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<br /> 13'(;)ßM
<br /> Rates
<br /> - -.- The City has covenanted in the Ordinance that it will at all times charge and collect for services rendered by the System rates
<br /> sufficient to pay all operating, maintenance, replacement and improvement expenses, any other costs deductible in detennimng
<br /> Net Revenues and to pay interest on and the principal of the Bonds, and to establish and maintain the funds provided for in the
<br /> Ordinance. The City has further covenanted to maintain rates sufficient to produce Pledged Revenues equal to at least 1.25 times
<br /> the annual debt service on all Bonds similarly secured (as defined below). The City has further covenanted that, if the System
<br /> should become legally liable for any other indebtedness, it will fix and maintain rates and collect charges for the services of the
<br /> System sufficient to discharge such indebtedness.
<br /> -- Redemption of Bonds
<br /> The City reserves the right, at its option, to redeem Bonds having stated maturities on and after November 1, 2003, in whole
<br /> or in part in principal amounts of $5,000 or any integral multiple thereof, on November 1, 2002, or any date thereafter, at the
<br /> par value thereof plus accrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed and
<br /> if less than all of a maturity is to be redeemed, the Paying Agent/Registrar, with the approval of the City, shall detennine by
<br /> lot the Bonds, or portions thereof, within such maturity to be redeemed.
<br /> Additionally, the Bonds maturing on November 1, 2016 are subject to mandatory sinking fund redemption prior to maturity in
<br /> part at random, by lot or other customary method selected by the Paying Agent Registrar, with the approval of the City, at 100%
<br /> of the principal amount thereof plus accrued interest to the date of redemption as follows;
<br /> Amount to
<br /> Redemption Date be Redeemed ~
<br /> November 1, 2012 $ 1,005,000
<br /> November 1, 2013 1,060,000
<br /> November 1, 2014 1,125,000
<br /> November 1, 2015 1,190,000
<br /> November 1, 2016 (maturity) 1,265,000
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<br /> The principal amount of the Term Bonds required to be redeemed pursuant to the operation of sùch mandatory sinking fund
<br /> redemption provisions shall be reduced, at the option of the City, by the principal amount of Term Bonds which, at least 45 days
<br /> prior to the mandatory redemption date (i) shall have been acquired by the City at a price not exceeding the principal amount
<br /> of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for
<br /> cancellation, (ü) shall have been purchased and cancelled by the Paying Agent/Registrar at the request of the City at a price not
<br /> exceeding the principal amount of such Term Bonds plus accruo::d interest to the date of purchase, or (ill) shall have bo::o::n
<br /> redeo::med pursuant to tho:: optional redo::mption provisions and not theretofore credited against a mandatory redemption
<br /> requirement.
<br /> Not less than 30 days prior to a redemption date for the Bonds, the City shall cause a notice of redemption to be sent by Umted
<br /> States mail, fust-class, postage prepaid, to each registered owner of a Bond to be redeemed, in whole or in part, at the address
<br /> of the registered owner appearing on the registration books of the Paying Ago::ntJRegistrar at the close of business on the business
<br /> day next preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively presumed to have
<br /> been duly given irrespective of whether received by the bondholder, and provision for payment of the redemption price having
<br /> been made, interest on the redeemed bonds shall cease to accrue notwithstanding that a bond has not been presented for payment.
<br /> Additional Bonds
<br /> In the Ordinance, the City reserves the right to issue Additional Bonds, in accordance with law, in any amounts, for purposes
<br /> of extending, improving or repairing the System or for the purpose of refunding of any Bonds, Additional Bonds or other
<br /> obligations of the City incurred in connection with the ownership or operation of the System. Such Additional Bonds shall be
<br /> secured by and made payable equally and ratably on a parity with the Bonds, and all outstanding Additional Bonds, from an
<br /> irrevocable first lien on and pledge of the Pledged Revenues. Additional Bonds shall not be issued unless (i) a certificate that
<br /> the City is not in default as to any covenant, condition or obligation in connection with all then outstanding Bonds, and that the
<br /> Interest and Sinking Fund and the Reserve Fund each contain the amount tho::n required to be therein, and (ü) an independent
<br /> certified public accountant, or independent firm of certified public accounts, signs a written certificate or report to the effect
<br /> that, during either the next preceding fiscal year, or any twelve consecutive calendar month period ending not more than mnety
<br /> days prior to the date of the then proposed Additional Bonds, the Net Revenues were, in its opimon, at least equal to 1.25 times
<br /> the average annual principal and interest requirements (computed on a fiscal year basis) on all then outstanding Bonds and
<br /> Additional Bonds to be outstanding after the issuance of the then proposed Additional Bonds.
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