(A) Where the city issues general obligation corporate purpose bonds, the city will create and establish a permanent Annual Operating Reserve Account Fund, which amount shall be equal to the total amounts of the general obligation corporate purpose bonds, subject to the following terms and conditions:
(1) The funds in the reserve account will be available for internal transfer to other city funds during the fiscal year of the city;
(2) The reserve account must be reimbursed and brought to its original funded amount by the end of each of the city’s fiscal years;
(3) Any and all interest income earned from the principal amount of the fund shall be transferred at the end of each fiscal year to the General Fund; and
(4) In the event that the city is unable to repay all of the principal and/or interest of the general obligation corporate purpose bonds as they become due, the reserve account shall be used for the purpose of the interest and/or principal payment, but only if there is no other viable and alternate means of the repayment from other city sources.
(B) It is incumbent upon the city to replace the amounts used for the bond principal and interest payment to bring the fund up to its original principal amount as soon as is reasonably and financially possible.
(Ord. 124, effective 7-2-1983)