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HomeMy WebLinkAbout0093_8686 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, said Depository shall sell on the open market such amount of the securities as is 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) CONTINGLNCY FUND: 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 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 ordered to be established and maintained in the amount of $15,000 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 appropriate 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 occuring 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 continued until such time as the Fund has been restored 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 making of such investment, as the City Council may direct. Any obligations in which money is so invested shall be kept insescrow in said Depository and shall be promptly sold and the proceeds of sale applied to the malting of payments required to be made from the Contingency fund, whenever such payments are required to be made under the foregoing provisions of this ordinance. (e) SUIdILUS MINIiS: -All moneys remaining in the Utility System Revenue Fund after the requirements of subsections (a), (b), (c) and (d) of this Section 13 have been met (including any increased payments in- to the aforesaid Bond Fund, Reserve Fund, and Contingency Fund as may be necessary by reason of the issuance of additional Bonds in the future under the provisions of the ordinances authorizing the Parity Bonds), and after all deficiencies shall have been amde up and all replacements made, shall be either used or accumulated for the making of improvements, extensions and additions to the Utility System,'or may, in the discre- tion of the City be used for any other proper city purpose now or here- after permitted by law, including the use thereof in retiring in advance of maturity any Additional Bonds then outstanding, in accordance with the provisions made for their prior redemption, or may be used to purchase the Parity Bonds and additional Bonds on the open market at not exceeding the market value thereof. All bonds so paid, redeemed or purchased shall be cancelled and shall not be re -issued. Nothing herein shall be construed however, as i►I►pairing the right of the City to pay in accordance with the provisions thereof any junior lien bonds hereafter legally issued by it.