O-1991-1755 - Laserfiche WebLink

Browse Search

e e and maintenance of the System, including all salaries, labor, material, repairs, and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the System in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise Impair the Parity Bonds shall be deducted in determining the "Net Revenues". Depreciation and payments into and out of the Interest and Sinking Fund and the Reserve Fund shall never be considered as expenses of operation and maintenance. (1) The term "Parity Bonds" shall mean collectively the Previously Issued Parity Bonds, the Bonds, and any Additional Bonds. (D The term "Parity Bonds Ordinances" shall mean collectively the ordinances au thorlzlng the Previously Issued Parity Bonds, the Bonds, and any Additional Bonds. (k) The term "Previously Issued Parity Bonds" shall ~ean the outstanding "City of La Porte, Texas, Waterworks and Sewer' System Revenue Bonds, Series 1985" originally issued in the aggregate principal amount of $6,000,000 and th~ "City of La Porte, Texas, Waterworks and Sewer System Revenue Bonds, Series 1990, originally issued il1 the aggregate principal amount of $2,100,000. (1) The term "Reserve Fund" shall mean that, fund described in Section 12 hereof. (m) T'he term "System" shall mean the City's entire existing waterworks and sanity sewer system, together with all future extensions, enlargements, additions, replacements, and improvements thereto. (n) The "System Fund" shall mean that fund described in Section 10 hereof. (0) The term "Year" or "fiscal year" shall mean the regular fiscal year used by the City In connection with the operation of the System, which may be any 12 consecutive months period established by the City. SECTION 8. PLEDGE. The Parity Bonds, redemption premium, if any, and any interest payable thereon, are and shall be secured by and payable from a first lien on and pledge of the Net Revenues, and the Net Revenues are further pledged irrevocably to the establishment and maintenance of the Funds created by the Parity Bonds Ordinances. The Parity Bonds are not and will not be secured by or payable from a mortgage or deed of trust on any real, personal, or mixed properties constituting the System. The Registered Owner of the Parity Bonds shall never have the right to demand payment of such obligations out of any funds raised or to be raised by taxation, or from any source whatsoever other than the Net Revenues. This Ordinance shall not be construed as requiring the City to expend any funds which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the City 12