Ordinance 1986-887 - Laserfiche WebLink

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Section 15. Application of vJa te r Revenues. Notwith- standing the foregoing provisions for tax levies, the City cove- nants and agrees to establish, maintain, and enforce a schedule of rates, fees, tolls, and charges for the availability of, connec- tion to, and use of the water facilities of the City, which schedule shall be sufficient to assure that the revenues thereby produced shall pay all reasonable costs and expenses of operating and maintaining such water facilities and, together with the proceeds of general ad valorem taxes and any other legally available funds, shall be sufficient to pay the principal of and interest on the Bonds as the same become due and payable, respectively. Section 16. Collection of Delinquent Rates, Fees, Tolls, and Charges. The Council shall take all necessary and proper steps to enforce promptly the payment of rates, fees, tolls, and charges levied pursuant to this Ordinance or other ordinances, resolutions, or acts of the Council. Section 17. Defeasance. When all principal, interest, and premiums, if any, in connection with the Bonds have been duly paid, the pledge and lien and all obligations hereunder shall thereby be discharged and the Bonds shall no longer be deemed to be outstanding within the meaning of this Ordinance. There shall be deemed to be such due payment when the City has placed in escrow and in trust with a commercial bank located within or without the State of Colorado, and exercising trust powers, an amount sufficient (including the known minimum yield from Federal Securities in which such amount may be initially invested) to meet all requirements of principal and interest, as the same become due, and premiums, if any, on the Bonds, to their final maturities or upon designated prior redemption dates. The Federal Securities shall become due at or prior to the respective times on which the proceeds thereof shall be needed, in accordance with a schedule established and agreed upon between the City and such bank at the time of the creation of the escrow, or the Federal Securities shall be subject to redemption at the option of the holders - 27 -