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of money at least equal to one year's average annual principal and interest
requirements on the Additional Bonds then outstanding. The Reserve Fund shall
be used to pay principal of or interest on the Parity Bonds and such Additional
Bonds falling due at any time for the payment of which there is no money avail-
able in the Bond Fund. No payments need be made into the Reserve Fund after
there shall have been accumulated and shall exist in said Fund the amount of
money herein stipulated; but if at any time it becomes necessary to use tempor-
arily any part of such Reserve Fund for the paymentiof principal or interest, or
It is otherwise depleted, payments into the Reserve Fund shall be resumed and
continued until such time as such Fund contains the amount of money then required
to be on deposit therein. The City's official Depository is hereby authorized
to invest the money in the Reserve Fund in direct obligations of or obligations
unconditionally guaranteed by the United States Government, having maturities
not in excess of Five (5) years from the date of the making of such investment,
as the City Council may direct. Said obligations shall be deposited in escrow with
said Depository under an escrow agreement, and if at any time uninvested funds
shall be insufficient to permit payment of principal and interest maturities of the
Parity Bonds or any Additional Bonds then outstanding as heretofore directed,
U said Depository shall sell on the open market such amount of the securities as is
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required to pay said Parity Bonds or Additional Bonds and the interest thereon
when due, and shall give due notice thereof to the City of Georgetown. All
money resulting from the maturity of principal and interest of the securities in
which the Reserve Fund is invested may be reinvested and accumulated in said
Reserve Fund and considered a part thereof and used for and only for the purposes
hereinabove provided with respect to said Fund.
(d) CONTINGENCY FUND: Based on an annual review of the experience as to
the cost of repair@ and replacements to the Utility System necessitated by the
occurring of emergencies and the recommendation of the City's Consulting
Engineer, the City Council has determined that the Utility System Contingency
Fund (hereinafter referred to as the"Contingency Fund"), heretofore created and or-
dered to be established and maintained in the amount of $15,000.00 is sufficient
for the time being. The Contingency Fund shall be used to pay the (1) cost of
any repairs or replacements to the Utility System necessitated by the occurring of
an emergency and (2) interest on and/or principal of the Parity Bonds or any
additional Bonds, when other funds of the City are insufficient for such purpose.
The City covenants and agrees that in the event Additional Bonds are issued,
the Ordinance authorizing such Additional Bonds shall provide for such appro-
priate additional or larger amounts to be accumulated in the Contingency Fund
as deemed advisable by the City Council, based on an annual review of the experience
as to the cost of repairs and replacements to the Utility System necessitated
by the occurring of emergencies and the recommendation of a Consulting Engineer.
No payments need be made into the Contingency Fund after there shall have
been accumulated in said Fund the amount of money then required to be on deposit
therein, except that whenever any money is paid out of said Fund, payments into
the Fund shall be resumed and continied until such time as the Fund has been restor-
ed to the required sum.
The City's official Depository is hereby authorized to invest the money in
the Contingency Fund in direct obligations of or obligations unconditionally
guaranteed by the United States Government, having maturities not in excess of
five (5) years from the date of the raking of such investment, as the City