Establishing Three additional funds in the Sewage works area

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ORDINANCE NO. ~ ~ ~ ~• '~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND ESTABLISHING THREE ADDITIONAL FUNDS IN THE SOUTH BEND SEWAGE WORKS AREA Statement of Purpose and Intent This ordinance establishes three new "Reserve Funds " in the South Bend Sewage Works Area. Currently all rate revenues are received in Fund #641, the "Sewage Works Operations and Maintenance Fund" and flow through Fund #642, the "Sewage Works Depreciation Fund" and Fund #649, the "Sewage Works 1993 Bond Sinking Fund". To improve accounting efficiency and timely utilization of Reserve funds, the new funds created by this ordinance will establish three new reserve areas. Fund #646, the "1993 Sewage Works Revenue Bonds Reserve Fund"- represents the maximum annual debt service required for the 1993 Sewage Works Bonds. Fund #656, the "1998 Sewage Works State Revolving Loan Fund (SRLF) Revenue Bonds Reserve Fund"-represents the maximum annual debt service required (to be adjusted once final borrowing has been determined) to repay the 1998 Sate Revolving Loan, and Fund #657, the "Sewage Works SRLF Equipment Replacement Cost Reserve Fund"-represents a reserve for the collection system and plant equipment replacement cost required by the SRLF. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: Section I. Three new funds are hereby created within the budget for the City of South Bend, namely Fund #646, the "1993 Sewage Works Revenue Bonds Reserve Fund", Fund #656, the "1998 Sewage Works SRLF Revenue Bonds Reserve Fund", and Fund #657,the "Sewage Works SRLF Equipment Replacement Cost Reserve Fund". Section II. All sums of money collected and deposited in Fund #646, the "1993 Sewage Works Revenue Bonds Reserve Fund" and Fund #656, the "1998 Sewage Works SRLF Revenue Bonds Reserve Fund" will be by the issuance of a transfer of funds from Fund #641, the "Sewage Works Operations and Maintenance Fund". Monies collected and deposited in Fund #657, "Sewage Works SRLF Equipment Replacement Cost Reserve Fund" will be by the issuance of a transfer of funds from Fund #641, the "Sewage Works Operations and Maintenance Fund". This revenue shall be used solely for the purposes of safety, as a protection against default in the payment of principal and interest on the bonds for Funds #646 and #656. For Fund #657 the revenue shall be used for the purpose of replacement of the collection system and plant equipment of the South Bend Sewage Works. Section III. Any and all interest earned on monies deposited in Fund #646, the "1993 Sewage Works Revenue Bonds Reserve Fund", Fund #656, the "1998 Sewage Works SRLF Revenue Bonds Reserve Fund", and Fund #657 the "Sewage Works SRLF Equipment Replacement Cost Reserve Fund" may be moved to Fund #641, the "Sewage Works Operations