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Show PUBLIC HOTXCE 1975 17 APril Record Juan San The (Continued from page 14) Section 12. Period of Pro- and Sewer System Fund It Usefulness. is Income hereby jects (herein Fund), determined and recited that the Section 16. Administration of Income Fund. So long as period of usefulness of the facilities to be acquired with the any of the 1975 Bonds shall of the bonds herein be proceeds outstanding as to any Bond authorized is not less than 11 Requirements, the following years from the date of the payments shall be made from bonds. the Income Fund: Section 13. Bond Execution A. Operation and Mainteand Delivery. The Mayor, nance Expenses. Firstly, as Recorder and Treasurer of the a first charge thereon, there are authorized City hereby shall be set aside each month and directed to prepare and exas an operation and mainteecute the bonds as herein pronance fund such reasonable vided. When the bonds have percentage of the Income Fund been duly executed, the City as the City Council shall deTreasurer shall deliver them termine to be necessary and to the Purchaser on receipt reasonable to defray operaof the agreed purchase price. tion and maintenance expenses Section 14. Dispostition of of the joint system. Any surBond Proceeds. plus remaining at the end of the fiscal year and not needed A. Accrued Interest. All for operation and maintenance moneys received as accrued interest at the time of delivpurposes, shall be transferred to the Income Fund and be used of bonds or the any porery for the purposes thereof, as tion thereof shall be credited to the 1975 Bond Fund, hereherein provided. The term " inafter created, to apply on the operation and maintenance as used in this bonds payable therefrom. expenses, B. Acquisition Fund. The ordinance, means all reasonable and necessary current the derived from sale proceeds of the bonds promptly upon the expenses of the City, paid or accrued, of operating, mainreceipt thereof shall be credited to a separate account taining and repairing the joint which shall be known as the system. Joint Electric, Water and Sewer Improvement Revenue Bonds, Series April 1, 1975, Acquisition Fund (herein the The Acquisition Fund). the in Acquisition moneys Fund, except as herein otherwise specifically provided, shall be used solely for the Moneys shall be Project. withdrawn from the Acquisition Fund for the Project, only upon warrants drawn upon the City Treasurer, signed by the City Recorder, and countersigned by the Consulting Engineer or any successor thereof designated by the City Council; provided that in the case of any purchase or other acquisition, the countersigning may be by the City Attorney or other appropriate person (instead of the Consulting Engineer). No such warrant for any sum for construction work shall be issued until the Council has received engineering approval from the Consulting Engineer certifying that such sum is due and owing for such construction, nor shall such warrant be issued until the Council has adopted a resolution accepting such certificate and directing the drawing of such warrant. C. Completion of Project. When the Project shall have been completed in accordance with the plans and specifications therefor, and when all amounts due therefor, including all proper incidental expenses, shall have been paid, the Consulting Engineer shall file a certificate so stating, and thereupon the treasurer shall transfer to the 1975 Bond Fund, hereinafter created, all moneys remaining in the Acquisition Fund, if any. D. Purchaser Not Responsible. But the purchaser of the bonds shall in no manner be responsible for the application or disposal by the City or by its officers of the funds derived from the sale of the bonds or of any other funds herein designated. Section 15. Income Fund. So long as any of the 1975 Bonds shall be outstanding as to any Bond Requirements, all income and revenues derived from the operation of the joint system shall continue to be credited to a special account heretofore created by Ordiand desig-- nance No. nated City of Blanding Gross Income Joint Electric, Water 1959-- 1 B. Principal, Interest and Reserve Requirements for Secondly, after provision is made for operation and maintenance as aforesaid, there shall be set aside and paid monthly the amounts required by paragraphs B and C of Section 12 of Ordinance No. 1959-- 1, such payments to be from net revenues (i.e., of the moneys remaining in the Income Fund after payment only of operation and maintenance expenses). 