9672-06 Authorizing the Acquistion and Installation of Improvements to the City's Sewage Works

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statements shall be certified by the Controller, or by licensed independent public accountants employed for that purpose. Copies of all such statements and reports shall be kept on file in the office of the Controller. Any owner or owners of the Bonds then outstanding shall have the right at all reasonable times to inspect the 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 XIV. Rates and Charges. The City covenants and agrees that it will establish and maintain just and equitable rates or charges for the use of and the services rendered by said 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 works system of the City, or that in any way uses or is served by such sewage works, and that such rates or charges shall be sufficient in each year to provide for the payment of the proper and reasonable expenses of operation, repair and maintenance of the Sewage Works, for depreciation and improvement, and for the payment of the sums required to be paid into the Sinking Fund. 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 of the Sewage Works and the requirements of the Sewage Works Sinking Fund. In no event shall the annual gross revenues of the Sewage Works after payment of the expenses of operation, repair and maintenance (but not including depreciation and payments in lieu of taxes) be less than one hundred twenty-five percent (125%) of the annual interest and principal requirements of the Bonds and any additional Bonds issued pursuant to Section XVI hereof. The rates or charges so established shall apply to any and all use of such Sewage Works by and service rendered to the City and all departments thereof and shall be paid semi-annually by the City or the various departments thereof as the charges accrue. Section XV. Defeasance. If, when each series of the Bonds issued hereunder (or portions thereof) shall have become due and payable in accordance with their terms or shall have been duly called for redemption or irrevocable instructions to call each series of the Bonds (or portions thereof) for redemption shall have been given, and the whole amount of the principal and the interest and the premium, if any, so due and payable upon all of each series of the Bonds (or portions thereof) then outstanding shall be paid; or (i) sufficient moneys, or (ii} direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, the principal of and the interest on which when due will provide sufficient moneys, or (iii) time certificates of deposit fully secured as to both principal and interest by obligations of the kind described in (ii) above of a bank or banks the principal of and interest on which when due will provide sufficient moneys, shall be held in trust for such purpose, and provision shall also be made for paying all fees and expenses for the redemption, then and in that case such series of the Bonds (or portions thereof) issued hereunder shall no longer be deemed outstanding or entitled to the pledge of the net revenues of the City's Sewage Works. Section XVI. Additional Bonds. The City also reserves the right to authorize and issue additional bonds, payable out of the net 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 BDDBOI 4347413v2 - 16 -