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HomeMy WebLinkAbout0147_1461-46 Section 18. Excess Revenues. Any revenues in excess of those required to estab- lished an maintain the Certi icate of Obligation Fund as above required may be used for the redemption of Certificates, or outstanding bonds, or future bonds as herein provided, or for any other purpose now or hereafter permitted by law. Section 19. Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest extent permitted by law for the security of public funds, and such funds shall be used solely for the purposes permitted by this Ordinance. Section 20. Additional Certificates of Obligation. In the addition to the right to issue certificates of obligation of inferior lien, as cut ized by laws of this State, the City of Georgetown reserves the right to issue further and additional certificates of obligation from time to time payable from the net income and revenues of the City's combined waterworks, sewer and electric light system (Utility System), and, when issued in compliance with law, such additional certificates of obligation shall be equally secured by a lien on and pledge of the Pledged Revenues; and the additional certificates of obligation when issued shall be payable from the Certificate of Obligation Fund and shall be in all respects of equal dignity and on a parity with Certificates of Obligations herein authorized. Section 21. Additional Bonds. In addition to the right to issue bonds of inferior lien to the outstanding bonds and any future bonds as herein provided, as authorized by the laws of this State, the City of Georgetown further and specifically reserves the right to issue, in the future, further and additional bonds from time to time payable from the net income and reserves of the City's combined waterworks, sewer and electric light system (Utility System); and when issued in complicance with law and the terms and conditionsof and in the ordinances authorizing the outstanding bonds, and any future bonds as herein provided, such additional bonds shall be in all respects and all things superior to the lien on and pledge of the Pledged Revenues for the Certificats of Obligation herein authorized; and the additional bonds, when issued, shall be payable from the Utility System Revenue Bond Interest and Sinking Fund and shall be in all respects of equal dignity and on a parity with the Outstanding Bonds and any future bonds as herein provided. It is the specific intent of the City of Georgetown that the Certificats of Obligation authorized herein shall be junior and subordinate in all respects and things to the outstanding bonds and any future bonds as herein provided and to the payment of the principal and interest thereon. Section 22. Maintenance and operation; Insurance. The City shall maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost. So long as any of the Certificates are outstanding, the City agrees to maintain Insurance for the benefit of the holder or holders of the Certificates, on the System in the amounts which usually are carried by private compainies operating similar properties. Nothing in this ordinance shall be construed as requiring the City to expend any funds which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the City from doing so. . Section 23. Accounts. The City shall keep proper books of record and accounts (separate from all other records and accounts of the City) in which complete and correct entries shall be made of all transactions relating to the System, and shall have said books audited once each fiscal year by an independent certified public accountant. Section 24. Special Covenants. The City further covenants as follows: (a) That i F haste lawTuT power to pledge the revenues supporting this issue of Cert- ificate of Obligation and has lawfully exercised said power under the Constitution and laws of the State of Texas, and the Charter of the City, and that the Certificates issued hereunder, shall be ratably secured by said pledge of taxes and income in such manner that one certificate shall have no preference over any other certificate; (b) That other than for the payment of the Certificates and Outstanding Bonds, the rents, revenues and income of the System have not been pledged in any manner to the payment of any debt or obligation of the City or of said System; (c) That no free service of the System shall be allowed and should the City or any of its agencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of funds derived from sources other than the revenues and income of the system; (d) To the extent that it legally may, the City further covenants and agrees that, so long as any of the Certificates of Obligation, or any interest thereon are outstanding,no franchise shall be granted for the installation or operation of any competing system; that the City will prohibit the operation of any such system other than that owned by the City; and the operation of any such system by any one other than this City is hereby prohibited.