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Show Pmga 19 BUNDING OUTLOOK Jan. 16, 1959 LEGAL NOTICES bonds or other obligations herein or hereafter r any part thereof, shall have been Issued, the authorized, City Council of sid City shall find desirable to refund said bonds or other obligations, said bonds or other obligations, or any part thereof, nay be refunded (but only with the consent of the holder or it holders thereof, unless the bonds or other obligations have matured, or are then callable for prior redemption, and have been properly called), and the refunding bonds or other obligations so Issued shall enjoy complete equality of lien with the of said bonds or portion other obligations which is not refunded, te be, and the holder or holders of the refunding bonds or other obligations shall be subrogated to all of the and rights privileges enjoyed by the holder or holders of the bonds or other obligations refunded The refunding thereby. bonds or other obligations shall be issued with such details as City Council may by ordinance provide; provided, however, that if only a part of the outstanding bonds or other obligations is refunded, and if such bonds or other obligations are refunded in such manner that the interest rate thereof is Increased or if any refunding obligation matures at an earlier date than the maturity date of the corresponding obligation refunded thereby, then such obligations may not be refunded without the consent of the holder or holders of the unrefunded portion of said obligations. The refunding bonds or other obligations shall either be sold for cash at not less than the par value and accrued interest, and the proceeds thereof shall be used to pay the bonds refunded, or, with the consent of the holder or holders of the bonds or other obligations refunded, the refunding bonds or other obligations shall be delivered dollar for dollar in exexchange for the bonds or other obligations refunded. y That the bonds authorized to be Section 16. issued hereunder and from time to time outstanding shall not be entitled to any priority one over the other in the application of the revenues of the system, regardless of the time or times of their issuance, it being the Intention of the City Council that there shall be no priority among the bonds authorized to be issued pursuant to this ordinance regardless of the fact that they may be actually issued and delivered at different times. That the City hereby additionally Section 17. covenants and agrees with each and every holder of the bonds Issued hereunder: A. That while the bonds authorized herein or the rates for any of them remain outstanding and unpaid, all services rendered by the system to said City and to the without its inhabitants and to all consumers within or tak-inboundaries of said City shall be reasonable and just, account and consideration the cost and value of the the system, system, the cost of maintaining and operating bonds and the amounts necessary for the retirement of all nnA other securities payable from the revenues of the and reserves theresystem, the accruing interest thereon, for; and there shall be charged against all purchasers as of service, including said City, such rates and amounts secshall meet the requirements of this and the preceding tions hereof, and which shall be sufficient to produce and revenues to pay the operating and maintenance charges, one hundred fifty per centum (150X) of the next succeeding of and the year's requirements, both as to the principal to from interest on bonds and any other obligations payabLe the revenues thereof, including the reserves therefor; that no free service shall be furnished by said system; should the City elect to use for municipal purposes the system or the system, or any part thereof, any use of or any deof the services rendered thereby by the City, for from the City's general partment thereof, will be paid value fund or other available revenues at the reasonable the of the use so made or service so rendered; that made by the City for water and charges so required to be to the City Services or facilities rendered by the system a reasonable payment Shall include (but not be limited to) be not less Tor fire hydrant service, which charge shall in substantially than $10 .PC per hydrant per year, payable and that all the revenues so equal monthly installments; that ocrivcd from the City shall be deemed to be revenues derived from the operation of the system, to be used and accounted for in the same manner as any other revenues derived from the operation of said system. B. That the City will forthwith and In any event prior to the delivery of any of the bonds herein authorized, fix, establish and levy the rates and charges herein required, if such action be necessary therefor.' C. That the City will operate said system so long as any of the bonds herein authorised are ou t stand -ing, to maintain said system In efficient operating condition and to make such Improvements, extensions, enlargements, repairs and betterments thereto as may be necessary or advisable to Insure Its economical and efficient operation at all times and to an extent sufficient to supply public or private demands for service. D. That so long as any of the bonds remain outstanding, proper books of record and account will be kept by the City, separate and apart from all other records " accounts, showing complete and correct entries of all transactions relating to the system. Such books shall include (but not necessarily be limited to) monthly records showing : 1. The number of electric customers, water customers and sewer customers. 2. revenues received from the sale of by classes of customers. The electricity 3. The revenues received from the sale of water by classes of customers. The revenues received from sewer 4. charges by classes of customers. 5. detailed statement of the expenses of A the system. E. That any holder of any of the bonds, or any duly authorized agent or agents of such holder, shall have the right at all reasonable records, accounts and data spect the system and times to inspect relating thereto all properties all and to in- comprising said system. That the City further agrees that it will, within sixty days following the close of each fiscal year, cause an audit of such books and accounts to be . made by a certified public account.-'- at, showing the re- F. ceipts and disbursements for the account of the system, and that such audit will be available for inspection by any holder of any of the bonds. Each such audit, in addition to whatever matters may be thought proper by the accountant to be included therein, shall include the following: statement in detail of the Income and expenditures of the system for such fiscal year. 1. A balance sheet as of the end of such fiscal year, including all funds created by the various ordinances and other proceedings authorizing the Issuance of outstanding bonds and other obligations payable from the revenues of the 2. system. 3. A regarding the manner in which the City has carried out the requirements of this ordinance, and any other ordinance and other proceedings authorizing the issuance of outstanding bonds payable from the revenues of the system, and the accountant's recommendation for any change or improvement in the operation of the system. 4. A list of the Insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the policy. 5. The A accountant's comment recapitulation of each fund or |
