Laserfiche WebLink
• • <br />(ii) at least one and twenty-five hundredths (1-25/100) times the <br />maximum annual requirement for the payment of principal and interest <br />on the then outstanding bonds and other evidences of indebtedness <br />payable from the revenues of the System and on such Additional <br />Bonds, when issued, sold and delivered; <br />provided, however, should the certificate of the accountant certify that the net <br />earnings of the System for the fiscal year covered thereby were, in either case, less <br />than required above, and a change in the rates and charges for services afforded by <br />the System became effective at least sixty (60) days prior to the scheduled date of <br />adoption Hof the ordinance authorizing such Additional Bonds, then such Additional <br />Bonds may nevertheless be issued if an independent engineer or engineering firm having <br />a favorable reputation with respect to such matters certifies that, had such change in <br />rates and charges been effective for the fiscal year covered by the accountant's <br />certificate, the net earnings for the System for the fiscal year covered by the <br />accountant's certificate would have met the tests specified in (i) and (ii) above. <br />The term "net earnings" as used in this Section shall mean all of the net revenues of <br />the waterworks and Sewer System, exclusive of income received specifically for capital <br />items, after deduction of the reasonable expenses of operation and maintenance of the <br />System excluding expenditures which under standard accounting practice should be <br />charged to capital expenditures or depreciation. <br />(bI Said Additional Bonds are made to mature on March 15 in each of the years in <br />which they are scheduled to mature; and <br />(c) The Interest and Sinking Fund and the Reserve Fund each contain the amount <br />then required to be on deposit therein. <br />(d) The Ordinance authorizing the issuance of such Additional Bonds provides that <br />the City shall establish a Reserve Fund for such Additional Sonds by any method or <br />combination of methods that the City deems reasonable and appropriate provided thatr <br />(i) the amount of such Reserve Fund (or coverage of any surety bond in lieu thereof) <br />shall at least equal the maximum annual debt service requirements of such Additional <br />Aonds, not to exceed the maximum permitted by applicable regulations, procedures or <br />published rulings of the Internal Revenue Service (the "Reserve Minimum"), (ii) if any <br />Cash Reserve Fund is funded by making transfers of Net Revenues in the System Fund, <br />such transfer shall be made each month in an amount reasonably sufficient to reach the <br />reserve minimum within a period of not more than five years after any such Additional <br />Bonds are sold and delivered and (iii) any such Cash Reserve Fund shall be for the <br />equal benefit of the owners of (x) the Bonds, (y) such Additional Bonds and (z) any <br />Additional Bonds thereafter issued. <br />Maintenance and Operation-Insurance <br />The City shall maintain the System in good condition and operate the same in an <br />efficient manner and at a reasonable cost. So long as any of the Bonds are <br />outstanding, t~ ee,~s~to ~mcaintain insurance on the System, for the benefit of <br />the registere owner or'-ow,~`e ` bkre~Bonde~'E°` an n~ n-~'amolrrrt~rha<~a.lly <br />would be carried by private companies engaged in a similar type of business in the <br />same area. This Ordinance shall not be construed as requiring the City to expend any <br />funds which are derived from sources other than the operation of the .System, but <br />nothing herein shall be construed as preventing the City from doing so. <br />Records and Accounts <br />The City shall keep proper books of records and accounts, separate from all other <br />records and accounts, in which complete and correct entries shall be made of all <br />transactions relating to the System. Upon written request made not more than 60 days <br />following the close of the fiscal year, the City shall furnish to any registered owner <br />of any of the Sonds, complete financial statements of the System fn reasonable detail <br />covering such fiscal year, certified by the City's Auditor. Any registered owner or <br />owners of 258 of the Bonds at the time outstanding shall have the right at all <br />reasonable times to inspect the System and all records, accounts and data of the City <br />relating thereto. <br />I~ ~ <br />~ `~~ t <br />~~ <br />f <br />Sr <br />