Book 14 (January 1950 - July 1954) - City of Oxford

85\.'-'---....::==..-'-=. =MINUTE BOQK No. 14, _CI.TY OF OXFORD---_._--.-------.----------.---.-.--..-...---~===.. = ... = .. _ ..'--'_.--"'-_.. -.;......... . , c.; . .:.;____ ~;._. '__-"-';'.--'_"'::':...:_.-=_ .....__. .___........_____ "... _. ____." __ .....":_·';::"::;;C'C-=,F,"'-==(a) R6V'enue shall first be used for the payment of all current operating expenses,ia:luding salaries, wages, cost of materials and supplies, power at Ylholesale, and insurance.(b) From remaining revenues lltmicipality shall next currently provide for the p~ntat maturity of interest accrued on all System Indebtedness, and for amortization charges and/orsinking fund payments thereon.(c) Thereafter, revenues shall be used currently to set up reasonable reserves for re- /placerrents, new CCl'lstruction, and contingencies, andto prO'lide a reasonable anPunt of cash workingcapital."Ii(d) From remaining revenues Municipality may thereafter pay into its lieneral Fund areturn on its investment, as provided in the Financial and Accounting Policy in the Schedule ofTerms and Conditions attached hereto.(e) Fran renaining revenues Municipality may thereafter pay into its General Fund a taxequivalent as . provided in the Financial and ACecnnting Policy in the Schedule of Terms andCondi tions attached hereto.(f) All remaining revenues shall be considered surplus revenues and shall serve as abasis for the reduction or elimination of surcharges to consumers, and thereafter for the reductionof rates; provided, however, that Municipality may, subject to the consent of Authority,devote part or all of such surplus revenues to the purchase or retirement of System Indebtednessprior to maturity. Surplus revenues shall be computed as of June 30 of each year.10. Payment 'ifir Municipality's Energy Requirements. Municipality agrees to make paymentsinto its electric funds from appropriate gene raJ. or special funds for all electric service requiredby Municipality for street lighting, water pumping, and other operations and uses, at theresale rates prescribed in section 8 hereof.11. Terms and Condi tims. Attached hereto and hereby made a part hereof, is a "Schedule ofTerms ana Conditions." The provisions of this schedule may from time to time be changed orsupplem~nted by wri tten agreement of Municipality and Authority. It is understood and agreed thatthe several provisions of this schedule, with such changes as may from time to time be adoptedpursuant hereto, as well as the several provisions of this contract and of the Schedule of Ratesand Charges, are of the essence of this contract.II\.Notwithstanding a.1V other provision of this contract, including without limitation theprovisions of the Schedule of Terms an:! Conditions, the amunt of Municipality's initial investmentin the electric system for purposes of this contract shall be determined by Illbtracting thebonds and other liabilities assumed by the electric system from the assets transferred to theelectric system, all as of JanUiry 1, 1951, the assets so transferred and the liabilities aoassuned to be determined as hereinafter provided in this paragraph. The assets to be transferredto the electric system, determined as of January 1, 1951, shall consist of the following:1. The value of Municipality's distribltioo system as determined bythe Authority's inventory andappraisal thereof.2. Thirty JJo11ars ($30) per kilowatt of the installed capa.city of thegenerating plant.3. All electric system accounts receivable as of January 1, 1951.4. Organization expense in the amount of Five Thousand Dollars (~?5,OOO).5. The actual value of materials arxi. supplies.6. Trust fund accounts applicable to issued and outstanding bonds as~edby the electric system.7. The amount of any cash transferred to the electric system as of January1, 1951.,1..-The liabilities to be assumed by the electric system, determined as of January 1, 1951, shallconsist of the following:1. The issued arxi. outstanding bonds of Municipality of the 5i% issueof July 1930.2. The issued and outstanding bonds of Uunicipality of the 2~ and 1%issues of April 1946.3. Any additional outstanding bonds which were issued, and the proceedsof which were used, exclusively for electric system purposes.4. All electric system accounts payable am custaner deposits as ofJarmary 1, 1951.It is understood arr.i agreed that, if the sum of the above itemized liabilities should exceed thesum of the above itemized assets, the aDnlnt of l4unic ipality' 8 initial investnent in the electricsystem shall be zero and the issued am outstanding bonds of Municipality listed above to be,.I,t-__ ~ ____ ~il ___ .. ___ . _______ _