Res 2015-045/Loan forgiveness agreement with TWBD for Reclaimed Water System Expansion

Home Browse Search

32, prior to release of funds for professional con 1� to including, riate, the City must provide "M' engineer, financial advisor, and bond counsel, PP documentation that it has met all applicable state procurement Disadvantaged Business Enterprises federal procurement requirements under program; Pledge Conditions For The Loan erve fund of no less than average 33. the Obligations must require the acr be acaumulatedein equal monthly installments over annual debt service requirements, to the initial twenty -four (24) months following the issuance of the Obligations; 34. if the City has existing revenue obligations with the same pledge of e e �e TWDB proposed Obligations that will remain outstanding after any loan(s) pursuant to this commitment, the lien or liens securing the Obligations issued to the TWDB shall be at least on a parity with lien or liens securing such outstanding obligations; 35. the Obligations must contain a provision p� d from a Certified Public Accountantna additional revenue may only be incurred if the City has certificate or report reflecting that for the fiscal year next preceding the date of the proposed Additional Parity Obligations or a consecutive twelve (12) month period out of �+ the fifteen (15) month period next preceding the month in which the ordinance authorizing the proposed Additional Parity Obligations is adopted, the "net revenues" of the System were equal to at least 1.20 times the combined average annual principal and interest requirements on all Parity Revenue Obligations to be outstanding after the issuance of the proposed Additional Parity Obligations. In making a determination of such net revenues, the Certified Public Accountant may take into consideration a change in the rates and charges for services and facilities afforded by the System that became effective at least sixty (60) days prior to the last day of the period for which such net revenues are determined and, for purposes of satisfying such net revenues test, make a pro forma determination of such net revenues for the period of time covered by the certificate or report based upon such change in rates and charges as being in effect for the entire period covered by the certificate or report. The term "net revenues" shall mean the gross revenues of the System after deduction of maintenance and operating expens, but ot deducting depreciation or expenditures which, under standard accounting practices are classed as capital expenditures. PROVIDED, however, the commitment is subject to the following special conditions: 36. prior to closing, the City shall execute a Loan Forgiveness Agreement in a form and substance acceptable to the Executive Administrator; and "M' 37, the Loan Forgiveness Agreement must include a provision stating that the City shall return any loan forgiveness funds that are determined to be surplus funds in a manner determined by the Executive Administrator. TWDB Contract No. LF1000351 Exhibit A, Page 8 of 9