Hope Star from Hope, Arkansas on December 16, 1977 · Page 15
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Hope Star from Hope, Arkansas · Page 15

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Hope, Arkansas
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Friday, December 16, 1977
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Page 15
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Friday, December ifi, 1377 HOPE (ARjO STAR LEGAL NOTICE the ORDINANCE NO. %5 AN ORDINANCE AUTHORIZING T1IF ISSUANCE OF WATER AN I) KI.ECTRIC REVENUE BONDS FOR THE PURPOSE OF FINANCING A PORTION OF THE COSTS OF CON- STR UCTING EXTENSIONS BETTERMENTS AND IMPROVEMENTS TO THE SYSTEM (DESCRIBED IN THE ORDINANCE); PROVIDING FOR THE PAYMENT OF THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; and declaring an emergency. WHEREAS, the City of Hope, Arkansas (the "City"), owns and operates water and electric facilities as a single municipal undertaking (the "System") under the control and management of the City's Water and Light Commission (the"Commission"); and WHEREAS, it has been determined by the Commission; upon due investigation, and , upon recommendation and advice of the Commission, it has been determined by the Board of Directors, that the existing System should be improved and that certain extensions, betterments and improvements thereto should be constructed (the "improvements"); and WHEREAS, there has been prepared by a duly qualified consulting engineer a preliminary report and estimates of cost of the improvements; and WHEREAS, the City can provide for the payment of costs of accomplishing the improvements, with costs incidental thereto and incidental to issuance of the bonds, by obtaining federal grant funds (in the amount of $113,000) and by issuing water and electric revenue bonds (in the principal amount of $452,000); and WHEREAS, the City has received the offer of Economic Development Administration, United States Department of Commerce (the "Government") for the purchase of the City's water and electric revenue bonds, in the principal amount of $452,000, at a price of left* on the * dollar for; bonds' bearing interest at the rate of 5% per annum, and it has been determined that acceptance of the offer is plainly in the interest of the City: NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Hope, Arkansas: Section l. The improvements shall be accomplished. The Board of Directors hereby finds and declares that the period of usefulness of the System after the completion of the improvements will be more than forty (40) years, which is longer than the term of the bonds. Section 2. The sale of $452,000 in principal amount of bonds to the United States of America, Economic Development Administration, at a price of par and accured interest for bonds bearing interest at a rate of 5% per annum is hereby approved and confirmed. Section 3. The City has outstanding an issue of Water and Electric Revenue Bonds, dated April l, 1952 and an issue of Water and Electric Revenue Bonds, dated January 1, 1954 (referred to collectively as the "previous bonds"). The pledge, lien and security in favor of the bonds now being issued is subject" ftf 1 the" pridr" and superior pledge and lien of the previous bonds. Nothing herein shall be construed in any manner to impair the security of the previous bonds, but when the previous bonds are paid (or the required provision made therefor), the pledge, lien and security in favor of the bonds now being issued shall be a first and prior pledge, lien and security on the System and on System revenues. Additionally, the City expressly covenants and agrees that the City will not at any time issue or attempt to issue bonds rankinkg or claimed to rank on a parity of security with the previous bonds. Section 4. Under the authority of the Constitution and laws of the State of Arkansas, including particularly Act No. 131 of 1933, as amended, Act No. 305 of 1967 and the applicable decisions of the Supreme Court of the State of Arkansas, including particularly City of Harrison v. Braswell, 209 Ark. 1094,194S.W. 2d 12 (1946), there is hereby authorized and ordered issued City of Hope, Arkansas, Water and Electric Revenue Bonds in the aggregate principal amount of $452,000 (the "bonds"; for Uifc purpose of accomplishing improvements, paying necessary expenses incidental _ (hereto and paying the ex- PPnses of authorizing and 'sluing the bonds The bonds shall be dated December l 1977. shall bear interest at the rate of 5% per annum, interest shall be payable semi-annually on June l and December l of each year, commencing June 1. 