06-23-25 - City Council Agenda - Laserfiche WebLink

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(b) Utility Account. The City will maintain the following subaccounts in the Utility Account of the Debt Service Fund: the "Utility Net Revenues Subaccount" and the "Special Assessments Subaccount." (i) Utility Net Revenues Subaccount. The City will continue to maintain and operate its utility fund (the "Utility Fund") to which will be credited all gross revenues from the City's sewer, water and storm sewer utility systems (the "Utility Systems") and out of which will be paid all normal and reasonable expenses of current operations of such systems. Any balances remaining after payment of all normal and reasonable expenses of current operations of the Utility Systems are deemed net revenues (the "Net Revenues"). Net Revenues from the Utility Systems are hereby pledged to the Utility Account of the Debt Service Fund. The amounts to be applied to pay the principal and interest on the Utility Portion of the Bonds shall be deposited in the Utility Net Revenues Subaccount of the Debt Service Fund at least three (3) business days prior to each respective interest payment date and principal payment date. There will always be retained in the Utility Net Revenues Subaccount of the Debt Service Fund a sufficient amount of Net Revenues to pay principal of and interest on the Utility Portion of the Bonds, and the Interim Finance Director must report any current or anticipated deficiency in the Utility Net Revenues Subaccount of the Debt Service Fund to the Council. There is appropriated to the Utility Net Revenues Subaccount of the Debt Service Fund amounts over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof. (ii) Special Assessments Subaccount. Special assessments levied or to be levied against the property specially benefited by the Utility Project (the "Assessments") for the payment of debt service on the Utility Portion of the Bonds are hereby pledged to the Utility Account of the Debt Service Fund. The amounts to be applied to pay the principal of and interest on the Utility Portion of the Bonds shall be deposited in the Special Assessments Subaccount of the Debt Service Fund at least three (3) business days prior to each respective interest payment date and principal payment date. There is appropriated to the Special Assessments Subaccount of the Debt Service Fund amounts over the minimum purchase price of the Bonds paid by the Purchaser to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof. 4.02. Construction Fund. The City hereby creates the General Obligation Bonds, Series 2025A Construction Fund (the "Construction Fund"). The City will maintain the following accounts in the Construction Fund: the "Street Account" and the "Utility Account." (a) Street Account. Proceeds of the Street Portion of the Bonds (reduced by the appropriation made in accordance with Section 5.04 to pay costs of issuance and the appropriation, if any, of any portion of the Street Portion of the Bonds made in accordance with Section 4.01 hereof) shall be deposited in the Street Account of the Construction Fund and used solely to pay costs of the Street Project. Any balance remaining in the Street Account of the Construction Fund after completion of the Street Project may be used for any other public use authorized by law and approved by resolution adopted or vote taken in the manner required to authorize the application of the proceeds of the Street Portion of the Bonds for such new use and purpose, or credited to the Street Account of the Debt Service Fund or other City debt service fund, all in accordance with Section 475.65 of the Act. (b) Utility Account. Proceeds of the Utility Portion of the Bonds (reduced by the appropriation made in accordance with Section 5.04 to pay costs of issuance and the appropriation, if Page 41 of 142