Ord 1983-078 - Laserfiche WebLink

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Outstanding Bonds. (f) IfSystemlf 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 replacements thereof. (g) "Net revenues" shall mean the gross revenues derived from the op~ration o~ 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 interest on the Outstanding Bonds, are and shall be payable from and secured by an irrevocable 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 constitute special obligations of the Ci ty 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 outstanding, 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 Outstanding Bonds known as the "Water and Sewer System Revenue Fund", into which Fund shall be deposi ted as received all income and revenue arising from the operation or 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. (b) There has been created, established, and continuously maintained in a bank which is a member of the Federal Deposit Insurance Corporation, pursuant to the Ordinance authorizing the Outstanding Bonds, a separate account known as the "Water and Sewer System Junior Lien Revenue Bond Interest and Sinking Fund", (the "Water and Sewer System Junior Lien Bond Fund"). Said Fund is hereby confirmed and shall be used exclusively for the purpose of paying principal and interest on the Outstanding Bonds, the Certificates, and Additional Bonds hereafter issued to be on a parity with the Outstanding Bonds and the Certificates. The City covenants and agrees that so much of the proceeds from the sale of the Certificates as represents accrued interest thereon shall be deposited to the credit of the Water and -11-