1978. and the principal shall mature on December l in each of the years 1978 to 1998 inclusive (but shall be subject to redemption prior to maturity as set forth in Section 7 hereof) The bonds shall be initially issued as a single bond, registered as to both principal and interest, payable to the Government, or assigns, in the principal amount of $452,000, with principal and interest payable on the dates and in the amounts hereinafter set forth. There is one exchange privilege. Upon ninety (90) days notice and at the request of the owner thereof, the single fully registered bond may be exchanged for coupon bonds payable to bearer but subject to registration as to principal or as to principal and interest in the denomination of $1,000 each or a multiple thereof, as specified by the holder of the fully registered bond, numbered consecutively from 1 upwards, in the total principal' amount aggregating the unpaid principal installments of the fully registered bond. Section 5. Citizens National Bank, Hope, Arkansas, is hereby named Paying Agent, for the bonds. During the time the Government is the registered owner of the bonds, payment of principal installments and interest due shall be made at the Federal Reserve Bank of Richmond, Virginia, or such other fiscal agent as the owner shall designate (the "fiscal agent"). During such time as the Government is not the ;! registered owner, the payments shall be made at the principal office of the Paying Agent, or, at the option of the registered owner or holder, at the principal office of Bankers Trust Company, Borough of Manhattan, New York, New York (the "alternate Paying Agent"), except that payments of interest when registered as to interest may be by check or draft mailed to the registered owner at the address shown on the bond registrationiEbaok of the City maintained by the Paying Agent. Section 6. The bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the seal of the City. The bonds may be executed by the facsimile signature of the Mayor. Any facsimile signature of the Mayor shall have the same force and effect as if • personally signed by him. The bonds must be executed by the manual signature of the City Clerk. The bonds, together with ' interest thereon, shall be payable solely from the 1977 Water and Electric Revenue Bond Fund, as hereinafter set forth, and shall be a valid claim of the holders thereof only against such fund and the revenues pledged to such fund: The moneys in the Bond Fund are hereby pledged and mortgaged for the equal and ratable payment of the bonds and shall be used for no other purpose than to pay the principal of and interest on the bonds, except as otherwise specifically provided in this Ordinance. The bonds and interest thereon shall not constitute an indebtedness of the City within any constitutional limitation. The pledge of revenues in favor of,;• and the security for, the bonds is subordinate to the pledge and security of the previous bonds. Section 7. The bonds shall be initially issued in substantially the following form, and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals therein (in the event the holder elects to exercise the exchange privilege for a coupon bond, the form will be appropriately varied to accommodate that type bond, but the substance and content will be the same): UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF HEMPSTEAD CITY OF HOPE WATER AND ELECTRIC REVENUE BOND Department of Commerce, or its successor > the "Payer" >. or assigns, on the first day of December in years and installments as follows No. R-l 1452,000 YEAR 1978 1979 1980 1981 1982 198.1 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 19% 1997 1998 PRINCIPAL $10.000 12.001) 15.000 15,000 15,000 15,000 15,000 20,000 20,000 20,000 $20,000 20.000 25.000 25,000 25,000 25.000 30,000 30,000 30,000 30,000 35.000 KNOW ALL MEN BY THESE PRESENTS: That the City of Hope, Hempstead County, Arkansas (the "City"), acknowledges itself to owe, and for value received, hereby promises to pay to Economic Development Administration, United States IN SUCH COIN OR CURRENCY OF THE United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America, and to pay interest on the balance of the principal sum from time to time remaining unpaid, in like coin or currency, at the rate of 5% per annum, semiannually on June 1 and December 1 of each year, commencing June 1,1978, until the principal amount hereof has been paid. During the time the Payee is the registered owner of this bond, payment of the principal installments and interest due shall be made at the Federal Reserve Bank of Richmond, Richmond, Virginia, or such other fiscal agent as the Payee shall designate (the "fiscal agent"). During such time as another is the registered owner hereof, if so requested by the registered owner, the payments shall be made at the principal office of Citizens National Bank, Hope, Arkansas (the "Paying Agent"), or at the option of the registered owner, at the principal office of the Bankers Trust Company, Borough of Manhattan, New York, New York (the "Alternate Paying Agent"). Payments of principal and interest, including prepayments of principal as hereinafter provided, shall be made by checkrx>F*draft>tO'-the registered owner without presentation of the bond. Each payment shall be noted on a Payment Record maintained by the Paying Agent, and if payment is made at the office of the fiscal agent or Alternate Paying Agent, written notice of the making of such payment shall be promptly sent to the Paying Agent. All such payments shall fully discharge the obligation of the City hereon to the extent of the payments so