04-08-13 Agenda & Packet - Laserfiche WebLink

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2013A Bonds for the purpose of financing the cost of future additions, extensions and improvements to the Sewage Works or to provide for a complete or partial refunding of the 2013A Bonds or other bonds payable out of the revenues of the Sewage Works, subject to the following conditions: (a) The interest on and principal of all bonds payable from the revenues of the Sewage Works shall have been paid to date in accordance with the terms thereof, provided, this condition shall be deemed satisfied if any required amount is to be provided from the proceeds of the parity bonds or other funds of the City. (b) All required deposits to the Sinking Fund shall have been made in accordance with the provisions of this Ordinance. (c) The Net Revenues of the Sewage Works in the fiscal year immediately preceding the issuance of any such bonds ranking on a parity with the 2013A Bonds shall be not less than one hundred twenty -five percent (125 %) of the maximum annual interest and principal requirements of the then outstanding 2013A Bonds, any then outstanding parity bonds and the additional parity bonds proposed to be issued; or, prior to the issuance of said parity bonds, the sewage rates and charges shall be increased sufficiently so that said increased rates and charges applied to the previous fiscal year's operations would have produced Net 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 2013A Bonds, any then outstanding parity bonds and the additional parity bonds proposed to be issued. For 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 December 1 and the interest shall be payable semiannually on June 1 and December 1 during the periods in which principal and interest are payable. SECTION 21. Further Covenants of the City. For the purpose of further safeguarding the interests of the holders of the 2013A Bonds, it is specifically provided as follows: (a) The City shall at all times maintain its Sewage Works in good condition and operate the same in an efficient manner and at a reasonable cost. (b) So long as any of the 2013A Bonds are outstanding, the City shall maintain insurance on the insurable parts of the Works of a kind and in an amount such as would normally be carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the laws of the State of Indiana. In addition to or in lieu of the foregoing, the City may provide for coverage on all or part of the Works comparable to that described above through a self - insurance program. Insurance proceeds shall be used in replacing or repairing the property destroyed or damaged; or if not used for that purpose shall be treated and applied as Net Revenues of the Works. (c) So long as any of the 2013A Bonds are outstanding, the City shall not mortgage, pledge or otherwise encumber such Works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except replace equipment which may become worn -16-