05/10/2010 Council Packet - Laserfiche WebLink

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There is appropriated to the Utility Revenue Account of the Debt Service Fund (i) $ of the amount over the minimum purchase price paid by the Purchaser; and (ii) $ of the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. There is appropriated to the Improvements Account of the Debt Service Fund (iii) $ of the amount over the minimum purchase price paid by the Purchaser, and (iv) $ of accrued interest paid by the Purchaser upon closing and delivery of the Bonds. If the balance in either account established in the Debt Service Fund is at any time insufficient to pay all interest and principal then due on the respective portion of the Bonds payable therefrom, the Council covenants and agrees that it will each year levy an amount sufficient to take care of any accumulated or anticipated deficiency, which levy is not subject to any limitation as to rate or amount. (b) The City Finance Director shall timely deposit in the Utility Revenue Account the Net Revenues hereinafter collected in accordance with Section 4.02. If any payment of principal or interest on the Utility Revenue Refunding Bonds portion of the Bonds shall become due when there is not sufficient money in the Utility Revenue Account of the Debt Service Fund to pay the same, the Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Net Revenues when collected. (c) The City Finance Director shall timely deposit in the Improvements Account all Assessments levied for the improvements fmanced by a portion of the Refunded Bonds. If any payment of principal or interest on the Improvement Refunding Bonds portion of the Bonds shall become due when there is not sufficient money in the Improvements Account of the Debt Service Fund to pay the same, the Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of the Assessments when collected. 4.02. The City Council covenants and agrees with the holders of the Bonds that so long as any of the Utility Revenue Refunding Bonds portion of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The City will continue to maintain and efficiently operate the water utility system as a public utility and convenience free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the utility system accounts as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain the Utility Revenue Account of the Debt Service Fund as a separate account in the water utility fund, and will cause money to be credited thereto from time to time, out of Net Revenues from the water utility plant and 367721v1 SJB LN140 -106 • • •