made. The registered owner '• may present this bond to the Paying Agent at any time for verification and completion of the Payment Record attached hereto. Upon final payment of principal and interest, this bond shall be submitted to the Trustee for cancellation and surrender to the City. This bond, designated Water and Electric Revenue Bond, is in the total principal amount of $452,000 and is issued as a single fully registered bond. References to "this bond" or "bonds" mean this bond or exchange coupon bonds issued in lieu hereof (as hereinafter provided). The bonds are being issued for the purpose of 'financing a portion of the costs of constructing extensions, betterments and improvements (the "improvements") to the Water and Electric System of the City, which Systerm is operated as a single municipal undertaking (the "System") and paying expenses incidental thereto and incidental thereto and incidental to the issuance of the bonds. The bonds are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act No. 131 of 1933, as amended, Act No. 305 of 1967 and applicable decisions of the Supreme Court of the State of Arkansas, including City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W. 2d 12 (1946), and pursuant to Ordinance No. of the City, duly adopted and approved on the day of , 1977 (the "Authorizing Ordinance"), and do not constitute an indebtedness of the City within any constitutional or statutory limitation. The bonds are not general obligations of the City but are special obligations payable solely from revenues derived from the operation of the System. In this regard, the lien, pledge and security of the bonds as to System revenues is subordinate to sn issue of Water and Electric Revenue Bonds., dated April l. 19*2. ami an issue of Water and Electric Revenue Bonds, dated January 1. 1954, so long as those bonds are outstanding. An amount of System revenues sufficient to pay the principal of and interest on the bonds and to create and maintain a debt service reserve is to be set aside in a special fund for that purpose identified as the "1977 Water and Electric Revenue Bond Fund," created by the Authorizing Ordinance. Reference is hereby made to the Authorizing Ordinance for a statement of the nature and extent of the security and the rights and obligations of the City, the Trustee and the holders and registered owners of the bonds. The City has fixed and has covenanted and agreed to maintain rates for water and electric services which shall be sufficient at all times at least to provide for the payment of the reasonable expenses of operation and maintenance of the System, provide for the payment, principal and interest, of all bonds to which revenues are pledged, including the bonds of this issue, and make the required deposits for depreciation of the System. The principal installments are subject to prepayment prior to maturity, in whole or in part in multiples of $1,000, in inverse chronological order, from funds from any source on any interest payment date, upon not less than thirty (30) days notice, at a price of par and accrued interest. Notice of any prepayment shall be given at least thirty (30) days prior to the date fixed for such prepayment by mailing to the registered owner of this bond, by registered or certified mail, notice fixing such date of prepayment and specifying the amount of principal to be prepaid and the amount of accrued interest thereon to the date of such prepayment. This bond may be assigned, and upon such assignment the assignor shall promptly notify the City at the office of the Paying Agent by registered mail, and the assignee shall surrender the same to the Paying Agent for notation of the transfer on the registration records to be maintained by the Paying Agent and verification of the notations, on and Com-. pletion if need be of, tne payment record attached hereto of the principal ana interest paid and prepaid,/and every such assignee shall take this bond subject to such condition. This bond may be exchanged, at the expense of the City.oW any interest payment date, upon ninety (90) days prior notice by the registered owner to the City, the Trustee and the Paying Agent, for $1,000 denomination coupon bonds, or a multiple thereof, in the aggregate principal amount of the then unpaid principal hereof with coupons attached maturing after the exchange date, which shall be registrable as to principal or as to principal and interest, and the City agrees, upon such notice, to cause the coupon bonds to be prepared, executed, sealed and authenticated, and delivered to the registered owner on the exchange date upon receipt and cancellation of this bond. