Res 1983-068 - Laserfiche WebLink

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SELECTED PRO~ISIONS OF THE ORDINANCE The Ordinance adopted by the City Council, which authorizes the Certificates, is in sub- stantially the same form as the ordinances authorizing the outstanding bonds, selected provisions of which are shown below: Section" DEFINITIONS, That throughout this Ordinance the following terms as used herein shall have the meanings set forth below, unless the text hereof specifically indicates otherwise: (a) "City" means the City of San Marcos. (b) "City Council" and/or "Council" means the governing body of the City. (c) "Certificates" shall mean the $1,500,000 City of San Marcos, Texas, Waterworks and Sewer System Revenue Certificates of Obligation, Series 1984, dated January 1,1984, authorized by this Ordinance. (d) "Outstanding Bonds" shall mean the City of San Marcos, Texas, Junior Lien Water- works and Sewer Improvement and Revenue Bonds, Series 1968, dated July 1, 1968. (e) "Additional Bonds" shall mean the additional parity revenue bonds and obligations permitted to be issued under the provisions of this Ordinance and the Ordinance authorizing the Outstanding Bonds. (f) "System" shall mean the combined waterworks and sewer system of the City of San Marcos, Texas, together with any additions and extensions thereto and improvements and re- placements thereof, (g) "Net revenues" shall mean the gross revenues derived from the operation of the System remaining after payment of expenses of operation and maintenance of the System as hereinafter provided. Section 12. PLEDGE OF REVENUES. The Certificates herein authorized are "Additional bonds or obligations" described in Section XVI of the Ordinance authorizing the Outstanding Bonds, and the principal thereof and the interest thereon, together with the principal of and ìnterest on the Outstanding Bonds, are and shall be payable from and secured by an irrevo- cable first lien on and pledge of the net revenues to be derived from the operation and/or ownership of the System, after deduction therefrom of only the Current Expenses of the System. Current Expenses shall include all reasonable and necessary costs of operation, repairs, maintenance, and insurance, but shall exclude depreciation, payments into the Water and Sewer System Junior Lien Revenue Bond Interest and Sinking Fund and the Water and Sewer System Replacement and Repair Fund hereinafter created. Section 13. SPECIAL OBLIGATIONS. The Certificates and the interest thereon shall con- stitute special obligations of the City of San Marcos, Texas, payable solely from the net revenues herein pledged, and the holder or holders of the Certificates shall never have the right to demand payment thereof out of any funds raised or to be raised by taxation, Section 14, FISCAL YEAR. The System shall be operated on the basis of a fiscal year commencing on October 1 and ending on September 30. Section 15. SPECIAL FUNDS: USE OF SURPLUS FUNDS. The City covenants, agrees and confirms that so long as any of the Outstanding Bonds, Certificates or Additional Bonds are out- standing, it will maintain in a bank which is a member of the Federal Deposit Insurance Corporation, the special account established pursuant to the Ordinance authorizing the Out- standing Bonds known as the "Water and Sewer System Revenue Fund", into which Fund shall be deposited as received all income and revenue arising from the operation of ownership of the combined water and sewer system, and shall be kept separate and apart from all other funds, and shall be expended and used only in the manner and order specified below, all as permitted and defined by applicable statutes: (a) Current Expenses of the System shall be payable from month to month as a first charge against the Water and Sewer System Revenue Fund as the same become due and payable. The City covenants and agrees that the Current Expenses of the operation of the System in any year will not exceed the reasonable and necessary amounts therefor. -14-