Resolution 24-125 - Laserfiche WebLink

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Section 5. Delivery; Application of Proceeds. The Note when so prepared and executed will be delivered by the City Administrator to the PFA prior to disbursements pursuant to the Project Loan Agreement and the purchaser is not obliged to see to the proper application thereof. Section 6. Water Fund and Accounts. There shall be maintained a separate fund in the City treasury designated as the Water Fund (the "Water Fund"). The Finance Director and all municipal officials and employees concerned therewith will establish and maintain financial records of the receipts and disbursements of the municipal water system (the "Water System") in accordance with this resolution. There will be maintained in the Water Fund, in addition to any accounts previously created, the following three (3) separate accounts: (a) A Capital Account to which will be credited all proceeds from the sale of the Note. The Note is the only source of money to be credited to the Capital Account. It is recognized that the sale proceeds of the Note are received in reimbursement for costs expended on the Project or in direct payment of such costs, and that accordingly the money need not be placed in the Capital Account upon receipt but may be applied immediately to reimburse the source from which the expenditure was made. Money in the Capital Account is to be used solely for the purpose of paying for the cost of constructing the Project, including all costs enumerated in Section 475.65 of the Act, provided that such money may only be expended for costs and expenses which are permitted under the Project Loan Agreement. The PFA prohibits the use of proceeds of the Note to reimburse costs initially paid from proceeds of other obligations of the City unless otherwise specifically approved by the PFA. Upon completion of the Project and the payment of the costs thereof, any surplus is to be transferred to the Debt Service Account. (b) An Operation and Maintenance Account into which are to be paid all gross revenues and earnings derived from the operation of the Water System, including all charges for the service, use and availability of and connection to the Water System, when collected, and all money received from the sale of any facilities or equipment of the Water System or any byproducts thereof. From this account there will be paid all the normal, reasonable and current costs of operating, maintaining, and insuring the Water System, including salaries, wages, costs of materials and supplies, necessary legal, engineering and auditing services, and all other items that, by sound accounting practices, constitute normal, reasonable and current costs of operating and maintenance, but excluding any allowance for depreciation, extraordinary repairs and payments into any debt service account All money remaining in the Operation and Maintenance Account after paying or providing for the foregoing items constitutes, and is referred to in this resolution as, "net revenues." (c) A Debt Service Account into which are irrevocably pledged or credited (i) net revenues of the Water System in an amount sufficient, with other money, to pay the principal of and interest on the Note when due; (ii) all collections of taxes which may hereafter be levied for the payment of the principal of and interest on the Note; (iii) all 3