Concerning Construction and the Installation of Extensions, Additions and Improvements to the Waterworks

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Section 9. The City reserves the right to authorize and issue additional bonds, payable out of the revenues of the waLorworls, ranking on a parity with the bonds authorized by this ordinance, for the purpose of financing -the cost- of future construction, additions, extensions and improvements to the waterworks, subject to -the fol- lowing conditions: (a) The interest on and principal of all bonds payable from the revenues of the waterworks shall have been paid to date in accordance with the terms thereof, and all required payments into -tine Bond and Interest Redemption Account have been made in accordance with the provisions of this ordinance. (b) (1) The amount of gross revenues of the waterworks allocated by Sec. 3(c) of this ordinance to and deposited in the Bond and Interest Redemption Account in the calendar year immediately preceding the issuance of any such additional parity bonds shall be not less than Ono Hundred T.renty -five per cent (125 %) of -the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds proposed to be issued; or (2) prior to -the issuance of said parity bonds, the proportion of the gross revenues allocated to said Bond and Interest Redemption Account shall be increased sufficiently so -that said increased propertion applied to the previous calendar year's gross revenues would have produced revenues in said Bond and Interest Redemption Account for said year equal to not less than One Hundred Twenty -five per cent (125'/0') of -tile mnimuim annual interest and principal requirements of the then outstanding bonds and the additional parity bonds proposed to be issued; or (3) prior to the issuance of said parity bonds, the water rates and charges shall be increased sufficiently and the proportion of gross revenues allocated to said Bond and Interest Redemption Account- increased sufficiently so that said increased water rates and charges applied to the previous calendar year's operations would have produced gross revenues in an amount so that the proportion allocated. -to said Bond and Interest RederapLion Account for said year would have equaled not less -than One Hundred T<oenty -five per cent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and-die additional parity bonds proposed to be issued. -13-