Resolution 3650 - Laserfiche WebLink

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• (b) The City has heretofore established a Water and Sewer System Fund (the "Water and Sewer Fund") together with certain accounts therein, includinj a Water and Sewer Bond Account, for the purpose of accounting`for revenues of the Water and Sewer System, expenses of operation, and the payment of bonds heretofore issued. From the net revenues of the Water and Sewer System, there shall be credited to the Water and Sewer Bond Account amounts su�cient, together with collections of special assessments for the Improvement, to pay principal of and interest on the Bonds when due and payable. (c) After making the required payments into the Water and Sewer Bond Account, all remaining net revenues in the Water and Sewer Fund shall be used for improvements, extensions, reconstruction or additions to the Water and Sewer System, and to redeem outstanding obligations payable from the net revenues of the Water and Sewer System, or to the extent authorized by the City Council for any other lawful purpose; provided that the City Council shall first determine that the moneys and investments remainin� in said fund and net revenues from collections of such charges and special assessments for the Improvement in succeeding years will be in amounts and available at times sufficient to provide for all remaining installments of principal and interest on the Bonds and any additional obligations payable therefrom and a sum at least 5% in excess thereof. If the moneys and investments credited to the Water and Sewer Bond Account shall be or become insufficient to pay principal and interest on the Bonds (and any additional obligations authorized hereby), any moneys in the General Fund of the City shall be credited to the Water and Sewer Bond Account to the extent . . of such deficiency and the amount so credited shall thereafter be reimbursed first from special assessments for the Improvement, and next from the net revenues of the Water and Sewer System. (d) It is hereby estimated, found and determined that the said collections of net revenues derived from the Water and Sewer System, together with the special assessments for the Improvement, will be sufficient to pay when due principal of and interest on the Bonds and a sum at least 5% in excess thereof, and no tax levy will be required for such payment; but the said Bonds shall be the general obligation of the City, and the City will levy a general ad valorem tax for the payment of the principal thereof and interest thereon whenever it may appear necessary in order to provide for the full and timely payment thereof. 12. The Bonds and any obligations hereafter issued payable from the special assessments for the Improvement and the net revenues of the Water and Sewer System, to the extent authorized by this paragraph 12, shall be equally and ratably secured by a first lien on and pledge of the net revenues of the Water and Sewer System and the special assessments for the Improvement, without regard to Bond series, serial numbers, order of execution or otherwise. The City shall have the right to issue additional obligations to be secured by a parity lien on and ratably payable from the net revenues of the Water and Sewer System and the special assessments for the Improvement for the purpose of providing money for improvements � -12-