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happens and be performed precedent to and in the issuance of the bonds, do exist, have happened and have been performed in due time, form and manner as required by law; that the indebtedness represented by the bonds does not exceed any constitutional or statutory limitation; that sufficient of the revenues derived from the" operation of the System will be set aside into the special fund to provide for the payment of the principal of and interest on the bonds; that .the City has received the full amount for the bonds; and that there is no defense, set-off or counterclaim against the bonds or the pledge of revenues herein made. This bond shall not be valid until the certificate of authentication hereon shall have been signed by the Trustee, The First National Bank of Hope, Arkansas. IN WITNESS WHEREOF, the City of Hope, Arkansas, has caused this bond to be executed in its name, by its Mayor and City Clerk, thereunto duly authorized, and its corporate seal to be affixed, all as of the first day of December, 1977. CITY OF HOPE, ARKANSAS By Mayor ATTEST: ( Km ni nt Tni-trr\ ( Vrtiltt air ' : OF rut STFF. This bond ;s the smglf registered installment bond in the principal amount of S-i.V2.oou, designated R.\ TMK FIRST NATIONAL BASK OF HOPF. HOPE. ARKANSAS Hy Authorized Signature i Form of Assignment > For value received, the registered owner last listed below sells, conveys, transfers. assigns and delivers this bond to the assignee last listed below : REGISTERED OWNER ASSIGNEE PAYMENT RECORD DUE DATE. PRINCIPAL PAYMENT_ PRINCIPAL BALANCE DUE INTEREST PAYMENT. DATE PAID NAME OF PAYING AGENT, AUTHORIZED OFFICIAL AND TITLE PRINCIPAL INSTALLMENTS ON WHICH PAYMENTS HAVE BEEN MADE PRIOR TO MATURITY PRINCIPAL DUE DATE AMOUNT . PRINCIPAL PAYMENT BALANCE- • DATE PAID. NAME OF PAYING AGENT. AUTHORIZED OFFICIAL AND TITLE City Clerk (SEAL) Section 8. The City covenants and agrees that the rates to be charged for services to be rendered by the System', 1 as established by ordinances of the City, duly adopted and approved, will produce total revenues sufficient to pay the reasonable operation, repair and maintenance expenses of the System, to pay the principal of and interest on the previous bonds and these bonds as they mature, and the Trustee's and Paying Agent's fees to establish and maintain required debt service reserves, and to provide for depreciation of the System. The City covenants and agrees that the rates shall never be reduced while any of the Bonds are outstanding unless there is obtained from an independent cerrified public accountant a certificate to the effect that the net revenues of the System (net revenues being gross revenues less the expenses of operation and maintenance of the System, including all expense items properly attributable to the operation and maintenance of the System under generally accepted accounting principals applicable to municipal water and electric facilities), with the reduced rates, will always be equal to the amount required to be set aside for depreciation of the System and leave a balance equal to at least 150% of the average annual principal and interest requirements on all Bonds secured by a pledge or pledges of system revenues. The City further covenants and agrees the rates shall, if and when necessary from time to time, be increased in such manner as will produce net revenues at least sufficient to make required deposits for depreciation of the System and leave a balance equal to at least 120% of the average annual principal and interest requirements on all outstanding Bonds secured by a pledge or pledges of System revenues. Section 9. None of the facilities or services afforded by the System shall be furnished without a charge being made therefor. In the event that the City or any department, agency or instrumentality thereof shall avail itself of the facilities and services afforded by the System, the reasonable value of the services or facilities so afforded shall be charged against the City or such department, agency or instrumentality and shall be paid for as the charges therefor accrue. The revenues so received shall be deemed to be revenues derived from the o;v!v.;ior, oi •.!•,<• S\ -Unr, .nit! sluil in- u^itt .iiui .icvoiW I tor in the same n.uuuT a> .iiu other revenues tte:i\e<i . lorn the opera!KM, of i'-r Svstrin. provided, however, that nothing herein shall bo con stnuxl as revjinrtnij the City or any department. ;->ytrnc> or instrumentality thereof to avail itself of the facilities or services afforded hy the System Section 10. The Commission shall have charge of the gross revenues derived from the operation of (fie System, Employers of the Commission who have custody of System revenues shall give bond in the sum approved by the Trustee for the faithful discharge of their duties as custodian. From and after the delivery of any bonds issued under the provisions of this Ordinance, the System shall be continnusly operated as a revenue producing undertaking. All moneys received shall l>e deposited in such depository or depositories for the City ns may be lawfully designated from time to time by the Board of Directors, subject, however, to - the giving of security as now or hereafter may be required by law, and provided that such depository or depositories shall hold membership In the Federal Deposit Insurance - Corporation. All deposits shall be in the name of the City and . shall be so designated us to indicate the particular fund to which the revenues belong. Any deposit in excess of the amount insured by the Federal Deposit Insurance