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<br />CITY OF LA PORTE, TEXAS <br />Notes to the Financial Statements <br />September 30, 2008 <br /> <br />5. Long Term Liabilities - Continued <br /> <br />Revenue Bonds - <br /> <br />Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and <br />pledge of the net revenues of the water and sewer system. <br /> <br />The Revenue Bonds are collateralized by the revenue of the water and sewer system and the various <br />special funds established by the bond ordinances. The ordinances provide that the revenue of the system is <br />to be used first to pay operating and maintenance expenses of the system and second to establish and <br />maintain the Revenue Bond funds. Remaining revenues may then be used for any lawful purpose. The <br />ordinances also contain provisions, which, among other items, restrict the issuance of additional Revenue <br />Bonds unless the special funds noted above contain the required amounts and certain financial ratios are <br />met. The City is in compliance with all significant financial requirements as of September 30, 2008. <br /> <br />Below is a reconciliation of the various restricted cash and cash investments: <br /> <br />Current Maturities of Revenue Bonds <br />Customer Deposits Payable <br />Total Restricted Cash and Cash Investments <br />as of September 30,2008 <br /> <br />$ 875,069 <br />542,949 <br /> <br />$1,418,018 <br /> <br />62 <br />