Construction of Additions and Improvements to the Sewage Works Bonds

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deficit and costs associated therewith including the cost of issuing such additional revenue bonds (the "Completion Bonds") . Unless the context otherwise requires, such additional revenue bonds shall be considered part of the issue of the Series 1989 Bonds and are entitled to payment from the same fund, without priority for the Series 1989 Bonds. In addition, the City reserves the right to authorize and issue additional bonds, payable out of the revenues of its sewage works, ranking on a parity with the bonds authorized by this ordinance, for the purpose of financing the cost of future additions, extensions and improvements to the sewage works. In the event any parity bonds are issued pursuant to this Section 18 , the term "bonds" in this Ordinance shall, unless the context otherwise requires, be deemed to refer to the bonds authorized to be issued by this Ordinance and such parity bonds and other changes may be made herein as required to reflect the issuance of such parity bonds. The authorization and issuance of parity bonds (other than Completion Bonds) shall be subject to the following conditions precedent: (a) The interest on and principal of all bonds payable from the revenues of the sewage works shall have been paid to date. (b) All deposits in the Sewage Works Sinking Fund required by Ordinance No. 5298, adopted May 25, 1971, and by this Ordinance, shall have been made. (c) (i) The net operating revenues of the sewage works in the fiscal year immediately preceding the issuance of any such bonds ranking on a parity with the bonds authorized by this Ordinance shall not be less than one hundred twenty-five percent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds to be issued; or prior to the issuance of said parity bonds the sewage rates and charges shall be increased or the service area or customer base shall be expanded sufficiently so that said increased rates and charges and/or volume applied to the previous fiscal year's operations would have produced net operating revenues for said year equal to not less than one hundred twenty-five percent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds proposed to be issued. (ii) The anticipated net revenues of the sewage works shall be sufficient to provide, within forty-eight (48) months of the issuance of such parity bonds, a balance in the Reserve Account at least equal to the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds proposed to be issued. (iii) For the purposes of this subsection, the records of the sewage works shall be analyzed and all showings shall be prepared by a certified public accountant or independent financial advisor employed by the City for that purpose. (d) The principal of the additional parity bonds shall be payable annually on February 1 and the interest semiannually on February 1 and August 1 in the years in which principal and interest are payable. -24-