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<br />. <br /> <br />. <br /> <br />administration, enfarcement and callectian of the water rates, <br />fees, taIls and charges, all as berein specified, and ta require <br />the .officers .of the City ta leVY, extend and callect said ad <br />valorem taxes in the manner pravided by law and to imp.ose, <br />administer, enforce and callect said water rates, fees, taIls and <br />charges far the purpose of praviding funds far the payment of the <br />aperatian and maintenance expenses of the City's water system, <br />the payment .of the principal and interest due on the Bands and <br />the Laan Agreement as the same became due, and the other payments <br />described herein. <br /> <br />Sectian 4. Special Obliqatian Covenants, If the Loan <br />Agreement is secured .only by a pledge on the net revenues .of the <br />City's water system, the cavenant@ in Section 3 .of this Ordinance <br />relating to net revenues .of the City's water system shall apply, <br />but thase relating ta ad val.orem ~axes shall not apply. <br /> <br />Sectian 5. Apprapriatian .of Sums. The sums <br />hereinbefare pravided ta pay the principal and interest due under <br />the Laan Agreement are hereby apprapriated far that purpase, and <br />said amounts far each year shall pe included in the annual budget <br />and the apprapriatians .ordinance, resalutian, or measures to be <br />adopted or passed by the CaunciJ. in each year while the Loan <br />Agreement remains outstanding. <br /> <br />Section 6. Defeasance. When all .of the principal and <br />interest due under the Laan Agreement has been duly paid, all <br />.obligations hereunder shall thereby be discharged, and the L.oan <br />Agreement shall na langer be deemed to be .outstanding. There <br />shall be deemed to be such due payment when the City has placed <br />in escraw .or in trust with a trust bank lacated within .or withaut <br />the State .of Calarado bills, certificates .of indebtedness, nates, <br />bands .or similar securities which are direct obligatians .of, .or <br />the principal and interest .of which abligatians are <br />uncanditianally guaranteed by, the United States of America <br />(Federal Securities) in an amaunt sufficient (including the knawn <br />minimum yield available far such purpose fram Federal Securities <br />in which such amaunt may whally or in part be initially invested) <br />ta pay all principal and interest due under the Laan Agreement. <br />The Federal Securities shall be nan-callable and shall became due <br />prior ta the respective times at which the praceeds thereaf shall <br />be needed in accordance with a schedule establi shed and agreed <br />upan between the City and such bank at the time of the creatian <br />.of the escrow .or trust, .or the Federal Securities shall be <br />subject to redemption at the .option .of the .owner thereaf ta <br />assure such availability as so needed to meet such schedule. <br /> <br />Sectian 7. Infarmatian Reportinq. No officer .of the <br />City shall file Internal Revenue Service Farm 8038-G .or any <br />similar form required to establisn the exclusion of interest due <br />under the Laan Agreement fram grasS income far federal incame tax <br /> <br />BD3826 <br /> <br />5 <br /> <br />06/30/88 <br />