Watsonville Municipal Code Art. 4 Duties of the City

The duties prescribed by this article shall be performed by the City or its proper officers, agents, or employees. Such performance shall be the essence of the City’s contract with the bondholders.

(§ 1, Ord. 535-81 C-M, eff. September 24, 1981)

The City shall pay or cause to be paid the principal and interest of the bonds on the date, at the place, and in the manner mentioned in the bonds and coupons from revenues in accordance with the resolution authorizing their issuance.

(§ 1, Ord. 535-81 C-M, eff. September 24, 1981)

The City shall operate or cause to be operated any enterprise in an efficient and economical manner.

(§ l, Ord. 535-81 C-M, eff. September 24, 1981)

After making allowances for contingencies and errors in the estimates, the charges, together with any other funds which under this chapter can legally be, and which are, pledged or otherwise made available for the respective purposes set forth in this chapter, shall be at least sufficient to pay the following amounts:

(a) The interest on and principal of the bonds as they become due and payable;

(b) All payments required for compliance with the resolution authorizing the issuance of the bonds or any other contract with the bondholders, including the creation of sinking and reserve funds;

(c) All payments to meet any other obligations of the City which are charges, liens, or encumbrances upon, or payable from, the revenues of the enterprise; and

(d) All expenses of the maintenance and operation of the enterprise.

(§ l, Ord. 535-81 C-M, eff. September 24, 1981)

The City shall operate, maintain, and preserve any enterprise in good repair and working order.

(§ 1, Ord. 535-81 C-M, eff. September 24, 1981)

The City shall preserve and protect the security of the bonds and the rights of the bondholders and warrant and defend their rights against all claims and demands of all persons.

(§ 1, Ord. 535-81 C-M, eff. September 24, 1981)

In order to fully preserve and protect the priority and security of the bonds, the City shall pay and discharge all lawful claims for labor, materials, and supplies which, if unpaid, may become a lien or charge upon the revenues prior or superior to the lien of the bonds or impair the security of the bonds.

(§ 1, Ord. 535-81 C-M, eff. September 24, 1981)

The City shall hold in trust the revenues and other funds pledged to the payment of the principal of and interest on the bonds for the benefit of the bondholders and shall apply the same pursuant to the resolution authorizing the issuance of the bonds or to the resolution as modified. The City may invest funds held in reserve funds, or in any sinking fund, or in funds not required for immediate disbursement in property or securities in which cities may legally invest funds subject to their control. No such investment shall be made in contravention of any covenant or agreement in any resolution authorizing the issuance of any outstanding bonds.

(§ 1, Ord. 535-81 C-M, eff. September 24, 1981)

The City shall keep proper books of records and accounts of any enterprise separate from all other records and accounts, in which books and accounts complete and correct entries shall be made of all transactions relating to the enterprise.

(§ 1, Ord. 535-81 C-M, eff. September 24, 1981)