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CHAPTER X.

SINKING FUND.

Sec. 117. Sinking fund—commissioners of.

For the purpose of managing, preserving and applying the
sinking fund required to be created by the Charter and the
Ordinances of the city, the Mayor, chairman of the Finance
Committee of the Council, Auditor, Treasurer, and president
of the Council shall constitute a board to be called the Sinking
Fund Commissioners.

Sec. 118. President and secretary.

The Mayor shall be the president, and the Auditor the secretary,
of said Board. The secretary shall keep a correct journal
of the proceedings of every meeting, to be signed by himself and
the president, and shall preserve all books and papers of the
board in his office.

Sec. 119. Treasurer.

The City Treasurer shall keep an account of and shall be the
custodian of all moneys, bonds and other evidences of debt belonging
to said sinking fund, and shall be the treasurer of Sinking
Fund Commission.

Sec. 120. Sinking fund.

The Council shall set apart from the resources of the city
such proportion of its annual revenues as shall be equivalent
in cash value to at least one-fortieth of the bonded debt of the
city. Said fund shall be set apart, one-half on the first day of
January of each year and the other half on the first day of
July of each year, and shall be placed to the credit of the Sinking
Fund Commissioners. The fund thus set apart and invested,
together with the annual interest and profits therefrom, shall be
called the sinking fund, and shall be kept for, and is hereby
dedicated to, the payment of the bonded debt of the city, and
shall not be applied by the Council to any other purpose.

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Sec. 121. Same—purchase of bonds for fund.

The Board shall apply all appropriations, interest and profits
from any bonds held by them to the purchase of bonds or certificates
of debt of this city, or of this State, or of the United
States, or of some other state of this Union, or any other bonds
the Sinking Fund Commissioners may deem a safe investment.
The accrued interest on said securities shall be collected by the
Treasurer when due, and deposited to the credit of the sinking
fund. All such securities shall be held and the interest thereon
re-invested according to the provision of this ordinance, until
some part of the city debt shall become due, when, unless other
provision be made by the Council, such securities, so far as
may be necessary, shall be sold and the proceeds applied to the
payment of such matured part of the city debt; provided, however,
that only such proportion of the sinking fund shall be used
in the payment of any maturing bonds, as the amount of said
maturing bonds bears to the whole bonded indebtedness of the
city; the residue of said maturing bonds to be refunded.

Sec. 122. Same—annual report of.

The Sinking Fund Commission shall, through its secretary, on
the first day of each September, make a report of the condition
of the sinking fund to the Council. Said report shall state the
cash receipts for the year, in detail, an itemized list of bonds
bought or sold, with price paid or received, and a detailed list of
all securities held by said Commission. Said report shall be approved
by the treasurer of the Sinking Fund.

Sec. 123. Disbursements—how made.

All disbursements by said Commission shall be by warrant of
the secretary, countersigned by the president of the Board,
drawn on the treasurer of the Sinking Fund Commission.