(A) There is hereby created the “Sewage Works Sinking Fund”, to which Fund there shall be deposited a sufficient amount of the net revenues of the sewage works to meet the requirements of the Bond and Interest Account and of the Debt Service Reserve Account, hereinafter created in the Sewage Works Sinking Fund.
(B) Beginning on the first calendar month following the beginning of the section herein authorized, there shall be credited on the first day of each calendar month to the Bond and Interest Account an amount equal to the sum of one-twelfth of the principal and interest on then outstanding bonds payable during the next succeeding 12 calendar months. There shall be similarly credited to the account the amount necessary to pay the bank fiscal agency charges for paying principal and interest on the bonds, as the same become payable. The Town Council shall, from the sums deposited in the Sewage Works Sinking Fund and credited to the Bond and Interest Account, remit promptly to the bank/fiscal agency sufficient monies to pay the principal and interest on the due dates thereof together with the amount of bank fiscal agency charges.
(C) Beginning on the first calendar month following the beginning of the section herein authorized, there shall be credited from available net revenues to the Debt Services Reserve Account the sum of $895 to be accumulated for both the bonds issued hereunder and the Series B bonds or a higher amount as may be fixed from time to time by the Town Council. The credits to the Debt Service Reserve Account shall continue until the balance therein shall equal not less than the maximum annual principal and interest requirements of the then outstanding bonds payable from the Sewage Works Sinking Fund. The Debt Service Reserve Account shall constitute the margin for safety and as a protection against default in the payment of principal and interest on the bonds, and the monies in the Debt Service Reserve Account shall be used to pay current principal and interest on the bonds to the extent that monies in the Bond and Interest Account are insufficient for that purpose. Any deficiencies in credits to the Debt Service Reserve Account shall be promptly made up from the next available net revenues remaining after credits into the Bond and Interest Account. In the event monies in the Debt Service Reserve Account are transferred to the Bond and Interest Account to pay principal and interest on bonds, then the depletion of the balance in the Debt Service Reserve Account shall be made up from the next available net revenues after the credits into the Bond and Interest Account hereinbefore provided for. Any monies in the Debt Service Reserve Account in excess of the maximum annual principal and interest requirements of the then outstanding bonds may be used for the redemption of bonds which are then callable, or for the purchase of outstanding bonds at a price not exceeding the then applicable redemption price or the first redemption price if the bonds are not callable, or may be transferred to the Sewage Works Improvement Fund, but in no event shall the excess monies be held in the Debt Service Reserve Account.
(D) The payments shall continue until the balance in the Bond and Interest Account, plus the balance in the Debt Service Reserve Account hereinafter created, equal the principal of and interest on all of the then outstanding bonds to the final maturity thereof.
(E) The Sewage Works Sinking Fund shall be deposited in and maintained as a separate bank account or accounts apart from all other bank accounts of the town.
(F) NET REVENUES shall mean the gross revenues of the sewage works less payment of the reasonable expenses of operation, repair and maintenance.
(1998 Code, § 4-4)