1959 C. Bonds. Principal and Interest Payments for 1975 Bonds. Thirdly, after provision is made for the aforesaid payments, from such net revenues (i.e., of the moneys remaining in the Income Fund after payment only of operation and maintenance expenses and provision for the 1959 Bonds), there shall be credited to a separate account hereby created and to be known as the City of Blanding, Utah, Joint Electric, Water andSewer Improvement Revenue Bonds, Series April 1, 1975, Interest and Bond Retirement Fund 1975 Bond Fund"), (herein the following: (1) Monthly, commencing on the first day of the month im- mediately succeeding the first or only date on which any of the bonds are delivered, an amount in equal monthly in- stallments necessary, to- gether with any moneys therein and available therefor, to pay the next maturing installment of interest on the 1975 bonds then outstanding, and monthly thereafter, commencing on said interest payment date, of the amount necessary to pay the next maturing installment of interest on the outstanding 1975 bonds. (2) Monthly, commencing on the first day of the month im- one-six- th mediately succeeding the first or only date on which any of the 1975 bonds are delivered, an amount in equal monthly installments necessary, together with any moneys therein and available therefor, to pay the next maturing installment of principal on the outstanding 1975 bonds, and monthly thereafter, commencing on said of payment date, the amount necessary to pay the next maturing installment of principal on the 1975 bonds. D. 1975 Reserve Fund Payments. Fourthly, into a separate account hereby created. one-twelf- th to be kept separate from all other accounts and to be known as the City of Blanding, Utah, Joint Electric, Water and Sewer Improvement Revenue Bonds, Series April 1, 1975, Reserve Fund (herein sometimes referred to as the 197 5 Reserve Fund or Reserve Fund), from any moneys remaining in the Income Fund there shall be set aside and paid annually at least $8,000 per year commencing not later than the first day of April, 1976 and on April 1, in each 1977 through of the years 1980, until a reserve has been accumulated in an amount equal to not less than $40,000 (herein 1975 Minimum After the 1975 Minimum Reserve has been accumsuch amounts or ulated, if amount, any, shall be deposited annually from any moneys remaining in the Income Fund into the Reserve Fund necessary to maintain the 1975 Reserve Fund as a continuing reserve in an amount not less than the 1975 Minimum Reserve to meet possible' deficiencies in the 1975 Bond Fund. No payment need be made into the 1975 Reserve Fund so long as the moneys therein shall equal Re-erv- e). not less than the 1975 Minimum Reserve. The moneys in the 1975 Reserve Fund shall be accumulated and maintained as a continuing reserve to be used, except as hereinafter provided in paragraph E and F of this Section 16, only to prevent deficiencies in the payment of the Bond Requirements on the 1975 Bonds hereby au- thorized resulting from the failure to deposit into the 1975 Bond Fund sufficient funds to pay such Bond Requirements as the same accrue. E. Termination Upon Deposits to Maturity. No payment need be made into the 1975 Bond Fund, the 1975 Reserve Fund, or both, if the amounts in the designated two funds total a sum at least equal to the entire amount of the outstanding 1975 Bonds, as to all Bond Requirements to their respective maturities or due dates, and both accrued and hot accrued, in which case, moneys in such two funds in an amount at least equal to such Bond Requirements shall be used solely to pay such as the same accrue, and any moneys in excess thereof in such funds and any other moneys derived from the operation of the system may be used in any lawful manner determined by the Council. F. Defraying Delinquencies in 1975 Bond and Reserve Funds. If, in any month, the City shall, for any reason fail to pay into the 1975 Bond Fund the full amount above stipulated from the net revenues of the joint system, then an amount shall be paid into the 1975 Bond Fund in such month from the 1975 Reserve Fund equal to the difference between that paid from such portion of the net income and the full amount so stipThe money so used ulated. shall be replaced in the 1975 Reserve Fund from the first revenues thereafter received from the operation of the joint system, not required to be otherwise applied. If, in any year, the City shall, for any reason, fail to pay into the 1975 Reserve Fund the full amount above stipulated from the net income, the difference between the amount paid and the amount so stipulated shall in a like manner be paid therein from the first revenue thereafter received from the operation of the system not required to be otherwise applied. The money in the 1975 Bond Fund and the 1975 Reserve Fund shall be used solely and only for the purpose of paying the Bond Requirements of the 1975 bonds; but any moneys at any time in excess of the Minimum Reserve of the 1975 Reserve Fund may be withdrawn therefrom and used for the redemption of the 1975 Bonds as they become due or on any redemption date; and any moneys in the 1975 Bond Fund and the 1975 Reserve Fund in excess of accrued and unaccrued Bond Requirements to the respective maturities or due dates of the outstanding bonds may be used as hereinabove provided in paragraph E of this Section 16. G. Payment of Additional Obligations. Fifthly, any balance remaining in the Income Fund, after provision is made for the aforesaid payments, may be used by the City for the payment of interest on and the principal of additional bonds or other obligations hereafter authorized to be issued and payable from the revenues of the joint system, including reasonable reserves therefor, as the same accrue; but the lien of such additional bonds or other obligations on the net income and revenues of the joint system and the pledge thereof for the payment of such additional obligations shall be on a parity with, or subordinate to, the lien and