Construction of Additions and Improvements to the Sewage Works Bonds

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The special fund designated "Sewage Works Sinking Fund", created by Ordinance No. 3959 , adopted on February 8, 1954 and maintained by Ordinance No. 5298 adopted on May 25, 1971, for the payment of the 1971 Bonds is hereby designated and constituted as the special fund for the payment of the interest on and principal of the Series 1989 Bonds and the payment of any fiscal agency charges in connection with the payment of the bonds and interest. Said fund shall be continued until all of the bonds issued under this Ordinance have been paid. The Sinking Fund shall consist of a Debt Service Account and a Reserve Account. There shall be set aside and paid into the Debt Service Account of said Sinking Fund monthly, as available, a sufficient amount of the net revenues of said sewage works for the payment of (a) the interest on all bonds which by their terms are payable from the revenues of the sewage works, as such interest shall fall due, (b) the necessary fiscal agency charges for paying said bonds and interest and (c) the principal of all bonds which by their terms are payable from the revenues of the sewage works, as such principal shall fall due. The term "net revenues" as used in this section shall be construed to mean the gross revenues remaining after the monthly costs of operation, maintenance and repair have been paid but not including depreciation or payments in lieu of taxes. The monthly payments into said Sinking Fund shall be in an amount equal to at least one-sixth (1/6th) of the amount required for the interest on all bonds which by their terms are payable from the revenues of the sewage works during the next succeeding six (6) calendar months and an amount equal to one-twelfth (1/12th) of the amount required for such payments during the next succeeding twelve (12) calendar months for the hereinabove described purposes other than interest payments. All of the net revenues of the sewage works not used in making the required Debt Service Account payments shall next be set aside as available and paid into the Reserve Account monthly in an amount at least equal to the maximum annual debt service on the Series 1989 Bonds multiplied by a fraction the numerator of which is one (1) and the denominator of which is the number of whole months remaining from the date of the earlier of maturity or defeasance of the 1971 Bonds to January 1, 1991 until there has been accumulated in said Reserve Account an amount equal to said maximum annual debt service. In no event shall any part of the Sewage Work Sinking Fund be used in calling the Series 1989 Bonds for redemption prior to maturity, except to the extent that the amount then in said Sinking Fund exceeds the amount required to pay the principal of the Series 1989 Bonds payable therefrom which will mature within a period of twelve (12) calendar months next following the date of such redemp- tion, together with all interest on the Series 1989 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 Board of Public Works. Monies in said Sinking Fund shall not be used for any other purpose whatsoever except as provided in this Ordinance. -21-