Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 47 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 47 - Debt service requirements for prior lien bonds, excluding federal subsidies for the 2016, 2012, 2011 and 2010 bonds are shown in the table below. Future debt service requirements on the variable 2015B Bonds are based on actual interest rates in effect as of December 31, 2016. ($ in millions) Fixed Rate Bonds Variable Rate Bonds Years Ending Principal Interest Principal Interest December 31 Redemptions Requirements Redemptions Requirements Total 2017 111.2 $ 93.8 $ - $ 1.4 $ 206.4 $ 2018 111.8 88.5 - 1.4 201.7 2019 108.6 83.0 - 1.4 193.0 2020 107.8 77.5 - 1.4 186.7 2021 106.8 72.5 - 1.4 180.7 2022 – 2026 519.6 281.4 3.3 7.0 811.3 2027 – 2031 294.5 179.3 18.8 6.1 498.7 2032 – 2036 280.1 116.6 23.0 4.6 424.3 2037 – 2041 267.4 53.5 28.0 2.9 351.8 2042 – 2046 110.3 10.2 26.9 0.7 148.1 Total 2,018.1 $ 1,056.3 $ 100.0 $ 28.3 $ 3,202.7 $ Reserve Fund - The Department has created and is required under Ordinance No. 124916 (Bond Ordinance) to maintain a Reserve Fund for the purpose of securing the payment of the principal of and interest on all Parity Bonds outstanding and all amounts due under Parity Payment Agreements. The Reserve Fund is a pooled reserve and is an account within the books of the Department. The Bond Legislation provides that, if the amount in the Reserve Fund is less than the Reserve Fund Requirement (taking into account the method of funding over five years in connection with the issuance of Future Parity Bonds), the Department must transfer to the Reserve Fund money in an amount sufficient to restore the Reserve Fund to the Reserve Fund Requirement within 12 months after the date of such deficiency. Such transfers must be made, first, from money in the Light Fund (after making provision for payment of operating and maintenance expenses and for required payments into the Parity Bond Fund) and, only thereafter, from money in any construction fund or account established with respect to any issue of Parity Bonds (first taking money from the unrestricted portion thereof, and then taking money from the restricted portion thereof). The Reserve Fund is held by the City in a “special fund” as that term is used in State law; it is not held by an independent trustee. In the context of bankruptcy proceedings, notwithstanding State law, there can be no assurance that the funds on deposit therein would be held intact for the benefit of holders of the Parity Bonds. Reserve Fund Requirement - Under the Bond Ordinance, the aggregate Reserve Fund Requirement for all Parity Bonds is equal to the sum of the Reserve Fund Requirements established for each issue of Parity Bonds outstanding. The Bond Ordinance permits the Department to establish the Reserve Fund Requirement (if any) for each issue of the 2016C Bonds or of Future Parity Bonds in the bond resolution