pledge of the 1975 Bonds, as hereinafter provided. H. Use of Surplus Revenues. After making the payments hereinabove required to be made by paragraphs A to G, inclusive, of this Section 16 hereof, any remaining income and revenues derived from the operation of the joint system in the Income Fund shall be used for any one or any combination of purposes, as follows: (1) For the prior redemption of the bonds or any other outstanding bonds or other obligations incurred and payable from the revenues of the joint system, in accordance with the provisions of the bonds or other obligations and the ordinance authorizing their issuance, including, but not necessarily limited to this ordinance but not in excess of a price at which such bonds or other obligations can be purchased in the open market, and (2) For the improvement and extension of the joint system and (3) As the City Council at its option may from time to time determine and direct. Section 17. General Administration of Funds. The funds and accounts hereinabove designated shall be administered as follows: A. Places and Times of Deposits. Each of the special accounts expressly designated in this ordinance shall be maintained and kept as a book account separate from all other accounts as a trust account solely for the purposes herein designated therefor, which special book accounts shall be in one bank account or more, in a bank or banks which are members of the Federal Deposit Insurance Corporation of the Federal Reserve System, and are qualified depositories for public funds under the laws of the State (herein Insured desas and determined Bank) the Council. Each ignated by such trust account shall be continuously secured to the fullest extent required or permitted by the laws of the State for the securing of public funds and shall be irrevocable and not withdrawable by anyone for any purpose other than the respective designated purposes. Each periodic payment shall be credited to the proper account not later than the date therefor herein designated, but when any such date shall be a Saturday, a Sunday or a legal holiday, then such payment shall be made on or before the next preceding secular day. Notwithstanding any other provision herein to the contrary, moneys shall be deposited with the Paying Agent at least five (5) days prior to each interest payment date herein designated sufficient to pay the Bond Requirements then becoming due on the outstanding bonds. B. investment of Moneys. Any moneys in any account expressly designated in this ordinance, and not needed for immediate use, may be invested or reinvested by the City Treasurer by deposit in one or more Insured Banks, and in Federal Securities which either (1) shall be subject to redemption at any time at a fixed value by the holder thereof at the option of such holder, shall mature not later than days prior to the date or respective dates on which the proceeds are to be expended as estimated upon each date of such investment or reinvestment, but Federal Securities in the Reserve Fund shall so be subject to redempor (2) 5 tion at the holders option at face value or shall mature at least five days prior to the last maturity date of the outstanding bonds. For the purpose of any such investment or reinvestment, Federal Securities shall be deemed to mature at the earliest date on which the obligor is, on demand, obligated to pay a fixed sum in discharge of the whole of such obligations. Federal Securities so purchased as an investment or reinvestment of moneys in any such account shall be deemed at all times to be a part of the account, and any interest accruing thereon and any other gain realized therefrom, as well as any interest and other gain from the deposit of moneys in an Insured Bank shall be credited to the account, and any loss resulting from such investment or reinvestment in Federal Securities or in a bank shall be charged to the account; but any yield from investments or reinvestments of moneys in the Reserve Fund in excess of the Minimum Bond Reserve shall be credited to the Bond Fund as the same is received and shall be used to pay the principal of, or interest on the 1975 Bonds. The Treasurer shall present for redemption or sale on the prevailing market at the best price obtainable any Federal Securities and certificates of deposit so purchased as an investment or reinvestment of moneys in the account whenever it shall be necessary so to do in order to provide moneys to meet any withdrawal, payment or transfer from such account; provided, that amounts in the 1975 Reserve Fund shall be maintained, invested and such allowable investments presented for redemption or sale in securities which are allowable by this Section and to redeem or sell such securities in order to meet any deficiency in the 1975 Bond Fund. C. Character of Funds. The moneys in any account herein authorized shall consist either of lawful money of the United States of America or Federal Securities, or both such money and such securities, except as herein otherwise expressly provided. Moneys deposited in a demand or time deposit account in or evidenced by a certificate of deposit of an In- sured Bank appropriately secured according to the laws of the State shall be deemed lawful money of the United (Continued on page 16) |