Isleton Municipal Code Ch. 3.44 Gas Royalties Fund

There is hereby created a special fund of the city to be known and designated as the "gas royalties fund." All gas and/or oil royalties paid to and received by the city from city property leased by the city for the extraction of gas and/or oil, and all royalties paid to and received by the city from property leased by property owners other than the city but paid to the city pursuant to the provisions of the city community gas lease heretofore mentioned, or any other instrument including such royalty payments already paid to and received by the city shall be deposited in said gas royalties fund.

(Ord. No. 134)

The monies deposited in said gas royalties fund shall be used for no purpose other than for the payment of principal and interest on general obligation bonds to be issued and sold (if the same are issued and sold) for the purpose of financing the cost of construction of a sewage disposal plant in or near the city; provided, that when said gas royalties fund is sufficient in amount to pay both the principal and interest of all such bonds as are outstanding, as the same mature, all such gas and/or oil royalties shall then be deposited in the general fund; provided, further, that said gas and/or oil royalties shall be so deposited for a period of nine months from the effective date of this Code, even though such bonds be not yet issued and sold; provided, further, that if such bonds be not issued and sold within nine months from the effective date of this Code, all such gas and /or royalties and any then balance in said gas royalties fund shall be deposited in the general fund of the city.

(Ord. No. 134)