Ordinance 2687 - Laserfiche WebLink

Section 2: Said City does hereby propose, specify and adopt as an integral part of the plan for the construction of such betterments and additions to the municipal water supply system, and for the purpose of providing funds to pay therefor , that it shall issue special water revenue bonds in the principal sum of not more than One Million Three Hundred Thousand Dollars N1 ,300 ,000.00) , bearing interest at the rate of not to exceed Four percent (4j ) per annum, payable semi-annually, both principal and interest payable solely out of the gross revenues of the water supply system from a special fund designated "1936 .special Water Revenue Bond Fund !vo. 5" as herein- after created; said issue of bonds to be in denominations of One Thousand Dollars N1,000.00) each numbered from 1 to 1130 • inclusive , to mature serially in order of number from 1947 to 1956 inclusive , in installments of One Hundred Thirty Thous- and Dollars ( 130 ,000.00) annually, the exact date and maturities; and place of payment and form of bonds to be as the City Council shall hereafter by Ordinance prescribe. Section 3: There is hereby created a special fund to be known as "Everett 1936 Special Water Revenue Bond Fund No. 5, " which fund shall be drawn upon for the sole purpose of paying principalnd interest of said special revenue bonds. From and after the date of said special revenue bonds and so long as any of the same are outstanding and unpaid, the city treasurer shall set aside and pay into such fund, at least thirty (30) days prior to the respective dates on which the interest or principal and interest of said bonds snail become dueand payable , certain fixed amounts of the gross revenue s of said municipal water works system, including all additions, betterments and extensions thereto , equal to the respective amounts of interest , or principal and interest, as the case May be , next falling due. Said gross r venue s are hereby pledged to such payments, which shall constitute a charge upon all of such gross revenues, prior and superior to all other liens and charges whatsoever, excepting necessary charges for maintenance and operation and excepting liens of the special water revenue bonds heretofore issued and now outstanding. In creating such special fund, said city hereby declares that it has exercised due regard to the cost of maintenance and operation of said water works system; that no portion of the revenues of said system have been previously -pledged for any other indebtedness, excepting for revenue bonds heretofore issued and now outstanding; that the gross revenues to be de- rived from the operation of said water works system, in the judgment of the corporate authorities of said city, will be sufficient to meet all expenses of operation and maintenance and to permit , in addition to payment of all prior liens, the setting aside into said special fund , of amounts sufficient to pay the interest and principal of the bonds hereby author- ized as the same fall due. Said city hereby irrevocably binds and obligates itself not to sell, lease or in any manner di-s- pose of said waterworks system, or any additions , extensions or betterments thereto , until all such bonds, with interest thereon, shall have been fully paid, and said city hereby covenants and agrees to and with the holders of each and every of said bonds, in the event said bonds or any portion thereof , be issued, to maintain in good condition and operate said water works system, end to establish and maintain rates and charges for water sufficient to produce the gross revenues required to meet the obligations of said city as herein set forth.