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proceeds of the taxes levied for the Bond Fund. The City hereby appropriates to the Bond Fund <br /> the accrued interest on the Bonds received from the Purchaser upon delivery of the Bonds. The <br /> City Finance Director shall deposit in the Bond Fund the proceeds of all taxes levied and all <br /> other money which may at any time be received for or appropriated to the payment of such <br /> bonds and interest, including the net revenues of the Utility herein pledged and appropriated to <br /> the Bond Fund, all collections of any ad valorem taxes levied for the payment of the Bonds, and <br /> all other moneys received for or appropriated to the payment of the Bonds and interest thereon. <br /> 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 <br /> Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, <br /> the City Finance Director shall determine the amount on hand in the Debt Service Account. If <br /> such amount is in excess of one-twelfth of the debt service payable from the Bond Fund in the <br /> immediately preceding 12 months, the City Finance Director shall promptly transfer the amount <br /> in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to <br /> be transferred thereto from the Debt Service Account as herein provided and all income derived <br /> from the investment of amounts on hand in the Surplus Account. If at any time the amount on <br /> hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the <br /> City Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus <br /> Account to the extent necessary to cure such deficiency. <br /> 4.03. Imposition of Charges; Additional Bonds. The City hereby covenants and agrees <br /> 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 <br /> Utility to the City and its inhabitants according to schedules calculated to produce net revenues <br /> which will be sufficient to pay all principal and interest when due on the Bonds and all other <br /> obligations payable from the net revenues of the Utility. Net revenues of the Utility, to the <br /> extent necessary, are hereby irrevocably pledged and appropriated to the payment of the <br /> principal of the Bonds and interest thereon; provided that nothing herein shall preclude the City <br /> from hereafter making further pledges and appropriations of net revenues of the Utility for the <br /> payment of additional obligations of the City hereafter authorized if the City Council determines <br /> before the authorization of such additional obligations that the estimated net revenues of the <br /> Utility will be sufficient, together with any other sources pledged to or projected to be used, for <br /> the payment of the principal of and interest on the Bonds and paid therefrom and such additional <br /> obligations. Such further pledges and appropriations of said net revenues may be made superior <br /> or subordinate to or on a parity with the pledge and appropriation herein made, as to the <br /> 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 irrevocably <br /> pledged for the prompt and full payment of the principal of and the interest on the Bonds and any <br /> 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 <br /> and interest then due, this City shall pay the principal and interest out of any fund of the City, <br /> and such other fund or funds shall be reimbursed therefor when sufficient money is available to <br /> the Bond Fund. If on October 1 in any year the sum of the balance in the Bond Fund plus the <br /> available net revenues of the Utility on hand and estimated to be received before the end of the <br /> following calendar year is not sufficient with any ad valorem taxes heretofore levied in <br /> -14- <br />