2009/04/15 Council Agenda Packet

n , 3 properly and advantageously conducted, and the City will at all times operate or cause to be operated said properties of the System and the business in connection therewith in an efficient manner and at a reasonable cost. (b) (1) Rate Covenant in effect until New Covenant Date. The City shall establish, maintain and collect rates and charges for the use of the services and facilities of and all commodities sold, furnished or supplied by the System, which shall be fair and nondiscriminatory and shall adjust such rates and charges from time to time so that: (A) The Revenue of the System, together with.Assessments collected, will at all times be sufficient (i) to pay the Costs of Maintenance and Operation, (ii) to pay the principal of and interest on the Parity Bonds, as and when the same shall become due and payable, (iii)to make adequate provision for the payment of any term bonds, (iv) to make when due all payments which the City is obligated to make into any Reserve Account and all other payments which the City is obligated to make pursuant to this ordinance, and (v) to pay all taxes, assessments or other governmental charges lawfully imposed on the System or the revenue therefrom or payments in lieu thereof and any and all other amounts that the City may now or hereafter become obligated to pay from the Revenue of the System by law or contract. (B) The Net Revenue together with Assessment Income in each calendar year will be at least equal to the Coverage Requirement, calculated as of December 31 of the preceding calendar year. (2) Rate Covenant in effect from and after New Covenant Date. The City will establish, maintain and collect such rates and charges for service of its System for so long as any Parity Bonds are outstanding as will maintain the Rate Covenant. r= r� -42- P120287_CMW20287_880 03/25/09