RES 02047 - Laserfiche WebLink

Purpose of the Bonds Proceeds of the Bonds will be used to refund the 1989 Certificates of Participation. which financed the cross-tO\\TI sanitary sewer project and to pay costs incurred in connection \\ith the issuance of the Bonds. Certificates outstanding are subject to prepayment, plus a premium. Allocation of Proceeds' The following table sets forth the estimated allocation of proceeds of the Bonds. Outstanding principal... ... ........... ............ ............... ......... .......... ..... ........... .......... $2,840,000 Call premium ................................................... ........................ ..... .............. ....... 28.400 Less: existing reserve fund................................................................................ (477.400) New reserve fund ............................................................................................... 282,000 Costs of issuance................................................................................................ 119.000 UndernTiter discount (1 %) ................................................................................ 28.000 Total uses ............ ............................ ................... ..... .................................. ......... $2.820.000 SECURITY FOR THE BONDS Pledge of Net Revenues All of the net revenues of the sewer enterprise are irrevocably pledged to the punctual pay- ment of the debt service and such net revenues shall not be used for any other purpose while any of the Bonds remain outstanding. Net revenues means for any period all of the applicable revenues. less all of the applicable maintenance and operation costs of the enterprise, including costs associated with the treatment and disposal of sewage. The City covenants and agrees that all revenues, when and as received. will be deposited in the revenue fund and held in trust for the benefit of the bondo\\TIers and payments with respect to contracts or parity bonds. All revenues in the revenue fund shall be allocated in the following order of priority: (1) to pay maintenance and operation costs of the enter- prise, (2) to pay debt service on the Bonds and to pay principal and interest on contracts or parity bonds. and (3) replenishment ofreserve funds. if required. The obligation of the City to make debt service payments is absolute and unconditional. and until such time as all debt service payments shall have been fully paid and the Bonds are no longer outstanding. the City will not. under any circumstances. discontinue. abate or suspend any payrnent when due. The debt service payments from net revenues are on parity with the City's obligations under the 1994 Revcnue Bonds. Series A. The City's obligation to make the debt servicc payments is a special obligation payable solely from the legally available moneys therefore. and does not constitute a debt of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction. . Preliminary. subject to change. , o