Ord 1987-112 - Laserfiche WebLink

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(b) In order to provide for the payment of the debt service requirements on the Certificates, being (i) the interest on the Certificates, and (ii) a sinking fund for their payment at maturity or a sinking fund of two percent (whichever amount is the greater), there is hereby levied for the current year and each succeeding year thereafter, whi1e the Certificates or interest thereon remain outstanding and unpaid, a tax within legal limitations on each $100 valuation of taxable property in the City that is sufficient to pay such debt service requirements, full allowance being made for delinquencies and costs of collection. (c) The tax levied by this Section shall be assessed and collected each year and applied to the payment of the debt service requirements on the Certificates, and the tax shall not be diverted to any other purpose. (d) To the extent necessary, the payments into the Interest and Sinking Fund as hereinabove required shall be made from funds derived from taxation. The amount of taxes to be provided annually for the payment of principal of and interest on the Certificates shall be determined and accomplished as follows: the City's annual budget shall reflect (a) the amount of the debt service requirements to become due on the Certificates in the next succeeding fiscal year of the City, (b) the amount on deposit in the Interest and Sinking Fund, as of the date such budget is prepared (after giving effect to any payments required to be made during the remainder of the then current fiscal year of the City), and (c) the amount of Net Revenues (hereinafter provided) estimated and budgeted to be avai1able for the payment of such debt service requirements on the Certificates during the next succeeding fiscal year of the City (based upon the amount of Net Revenues from the preceding fiscal year). The amount required to be provided in the succeeding fiscal year of the City from ad valorem taxes shall be the amount, if any, the debt service requirements on the Certificates in such fiscal year exceed the sum of (i) the amount shown to be on deposit in the Interest and Sinking Fund at the time the annual budget is prepared, and (ii) the Net Revenues shown to be budgeted and avai1able for payment of such debt service requirements. Following final approval of the City's annual budget, the City Council shall levy an ad valorem tax at a rate sufficient to produce taxes in the amount so determined, to be used for the purpose of paying the principal of and interest on the Certificates in the next succeeding fiscal year of the City. Section 2.02. Revenue Pledge. In combination with the ad valorem taxes herein levied and ordered to be levied, the Certificates and interest thereon are and shall be payable from and secured by an irrevocable Hen on and pledge of the Net Revenues as hereinabove defined. The Certificates are "additional certificates of obligation on a parity, insofar as Net Revenues are concerned" with the Outstanding Obligations. The City covenants and agrees with the holders of the Certificates that it will at all times charge and collect Net Revenues which, together with the funds to be derived from taxation, as hereinabove provided, will be adequate to pay promptly all of the principal of and interest on the Certificates, and to make all deposits now or hereafter required to be made into the Interest and Sinking Fund created and established by this Ordinance. 04055 -4-