1991-11-01 - Laserfiche WebLink

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f The City covenants that, (a) in the event that System Revenues, including Sales Tax Revenues, received and deposited should fail to equal at least one-half of System Revenues necessary to comply with the annual requirements set forth above for any period of six months, the City shall adopt an ordinance or ordinances within thirty days enacting rates for System services which shall cause sufficient System Revenues to be produced and (b) Operating Revenues exclusive of Sales Tax Revenues shall always equal at least the amounts required to pay costs of operation, maintenance and repair of the System. Nothing herein shall be construed as a pledge of Sales Tax Revenues or as an obligation of the City to appropriate Sales Tax Revenues to any purpose hereunder. Section 8 . The Manager of the System shall be custodian of the System Revenues and shall give bond for the faithful discharge of his duties as such custodian. The System shall be continuously operated as a revenue-producing undertaking. All System Revenues, as received by the Manager, shall be deposited by him or her in such depository or depositories for the City as may be lawfully designated from time to time by the Commission; subject, however, to the giving of security as now or hereafter may be required by law, and provided that such depository or depositories shall hold membership in the Federal Deposit Insurance Corporation ("FDIC") or any successor entity. All deposits shall be in the name of the City and shall be so designated as to �. indicate the particular fund to which the System Revenues belong. Any deposit in excess of the amount insured by the FDIC shall be secured by direct or fully guaranteed obligations of the United States of America unless invested as herein authorized. Section 9 . All Operating Revenues shall be deposited into a special fund hereby created and designated "Water and Sewer Revenue Fund, " in a bank selected by the Commission that is a member of the FDIC. Revenues in the Water and Sewer Revenue Fund are hereby pledged and shall be applied to the payment of the reasonable and necessary expenses of operation and maintenance of the System, to the payment of the principal of and interest on the Series 1991 Bonds, to the maintenance of Debt Service Reserves at required levels, to the providing of the Depreciation Fund, and otherwise as described herein. Section 10. There shall be paid, beginning after the first full month following issuance of the Bonds, from the Water and Sewer Revenue Fund into a fund hereby created and designated Water and Sewer Operation and Maintenance Fund (the "Operation and Maintenance Fund") , in a bank selected by the Commission that is a member of the FDIC, on the first business day of each month, an amount sufficient to pay the reasonable and necessary monthly expenses of operation, repair and maintenance of the System for such month and from which disbursements shall be made only for those purposes. Fixed annual charges such as insurance premiums and the cost of major repair and maintenance expenses may be tc\ny\b.tci.aaz —15—