8359-93 Revenue Bonds Refund Outstanding Sewage Segregation

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determined to be reasonable. All money in the Reserve Account shall be used and withdrawn by the City solely for the purpose of making payment on bonds payable from the revenues of the sewage works to the extent that available moneys in the Debt Service Account are insufficient for such purpose, or to make the final payments on such bonds when money in the Reserve Account, together with other money held in the Sinking Fund, is sufficient to make all remaining payments to final maturity, provided, notwithstanding the foregoing, amounts in the Reserve Account in excess of the Reserve Requirement shall be transferred from time to time to the Debt Service Account and thereupon applied to the required payments into the Debt Service Account as provided in the preceding paragraph. In the event moneys held in the Reserve Account are used to pay principal of and interest on bonds payable from the revenues of the sewage works, then such depletion of said Reserve Account to an amount less than the Reserve Requirement shall be made up from available net revenues within twelve (12) months from substantially equal monthly deposits, after required deposits to the Debt Service Account, to restore the balance of the Reserve Account to an amount equal to the Reserve Requirement. Amounts held on the date of issuance of the 1993 Bonds in the reserve account for the Prior Bonds shall be credited to the Reserve Account and applied toward the Reserve Requirement, and the remaining amounts then in the reserve account for the Prior Bonds shall be credited to the Debt Service Account or deposited to the Escrow Account under the Escrow Agreement, as directed by bond counsel. In no event shall any part of the Sinking Fund be used in calling bonds for redemption prior to maturity except to the extent that the amount then in the Debt Service Account of the Sinking Fund exceeds the amount required to pay the bonds which will mature within a period of twelve (12) calendar months next following the date of such redemption, together with all interest on the bonds payable in said period. Any such excess of funds above said required level may also be used in purchasing outstanding bonds at a price less than the then applicable redemption price, if first approved by the Common Council. Moneys in the Sinking Fund shall not be used for any purpose whatsoever except as stated in this section. Section 11. Reserve for Operation and Repair; Funding Improvements to the Works. In the event all required payments into the Sinking Fund have been met to date, then any excess revenues of the sewage works shall be placed monthly as available in the fund previously created and designated as the "Operation and Maintenance Reserve Fund" to the extent needed, if any, so that the balance in such Fund shall be maintained in an amount at least equal to one- fourth (1/4) of the then current annual budget for operation, repair and maintenance of the sewage works. Funds in such Operation and Maintenance Reserve Fund shall be used as a reserve to pay the expenses of operation, maintenance and repair of the sewage works including depreciation and payments in lieu of taxes. Any excess revenues of the sewage works thereafter available, and any balance in the Operation and Maintenance Reserve Fund in excess of the required balance prescribed above, may be placed in the previously created fund designated as the "Sewage Works Improvement Fund", and be used to pay the cost of additions, improvements and extensions to the sewage works. No revenues of the sewage works shall be deposited in or credited to the Sewage Works Improvement Fund which will interfere with the requirements of the Sinking Fund or the Operation and Maintenance Reserve Fund. Tn the Pvcnt of any deficiency at any time in the Debt Service