Laserfiche WebLink
<br />ARTICLE VIII <br /> <br />FUNDS AND ACCOUNTS AND APPLICATION OF MONEY <br /> <br />Section 8.01. Fund Designations. <br /> <br />The City hereby covenants and agrees that all revenues derived from the operation of the System <br />shall be kept separate from other funds of the City. To that end the City hereby confinns its previous <br />creation and establishment of the following special Funds pursuant to the ordinances authorizing the issuance <br />of the Previously Issued Parity Obligations, to-wit: <br /> <br />(a) The City of San Marcos Waterworks and Sewer System Revenue Fund (the "Revenue <br />Fund"). This Fund shall be kept in the City's official depository bank. <br /> <br />(b) The City of San Marcos Waterworks and Sewer System Revenue Bonds Interest and Sinking <br />Fund (the "Interest and Sinking Fund"). This Fund shall be kept at an official depository bank of the City. <br />Money deposited in this Fund shall be used to pay principal of and interest on the Parity Revenue Obligations <br />when and as the same shall become due and payable. <br /> <br />(c) The City of San Marcos Waterworks and Sewer System Revenue Bonds Reserve Fund, (the <br />"Reserve Fund"). This Fund shall be kept at an official depository bank of the City. Money deposited in <br />this Fund shall be used to pay principal of and/or interest on the Parity Revenue Obligations falling due at <br />any time when there is not sufficient money available in the Interest and Sinking Fund. <br /> <br />The special Funds herein provided shall continue to be maintained at all times while any of the Parity <br />Revenue Obligations remain outstanding. <br /> <br />Section 8.02. Revenue Fund. <br /> <br />All revenues of every nature received through the operation of the System shall be deposited from <br />day to day as collected into the Revenue Fund, to be kept separate and apart from all other City funds and <br />accounts. Moneys deposited in the Revenue Fund shall be pledged and appropriated to the following uses <br />and in the order of precedence shown: <br /> <br />(a) To the payment of all reasonable and proper expenses of operating and maintaining the <br />System as set forth in the definition of "Net Revenues" contained in Section 1.01 hereof. <br /> <br />(b) To the payment, without priority, of all amounts required to be deposited in the Interest and <br />Sinking Fund herein established for the payment of the Parity Revenue Obligations. <br /> <br />( c) To the payment of all amounts required to be deposited in the Reserve Fund pursuant to this <br />Ordinance or any ordinance relating to the issuance of Parity Revenue Obligations. <br /> <br />(d) To any other proper City purpose now or hereafter permitted by law. <br /> <br />Section 8.03. Interest and Sinking Fund. <br /> <br />(a) The City hereby covenants and agrees to make monthly deposits to the Interest and Sinking <br />Fund from moneys in the Revenue Fund to pay the principal of and interest on the Bonds as follows: <br /> <br />(i) Such amounts, deposited in substantially equal monthly installments on or before <br />the 10th day of each month following the Closing Date, as will be sufficient, together with other <br /> <br />R:\San Marcos\WWWWRfd.05\Do\;s\Ordinance\Ord Fina1.wpd <br /> <br />22 <br />