, within the limitations of applicable law, the taxes necessary to fund any estimated deficiency in the ensuing year, or (iv) any combination of the actions described in subparagraphs (i), (ii) and (iii), provided however, that the City may, but the City will not be required to, fund such deficiency in any year beyond the amount budgeted for such year. It is the intention of the City Council to use all the security devices permitted by applicable law and to make and carry out all pledges and covenants permitted by the Act for the prompt and full payment of principal and interest on the Bonds. 5.07. The City will establish, maintain and collect fees and charges for the use of the Facility that (i) are estimated to produce revenues sufficient to pay the cost of operation and maintenance of the Facility and (ii) are adequate to produce net revenues necessary to pay the interest on and principal of the Bonds as and when they become due. Fees and charges may not be reduced if the proposed rate reduction will adversely affect the ability of the City to meet all requirements of this Resolution. The fees and charges will be increased from time to time whenever necessary to carry out the obligations undertaken by this Resolution. 5.08. The City will provide for and procure and keep in force insurance on the Facility of a kind and in an amount which would normally be carried by private companies in a like business, including public liability insurance, with an insurer or insurers in good standing in the State of Minnesota; and it will provide for the keeping in full force and effect fiduciary bonds on employees in charge of the Facility. In the event of any loss, the proceeds from such insurance (including liability insurance) or bonds will be used to make good such loss or to repair or restore the Facility. Insurance premiums are to be paid as a cost of operation of the Facility. DJK-165146 NE136-152