Corporation shall be secured by bonds or other - direct or fully guaranteed obligations of the United States of America. Section 11. Water and Electric Revenue Fund. All revenues derived from the operation of the System shall be paid into a special fund, hereby created and designated "Water . and Electric Revenue Fund", Revenues in the Revenue Fund are hereby pledged and shall be applied to payment of the expenses of operation and - maintenance of the System, to the payment of the principal of - and interest on all outstanding bonds (with Trustee's and Paying Agent's foes, if any) to which System revenues are pledged, to the establishment and maintenance of debt service reserves, and to the providing of a depreciation fund, all in the' ' mariner hereinafter set forth in this Ordinance and the ordinances authorizing the previous bonds. Section 12. On the first business day of each month there shall be transferred from the Water and Electric Revenue Fund to the respective bond funds maintained In connection with the previous bonds the amounts provided for in, and in fully compliance with, application provisions of the ordinances authorizing the previous bonds. When all previous bonds have been paid, principal and interest, or provision made for their payment, the transfers directed by this Section shall cease. Nothing herein shall be construed to in any manner impair the security .of the previous bonds, or the priority of the pledge of revenues in favor of those bonds, but it is convenanted that when all of the previous bonds are paid (or the required provision made therefor), the bonds of this issue will become first lien bonds in that the pledge of revenues derived from the operation of the System in favor of these bonds will become a first and prior pledge on the revenues. Furthermore, it is expressly covenanted and agreed that the City will not issue or attempt to issue bonds ranking, or claimed to rank, on a parity of security with the previous bonds. Section 13. Water and Electric Operation and Maintenance Fund. After making the required payments provided for in Section 12, there shall be paid from the Water and Electric Revenue Fund into a fund designated "Operation and Maintenance Fund," on the first business day of each month while any of the bonds are outstanding, an amount sufficient to pay the reasonable and necessary expenses of operation, repair, maintenance and the insuring of the System for such month and from which disbursements shall be made only for those purposes. Fixed annual charges such as insurance premiums and the cost of major repair and maintenance expenses may be computed and set up on an annual basis and one-twelfth (1/12) of the amount thereof may be paid into the Operation and Maintenance Fund each month. The operation and maintenance funds maintained in connection with the previous are rnnfirmoH orv4 I,!I-CHKH> t>).i\ t H > made into ;ho-e tnnds in lu-ti of the Operation .m.l Maintenance Fund <o long as the previous iHHids are outstanding Section l». t!»?7 Water and I'.lrrliit Rrvfmi*" Ho«d Fund. a 1 After making the required •payments as provided in Section \'l and 1:1 above, there shall Ive paid into a spevial fund in the name of the City which is hereby created and designated ••1977 Water and Electric Revenue Bond Fund" (the "Hond Ftmd">, the sums in the amounts ami a! the time herein stated in subsection <b> for the purpose of providing funds for the payment of the principal of and Interest on the bonds as they mature, according to the following schedule, and to establish a debt service reserve: YEAR 1978 1979 1980 1981 1982 1983 1984 19«5 1986 19«7 19H8 1989 1990 1991 1992 1993 1994 1995 HKX; 1997 1991J PRINCIPAL $10,000 12.000 15,000 15,000 15.000 lf.,000 15,000 20,000 20,000 20,000 20,000 20.000 25,000 25,000 25,000 25.000 30,000 30.000 30,00(1 30,000 35,000 INTEREST JUNE I DECEMBER « $11,300 11,050 10,750 10,375 10,000 9,625 9,250 8,875 8,375 7,875 7,375 6,875 6.375 5,750 5,125 4,500 3,875 3,125 2,375 1,625 $11.300 11,050 10,750 10,375 10,000 9,625 9,250 8,875 8,375 7,875 7,375 6,875 6,375 5,750 5,125 4,500 3,875. 3,125 2,375 1,625 H75 875 TQTAL ;i $32,6dd ' 34,100 36,500 35,750 35,000 3-?,250 33,500 37,750 36,750 35,750 35,750 33,750 37,750 36,500 35,250 34,000 37,750 36,250 34,750 33,250 36,750 (b) There shall be paid into the Bond Fund on the first business day of the month immediately following the month in which bonds are delivered and on the first business day of each month thereafter until all outstanding bonds with interest thereon have been paid in full or provision made for such payment, a sum equal to one- fifth (1/5) of tho next installment of interest, plus one- tenth (1/10) of the next Installment of principal on the bonds (plus any additional amount that may be necessary at the time of the delivery of the bonds to fully provide for the first interest payment on the bonds, if any additional amount be required), until a debt service reserve shall have been accumulated in an amount equal to the average annual principal and interest requirement on the bonds. When the debt service reserve has been accumulated in