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r((. <br /> V <br /> construction of Lake Chaplain Filtration plant, <br /> including coverage, with total project cost reduced by <br /> the amount of funds in sinking fund at the time of <br /> issuing bonds. <br /> O = Annual overhead attributable to Filtration plant to be <br /> determined from previous years expense as follows: <br /> 2% of Filter plant material and supply costs <br /> excluding power and 14% of labor costs at filter <br /> plant including fringe benefits. <br /> P = District Maximum Daily Demand (day of highest use in <br /> preceding year) divided by the District Average Daily <br /> Demand (for preceding year) <br /> Q = Quantity of water produced in previous year <br /> expressed in 100 cubic feet. (Filter Plant Meter <br /> Reading) <br /> X = System Maximum Daily Demand (day of highest use <br /> IN preceding year) divided by the System Average <br /> Daily Demand for preceding year) <br /> 2. The City agrees to establish a Sinking Fund made up of the bond <br /> coverage funds required for the Annual Debt Service (DS) for <br /> initial construction cost and Annual Debt Service (FDS) for future <br /> construction costs of the Lake Chaplain filtration plant facilities. <br /> Bond coverage funds collected from all wholesale and retail <br /> customers under the Rate Formula (R) in Paragraph 5(B)(1) <br /> above shall be placed in this Sinking Fund and the principal and <br /> interest from investments from the Sinking fund shall be used for <br /> Additional Capital Outlay Costs (C) attributable to the Lake <br /> Chaplain filtration plant before other City funds are used thereby <br /> reducing the (C) value in the Rate Formula (R) by the amount <br /> used; or if revenue bonds are required for future construction <br /> (FDS) the amount of bonds required shall be reduced by the <br /> amount collected or remaining in the Sinking Fund including <br /> interest on investments at the time of issue of the bonds for future <br /> construction. <br /> In the event the Sinking Fund balance exceeds $2 million during the term of <br /> the bond issue(s), funds in excess of $2 million shall be used to defray O&M <br /> costs. At the expiration of the term of the bond issue(s) any balance <br /> remaining in the Sinking Fund shall be credited to 0 & M until fully utilized. <br /> The filtration rate shall be adjusted annually and be effective with the April 1st <br /> meter read for that year. <br /> 4 <br />