2006-118 Council Resolution - Laserfiche WebLink

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• • • report any current or anticipated deficiency in the Debt Service Fund to the City Council. There is appropriated to the Debt Service Fund (i) any amount over the minimum purchase price of the Bonds paid by the Purchaser, and (ii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. (b) The proceeds of the Bonds, less the appropriations made in paragraph (a), together with any other funds appropriated during the construction of the Project financed by the Bonds (the "Project ") will be deposited in a separate construction fund to be used solely to defray expenses of the Project and the payment of principal and interest on the Bonds prior to the completion and payment of all costs of the Projects. When the Project is completed and the cost thereof paid, the construction account is to be closed and any balance therein is to be deposited in the Debt Service Fund. 4.02. The City Council covenants and agrees with the holders of the Bonds that so long as any 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 and sewer utility system as public utilities and conveniences free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the water and sewer 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 Debt Service Fund as a separate account in the Utility Fund and will cause money to be credited thereto from time to time, out of net revenues from the water and sewer utility plant and system in sums sufficient to pay principal of and interest on the Bonds when due. (c) The City will keep and maintain proper and adequate books of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the water and sewer utility system and which will be open to inspection and copying by any bondholder, or the bondholder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all bondholders upon request. (d) The City Council will cause persons handling revenues of the water and sewer utility system to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account of the operations of the water and sewer utility system to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. 293490v1 SJB LN140 -95 11