Autthorizing the acquistion, construction, and installation of certain improvements and extensions to sewage works, the issuance and sale of additional revenue bonds

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(a) All required payments into the Sinking Fund shall have been made in accordance with the provisions of this Ordinance, and the interest on and principal of all bonds payable from the net revenues of the Sewage Works shall have been paid to date in accordance with the terms thereof. (b) 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 bonds authorized by this Ordinance shall be 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; 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 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 nationally recognized firm of professionals experienced in analyzing financial records of municipal utilities retained by the City for that purpose. (c) The principal of said additional parity bonds shall be payable on December 1 and the interest on said additional parity bonds shall be payable semiannually on December 1 and June 1 in the years in which such principal and interest are payable. (d) If the 1998 Bonds are sold to the Bond Bank or the State, (i) the City has obtained the consent of the State, (ii) the City has faithfully performed and is in compliance with each of its obligations, agreements, and covenants contained in the Financial Assistance Agreement and this Ordinance, and (iii) the City is in compliance with its National Pollutant Discharge Elimination System permits, except for non-compliance, if any, for which the 1998 Bonds are issued, including refunding bonds issued prior to, but part of the overall plan to eliminate such non-compliance. Section 17. Additional Covenants of the Citv. For the purpose of further safeguarding the interests of the owners of the 1998 Bonds herein authorized, it is specifically provided as follows: -22- ODMA\PCDOCS\SBDOCS 1\1494'T3