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(ii) Debt Service Account. There are hereby irrevocably <br />appropriated and pledged to, and there shall be credited to, the <br />Debt Service Account: (a) the net revenues of the City's <br />municipal water system and utility (as hereinafter described, the <br />"Net Revenues"), but only in amounts and at such times as will be <br />sufficient (together with other amounts in the Debt Service <br />Account) to pay, when due, the principal of and interest on the <br />Bonds; (b) all accrued interest received upon delivery of the <br />Bonds and all other funds paid for the Bonds in excess of <br />$331,650; (c) any collections of all taxes hereafter levied for <br />the payment of the Bonds and interest thereon; (d) all investment <br />earnings on funds held in the Debt Service Account; and (e) any <br />and all other moneys which are properly available and are <br />appropriated by the Council to the Debt Service Account. The <br />Debt Service Account shall be used solely to pay the principal of <br />and interest on the Bonds and any other general obligation bonds <br />of the City hereafter issued by the City and made payable from <br />said account as provided by law. <br /> <br /> As used in this Resolution, the term Net Revenues means <br />the gross revenues derived by the City from the operation of its <br />municipal water system and utility, including all charges for <br />service, use, availability, and connection to said system, and <br />all monies received from the sale of any facilities or equipment <br />of said system or any by-products thereof, less all normal, <br />reasonable, or current costs of owning, operating, and <br />maintaining the system. If any payment of principal or interest <br />on the Bonds shall become due when there are not sufficient funds <br />in the Debt Service Account to pay the same, the City Finance <br />Director shall pay such principal or interest from the general <br />fund or other available fund of the City, and such fund shall be <br />reimbursed for such advances from the proceeds of the Net <br />Revenues or of any general ad valorem taxes hereafter levied for <br />such purpose, when collected. The City hereby covenants that it <br />will impose and collect charges for the service, use, and <br />availability of and connection to the City's municipal water <br />system and utility at the times and in the amounts required to <br />produce Net Revenues adequate, together with other sources of <br />funding available to the Debt Service Account, to pay all <br />principal of and interest on the Bonds, when due. <br /> <br /> Nothing contained herein shall be deemed to preclude <br />the City from making further pledges and appropriations of the <br />Net Revenues of the City's municipal water system and utility for <br />the payment of other or additional obligations of the City, <br />provided that it has first been determined that the estimated Net <br />Revenues will be sufficient, in addition to all other sources, <br />for the payment of the Bonds and such additional obligations, and <br />any such pledge and appropriation of said Net Revenues may be <br />made superior or subordinate to, or on a parity with, the pledge <br />and appropriation herein. With respect to all currently <br />outstanding obligations of the City which are payable from the <br />Net Revenues, the Council hereby determines that the estimated <br /> <br />358675.1 19 <br /> <br /> <br />