03231970 Regular Meeting - Laserfiche WebLink

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I (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 outstand- ing Revenue Bonds 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 Bonds then outstanding. Section' XVII. Maintenance of Rates and Charges. The City further covenants and agrees that, so long as ~y.of the 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: (1) To pay all reasonable and necessary costs of operation, repairs, maintenance and insurance of the System; (2) To provide for the payment of principal and interest on the Bonds and the required reserve therefor and maintain the Water and Sewer System Replacement and Repair Fund; \1 -:1 - 17 -