O-1991-1755 - Laserfiche WebLink

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,e ,e Bonds"), and the Additional Bonds, when Issued, may be secured by and payable from a first lien on and pledge of the Net Revenues In the same manner and to' the same extent as the outstanding Parity Bonds but subject to the remaining provisions hereof, and the Previously Issued Parity Bonds, the Bonds, and the Additional Bonds may be In all respects of equal dignity. It is provided, however, that no Additional Bonds shall be Issued unless: (a) The Interest and Sinking Fund, the Reserve Fund, and any similar fund or funds created by the ordinance authorizing any Parity Bonds at the time outstanding shall each contain the amount then required to be on deposit therein, and a certificate of such effect shall be executed and delivered by the Mayor' and City Secretary. (b) As long as any of the Series 1985 Bonds are outstanding, the "net earnings" (defined below) of the System for the fiscal year next preceding the month In which the ordinance authorizing such Additional Bonds Is adopted, were equal to each of the provisions following in items (c) (i) and (Ii) below, determined Independently and certified. by an independent firm of certified public accountants, based upon an annual audit of the books of the System. (c) After the Series 1985 Bonds are no longer 'outstanding, an independent firm of certified public accountants, based upon an audit of the books of the System, certifies that the net earnings of the System for the previous fiscal year, or for any 12 consecutive month period ending not more than 90 days prior to the date, of ,the adoption of the ordinance authorizing the Additional Bonds, were equal to each of the following determined independently: , (i) at least 1.50 times the average annual requirements for the' payment of the principal of and interest on the Parity Bonds then outstanding and on such Additional Bonds, when issued, sold, and delivered; and (ii) at least 1.25 times the maximum annual requirement for the payment of the principal of and interest on the Parity Bonds then outstanding and on such Additional Bonds, when issued, sold, and delivered; provided, however, should the certificate of the accountant certify that the net earnings of the System for the period covered thereby were, in either case, less than required above, and a change In the rates and charges for the services afforded by the System became effective at least 60 days prior to the scheduled date of adoption of the ordinance authorizing such Additional Bonds, then such Additional Bonds may nevertheless be issued if an independent engineer or engineering firm having a favorable reputation with respect to such matters certifies that, had such change in rates and charges been effective for the entire period covered by the accountant's certificate, the net earnings for the System for the fiscal year covered by the accountant's certificate would have met the tests specified in (i) and (ii) above. 16