the required amount, the monthly payments into the Bond Fund may be reduced to one-sixth (1/6) of the next installment of interest, and one-twelfth (1/12) of the next installment of principal on the bonds, but if the debt service reserve becomes impaired, the payment of one-fifth (1/5) and one-tenth (1/10) shall be resumed until the impairment is cured. (c) If the revenues of the System are insufficient to make the required payment on or before the first business day of the following month into the Bond Fund, then the amount of any such deficiency in the payment made shall be added to the amount otherwise required to be paid into the Bond Fund on the first business day of the next month. id l If far :im rcwutn »H» Page Fifteen i ;t\ >i,,tll fail at any time to make any of the required payments into the Bond Fund, or if for any reason the Bond Fund shall be insufficient at any time to make ihe required payments for principal, and interest as due. any sums then held in the debt service reserve shall be used to the extent necessary in the payment of the principal of and interest on the bonds, but such reserve shall he reimbursed by the increased monthly payments specified in (b) above The debt service reserve shall be used solely as herein provided. (e> When the moneys held in the Bond Fund, including the debt service reserve, shall l>o and remain sufficient io puy Uu> principal of and Interest on all of the bonds then outstanding, the City shall not be obligated to make any further payments into the Bond Fund (f) All moneys in ihe Hond Fund shflll be used solely for the purpose of paying the principal of and interest on the bonds, except as herein specifically provided. If a surplus shall exist in the Bond Fund over and above the amount necessary to insure I he payment, when due, of principal and interest and over and above the debt service reserve, such surplus shall, at the option of the City, either < I) be used for the prepayment or redemption of bonds prior to maturity, or (2) l>e used for the construction of improvements and extensions to the System (g) It shall be the duty of the City to withdraw from the Hond Fund on or before the due date of any installment hcrcunder and to pay to the registered owner, or assigns, an amount equal to the amount of such installment for the sole purpose of paying the same, and no withdrawal of funds from the Bond Fund shall be made for any other purpose except as otherwise authorized in this Ordinance, Deposits in the Bond Fund shall be at the sole risk of the City and shall not operate as a payment of the bonds or interest until so applied. (h) The bonds of this issue shall be specifically secured by a pledge of all the revenues required to be placed into the Bond Fund. This pledge in favor of the bonds Is hereby > irrevocably made according to the terms of .this Ordinance-, and the City and its officers and employees shall execute, perform and carry out the terms thereof in strict con- ', formlty with the provisions of , this Ordinance. j Section 15. Water and • Electric Depreciation Fund, After making the required ' payments as provided ' herelnabove, there shall be ' paid from the Revenue Fund ! into a fund designated \ "Depreciation Fund," on the « first business day of each ,; month, while any of the bonds are outstanding an amount '' equal to 2% of the revenue of '•' the System for the preceding : month which remain after making the monthly deposits • required by Section 13 and • Section 14. Depreciation funds ;• maintained in connection with .} the previous bonds are hereby >! confirmed, and, so long as the previous bonds are out- ' standing, deposits may be in ,1 those funds in lieu of the ''. Depreciation Fund. Moneys in 'i the Depreciation Fund shall be ",used solely for the purpose of <; paying the cost of replacements i made necessary by tho •: depreciation of the System. In any fiscal year a surplus ' shall be accumulated in the Depreciation Fund over and ' above the amount necessary to ^ defray the cost of the probable :' c replacements during the / current and the next ensuing •fiscal year, such excess .shall be : transferred and paid into the ;Revenue Fund. Section l«. All bond funds and ",'. other funds, created and beinn '• maintained in connection with the previous bonds shall, upon .. retirement of all bonds of I lie - 1 issue for which created, IK- ; abolished and all rnuneys on deposit in any such fund .shall be transferred and deposited in ' the Re venue Fund. : Section 17. Any surplus in the Revenue Fund after making ,' full provision for the other funds herein provided may be , used, at the option of the City, • for culling bonds for payment prior to maturity in accordance '• with the provisions of this or- ' dinance, for constructing ex- ' tensions, betterments and ,' improvements to the System, , or for any lawful municipal purpose. : Sett ion 18. Payments from i the respective funds shall be ! made by check or voucher and • drawn on the depository with ' which the moneys in said funds shall have been deposited, and each such check or voucher

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