Autthorizing the acquistion, construction, and installation of certain improvements and extensions to sewage works, the issuance and sale of additional revenue bonds

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replacements, improvements, extensions or additions. Any balance in said fund in excess of the expected expenses of operation, repair and maintenance for the next succeeding month may be transferred to the Sewage Works Sinking Fund referred to below if necessary to prevent a default in the payment of principal or interest on outstanding bonds. Section 11. Sewage Works Sinking Fund. There shall be deposited from the Revenue Fund into the "Sewage Works Sinking Fund," created under the 1993 Bond Ordinance and continued hereby, for the payment of the interest on and principal of revenue bonds which by their terms are payable from the revenues of the Sewage Works, and the payment of any fiscal agency chazges in connection with the payment of such bonds and interest thereon, a sufficient amount of the net revenues of said Sewage Works (defined as gross revenues of the sewage works after deduction only for the payment of the reasonable expenses of operation, repair and maintenance) to meet the requirements of the Bond and Interest Account and the Debt Service Reserve Account each created under the 1993 Bond Ordinance and continued hereby, in said Sewage Works Sinking Fund. Such payments shall continue until the balance in the Bond and Interest Account, plus the balance in the Debt Service Reserve Account, equals the principal of and interest on all of the then outstanding bonds to the final maturity thereof. (a) Bond and Interest Account. Beginning with the first calendar month following the date of issuance of the 1998 Bonds herein authorized, there shall be credited on the first day of each calendaz month to the Bond and Interest Account an amount equal to the sum of one-sixth (1/6) of the interest on all then outstanding bonds payable during the then next succeeding six calendaz months and one-twelfth (1/12) of the principal on all then outstanding bonds payable during the then next succeeding twelve calendar months; provided that such fractional amounts shall be appropriately increased, if necessary, to provide for the first interest and first principal payments. There shall similazly be credited to the account the amount necessazy to pay the bank fiscal agency chazges, if any, for paying principal and interest on the bonds as the same become payable. The City shall, from the sums deposited in the Sewage Works Sinking Fund and credited to the Bond and Interest Account, remit promptly to the bank fiscal agency sufficient moneys to pay the principal and interest on the due dates thereof together with the amount of any bank fiscal agency chazges. -18- ::ODMA\PCDOCS\SBDOCS 1 \ 14947\3