Ord 1987-119 - Laserfiche WebLink

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(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 Bonds, and Additional Bonds hereafter issued to be on a parity with the Outstanding Bonds and the Bonds. The City covenants and agrees that so much of the proceeds from the sale of the Bonds as represents accrued interest thereon shall be deposited to the credit of the Water and Sewer System Junior Lien Bond FUnd concurrently with the receipt of such proceeds. Thereafter, and after providing for the payment of Current Expenses of the System, and in addition to the payments required by the Ordinances authorizing the Outstanding Bonds for the payment of the principal and interest on the Outstanding Bonds, there shall be transferred from the Water and Sewer System Revenue Fund to the Water and Sewer System Junior Lien Bond Fund on or before the 10th day of each month, not less than one-fifth of the next maturing interest payment and one-tenth of the next maturing principal payment with respect to the Bonds until the funds and/or investments in the Water and Sewer System Junior Lien Bond Fund are sufficient to pay debt service requirements on the Outstanding Bonds and Bonds for the then current year, plus a debt service reserve in the sum of $204,743.00, and thereafter, such sums as may be necessary to pay when due the then current year's debt service and maintain a debt service reserve in the amount of $204,743.00. (c) There is hereby confirmed, and the City shall continue to maintain in a bank which is a member of the Federal Deposit Insurance Corporation, so long as any of the Outstanding Bonds, Bonds or Additional Bonds are outstanding, a "Water and Sewer System Replacement and Repair Fund", into which the sum of $1,233.33, or such portion thereof as is available, shall be deposited on or before the 10th day of each month from the net revenues of the combined water and sewer system until the funds and/or investments therein shall amount to $74,000.00. Funds in said Water and Sewer System Replacement and Repair Fund shall be used to pay for any extraordinary repairs or replacements to the System for which funds are not otherwise available and to pay maturing principal or interest on the Outstanding Bonds, Bonds and Additional Bonds when funds in the Water and Sewer System Junior Lien Bond Fund are inadequate for such purposes. Whenever any funds are paid out of said Water and Sewer System Replacement and Repair Fund, payments into the account shall be resumed and continued until such time as the account has been restored to the level of $74,000.00. 2079f