Concerning Construction and the Installation of Extensions, Additions and Improvements to the Waterworks

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shall be applied exclusively to that purpose until a surplus shall be accumulated in the Operation and Maintenance Account which shall be equal to the cost of maintaining and operating the waterworks during the remainder of the calendar, operating or fiscal year -then current and the cost of maintaining and operating the waterworks during the calendar, operating or fiscal year then next ensuing. Any excess over such surplus may be transferred to either the Depreciation Account or the Bond and Interest Redemption Account. (b) Depreciation Account Thirteen per cent (13 %) of the gross revenues of said waterworks shall be set aside into the Depreciation Account and shall be expended in making good depreciation in 'the waterworks, or in new construction, extensions or additions to the property of the waterworks. Any accumulations in said Depreciation Account not required for immediate use may be invested in direct obligations of the United States Government, in the manner and to the extent permitted by law, and if so invested the income from such investment shall accrue to -the Depreciation Account. Said account shall not be used for any purpose other than as herein provided. (c) Bond and Interest Redemption Account. Twenty two per cent (220%) of the gross revenues of the waterworks shall, as such revenues are received, be set apart and paid into a special account to be identified as the Bond and Interest Redemption Account. The funds in said account shall be used solely for the purpose of paying the principal and interest of bonds which by their terms are payable from the revenues of the waterworks and in the following order: (1) Paying the interest on and principal of the Ulater- works Revenue Bonds of 1960, issued pursuant to Ordinance No. 4321 -60, as amended, in accordance with the terms thereof; (2) Paying the interest on and principal of 1:he bonds issued pursuant to the provision of this ordinance in accordance with the terms hereof, and any bonds hereafter issued ranking on a parity therewith; and (3) Paying the interest on and principal of any other bonds payable from the revenues of the waterworks; to the extent necessary for that purpose. If and when a surplus shall be created in said Bond and Interest Redemption Account which shall be in excess of the interest on and principal of all the bonds, plus ten per cent (10%), which are payable during the remainder of the then current- calendar, operating or fiscal - LE_