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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.
When the outstanding bonds, Series 1966, Series 1970
and Series 1971, have been paid off, cancelled and retired,
the Reserve Fund for these Series 1981 Bonds may be commin-
gled with Reserve Funds established for series of bonds
hereafter issued which are similarly secured and payable
from the same source without impairment of the obligation of
contract. The City further convenants that when Additional
Bonds are issued, the aggregate amount to be accumulated and
maintained in the Reserve Fund shall be not less than the
average annual principal and interest requirements of all
bonds similarly secured, and any additional amount required
to be accumulated in the Reserve Fund shall be accumulated
therein in not less thaii five years and one month from the
date of the Additional Bonds. Money in the Reserve Fund may
be invested in direct obligations of or obligations uncondi-
tionally guaranteed by the United States Government having
maturities not in excess of five years from the date of the
making of such investment.
(d) CONTINGENCY 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 emergen-
cies 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 insuffi-
cient for such purpose.
The City covenants and agrees that in the event Addi-
tional 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 as 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 Consul-
ting 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 in escrow in said Depository
and shall be promptly sold and the proceeds of sale applied
to the making of payment: required to be made from the Contin-
gency Fund, whenever such payments are required to ee made
under the foregoing provisions of this Ordinance.
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