Ordinance 3633 - Laserfiche WebLink

Washington and experienced in the installation and operation of municipal utilities, showing that the net revenue of the System for a period of any twelve consecutive months out of the fifteen months immediately preceding the month of delivery of such Parity Revenue Bonds, plus his estimate of the annual net revenue to be derived by the city from the operation of the additions and im- provements to and extensions of the System to be acquired, con- structed and installed out of the proceeds of the sale of such Parity Revenue Bonds, will equal at least 1.25 times the maximum amount required in any calendar year thereafter for the payment of the principal of and interest on the Outstanding Prior Lien Revenue Bonds, the outstanding Bonds, any outstanding Parity Revenue Bonds theretofore issued, and such Parity Revenue Bonds to be issued. The words "net revenue" as first used in subparagraph (3 ) immediately above shall mean the gross earnings and revenue of the System for said twelve-month period after deducting therefrom the amount expended for the normal costs of maintenance and operation of the System for the same twelve-month period, but before depreciation. The words "annual net revenue" as used in subparagraph (3) immediately above shall mean such engineer's estimate of the annual gross revenue to be derived by the city from the operation of the additions and improvements to and extensions of the System acquired, constructed and installed out of the proceeds of the sale of such Parity Revenue Bonds less his estimate of any increased annual normal operating and maintenance expenses of the System allocable to such additions, improvements and extensions, and such "annual net revenue" may be computed on the basis of any increase in revenue to be derived by an increase in water rates and charges (and charges for sanitary sewage disposal service if the sanitary sewage disposal system of the city is combined with the water system) authorized by -16-