§ 18-10. Same—Levy of taxes to pay principal and interest.

For the punctual payment of the principal of and the interest on all bonds of a district issued under the provisions of Sections 18-5 and 18-6 of this article, the full faith, credit and taxing power of such district shall be deemed to be pledged. For the payment of such principal and interest the Board is hereby authorized and required to levy annually a special tax upon all property within the district subject to County taxation over and above all other taxes authorized or limited by law sufficient to pay such principal and interest as the same respectively become due and payable, and the proceeds of all such taxes shall be deposited as received to the credit of a sinking fund and used for no other purpose than the payment of such principal and interest; provided, however, that the net revenue derived from the operation of any project for which bonds shall have been issued and the proceeds of any special assessments levied under the provisions of Section 18-14 on account of any project financed by such bonds shall be deposited to the credit of the sinking fund for such bonds, and the amount of the annual tax levy herein required shall be reduced in any year by the amount of such revenues and the proceeds of such special assessments actually received in the preceding year and then remaining on deposit to the credit of the sinking fund for the payment of such principal and interest.

In each year before the levy of County taxes the Board shall determine the amount required in the following fiscal year, in addition to any funds then available for such purposes.

(a)

To pay the expenses of maintaining, repairing and operating the project for which each district was created under the provisions of this article or of furnishing the special services for which each such district was created; provided, however, that in the case of a water system which shall be owned and operated by a municipality under a contract with the Board for supplying and distributing water within the district, such contract may provide for the payment of all or any part of such expenses by such municipality and for the payment of fire hydrant charges by the district or by the County.

(b)

To pay the interest on all outstanding bonds of each such district which were issued under the provisions of said Sections 18-5 and 18-6 and which becomes payable in such fiscal year.

(c)

To pay the principal of all such bonds of each such district which mature in such fiscal year.

(d)

To meet such reserve and sinking fund requirements as may be provided in the ordinance authorizing the issuance of such bonds; and the amounts so determined shall be levied upon all property in each such district subject to County taxation, excluding that portion of the valuation of such property which is subject to homestead exemption. Such taxes shall be extended and collected at the same time and in the same manner as County taxes are levied and collected, and shall have the same priority rights, bear interest, be subject to penalties and be treated the same as County taxes. The proceeds of such taxes shall be applied only to the purpose or purposes for which they were levied.

(Ord. No. 60-7, § 11, 2-9-60; Ord. No. 64-26, § 1, 7-7-64)