Ordinance 3211-11 - Laserfiche WebLink

(E) Prior to the delivery of any Future Parity Bonds the City shall have on file in the office of the Clerk of the City a certificate of an independent professional engineer or certified public accountant dated not earlier than ninety(90) days prior to the date of delivery of such Future Parity Bonds and showing that the Net Revenue, determined and adjusted as hereinafter provided for each calendar year after the issuance of such Parity Bonds (the "Adjusted Net Revenue"), together with Assessment Income, will at least equal the Coverage Requirement, calculated as of December 31 of the preceding calendar year. For purposes of calculating the Coverage Requirement, the Parity Bonds proposed to be issued shall be deemed to be outstanding Parity Bonds. The Adjusted Net Revenue shall be the Net Revenue, together with Assessment Income, for a period of any twelve consecutive months out of the twenty-four months immediately preceding the date of delivery of such proposed Parity Bonds, as adjusted by such engineer or accountant to take into consideration changes in Net Revenue estimated to occur under one or more of the following conditions for each year after such delivery for so long as any Parity Bonds, including the Parity Bonds proposed to be issued, shall be outstanding: (i) any increase or decrease in Net Revenue that would result if any change in rates and charges adopted by the Council prior to the date of such certificate and subsequent to the beginning of such twelve-month period, had been in force during the full twelve-month period; (ii) any increase or decrease in Net Revenue estimated by such engineer or accountant to result from any additions, betterments and improvements to and extensions of any facilities of the System that (x) became fully operational during such twelve-month period, (y) were under construction at the time of such certificate, or (z) will be constructed from the proceeds of the Parity Bonds to be issued; (iii) the additional Net Revenue that would have been received if any customers added to the System during such twelve-month period had been customers for the entire period. Such engineer or accountant shall base his certification upon, and his certificate shall have attached thereto, financial statements of the System audited by the State Examiner (unless such an audit is not available for a twelve- month period within the preceding twenty-four months) and certified by the Chief Financial Officer, showing income and expenses for the period upon which the same is based. The certificate of such engineer or accountant shall be conclusive and the only evidence required to show compliance with the provisions and requirements of this subsection (1)(E). Notwithstanding the foregoing requirement, if Future Parity Bonds are to be issued for the purpose of refunding at or prior to their maturity any part or all of the then outstanding Parity Bonds and the issuance of such refunding Parity Bonds results in a debt service savings and does not require an increase of -78-8- P:\20287 CMW\20287 960 02/07/11