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(e) SURPLUS FUNDS: All monies remaining in the Utility
System Revenue Fund after the requirements of subsections
(a), (b), (c), and (d) of this Section 11 have been met
(including any increased payments into 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
made 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 discretion
of the City be used for any other proper city purpose now or
hereafter permitted by law, including the use thereof in
retiring in advance of maturity any Additional Bonds then
outstanding, in accordance with provisions made for their
prior redemption, or may be used to purchase the Parity
Bonds and Additional Bonds on the open market at not exceed-
ing 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 impairing the
right of the City to pay in accordance with the provisions
thereof any junior lien bonds hereafter legally issued by
it.
Section 12. SECURITY FOR FUNDS. All monies which are
to be paid into the Depository under the provisions of the
Ordinances authorizing the Parity Bonds shall be secured in
accordance with the laws of the State of Texas applicable
thereto, and the City covenants especially that such money
shall be continuously secured by a valid pledge of direct
obligations of, or obligations unconditionally guaranteed
by, the United States of America, having a par value, or
market value when less than par, exclusive of accrued inter-
est, at all times at least equal to the total amount of
money on deposit in the several Funds in the Depository.
Section 13. ADDITIONAL BONDS. In addition to the
right to issue bonds of inferior lien as authorized by the
laws of this State, the City of Georgetown reserves the
right 'to issue further and additional bonds from time to
time payable from -the net income and revenues of the Utility
System; and, when issued in compliance with '.law and the
terms and conditions hereinafter appearing, such. Additional
Bonds shall be equally secured by a first lien on and pledge
of the Pledged Revenues; and the Additional Bonds, when
issued, shall be payable from the Utility System Revenue
Bonds Interest and Sinking Fund and shall be in all respects
of equal dignity and on a parity with the Parity Bonds,
PROVIDED, that in each instance:
(a) The Addtional Bonds are authorized and issued in
conformith with the Constitution and applicable Statutes of
the State of Texas;
(b) The Bond Fund, the Reserve Fund, and the Contingency
Fund contain the amount of money then required to be on
deposit therein and the City is in compliance with all other
covenants and undertakings in connection with all bonds then
outstanding and payable from the net revenues of the Utility
System;
(c) The Net Revenues of the Utility System for either
the fiscal year or twelve-month period next preceding the
date of the passage of an Ordinance authorizing the issuance
of the Additional Bonds are certified by a Certified Public
Accountant to have been at least equal to one and one-half
times the average annual principal and interest requirements
on all bonds then outstanding against the Utility System and
the bonds then to be issued;