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HomeMy WebLinkAbout0092_858.5 follows: (a) OPLRt1TIUN AND MINTi•N'A�NCE EXPL.N'SIS: The money in the Utility System Revenue Fund shall be used first for the payment of the reasonable and proper expenses of operating and maintaining the Utility System, including salaries, labor, materials, interest, repairs and extensions necessary to render efficient service. The words "Repairs" and "extensions: as used in this paragraph shall be construed to refer only to such repairs and extensions, as in the judgment of the govern- ing body of the City, are necessary to keep the System in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to remedy some physical accident or con- dition which would otherwise impair the security of the Parity ponds or any Additional Bonds. That concurrently with the delivery of the Bonds to the pur- chasers thereof, all sums of money received from the purchasers as accrued interest paid on the Bonds shall be placed in the Bond fund. (c) RLSLINE FUND: Commencing on the 10th day of the month followsing delivery and payment for the Bonds, and on or before the 10th day of each month thereafter, after payments have been amde as required by subsections (a) and (b) of this Section 13, the City shall withdraw from the Utility System Revenue Fund and deposit into the Utility System Revenue Bonds Reserve Fund (already established and hereinafter called the "Reserve Fund"), in addition to the payments and deposits otherwise required to be made therein, the sum of -S 117.00 until an additional debt service reserve of ,j8.424.00 on the outstanding Bonds has been established, arid thereafter, such sums monthly as may be necessary to maintain the required reserve of p"64,308.00 on the Parity Bonds. The City covenants and agrees that in the event Additional Bonds are issued as hereinafter provided, the ordinance authorizing such Additional Bonds shall provide for the payment into the Reserve Fund of such addi- tional sums as shall be necessary to permit an accumulation in the Re- serve Fund, within six years from the date of the Additional Bonds, as an additional reserve, of an amount of money at least equal to one year's average annual principal and interest requirements of 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 available 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 stiplated; but if at any time it becomes necessary to use temporarily any part of such iteserve fund for the payment of principal or interest, or it is otherwise depleted, pay- rments 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 (b) BUND FUND: The amounts to be paid into the Utility System Revenue Bonds Interest and Sinking Fund (already established and hereinafter called the "pond Fund") during each year in which any of the Parity Bonds, or any Additional Bonds, are outstanding, shall be an amount equal to 100 per centrum of the amount required to meet the interest and principal payments falling due on or before the next maturity date of the Parity Bonds or any Addition Bonds then out- standing. Un or before the 10th day of each month, after payments have been made as required by subsection (a) of this Section 13, the City shall withdraw from the Utility System Revenue Fund and deposit into the Bond Fund an amount not less than the total of: 112th of the next ma Luring installments of principal of the Parity Bonds then out- standing, and of any Additional Bonds then outstanding, and 1/6th of the next semi-annual installment of interest on the Parity .Bonds then outstanding and on any Additional Bonds then outstanding. The monies in the Bond Fund shall be used solely for the purpose of paying the interest on and the principal of the Parity Bonds, and any Additional Bonds, until all such bonds have been retired. In the event the income and revenues of the Utility System are insufficient in any month to permit the required deposits into the Bond Fund in full accord with the provisions hereof, then the amount of any deficiency shall be added to the amount otherwise required to be deposited into said Bond Fund in the next month, until all deficiencies are rectified. That concurrently with the delivery of the Bonds to the pur- chasers thereof, all sums of money received from the purchasers as accrued interest paid on the Bonds shall be placed in the Bond fund. (c) RLSLINE FUND: Commencing on the 10th day of the month followsing delivery and payment for the Bonds, and on or before the 10th day of each month thereafter, after payments have been amde as required by subsections (a) and (b) of this Section 13, the City shall withdraw from the Utility System Revenue Fund and deposit into the Utility System Revenue Bonds Reserve Fund (already established and hereinafter called the "Reserve Fund"), in addition to the payments and deposits otherwise required to be made therein, the sum of -S 117.00 until an additional debt service reserve of ,j8.424.00 on the outstanding Bonds has been established, arid thereafter, such sums monthly as may be necessary to maintain the required reserve of p"64,308.00 on the Parity Bonds. The City covenants and agrees that in the event Additional Bonds are issued as hereinafter provided, the ordinance authorizing such Additional Bonds shall provide for the payment into the Reserve Fund of such addi- tional sums as shall be necessary to permit an accumulation in the Re- serve Fund, within six years from the date of the Additional Bonds, as an additional reserve, of an amount of money at least equal to one year's average annual principal and interest requirements of 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 available 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 stiplated; but if at any time it becomes necessary to use temporarily any part of such iteserve fund for the payment of principal or interest, or it is otherwise depleted, pay- rments 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