03-26-08 Council Agenda - Laserfiche WebLink

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(ii) Permanent Improvement Revolving Sinking Fund. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Permanent Improvement Revolving Sinking Fund heretofore created: (a) special assessments initially credited to the Permanent Improvement Revolving Fund and not already spent as permitted above and required to pay any principal and interest due on the Improvement Portion of the Bonds; (b) a pro rata share of any accrued interest received upon delivery of the Bonds; (e) capitalized interest in the amount of $ with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before ); (d) a pro rata share of all funds paid for the Bonds in excess of the minimum bid; (e) any collections of all taxes herein and hereafter levied to the payment of the principal and interest on the Bonds; (f) the net revenues of the City's water and sewer system (as hereinafter defined, the "Net Revenues "), provided that the amounts thereof shall not exceed amounts necessary to pay the principal of and interest on the portion of the Bonds issued to finance the System Improvements ( "System Improvement Portion "), when due; (g) all funds remaining in the Permanent Improvement Revolving Fund after completion of the Assessment Improvements and the Additional Improvements and payment of the costs thereof; (h) all investment earnings on funds held in the Permanent Improvement Revolving Sinking Fund; and (i) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Permanent Improvement Revolving Sinking Fund. The Permanent Improvement Revolving Sinking Fund shalt be used solely to pay the principal and interest and any premiums for redemption of the Bonds. As used in this Resolution, the term Net Revenues means the gross revenues derived by the City from the operation of its water and sewer system, including all charges for service, use, availability, and connection to the System, and all monies received from the sale of any facilities or equipment of the System or any by products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining the System. If any payment of principal or interest on the System Improvement Portion shall become due when there are not sufficient funds in the Permanent Improvement Revolving Sinking Fund derived from Net Revenues to pay the same, the City Administrator shall pay such principal or interest from the general fund or other available fund of the City, and such fund shall be reimbursed for such advances from the proceeds of the Net Revenues or of any general ad valorem taxes hereafter levied for such purpose, when collected. The City hereby covenants that it will impose and collect charges for the service, use, and availability of and connection to the City's System at the times and in the amounts required to produce Net Revenues adequate, together with other sources of funding available to the Permanent Improvement Revolving Sinking Fund and properly allocable to payment of the System Improvement Portion, to pay all principal of and interest on said Bonds, when due. Nothing contained in this Resolution shall be deemed to preclude the City from making further pledges and appropriations of the Net Revenues of the System for the payment of other or additional obligations of the City, provided that, if any such pledge or appropriation is to be made superior to or on a parity with the pledge of the Net Revenues herein made to the System Improvement Portion, the Council shall first have determined that the estimated Net Revenues of the System will he sufficient, in addition to all other sources, for the payment of the System Improvement Portion and such additional obligations. 2154l93vI 17