Ord 2013-022/Electric Utility System Revenue Financing Program

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SIXTH: all remaining Pledged Revenues shall be retained in the System Account and may be used for any lawful purpose authorized pursuant to the Enabling Act and other State law. Section 5. RATE COVENANT. For the benefit of the Holders of the Parity Debt and in addition to all provisions and covenants in the laws of the State and in this Master Ordinance and any Supplement, the City hereby expressly stipulates and agrees, while any of the Parity Debt is Outstanding, to establish and maintain rates and charges for facilities and services afforded by the Utility System that are reasonably expected, on the basis of available information and experience and with due allowance for contingencies, to produce Gross Revenues in each Fiscal Year reasonably anticipated to be sufficient: 1. to pay Maintenance and Operating Expenses; 2. to produce Pledged Revenues at least equal to 1.10 times the Annual Debt Service Requirements; 3. to produce Pledged Revenues in amounts sufficient to enable the City to make the deposits and credits, if any, from Pledged Revenues to the accounts and subaccounts required by this Master Ordinance and any Supplement including to fund or replenish any reserve account required by a Supplement, including the payment of any Reserve Fund Obligation then due. 4. to produce Pledged Revenues, together with any other lawfully available funds (including the proceeds of Debt which the City expects will be utilized to pay all or part of the principal of and /or interest on any obligations) sufficient to meet all financial obligations for Subordinate Debt issued by the City; and 5. to pay any other Debt payable from the Pledged Revenues and /or secured by a lien on the Security. Should the annual audit report reflect that the Security for the Fiscal Year covered thereby is less than necessary to meet the requirements of this Section, the City Council will review the operations of the Electric Utility System and the rates and charges for services provided, and the City Council will make the necessary adjustments or revisions, if any, in order that the Security for the succeeding year will be sufficient to satisfy the foregoing coverage requirements. Section 6. GENERAL REPRESENTATIONS AND COVENANTS. The City further represents, covenants and agrees that while Parity Debt or interest thereon is Outstanding: (a) Payment of Parity Debt. The City will duly and punctually pay solely from the Security, (i) the Annual Debt Service Requirements on, and other payments with respect to, each and every Parity Debt on the dates and at the places, as such Parity Debt accrues or matures, or becomes subject to mandatory redemption prior to maturity and such payments will be made in the manner provided in said Parity Debt and the Supplement governing its issuance, according to the true intent and meaning thereof and (ii) the fees and expenses related to Parity Debt, including the fees and SanMARCOS \ElectricUtilSysRevBonds \2013: MasterOrdinance 5