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City budget each year an amount sufficient to meet any anticipated deficiency in the revenues available for operation and maintenance, and the City hereby pledges and agrees to provide from other funds and ad valorem tax levies, if necessary, sufficient sums to pay all current costs of operation, maintenance and administration of the Facility. Money in the Operation and Maintenance AccoWlt may be invested in the manner permitted by law for the investment of municipal funds, but such instrwnents must mature not later than the date on which it is anticipated the proceeds thereof will be required for disbursement from the Operation and Maintenance Account. Investment earnings may be transferred, at the option of the City, to the Revenue Bond Account or retained in the Operation and Maintenance Account. (c) A Revenue Bond Account for payment of the principal of and interest on the Bonds into which will be deposited accrued interest on the Bonds from their date of issue until date of delivery. All Gross Revenues of the Facility will be deposited until such time as the balance therein is equal to the amount of interest and principal due on the Bonds in the next ensuing 12-month period (the "Debt Service Requirement"). Any Gross Revenues in excess of the Debt Service Requirement will be transferred first to the Reserve Account to maintain the Reserve Requirement, and second to the Operation and Maintenance AccOlUlt. The Revenue Bond Account will be maintained as herein provided until all the Bonds have been paid and retired. If there are insufficient funds in the Revenue Bond Account to pay principal and interest, or either of them, when due, funds to make such payment must be transferred to the Revenue Bond Account for that pwpose from the Operation and Maintenance Account. In the event of a deficiency in the Debt Service Requirement, the City covenants and agrees to provide from other sources funds necessary to pay the principal of and interest on the Bonds. Money in the Revenue Bond Account may be invested in the manner provided by law for the investment of municipal funds, but such investments may not mature later than the date on which it is anticipated the proceeds thereof will be required for disbursement. (d) A Reserve Account, into which the sum of $58,940 is to be paid from the proceeds of the Bonds. This initial balance, being equal to the maximum amount of principal and interest on the Bonds in any year is the Debt Service Requirement. Money in the Reserve Account may be used only to pay principal of and interest on the Bonds or additional parity bonds. Investment earnings in the Reserve Account may be transferred to the Revenue Bond Account. The initial balance is equal to the maximum amount of principal and interest on the Bonds in any year, which amount is the "Reserve Requirement." In the event Additional Bonds are issued pursuant to the Resolution, the Reserve Requirement is the lesser of (i) maximum annual debt service on the Bonds and any Additional Bonds; (ii) 125% of the average annual debt service on the Bonds and any Additional Bonds, and (iii) 10% of the original proceeds of the Bonds and any Additional Bonds. A balance equal to the Reserve Requirement must be maintained in the Reserve Account while the Bonds are outstanding by the retention of interest earnings therein and the transfer to the Reserve Account of Gross Revenues in excess of the requirements of the Revenue Bond Account and the Operation and Maintenance Account when and to the extent necessary. Moneys on hand in the Reserve Account may be used only to pay interest DJK.165146 NE136-152