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(d) A competent independent engineer certifies in
writing that in his opinion the average annual net earnings
throughout the life of the bonds then outstanding against
the Utility System and the bonds then to be issued shall be
equal to at least one and one-half times the average annual
principal and interest requirements on all bonds then out-
standing against the Utility System and the bonds then to be
issued;
(e) The Ordinance authorizing the issuance of the
Additional Bonds shall provide (i) for an identical FLOW OF
FUNDS as prescribed by Section 11 of the Ordinances author-
izing the Parity Bonds; (ii) that all revenues deposited in
the special funds and accounts created and established by
such Ordinances shall be commingled; and (iii) for appropriate
additional or larger payments to be made into said special
funds and accounts and for appropriate additional or larger
amounts to be accumulated in said special funds and accounts
for all bonds then outstanding against the Utility System
and the proposed Additional Bonds, in full accord with the
provisions of this Ordinance.
(f) PROVIDED, FURTHER, that at any time after the
"City of Georgetown, Texas Utility System Revenue Bonds,
Series 1966, Series 1970 and Series 1971" have been refunded,
paid off, cancelled'and retired, the City may issue additional
bonds on a parity in all respects with the bonds (without
impairing the obligation of contract with the holder of the
bonds or obligations hereafter issued on a parity therewith)
if the following terms and conditions have been met: (1)
The applicable laws of the State of Texas in force at such
time provide permission for the issuance :of such bonds; (2)
Each of .the above Funds contains the amount of money then
required to be on deposit therein; (3) The net revenues of
the Utility System for either the fiscal year or 12 month
period next preceding the date of the Ordinance authorizing
the issuance of the Additional Bonds are certified by a
Certified Public Accountant to have been at least equal to
one and one-half times the average annual principal and
interest requirements on all bonds to be outstanding after
the issuance of the Additional Bonds; (4) The aggregate
amount to be accumulated and maintained in the' Reserve Fund
shall be not less than the average annual principal and
interest requirements of all bonds similarly secured, and
any additional amount required to be accumulated in the
Reserve Fund shall be accumulated therein in not less then
five years and one month from the date of the Additional
Bonds; (5) The Ordinance authorizing "he issuance of the
Additional Bonds shall provide for an identical Flow of
Funds as prescribed by previous Ordinances.
Section 14. MAINTENANCE AND OPERATION. The City
hereby covenants and agrees to maintain the facilities of
the Utility System in good condition and operate the same in
an efficient manner and at a reasonable cost. So long as
any Parity Bonds are outstanding the City covenants and
agrees to maintain insurance for the benefit of the holder
or holders of such bonds of the kinds and in the amounts
which usually are carried by private companies operating
similar properties, and that during such time all policies
of insurance shall be maintained in force and kept current
as to premium payments. All monies received from losses
under such insurance policies other than public liability
policies, are hereby pledged as security for such bonds
until and unless the proceeds are paid out in making good
the loss or damage in respect of which such proceeds are
received, either by replacing the property destroyed or
repairing the property damaged, and adequate provision for
making good such loss or damage made within ninety (90) days
after the date of loss. The payment of premiums for all
insurance policies required under the provisions hereof
shall be considered as maintenance and operation expenses.
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