Construction of Additions and Improvements to the Sewage Works Bonds

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Section 15. When the 1971 Bonds shall have matured and all interest and principal payments on said bonds have been made, or the Defeasance Amount has been deposited with the escrow trustee as provided for herein, the provisions of Section 13 herein shall no longer be applicable to the Series 1989 Bonds and the provisions of this section shall be applicable and in full force and effect for the Series 1989 Bonds and any additional bonds issued pursuant to the provisions of this Ordinance. The Sewage Works Depreciation Fund created by Ordinance No. 3959 shall be terminated and all amounts in said fund at the time of termination shall be placed in the fund designated as the "Sewage Works Improvement Fund" created by said ordinance. In the event all required monthly payments into the Sewage Works Sinking Fund have been met to date, then any excess revenues of the sewage works shall be placed monthly as available in the fund hereby designated as the "Operation and Maintenance Reserve Fund" 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 ( including depreciation and payments in lieu of taxes) multiplied by a fraction the numerator of which is one and the denominator of which is the number of whole months from the earlier of maturity or defeasance of the 1971 Bonds to January 1, 1991, provided that on January 1, 1991 sufficient revenues shall have been deposited, to the extent available, in such fund so that the balance in such fund shall equal one-fourth (1/4) of the then current annual budget for operation, repair and maintenance of the sewage works and thereafter deposits to such fund shall be made, to the extent revenues are available, in an amount sufficient to maintain a reserve 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 may be placed in the fund designated as the "Sewage Works Improvement Fund", created by Ordinance No. 3959 , 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 Sewage Works Sinking Fund or the Operation and Maintenance Reserve Fund. In the event of any deficiency at any time in the Sewage Works Sinking Fund for the purposes of paying the interest on or principal of the Series 1989 Bonds or such additional bonds as authorized herein or any required fiscal agency charges, funds may be withdrawn from the Operation and Maintenance Reserve Fund and the Sewage Works Improvement Fund for deposit into said Sinking Fund in the amount of such deficiency. Additionally, funds may be transferred from the Sewage Works Improvement Fund to the Operation and Maintenance Reserve Fund as may be required by the purposes of such fund. -22-