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r! « <br />(b) The City has heretofore established a Water and Sewer System Fund (the <br />Water and Sewer Fund ) together with certain accounts therein, including a VV'ater and Sewer <br />Bond Account, for the purpose of accounting for revenues of the VV'ater and Sewer System, <br />expenses of operation, and the payment of bonds heretofore issued From the net revenues of <br />the WatCT and Sewer System, there shall be credited to the Water and Sewer Bond Account <br />amounts sufficient, together with collections of special assessments for the Improvement, to <br />pay principal of and interest on the Bonds w hen due and payable <br />(c) After making the required payments into the Water and Sewer Bond <br />Account, all remaining net revenues in the Water and Sewer Fund shall be used for <br />improvements, extensions, reconstruction or additions to the VV'ater and Sewer System, and to <br />redeem outstanding obligations pa> able from the net revenues of the Water and Sewer System, <br />or to the extent authonzed by the City Council for an>- other lawful purpose, provided that the <br />City Council shall first determine that the moneys and investments remaining m said fund and <br />net revenues trom collections of such charges and special assessments for the Improvement in <br />succeeding years will be in amounts and available at times sufficient to provide for all <br />remaining installments of principal and interest on the Bonds and any additional obligations <br />payable therefrom and a sum at least 5% in excess thereof If the moneys and investments <br />credited to the VV'ater and Sewer Bond Account shall be or become insufficient to pay principal <br />and interest on the Bonds (and any additional obligations authorized hereby), any moneys m the <br />General Fund of the City shall be credited to the VV'ater and Sew er Bond Account to the extent <br />of such deficiency and the amount so credited shall thereafter be reimbursed first from special <br />assessments for the Improvement, and next from the net revenues of the VV'ater and Sew er <br />System <br />(d) It is hereby estimated, found and determined that the said collections of <br />net revenues derived from the VV atei and Sewer System, together with the special assessments <br />for the Improvement, will be sufficient to pay when due principal of and interest on the Bonds <br />and a sum at least 5% m excess thereof, and no tax levy will be required for such payment; but <br />the said Bonds shall be the general obligation of the City, and the City ’ will levy a general ad <br />v alorem tax for the payment of the principal thereof and interest thereon w henev er it may <br />appear necessary'm order to prov ide for the full and timely payment thereof <br />12 1 he Bonds and any obligations hereafter issued payable from the .special <br />asse.ssments for the Improv ement and the net rev enues of the Water and Sew er System, to the <br />extent authorized by this paragraph 12, shall be equally and ratably secured by a first lien on <br />and pledge of the net revenues of the Water and Sewer System and the special assessments for <br />the Improv ement, without regard to Bond series, serial numbers, order of execution or <br />otherwise The City shall have the right to issue additional obligations to be secured by a parity <br />hen on and ratably payable from the net revenues of the VV'ater and Sewer System and the <br />special assessments for the Improvement for the purpose of providing money for improv ements <br />-12- <br />J