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• There are hereby established two accounts in the Bond Fund, designated as the "Debt <br /> Service Account" and the "Surplus Account." All money appropriated or to be deposited in the Bond <br /> Fund shall be deposited as received into the Debt Service Account. On each February 1, the City <br /> Finance Director shall determine the amount on hand in the Debt Service Account. If such amount is in <br /> excess of one-twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 <br /> months, the City Finance Director shall promptly transfer the amount in excess to the Surplus Account. <br /> The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt <br /> Service Account as herein provided and all income derived from the investment of amounts on hand in <br /> the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to <br /> meet the requirements of the Bond Fund, the City Finance Director shall transfer to the Debt Service <br /> Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. <br /> 4.03. Imposition of Charges; Additional Bonds. The City hereby covenants and <br /> agrees with the holders from time to time of the Bonds that so long as any of the Bonds are outstanding, <br /> the City will impose and collect reasonable charges for the service, use and availability of the Utility to <br /> the City and its inhabitants according to schedules calculated to produce net revenues which will be <br /> sufficient to pay all principal and interest when due on the Bonds and all other obligations payable from <br /> the net revenues of the Utility. Net revenues of the Utility, to the extent necessary, are hereby <br /> irrevocably pledged and appropriated to the payment of the principal of the Bonds and interest thereon; <br /> provided that nothing herein shall preclude the City from hereafter making further pledges and <br /> • appropriations of net revenues of the Utility for the payment of additional obligations of the City <br /> hereafter authorized if the City Council determines before the authorization of such additional <br /> obligations that the estimated net revenues of the Utility will be sufficient, together with any other <br /> sources pledged to or projected to be used, for the payment of the principal of and interest on the <br /> Bonds and paid therefrom and such additional obligations. Such further pledges and appropriations of <br /> said net revenues may be made superior or subordinate to or on a parity with the pledge and <br /> appropriation herein made, as to the application of net revenues received from time to time. <br /> 4.04. Full Faith and Credit Pledged. The full faith and credit of the City are <br /> irrevocably pledged for the prompt and full payment of the principal of and the interest on the Bonds <br /> - - - and any other obligations payable-from the Bond Fund, as such principal and interest comes due. If the <br /> money on hand in the Bond Fund should at any time be insufficient for the payment of principal and <br /> interest then due, this City shall pay the principal and interest out of any fund of the City, and such other <br /> fund or funds shall be reimbursed therefor when sufficient money is available to the Bond Fund. If on <br /> October 1 in any year the sum of the balance in the Bond Fund plus the available net revenues of the <br /> Utility on hand and estimated to be received before the end of the following calendar year is not <br /> sufficient with any ad valorem taxes heretofore levied in accordance with the provisions of this <br /> resolution, to pay when due all principal and interest to become due on all Bonds payable therefrom in <br /> said following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this <br /> Section 4.04, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the <br /> 0 -15- <br />