§ 70-4. Use of revenues from water and wastewater systems for retirement of bonded indebtedness.

(a)

As used in this section, the term "utility tax bonds" shall mean those tax bonds issued for the construction of improvements to the city's waterworks system and wastewater system which were the subject of a bond election held on September 18, 1976, which election was called by Ordinance No. 76-10. The term "utility system" as used in this section shall mean the city's waterworks system and wastewater system.

(b)

Each year, while any of the utility tax bonds are outstanding and before passing any ordinance levying taxes for that year, the city council will take advantage of the provisions of Vernon's Ann. Civ. St. art. 1106, or any like legislation which may become effective in the future, by setting aside out of the net revenues of the utility system and applying such sum as the city council deems to be in the best interest of the city to the payment of the principal of and interest on the utility tax bonds, or any of them, that falls due during the following year.

(c)

Nothing contained in this section shall be deemed to restrict the ability of the city council to exercise its independent judgment with respect to the best interest of the city in setting aside and applying new revenues of the utility system for the purposes specified in subsection (b) of this section; provided, however, that as long as any utility tax bonds are outstanding, no new revenues of the utility system shall be used in any year for any other purpose unless a sum is appropriated pursuant to subsection (b) of this section which is sufficient to pay in full the principal of and the interest on the utility tax bonds for the following year, without levying any tax for such purpose.

(d)

Nothing contained in this section shall be deemed to affect in any manner the covenants the city has heretofore made in its outstanding revenue bonds which are secured by a pledge of the new revenues of its utility system or any part thereof, or to limit in any respect of city's freedom in the future to issue and sell additional revenue bonds on a parity with such outstanding bonds, or junior lien bonds or other evidences of indebtedness secured by a pledge of or lien on the revenues of the utility system or any part thereof.

(e)

The commitment of the city council contained in this section is expressly made with the intention that it will be binding upon the present and any future city council to the extent that the utility tax bonds, or any of them, were approved by a majority of the voters in the city at the bond election held on September 18, 1976, but not otherwise.

(Code 1977, § 21-6)