05-28-86 Meeting of the La Porte Area Water Authority Minutes (approved on 6-4-86)

Browse Search

(4) 10.123% of the maintenance and operation expenses of the Wallisville salt water barrier at the mouth of the Trinity River (the "Wallisville Project"), if and when it becomes operational; (b) All debt service of CW A bonds ($172,000,000 outstanding as of June 15,' 1986); (c) All debt service ofTRA Livingston Project bonds ($72,805,000 outstanding as ofJune 15, 1986); and (d) If completed, 16.168% of the capital costs of the Wallisville Project to be amortized over a period of 50 years plus interest thereon at the rate of 3.222%. Rate Covenant The City has covenanted in the Ordinance that so long as any Bonds remain Outstanding, it will fix, charge and collect amounts based on rates and charges for the use and services of the System which are calculated to be fully sufficient t(\ produl't' Net Revenues in each Fiscal Year, as defined in the Ordinance, at least equal to the sum of: (a) 120% of the principal and interest requirements scheduled to Occur in such Fiscal Year on all Prior Lien Bonds then Outstanding plus an amount equal to the sum of all deposits required to be made to the Prior Lien Bond Reserve Fund in such Fiscal Year; plus (b) 110% of the principal and interest requirements scheduled to Occur in such Fiscal Year on all Junior Lien Bonds then Outstanding. In no event shall Net Revenues ever be less than the amount required to establish and maintain the Prior Lien Bond Interest and Sinking Fund and the Prior Lien Bond Reserve Fund as provided in the Ordinance, to maintain the Junior Lien Bond Interest and Sinking Fund and the Junior Lien Bond Reserve Fund as provided in the Ordinance, and to the extent that funds for such purposes are not otherwise available, to pay all other outstanding obligations payable from the Net Revenues of the System as and when the same become due. The City has also covenanted that it will not grant or permit any-free service from the System except for public buildings and institutions operated by the City. Flow of Funds All Gross Revenues of the System must be deposited as collected into the Revenue Fund. Money from time to time on deposit to the credit of the Revenue Fund shall be applied as follows in the following order of priority: (a) First, to pay Maintenance and Operation Expenses, and to provide by encumbrance for the payment of all obligations incurred by the City for Maintenance and Operation Expenses and to establish and maintain an operating reserve equal to one month's estimated Maintenance and Operation Expenses; (b) Second, to make all deposits into the Prior Lien Bond Interest and Sinking Fund; (c) Third, to make all required deposits into the Prior Lien Bond Reserve Fund; (d) Fourth, to make all required deposits into the Junior Lien Bond Interest and Sinking Fund and Reserve Fund; (e) Fifth, to make all required deposits into the Renewal and Replacement Fund; (f) Sixth, to use for any lawful purpose. 4