05-26-09 Common Council Meeting Agenda & Packet

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funds that would have been set aside above to replenish the Debt Service Reserve Account. Repayment of the Credit Facility Costs shall commence in the first month following each draw, in an amount equal to no less than one twelfth (1/12) of the aggregate Credit Facility Costs related to such draw ("Monthly Installments"). Each Monthly Installment shall be deposited by the City into the Debt Service Reserve Account, and then payments shall be made from the Debt Service Reserve Account to pay Credit Facility Costs. (1) If and to the extent cash has been deposited to the Debt Service Reserve Account (other than Monthly Installments to pay Credit Facility Costs), all such cash (or permitted investments) shall be used prior to any drawing under the Credit Facility, and repayment of any Credit Facility Costs shall be made prior to replenishment of any such cash amounts. (m) If, in addition to the Credit Facility, any other reserve account substitute instrument ("Additional Credit Facility") is provided, drawings under the Credit Facility and any such Additional Credit Facility, and repayment of Credit Facility Costs and reimbursement of amounts due under the Additional Credit Facility, shall be made on a pro-rata basis (calculated by reference to the maximum amounts available thereunder) after applying all available cash in the Debt Service Reserve Account and prior to replenishment of any such cash draws, respectively. (n) Inasmuch as the Reserve Requirement pertaining to the 1997 Bonds, the 2000 Bonds and the 2006 Bonds is currently being satisfied by the 2002 Reserve Insurance Policy and 2006 Reserve Insurance Policy, the City with the advice of the Financial Advisor and Bond Counsel, may satisfy the Reserve Requirement pertaining to the 2009 Bonds as follows: (i.) by amending the terms of either the 2002 Reserve Insurance Policy or the 2006 Reserve Insurance Policy to expand the scope of either the 2002 Reserve Insurance Policy or the 2006 Reserve Insurance Policy to include the 2009 Bonds, and by adjusting the Policy Limit of the 2002 Reserve Insurance Policy or the 2006 Reserve Insurance Policy accordingly; or (ii.) by obtaining a separate Additional Credit Facility covering the Reserve Requirement attributable to the 2009 Bonds; or (iii.) by funding the Reserve Requirement attributable to the 2009 Bonds in cash funds deposited into the Debt Service Reserve Account either (i) in a single payment, to be paid on the date of the issuance of the 2009 Bonds, or (ii) in equal monthly installments, over a period not to exceed sixty (60) months after the date of issuance of the 2009 Bonds, with the first installment due and payable on the date of the issuance of the 2009 Bonds, and the remaining installments payable on the last day of each calendar month, commencing on the last day of the month in which the 2009 Bonds are issued. SECTION 15. Improvement Fund. After meeting the requirements of the Operation and Maintenance Fund and the Sinking Fund, any excess revenues maybe transferred -22-