Ordinance 3754 - Laserfiche WebLink

• • Section 6. That the Reserve Account was created to hold the moneys deposited to the credit thereof for the purpose of se- curing the payment of the principal of and interest on all revenue bonds of the city payable out of the Bond Redemption Fund. The city hereby covenants and agrees that it will pay into the Reserve Account, within five years from April 1, 1960, a sum which, plus the $100,000 in the reserve account created to secure the payment of the principal of and interest on the Outstanding Prior Lien Bonds and plus the money in the Reserve Account, will be at least equal to the average annual debt service on the Outstanding Prior Lien Bonds, the Outstanding Parity Bonds, and the Bonds, while any of the same are outstanding. Section 7. The corporate authorities of the city hereby declare, in fixing the amounts to be paid into the Bond Redemption Fund and the Reserve Account as hereinbefore provided, that they have exercised due regard to the cost of maintenance and operation of the System and the charges necessary to pay the principal of and interest on the Outstanding Prior Lien Bonds and the Outstanding Parity Bonds, and have not obligated the city to set aside and pay into said Fund and Account a greater amount of the revenue of the System than in their judgment will be available over such cost of maintenance and operation and the charges necessary to pay the principal of and interest on such outstanding bonds. Section 8. The City of Everett hereby covenants with the owner and holder of each of the Bonds, for as long as any of the same remain outstanding, as follows: a. That it will establish, maintain and collect rates and charges for water supplied (and for sanitary sewage collection and disposal service furnished in the event that the sanitary sewerage system of the city is combined with the water system) for as long as -8-