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making extensions and replacements; and (f) provide money for the payment of any taxes that <br /> may be assessed against the works. So long as any of the 2012 Bonds are outstanding, none of <br /> the facilities and services afforded by the works shall be furnished without a reasonable and just <br /> charge being made therefor. <br /> SECTION 19. Defeasance. If, when the 2012 Bonds or a portion thereof shall have <br /> become due and payable in accordance with their terms or shall have been duly called for <br /> redemption or irrevocable instructions to call the 2012 Bonds or a portion thereof for redemption <br /> shall have been given, and the whole amount of the principal, premium, if any, and the interest <br /> so due and payable upon such 2012 Bonds or any portion thereof then outstanding shall be paid, <br /> or (i) cash, (ii) direct non-callable obligations of(including obligations issued or held in book- <br /> entry form on the books of) the U.S. Department of the Treasury, the principal of and the interest <br /> on which when due without reinvestment will provide sufficient money, or (iii) any combination <br /> of the foregoing, shall be held 'irrevocably in trust for such purpose, and provision shall also be <br /> made for paying all fees and expenses for the payment, then and in that case the 2012 Bonds or <br /> such designated portion thereof shall no longer be deemed outstanding or secured by this <br /> Ordinance or entitled to the pledge of the Net Revenues. <br /> SECTION 20. Additional Bonds. The City reserves the right to issue additional bonds <br /> payable out of the Net Revenues ranking on a parity with the 2012 Bonds for the purpose of <br /> financing the cost of future additions, extensions and improvements to the works, or to provide <br /> for a complete or partial refunding of obligations, subject to the following conditions precedent: <br /> (a) The interest on and principal of all bonds payable from the Net Revenues <br /> shall have been paid to date in accordance with the terms thereof, and all required payments into <br /> the Sinking Fund required by this Ordinance shall have been made. The Reserve Requirement <br /> shall be satisfied for the additional Parity Bonds either at the time of delivery of the additional <br /> Parity Bonds or over a five-year or shorter period, in a manner which is commensurate with the <br /> requirements established in ,Section 14 of this Ordinance. <br /> (b) The Net Revenues in the fiscal year immediately preceding the issuance of <br /> any such bonds ranking on a parity with the 2012 Bonds shall be not less than one hundred <br /> twenty-five percent (125%) of the maximum annual principal and interest requirements of the <br /> then outstanding bonds (including the 2012 Bonds and the Prior Bonds) and the additional Parity <br /> Bonds proposed to be issued; or, prior to the issuance of the additional Parity Bonds, the water <br /> rates and charges shall be increased sufficiently so that the increased rates and charges applied to <br /> the previous fiscal year's operations would have produced Net Revenues for the year equal to not <br /> less than one hundred twenty-five percent (125%) of the maximum annual principal and interest <br /> requirements of the then outstanding bonds and the additional Parity Bonds proposed to be <br /> issued. For purposes of this subsection, the records of the works shall be analyzed and all <br /> showings shall be prepared by an independent certified public accountant employed by the City <br /> for that purpose. <br /> (c) To the extent required by law, the issuance of the proposed additional <br /> Parity Bonds and any necessary increase in water rates and charges shall have been approved by <br /> the Indiana Utility Regulatory Commission, or any successor body vested by law with authority <br /> to approve bonds and water rates and charges of municipal waterworks. <br /> - 24 - <br />