CITY OF TEMPLE, TEXAS NOTES TO THE FINANCIAL STATEMENTS September 30, 2014 III.
DETAILED NOTES ON ALL FUNDS (Continued) H.
LONG-TERM DEBT (Continued)
(2)
Revenue Bonds Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and pledge of the net revenues of the water and sewer system. The Revenue Bonds are collateralized by the revenue of the water and sewer system established by the bond ordinances. The ordinances provide that the revenue of the system is to be used first to pay operating and maintenance expenses of the system and second to establish and maintain the Revenue Bond funds. Remaining revenues may then be used for any lawful purpose. The ordinances also contain provisions which, among other items, restrict the issuance of additional Revenue Bonds unless the special funds noted above contain the required amounts and certain financial ratios are met. The City is in compliance with all significant financial requirements as of September 30, 2014.
(3)
Taxable Revenue Bonds Taxable Revenue Bonds constitute special obligations of the City and are payable from and secured by an irrevocable first lien on and pledge of the net revenues of the Airport, and said net revenues are further pledged irrevocably to the establishment and maintenance of the funds. The Taxable Revenue Bonds, Series 2005, are collateralized by the net revenue of the Airport established by the bond ordinance. The ordinance provides that the revenue of the Airport is to be used first to pay operating and maintenance expenses of the Airport and second to establish and maintain the Taxable Revenue Bond funds. The ordinance also contains provisions which, among other items, restrict the issuance of additional debt, unless the City has sufficient funds to establish and maintain funds for the payment thereof. The City is in compliance with all significant requirements as of September 30, 2014. The Taxable Revenue Bonds, Series 2008, are collateralized by the tax increment generated by the Reinvestment Zone No.1 (a discretely presented component unit) by the First Supplemental Ordinance to the Master Ordinance Establishing the City of Temple, Texas Reinvestment Zone Number One Tax Increment Revenue Financing Program. The ordinance provides that the revenue of the Reinvestment Zone No. 1 be used to meet all financial obligations related to the bonds. The City is in compliance with all significant requirements as of September 30, 2014.
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