Construction of Additions and Improvements to the Sewage Works Bonds

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Section 16. All revenues received on account of the sewage works shall be segregated and kept in a special fund separate and apart from all other funds of the City. The City shall keep proper books of records and accounts, separate from all of its other records and accounts, in which complete and correct entries shall be made showing all revenues collected from said works and all disbursements made therefrom on account of the operation of the works, to meet the requirements of the Sewage Works Sinking Fund, also all other financial transactions relating to said works, including the amounts set aside or credited to the Sewage Works Depreciation Fund, until terminated as provided for hereinabove, the Operation and Maintenance Reserve Fund and the Sewage Works Improvement Fund, and the cash balances in each of said funds as of the close of the preceding fiscal year. There shall be prepared and furnished upon written request to the original purchaser of the Series 1989 Bonds and to any subsequent holder of the bonds at the time then outstanding, not more than ten (10) months after the close of each fiscal year, operating income and expense and balance sheet statements of the sewage works, covering the preceding fiscal year, which annual statements shall be certified by the City Controller, or the person charged with the duty of auditing the books and records relating to said works, or be prepared by an independent certified public accountant retained for that purpose. Copies of all such statements and reports shall be kept on file in the office of the City Controller. Any holder or holders of the bonds then outstanding shall have the right at all reasonable times to inspect the sewage works and all records, accounts and data of the City relating thereto. Such inspections may be made by representatives duly authorized by written instrument. Section 17 . The City shall, by ordinance of the Common Council, maintain just and equitable rates or charges for the use of and the services rendered by the sewage works, to be paid by the owner of each and every lot, parcel of real estate or building that is connected with and uses said sewage works by or through any part of the sewage system of the City, or that in any way uses or is served by such works. Such rates or charges shall be sufficient in each year for the payment of the proper and reasonable expenses of operation, repair and maintenance of the works, for depreciation and improvement, and for the payment of the sums required to be paid into the Sewage Works Sinking Fund by said governing Act. Such rates or charges shall, if necessary, be changed and readjusted from time to time so that the revenues therefrom shall always be sufficient to meet the expenses of operation, repair and maintenance, depreciation and improvement, and the requirements of the Sewage Works Sinking Fund. In no event shall the annual gross revenues of the sewage works after the payment of the expenses of operation, repair and maintenance (but not including depreciation and payments in lieu of taxes) be less than One Hundred and Twenty-Five percent (125%) of the annual interest and principal requirements of the Series 1989 Bonds and said additional bonds. Section 18. If the proceeds of the Series 1989 Bonds plus the amount of the Grants awarded are less than the cost of the sewage works to be financed in part hereunder, the City reserves the right to issue additional revenue bonds to provide the amount of the -23-