Ord 1983-078 - Laserfiche WebLink

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issue, in one or more installments, Additional Bonds or obligations ("Additional Bonds") payable from or secured by a first lien on and pledge of the revenues of the System, and such Additional Bonds, when issued in compliance with law and the terms and conditions hereinafter appearing, shall be equally and ratably secured by and payable from a lien on and pledge of the net revenues of the System, and shall be in all respects on a parity and of equal dignity with the Certificates. The right to issue Additional Bonds at any time is subject to the following limitations, restrictions, and conditions: (a) The Additional Bonds are authorized and issued in conformity with the Constitution and applicable Statutes of the State of Texas; (b) The City certifies that no default exists in connection with any of the covenants or requirements of the ordinance or ordinances authorizing the issuance of all then outstanding bonds payable from the net revenues of the System; (c) The City certifies that the Interest and Sinking Fund contains the amount then required to be on deposit therein; (d) The net revenues of the System for the fiscal year immediately preceding the issuance and sale of said Additional Bonds are equal to at least one and five-tenths (1.5) times the average annual debt service requirements of the then outstanding bonds, as certified by a Certified Public Accountant; and (e) The annual net revenues of the System will be equal to at least one and five-tenths (1.5) times the average annual amount required for payment of principal of and interest on all outstanding revenue bonds, Certificates and the Additional Bonds then proposed to be issued, as such principal and interest are scheduled to become due, as certified to by an Independent Consulting Engineer. Provided, however, that it shall not be necessary for the City to meet the above requirements as to the average annual debt service requirements if the City obtains the written consent of the owners or holders of at least seventy-five per cent (75%) of the Outstanding Bonds, Certificates and Additional Bonds then outstanding. Section 19. RATES AND CHARGES. The Ci ty further covenants and agrees that, so long as any of the Outstanding Bonds, Certificates and Additional Bonds remain outstanding and unpaid, it shall fix and maintain rates and collect charges for the facilities and services afforded by the System which will produce income and revenues sufficient at all times: (a) To pay all reasonable and necessary costs of operation, repairs, maintenance and insurance of the System; (b) To provide for the payment of principal and interest on the Bonds, Certificates and Additional Bonds and the required reserve therefor and maintain the Water and Sewer System Replacement and Repair Fund; (c) To pay in addition all outstanding indebtedness against the System other than the Outstanding Bonds, Certificates or any Additional Bonds, as and when the same becomes due. Section 20. MAINTENANCE AND OPERATION; INSURANCE. (a) The City hereby covenants and agrees to maintain the facilities of its water and sewer system in good condition and operate the same in an efficient manner and at a reasonable cost. (b) If the water and sewer system includes structures above ground level, the City shall, upon acceptance of the project from the Contractor, if such insurance is not already in force, procure Fire -13-