Ottawa County news. (Port Clinton, Ohio) 1931-1956, 1954-10-08

the surplus FUND, be transferred
to the Debt Service Fund to permit
the payment of obligations payable
therefrom without use of the
moneys in the Debt Service Reserve
Fund, and otherwise may be used to
replace, rebuild or recondition
worn out, obsolete or inadequate
equipment and properties of the
Utility, and for betterments, inn
provements and extensions and to
or for the retirement of Bonds by
call or by purchase for cancellation
at price which shall not exceed
the fair market value of the Bonds
so purchased or the redemption
the time of the purchase.
There shall be retained in the
Surplus Fund at all times, and ap-
piled to such purpose, sufficient
funds to make up any deficiency
that may reasonably be anticipated
or exist in any annual deposit pro-.
vided for by paragraphs Second,
Third, Fourth, or Fifth of this Sec
tion. Except as aforesaid, all
moneys in the Surplus Fund, may,
at the option of the Municipality
be used for extensions and i'm
provements to the Utility or the
retirement of outstanding Bonds
lation at price which shall not
exceed the fair market value of
the Bonds so purchased nor the
redemption price of such bonds, If
any, prevailing at the time of pur-
chase. Moneys in the Surplus Fund
may be invested in direct obliga
tions of the United States matur-
ing not more than ten years from
date of investment. If at any time
the Municipality shall have pro-
vided the Trustee with moneys
sufficient, together with moneys
and investments then in the Debt
Service Fund and Debt Service Re-
serve Fund, to retire in full on the
next available redemption date
any then outstanding issue of
Bonds, without thereby reducing
the balance thereafter remaining
in said Debt Service Fund and
Debt Service Reserve Fund below
the amount which on such call
date would be required by this
Section to be on hand therein with
respect to Bonds not to be so re-
tired, the Trustee shall make
available out of said Debt Service
Fund and Debt Service Reserve
er with the other moneys provided,
to accomplish such retirement.
The Construction Fund Cd shall
consist of the portion of the pro-
ceeds of the Improvement Bonds
provided for in the following sec
tion and such additional amounts
as may be paid into said fund by
the Municipality CD shall be
maintained by the Municipality in
a deposit account fully secured by
direct obligations of the United
States, and, until required for the
purposes herein provided, may be
invested by the Fiscal Officer in
direct obligations of the United
States maturing in not more than
invest
ment CD shall be applied to the
purposes for which the proceeds of
the Improvement Bonds are re-
quired to be used under the fore
going sections of this Ordinance.
AS used in this Ordinance oper-
ating and maintenance expenses
shall not include depreciation or
capital requirements.
Section 5. AIlOcatiOn of Proceeds
of Improvement BOnds-The pro-
ceeds from sale of Improvement
Bonds shall be allocated and are
hereby appropriated to the follow
ing funds of the Utility, hereby
established; (a) the portion rep
resenting accrued interest, togeth-
er with an amount equal to four
months interest on said bonds, to
the Debt Service Fund; (b) the
portion, if any, representing prem
ium to the Debt Service Reserve
Fund; and (c) the entire balance
of such proceeds, to the Construc-
ton Fund.
Section 6. Additional Bonds
right from time to time to issue
Additional Bonds for the purpose
of providing additional funds, If
necessary, for the completion OF
the Project, and otherwise for the
purpose only of making replace
ments to the Utility, which Addi-
tional Bonds shall be payable from
the Debt Service Fund and Debt
Service Reserve Fund and be Sc
cured by a lien upon the prop
critics and revenues of the Utility
on a parity with the Improve
ment Bonds, and the Trustee shall
authenticate and deliver such Ad-
ditional Bonds; provided, that,
when any such Additional Bonds
are issued, the Municipality shall
have furnished to the Trustee the
following certificates:
(A) Certificate of Fiscal Officer
and Legal Officer of the Munich
pality certifying that, to the best
of their knowledge, the Munich
pality is not, on the date of is
sue of such Additional Bonds, in
default in the performance of
any of it's covenants provided In
this Ordinance, in the Mortgage
or in the Bonds; and
OBJ Certificate of an independent
engineer, satisfactory to the
Trustee, showing % that, as
estimated by such independent
engineer, the prospective rev.
enues of the Utility, based upon
rates in effect at the date of is
sue of the Additional Bonds and
on such independent engineers
l.. Of nn-
Grafton and maintenance of the
Utility after completion of the
improvements, extensions or re-
placements to be financed by the
Additional Bonds, will, after such
expenses, be at least equal to
the Required Coverage for issu-
ance of Additional Bonds, (2)
that, if issued for completion of
the Project, the amount of such
Additional Bonds proposed to be
issued is essential for such pur-
pose, and (3) that, if issued for
other authorized purposes, the
replacements, extensions or i'm
provements to be financed by
such Additional Bonds are rea-
sonably necessary for the proper
and economical operation of the
Utility or for meeting existing
or prospective demands for its
services, or both.
The proceeds OF any sale or Al
ditional Bonds shall be allocated
in substantially the same manner
as provided in this Ordinance with
respect to the Improvement Bonds
and a. Construction Fund for such
proceeds shall be created in con-
nection with each issue of Addi-
tional Bonds and shall be applied
to the purposes set forth in the
applicable certificate of the inde-
nendept engineer and to defray
costs and expenses incidental
thereto or incidental to the sale or
issuance of the Additional Bonds.