§ 15.12.090. Disposition of entire gross revenue—Funds established.

The entire gross revenues, as defined in Chapter 15.04, derived from the operation of the water and sewerage system, shall be deposited in a special fund in a bank or trust company or banks or trust companies in the state which are eligible under the state laws to receive deposits of state and municipal funds, which fund is established and designated as the "water and sewerage system revenue fund" (hereinafter referred to as "revenue fund"), from which payments and deposits shall be made in the following manner and order of priority:

A.

Revenue shall be first used for the payment of all current operating expenses of the water and sewerage system.

B.

From the money remaining in the revenue fund, there shall next be made the deposits to the water and sewer revenue bond sinking fund (hereinafter referred to as "sinking fund"), as stipulated in the Bond Resolution No. 66-29 and all amendments thereto, for the purpose of paying the interest and principal on the water and sewer revenue bonds.

C.

The remaining money in the revenue fund shall next be used to make the deposits to the reserve account in the sinking fund as stipulated in Bond Resolution No. 66-29 and all amendments thereto.

D.

The remaining money in the revenue fund shall next be utilized to make the deposits to the extension and replacement fund as specified in Bond Resolution No. 66-29 and all amendments thereto.

E.

The remaining money in the revenue fund shall next be used to make the deposits to the water and sewerage subordinate revenue bond sinking fund (hereinafter referred to as "subordinate sinking fund") required by Section 3.03(E) of Bond Resolution No. 66-29 and all amendments and supplements thereto.

F.

The remaining money in the revenue fund shall next be used to make the deposits to the reserve account in the subordinate sinking fund as specified in Section 3.03(F) of Bond Resolution No. 66-29 and all amendments and supplements thereto.

G.

From the money remaining in the revenue fund, after all required payments have been made under subsections A through F above, the metropolitan government shall next, on the first day of each month in each year, apportion and set apart out of the revenue fund and deposit in the urban services district debt service fund of the metropolitan government an amount equal to one-twelfth of the amount equal to the sum of the debt service requirements in the next succeeding year on all outstanding general obligation bonds heretofore issued by or assumed by the metropolitan government for water and sewer purposes.

H.

From the money remaining in the revenue fund, after all required payments have been made under subsections A through G above, the metropolitan government shall next, on the first day of each month in each year, apportion and set apart out of the revenue fund and deposit in a fund known as the revolving fund created pursuant to the Charter of the metropolitan government, under Article 8, Chapter 5, thereof, such amount as shall be needed to make the aggregate amount then on deposit in such fund equal to two hundred thousand dollars. The money on deposit in such fund shall be used only for the purposes provided for in Article 8, Chapter 5, of the metropolitan Charter.

I.

From the money remaining in the revenue fund, after all required payments have been made under subsections A through H above, the metropolitan government shall next, on the first day of each month in each year, apportion and set apart out of the revenue fund and deposit in such extension and replacement fund an amount which, together with the amount deposited in the revolving fund on such date, shall be equal to one-twelfth of ten percent of the gross revenues, as defined in Chapter 15.04, which were derived from the operation of the water and sewer system during the preceding fiscal year, until such extension and replacement fund shall have on deposit therein such amounts as may be recommended by the consulting engineers from time to time.

J.

If, on any annual, semiannual, monthly or other payment date, the revenues are insufficient to deposit the required amounts in any of the funds provided for above, the deficiency shall be made up in the subsequent payments into such funds in addition to the payments which would otherwise be required to be made into such funds on the subsequent payment dates; provided, that any deficiencies in the respective sinking funds or reserve funds shall be made up before any further payment is made into the extension and replacement fund, the urban services district debt service fund or the revolving fund.

K.

Thereafter, the metropolitan government shall next, on the first day of each month in each year, after all required payments have been made under subsections A through J above, including any deficiencies for prior payments and deposits and after reserving in the revenue fund an amount for working capital for the payment of operating expenses, as determined by the consulting engineers, deposit the balance of any revenues remaining on deposit in the revenue fund in a fund to be known as the surplus revenue reserve fund, which fund is established.

1.

Until the construction programs authorized in Section E of Volume I and Section E of Volume II of the water and sewerage rate study, as defined in Chapter 15.04, have been substantially completed or until April 15, 1981, whichever date is the earliest, the money on deposit in such surplus revenue reserve fund shall be used only to supply any deficiencies in the money in the revenue fund for required payments or deposits under subsections A through J above.

2.

After the construction of the programs authorized in Section E of Volume I and Section E of Volume II of the water and sewerage rate study, or after April 15, 1981, whichever date is the earliest, the money on deposit in the surplus revenue reserve fund may further be used for the following additional purposes:

a.

For the payment of the cost of the construction of additions, extensions and improvements to the water and sewer system, as recommended and approved by the consulting engineers.

b.

For the purchase of outstanding water and sewer revenue bonds, including any pari passu additional bonds issued pursuant to Bond Resolution No. 66-29 of the last five maturities then outstanding at a price not greater than the redemption price of such outstanding water and sewer revenue bonds, such bonds issued pursuant to Bond Resolution No. 66-29 and any pari passu additional bonds issued, on the next ensuing redemption date or for the prior redemption of such outstanding water and sewer revenue bonds, such bonds issued pursuant to Bond Resolution No. 66-29 and any pari passu additional bonds issued in the manner provided in the proceedings which authorized their issuance.

c.

After the final payment and retirement of all of the outstanding water and sewer revenue bonds, including any pari passu additional bonds issued pursuant to Bond Resolution No. 66-29, and any subordinate bonds payable from the revenues of the water and sewer system, any revenues remaining in the surplus revenue reserve fund may be used by the metropolitan government in any lawful manner.

(Prior code § 40-1-6)