8.1. SR 01-21-2014 - Laserfiche WebLink

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Rate Covenant: The Utility covenants to set charges, fees and rentals for all service and benefits of whatsoever nature furnished and made available by the Utility sufficient to generate net revenues in each year, as defined in the bond resolution, of not less than 110%of the average annual debt service on the Bonds. Additional Bonds Test: The City reserves the right and privilege to issue additional revenue bonds, from time to time, payable from net revenues of the Electric System ranking on a parity with these Bonds and the Series 2007A Bonds. Before such additional parity bonds are issued, the Utility must demonstrate that the average annual net revenues of the Electric System for the last two complete fiscal years (ending December 31)were at least 1.25 times the average annual principal and interest payment on all outstanding bonds and the bonds then proposed to be issued. The average annual principal and interest payment on the Series 2007A Bonds and the Bonds will be approximately$529,092. The resolution authorizing such additional bonds provides for payment to the Reserve Account upon delivery of such additional bonds, from the proceeds thereof or any other source, of an amount necessary to cause the aggregate balance in the Reserve Account to equal the Reserve Requirement. Debt Service Reserve Account: The Utility will maintain a Debt Service Reserve Account in the amount of the Reserve Requirement. "Reserve Requirement" means, as of the date of reference, an amount equal to the least of (i) 10%of the original principal amount of the outstanding bonds and Additional Bonds, or(ii)the maximum amount of principal and interest payable during the then current Fiscal Year or any future Fiscal Year on all outstanding bonds and Additional Bonds as of the date of reference, or(iii) 125%of the average annual principal and interest payable on all outstanding bonds and Additional Bonds as of the date of reference. With the issuance of the Bonds, the Reserve Requirement will be equal to 10%of the original issue amounts. The amount on deposit for the Series 2007A Bonds is$287,500. It is anticipated that the total amount of the Debt Service Reserve Account necessary on the Bonds and the Series 2007A Bonds will be $500,000. Funds are on deposit for the Prior Bonds in the amount of$359,500, of which$212,500 will be retained to make up the balance of the Debt Serivice Reserve requirement. The remaining $147,000 on hand from the Prior Bonds will be used in the refunding transaction, together with proceeds of the Bonds, to redeem the Prior Bonds. SECURITY AND The Bonds will be not be general obligations of the City but will be special limited obligations SOURCE OF payable solely from net revenues of the City's Electric Utility system. PAYMENT: The Bonds will be issued as Additional Bonds, on parity with the Series 2007A Bonds. The table below demonstrates that the issuance of the Bonds satisfies the Additional Bonds test described above. SpringstQd Page