1991-11-01 - Laserfiche WebLink

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(g) To the extent that the level of the Debt Service Reserve exceeds the Required Level, determined as set forth in Section 22 hereof, such excess shall be invested, if invested, at a yield not in excess of the yield on the Bonds (of the series to which applicable) . For this purpose, "yield" shall be determined as set forth in Section 148 of the Internal Revenue Code of 1986, as amended, and regulations issued or otherwise effective thereunder. Section 12 . After making the required payments into the Operation and Maintenance Fund the Bond Fund, and beginning after the first full month following issuance of the Bonds, there shall be paid from the Water and Sewer Revenue Fund into a fund hereby created and designated Waterworks Depreciation Fund (the "Depreciation Fund") , in a bank, selected by the Commission, that is a member of the FDIC, on the first business day of each month while any of the Series 1991 Bonds are outstanding, a sum equal to one-twelfth (1/12) of the amount necessary, as estimated by the Manager of the System to pay for new construction and acquisition, for major replacements, and for extraordinary repairs to the System during the next ensuing fiscal year. The City shall cause the Manager to file annually with the Trustee, at least fifteen days before the last day of each fiscal year, a statement, which shall set forth the factors and assumptions on which such determination is based, specifying the estimated amount necessary to be expended in the next ensuing fiscal year to pay for new construction and acquisition, major replacements, and for extraordinary repairs to the System. The moneys in the Depreciation Fund shall be used solely for such purposes and for the purpose of paying costs of damage caused by unforeseen catastrophes, except that moneys in the Depreciation Fund shall be used to the extent necessary at any time to prevent default in the payment of principal, interest, and Trustee's and Paying Agent's fees on the Series 1991 Bonds. (It is not expected that moneys remaining in the Depreciation Fund would be sufficient to prevent such a default. ) If in any fiscal year a surplus shall be accumulated in the Depreciation Fund over and above the amount which shall be necessary to cover probable replacement costs during the current fiscal year and the next ensuing fiscal year, such surplus may be transferred to the Bond Fund, to the extent of any deficit therein, and, in the absence of any such deficit, to the Revenue Fund. Section 13 . Any surplus in the Water and Sewer Revenue Fund, after making all disbursements required by the provisions of this Ordinance and making full provision for the funds herein provided, may be used, at the option of the City, for the redemption of the Bonds, prior to maturity in accordance with their respective redemption provisions; for constructing extensions, betterments and improvements to the System; or for any other lawful municipal purpose. Section 14 . So long as any Series 1991 Bonds are outstanding under the provisions of this Ordinance, the City shall «\JmykmLci.oU -18—