1985-08-28 Special Called Meeting

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• • (3) To generate in each year Net Revenues equal to one and twenty-five hundredths (1-25/100) times the maximum annual requirement for the payment of the principal of and interest on the Bonds and any Additional Bonds at the time outstanding and payable from the revenues of the System (although amounts shall be paid into the interest and Sinking Fund only in accordance with this Ordinance); and (9) To pay all indebtedness other than bonds outstanding against the System as and when the same become due; and (b) deposit as collected all revenues derived from the operation of the System into the System Fund which shall be kept separate and apart from all other funds of the City. '" Flow of Funds Interest and Sinking Fund From the Net Revenues available in the System Fund, the City shall make substantially equal monthly payments into the Interest and Sinking Fund during each year in which any of the Bonds are outstanding, commencing with the date of delivery of the Bonds to the initial purchasers thereof, in an aggregate amount equal to one hundred percent (1008) of the amounts required to meet the interest and principal payments falling due on or before the next maturity date of the Bonds. The City shall, at least five days prior to March 15, 1986 and each September 15 and March 15 thereafter deposit into the Interest and Sinking Fund any additional Net Revenues available in the System Fund which may be necessary to pay in full the interest on and principal, if any, coming due on such September 15 and March 15. Reserve Fund There shall be accumulated in the Reserve Fund an amount equal to the maximum annual principal, and interest requirements on the Bonds. Such amount shall be accumulated by the deposit into the Reserve Fund in each year twenty-five percent (258) of the amount required to be deposited into the Interest and Sinking Fund and such deposit shall be in substantially equal monthly installments commencing with the date of delivery of the Bonds to the initial purchasers thereof.* The Reserve Fund shall be used to pay the principal of and interest on the Bonds at any time when there is not sufficient money available in the Interest and Sinking Fund for such purpose. *As of September ...., 1985, the City had on deposit in the Reserve Fund $442,500, an amount equal to 509 of the estimated maximum annual debt service requirements on the Bonds (occurring in 1986). Additional Parity Bonds In addition to inferior lien bonds authorized by Article llllb, Vernon's Texas Civil Statutes, as amended, the City expressly reserves the right hereafter to issue additional parity bonds and other evidences of indebtedness now or hereafter authorized by the Legislature of Texas, (collectively, the "Additional Bonds") and the Additional Bonds, when issued, may be secured by and payable from a first lien on and pledge of the Net Revenues of the System in the same manner and to the same extent as are the Bonds authorized by this Ordinance, but subject to the remaining provisions hereof, and the Bonds authorized herein and the Additional Bonds may in all respects be of equal dignity. It is provided, however, that no Additional Bonds shall be issued unless: (a) An independent firm of certified public accountants, based upon an annual audit of the books of the System, certifies that the net earnings of the System for _ the fiscal year next preceding the month in which the ordinance authorizing such Additional Bonds is adopted were equal to each of the following determined independently: (i) at least one and one-half (1-1/2) times the average annual requirements for the payment of principal and interest on the then outstanding bonds and other evidences of indebtedness payable from the revenues of the System and on such Additional Bonds, when issued, sold, and delivered; and ~y