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HomeMy WebLinkAbout0146_145145 and collect charges for the facilities and services afforded by the System to the City and to all other customers which will provide revenues sufficient at all times: (a) To pay all operating, maintenance, depreciation, replacement and betterment charges of the System, as is required by this Ordinance and by law; (b) To establish and maintain the Certificate of Obligation Fund for the Certificates; (c) To pay in addition all outstanding indebtedness against the System other than the Certificates or outstanding bonds, or future bonds as herein provided, as and when the same become due. Section 15. System Fund. All revenues of every nature received through the operation of the System shall be deposited from day to day as collected into a separate account (heretofore created as the Utility System Revenue Fund and herein called the "System Fund") which shall be kept separate and apart from all other funds of the City, and the reasonable and proper expenses of operating and maintaining the System, including salaries, labor and materials, shall be paid therefrom upon approval of the City Council. Section 16. Certificale of Obligation Fund. From the funds in the System Fund, after all payments from the System Fund have been made as provided for in the Ordinances authorizing the outstanding bonds, and any future bonds as herein provided, the City shall pay into a separate account (herein called the "Certificate of Obligation Fund") during each year in which any of the Certificiates are outstanding an amount equal to 100 per centum of the amount required to meet the interest and principal payments falling due on or before the next maturity date of the Certificates. The Citizens State Bank, Georgetown, Texas, is hereby designated custodian of the Certificate of Obligation Fund, and the deposits herein described shall be trasmitted to said Fund in said Bank. In addition to such payment, the City shall pay into the Certificate .~ of Obligation Fund from the System Fund in each year twenty per cent (20%) of the above required amount until such time as there is in the Certificate of Obligation Fund an Amount .�.7 sufficient to meet the interest and principal payment falling due on or before the next maturity date of the Certificates and the interest and principal payments on the Certificates for one year thereafter. The payments required to be made into the Certificate of Obligation Fund in each year shall be paid in substantially equal monthly payments. The payment required to be made into the Certificate of Obligation Fund in each month shall be made on or before the Ist day of each month, commencing with the first day of the month next succeeding the month in which the Certificates are sold and delivered. It is the intent of this provision that the sums paid into the Certificate of Obliation Fund shall be in excess of the immediate requirements for payment of interest on and principal of the Certificates until there has been accumulated in the Certificate of Obligation Fund, as a reserve for contingencies an amount sufficient to service the Certificates for one year. Said reserve shall be used solely for the payment of principal and interest on the Certificates falling due at any time as to which ther would otherwise be a default; and whenever any money is paid out of the reserve for the paymentof principal and interest, payments into the Certificate of Obligation Fund shall be resumed and continued until such time as the money so used from the reserve has been restored. The money in said Certificate of Obligation Fund constituting the reserve for contingencies may, upon order of the City Council, be invested in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States Government to the extent permitted by law, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder, not later then ten (10) years after the dates of investment. Any obligations in which money is so invested shall be kept in escrow in the bank in which the Certificate of Obligation Fund is kept. If such funds are so invested and deposited in escrow, the City shall have the right to have sold through the escrow agent on the open market a sufficient amount of said securities in order to meet its obligations of principal and interest on the Certifiecates in the event it does not have suffic- ient funds, univested, on hand for such purpose. Under such circumstances, the Mayor is hereby authorized, ordered anddi rected to give fifteen days' notice to such excrow agent of the necess- ity to sell said securities on the open market. After such sale, the moneys resulting therefrom shall belong to the Certificate of Obligation Fund and shall be available to pay such obligations of principal and interest. Section 17. Deficiencies in Funds. If in anyrronth the City shall fail to pay into the Certificate of Z5bligation Fund the full amounts above stipulated, amounts equivalent to such deficiencies shall be set apart and paid into said Fund from the first available and unallocated revenues of the followingmonth or months, and such payments shall be in addition to the amounts hereinabove provided to be otherwise paid into said Fund during such month or months. To the extent necessary, the City shall increase the rates and charges for services of the System to make up such deficiencies.