Sec 35-468.03. Supplemental tax levy; interest fund; redemption fund

A. After the bonds are issued, the governing body or board issuing the bonds shall annually levy and cause to be collected a tax, at the same time and in the same manner as other taxes are levied and collected on all taxable property in the political subdivision, sufficient to pay the interest on the bonds when due and shall likewise annually levy a tax sufficient to pay the bonds at maturity, in each instance net of amounts to be paid from water transportation revenues so that the levy does not exceed the amount required to pay debt service on the bonds to be paid from taxes pursuant to the schedule filed under section 35-468.01, subsection C. Monies derived from the levy of the tax when collected shall be deposited in the interest fund and the redemption fund pertaining to the bonds.

B. The treasurer of the political subdivision issuing the bonds shall establish an interest fund and a redemption fund for paying the bonds. The treasurer shall deposit into such funds revenues received from taxes and water transportation revenues in amounts sufficient to pay the interest and principal of such bonds next maturing. The funds shall be used solely to pay principal and interest on the bonds.