HomeMy WebLinkAbout0337_302302
6. That a 'special -"Interest and Sinking Fund" is
hereby created and shall be established and maintained by
the City at an official depository bank of said City. Said
Interest and Sinking Fund shall be kept separate and apart
from all other funds and accounts of said City, and shall be
used only for paying the interest on and principal of said
Certificates of Obligation. All ad valorem taxes levied and
collected for and on account of said Certificates of Obliga-
tion shall be deposited, as collected, to the credit of said
Interest and Sinking Fund. During each year while any of
said Certificates of Obligation or interest coupons apper-
taining thereto are outstanding and unpaid, the City Council
of said City shall compute and ascertain a rate and amount
of ad valorem tax which will be sufficient to raise and
produce the money required to pay the interest on said
Certificates of Obligation as such principal matures (but
never less than 2% of the original amount of said Certifi-
cates of Obligation as a S.Lnking fund each year)j and said
tax shall be based on the latest approved tax rolls of said
City, with full allowances being made for tax delinquencies
and the cost of tax collection. Said rate and amount of ad
valorem tax is hereby levied, and is hereby ordered to be
levied, against all taxable property in said City, for each
year while any of said Certificates of Obligation or
interest coupons appertaining thereto are outstanding and
unpaid, and said tax shall be assessed and collected each
such year and deposited to the credit of the aforesaid
Interest and Sinking'Fund. Said ad valorem taxes sufficient
to provide for the payment of the interest on and principal
of said Certificates of Obligation, as such interest comes
due and such principal matures, are hereby pledged
irrevocably for such payment, within the limit prescribed by
law.
7. That said Certificates of Obligation are addition-
ally secured by and shall be payable from and secured by the
revenues of the City's Waterworks and Sewer System,
remaining after payment of all maintenance and operation
expenses thereof, and all debt service, reserve, and other
requirements in connection with all of the City's revenue
bonds (now or hereafter outstanding), and the City's
outstanding Certificates of Obligation, which are payable
from all or any part of the Net Revenues of the City's
Waterworks and Sewer System, constituting "Surplus
Revenues". The City shall deposit such Surplus Revenues to
the credit of the Interest and Sinking Fund created pursuant
to Section 6, to the extent necessary to pay the principal
and interest on the Certificates of Obligation. Notwith-
standing the requirements of Section 6, if Surplus Revenues
are actually on deposit in the Interest and Sinking Fund in
advance of the time when ad valorem taxes are scheduled to
be levied for any year, then the amount of taxes which
otherwise would have been required to be levied pursuant to
Section 6 may be reduced to the extent and by the amount of
the Surplus Revenues then on deposit in the Interest and
Sinking Fund.
8. That the Mayor and the City Secretary are hereby
ordered to do any and all things necessary to accomplish the
transfer of monies to the Interest and Sinking.Fund of this
issue in ample time to pay such items of principal and
interest.
9. That the Mayor o: said City is hereby authorized to
have control of said Certificates of Obligation and all
necessary records and proceadings pertaining to said Certi-
ficates of Obligation pending their delivery and their
investigation, examination and approval by the Attorney
General of the State of Texas, and their registration by the
Comptroller of Public Accounts of the State of Texas. Upon
registration of said Certificates said Comptroller of Public
Accounts (or a deputy designated in writing to act for said
4