03231970 Regular Meeting - Laserfiche WebLink

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. (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 replacements thereof. (g) "Net revenues" shall mean the gross revenues derived from the operation of the City's combined waterworks and sewer system remaining after payment of expenses of operation and maintenance of the System as hereinafter provided. and after making provision for the payment of the principal of and interest on the outstanding Bonds. I Section X. Pledge of Revenues. The Bonds herein authorized. together with the interest thereon. shall be payable from and secured by a lien on and pledge of the net revenues to be derived from the operation and/or ownership of the water and sewer system SUbject only to the first lien securing the Waterworks and Sewer Improvement and Extension Revenue Bonds. Series 1951 and Series 1951-A. dated January 1. 1951. after deduction therefrom of only the Current Expenses of the System. Current Expenses shall in- clude all reasonable and necessary costs of operation. repairs. maintenance. and insurance. but shall exclude depreciation. pay- ments into the Water and Sewer System Junior Lien Revenue Bond Interest and Sinking Fund and the Water and Sewer System Replace- ment and Repair Fund hereinafter created. -- Section XI. Special Obligations. The Bonds and the interest thereon shall constitute special obligations of the City of San Marcos. Texas. payable solely from the net revenues herein pledged r and the holder or holders of the Bonds and/or the interest coupons appurtenant thereto shall never have the right to demand payment thereof out of any funds raised or to be raised by taxation. Section XII. Designating Fiscal Year. The combined water- works and sewer system of the City of San Marcos shall be operated on the basis of a fiscal year commencing on October 1 and ending on September 30. I - 13 -