9672-06 Authorizing the Acquistion and Installation of Improvements to the City's Sewage Works

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the payment of principal of and interest on the bonds, and the moneys in the Debt Service Reserve Account shall be used to pay current principal and interest on the bonds to the extent that moneys in the Bond and Interest Account are insufficient for that purpose. In the event moneys in the Debt Service Reserve Account are transferred to the Bond and Interest Account to pay principal and interest on bonds, then such depletion of the balance in the Debt Service Reserve Account shall be made up from the next available net revenues after the credits into the Bond and Interest Account hereinbefore provided for. Any moneys in the Debt Service Reserve Account in excess of the Debt Service Reserve Requirement shall be transferred to the Sewage Works Improvement Fund, and in no event shall such excess moneys be held in the Debt Service Reserve Account. The Debt Service Reserve Requirement, with respect to each series of the Bonds, shall be deemed to be satisfied if there is on deposit in the Sewage Works Reserve Account any surety bond, insurance policy, guaranty, letter of credit or other credit facility in any amount equal to the amount necessary to pay the principal of and interest on the respective series of the Bonds in the event that funds in the Bond and Interest Account are insufficient for such purpose, the issuer of which credit facility is rated at least "AAA" by Standard & Poor's Ratings Group or "Aaa: by Moody's Investor service. The Mayor and the Controller are hereby authorized to obtain such a credit facility for each series of Bonds being sold, and are authorized to enter into an agreement (the "Reserve Agreement") with the issuer of said credit facility and to negotiate the terms of said credit facility on the advice of the Financial Advisor. Section XII. Sewage Works Improvement Fund. On the first day of each calendar month after each series of the Bonds are issued, after meeting the requirements for operation, repair, and maintenance, and the Sewage Works Sinking Fund, all available net revenues shall be credited to the fund created under the Bond Ordinance and continued hereby, and designated as the "Sewage Works Improvement Fund". Said fund shall be used for improvements, replacements, additions and extensions of the Sewage Works. Moneys in the Sewage Works Improvement Fund shall be transferred to the Sewage Works Sinking Fund if necessary to prevent a default in the payment of principal 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 Sewage Works Sinking Fund. Section XIII. Books of Record and Accounts. The City shall keep proper books of record and accounts, separate from all of its other records and accounts, in which completed and correct entries shall be made showing all revenues collected from said works and deposited in said funds, and all disbursements made therefrom on account of the operation of the works, and to meet the requirements of the Sewage Works Sinking Fund, and alI other financial transactions relating to said works, including the amounts set aside or credited to the Sinking Fund, the Sewage Works Operation and Maintenance Fund and the Sewage Works Replacement Fund, and the cash balances in each of said funds and accounts described herein as of the close of the preceding fiscal year. There shall be prepared and furnished to the original purchaser or purchasers of the Bonds, and, upon written request, to any owner of the Bonds at the time then outstanding, not more than one hundred twenty (120) days after the close of each fiscal year, complete financial statements of the works, covering the preceding fiscal year, which annual BDDBOI 4347413v2 - 15 -