1987-11-09 Regular Meeting - Laserfiche WebLink

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e e ......-: - variation in the costs and expenses of operating and maintaining the Project or in the volume of Water delivered thereby, it may adjust the Budgeted Unit Expense by whatever amount is necessary, in the Board's opinion, provided (a) written notice with respect thereto, specifying the material facts involved, is given to the City and each of the other participants and (b) the adjustment shall not be effective until the first day of the second month following the receipt of such notice, ex- cept any adjustment resulting from action taken in any emergency and any decrease in the Budgeted Unit Expense may be made effective with the next monthly statement submitted to the City (and the other Participants). Section 6.07 The Authority is empowered to establish and fund such reserve funds as it deems necessary and prudent for the operation of the Authority's share of the Southeast Plant, the Transmission System, and the Distribution System. Amounts necessary to fund such reserve funds shall be chargeable to the City (and the other Participants) as a portion of the Budgeted Unit Expense. Said reserve funds may include (but not necessarily be limited to) a reserve fund for the payment of principal and interest on the bonds, an operating reserve fund, a con- tingency reserve fund, and a capital repair reserve fund. Said reserve funds may only be established by resolution or order adopted by the Board. Further, said reserve funds may be funded, in whole or in part, by proceeds from the sale of the Bonds, or by proceeds obtained by the Authority from authorized Operating Charges (or capacity charges, as the case may be) collected from all Participants. ARTICLE VII Billing and Payment Section 7.01 On or before the tenth (10th) day of each -23-