Authorizing issuance of Revenue Bonds for such purpose not to exceed $6,000,000; Improvements to Municipal Waterworks

Home Browse Search

(h) To the extent that additional ParityBonds are issued subsequent to the issuance ofthe 2001 Bonds, the additional amounts, if any, which are required to be paid into the Debt Service Reserve Account to satisfy the Reserve Requirement as a result of the issuance of such additional Parity Bonds shall, at the election of the Executive and Fiscal Officer with the advice of the City's financial advisor, be deposited into the Debt Service Reserve Account either (i) in a single payment, to be paid on the date of the issuance of such additional Parity Bonds, or (ii) in equal monthly installments, over a period not to exceed not to exceed sixty (60) months after the date of issuance of such additional Parity Bonds, with the first installment due and payable on the date of the issuance of such additional Parity Bonds, and the remaining installments payable on the last day of each calendar month, commencing on the last day of the month in which such additional Parity Bonds are issued. (i) Subject to Section 14(g) and Section 14(h) above, any deficiency in the balance maintained in the Debt Service Reserve Account shall be promptly made up from the next available Net Revenues after credits into the Bond and Interest Account. Any moneys in the Debt Service Reserve Account in excess of the Reserve Requirement may be used for the prepayment of installments of principal, together with interest due thereon, on the then outstanding B onds which are then callable or prepayable, or for the purchase of outstanding Bonds or installments of principal of and interest on the Bonds at a price not exceeding par and accrued interest, or may be transferred to the Improvement Fund. (j) The provisions of this Section 14 amend and supersede the corresponding provisions of Section 15(c) of the 1993 Ordinance, Section 14(b) of the 1997 Ordinance, and Section 14(b) of the 2000 Ordinance. Such amendments cure ambiguities or formal defects or omissions, and furthermore, the Council hereby determines that such amendments do not adversely affect the interests ofthe owners ofthe Parity Bonds. Therefore, such amendments are made in compliance with Section 24 of the 1993 Ordinance, Section 23 of the 1997 Ordinance and Section 23 of the 2000 Ordinance. SECTION 15. Improvement Fund. After meeting the requirements of the Operation and Maintenance Fund and the Sinking Fund, any excess revenues may be transferred from the Revenue Fund and credited to the special utility fund hereby continued which was created and designated in the Prior Ordinances as the "Waterworks Improvement Fund" (the "Improvement Fund") (also shown on the books ofthe utility as the Depreciation Fund), and said Fund shall be used for improvements, replacements, additions and extensions of the works. Moneys in the Improvement Fund shall be transferred to the Sinking Fund if necessary to prevent a default in the payment of principal of and interest on the then outstanding bonds or, if necessary, to eliminate any deficiencies in credits to or minimum balance in the Debt Service Reserve Account of the Sinking Fund, or may be transferred to the Operation and Maintenance Fund to meet unforeseen contingencies in the operation and maintenance of the works. SECTION 16. Investment of Funds. The Revenue Fund and the Sinking Fund each shall be deposited in and maintained as a separate bank account or accounts from all other bank accounts of the City. The Operation and Maintenance Fund and the Improvement Fund maybe maintained in a single bank account or accounts, but such bank account or accounts shall likewise be maintained -19-