Ordinance 99-78 - Laserfiche WebLink

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(4) Notwithstanding any other provision of this Ordinance to the contrary, so long as necessary in order to maintain the exclusion from gross income for purposes of federal income taxation of interest on the 1999B Bond, the covenants contained in this Section shall survive the payment of the 1999B Bond and the interest thereon, including any payment or discharge thereof pursuant to Section 3.6 of this Ordinance. (b) Establishment of Debt Service Fund. There is hereby created and established the following fund entitled the "Sunny Isles Beach Utilities Tax Revenue Bond Debt Service Fund" (hereinafter referred to as the "Debt Service Fund"). The Debt Service Fund shall constitute a trust fund for the benefit of the Bondholder and shall be held by the City in an account maintained at the Bank and shall be kept separate and distinct from all other funds of the City, and shall be used only for the purpose and in the manner provided in this Ordinance. Notwithstanding the provisions of the preceding sentence, the City may deposit the proceeds of the Utilities Tax in a commingled account maintained at the Bank for the City, provided that the City maintains adequate accounting procedures to reflect and control the restricted allocations of the funds on deposit therein for the various purposes of such funds. The designation and establishment of the Debt Service Fund in and by this Ordinance shall not be construed to require the establishment of any completely independent self-balancing fund, as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an allocation of certain revenues of the City for certain purposes and to establish certain priorities for application of such revenues as provided herein. The City may withdraw any excess amounts remaining in the Debt Service Fund after payment has been made on the 1999B Bond and the City's outstanding Utilities Tax Revenue Bond, Series 1998 and the City's outstanding Utilities Tax Revenue Bond, Series 1999 on any Payment Date to be used for any lawful municipal purpose. Moneys on deposit in the Debt Service Fund may be invested in Authorized Investments at the written direction of the City, provided such investments mature not later than the next succeeding Payment Date. Subject to the terms and provisions of the Code and the preceding paragraph, all income and earnings received from the investment and reinvestment of the moneys on deposit in the Debt Service Fund shall remain on deposit in the Debt Service Fund and be used in the same manner as other moneys on deposit therein. (c) Disposition of Pledged Revenues. Not later than the fifteenth day of each month commencing August 15, 1999, the City shall deposit in the Debt Service Fund the proceeds of the Utilities Tax in an amount equal to one-half (1/2) of an amount sufficient to pay the principal of and interest becoming due on the 1999B Bond on October 1, 1999, and beginning October 15, 1999 in an amount equal to one-third (1/3) of the principal of and interest becoming due on the 1999B Bond on the next Payment Date, and shall further cause to be deposited into the Debt Service Fund one business day prior to each Payment Date the proceeds of the Utilities Tax in an amount necessary to satisfy any deficiency in the Debt Service Fund on such date; provided, however, that such deposit of the interest and principal amount shall not be required to be made to the extent that moneys on deposit in the Debt Service Fund are sufficient for such purpose. The City covenants to deposit, on the business day prior to the Maturity Date, the proceeds of the Utilities Tax (or other legally available moneys) into the Debt Service Fund in an amount sufficient to pay the outstanding principal of and interest on the 1999B 15