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2.03. Parity of Lien Test. All of the payments required to be made into the various <br /> funds and accounts provided for in the Prior Resolution authorizing the issuance of the Prior <br /> Bonds and in the Refunded Bonds in the Refunded Resolution have been made and there is <br /> sufficient money in the Debt Service Account of the Electric Fund to pay all principal and <br /> interest on all obligations payable from the Net Revenues coming due during the 12-month <br /> period next succeeding the issuance of the Series 2016B Bonds. <br /> The gross revenues, expenses of operation and maintenance and Net Revenues of the <br /> Electric System from all sources for the Audited Fiscal Year immediately preceding the issuance <br /> of the Series 2016B Bonds, adjusted for such Fiscal Year as permitted by the Prior Resolution <br /> are as follows: <br /> Audited Fiscal Year Ended 2014 <br /> OPERATING REVENUES $32,551,722 <br /> OPERATING EXPENSES (27,973,795) <br /> OPERATING PROFIT $4,577,927 <br /> (Exclusive of Depreciation) <br /> ADD:Non-Operating Revenue 375,020 <br /> NET REVENUES $4,952,947 <br /> The Net Revenues of the Electric System for the Audited Fiscal Year immediately <br /> preceding the issuance of the Series 2016B Bonds, adjusted as set forth above, were at least <br /> 125% of the average annual principal and interest coming due during the remaining term of the <br /> Prior Bonds plus the Series 2016B Bonds and the Series 2016A Bonds computed to <br /> February 1, 2036 (the final maturity date of the Series 2016A Bonds). The combined average <br /> annual principal and interest requirement for the Series 2016B Bonds, the Prior Bonds and the <br /> Series 2016A Bonds, is $780,676.62. <br /> Other than the Prior Bonds, the Series 2016A Bonds, and the Series 2016B Bonds the <br /> Commission has no other bonds, warrants, certificates or other obligations or evidences of <br /> indebtedness of money borrowed for or on account of the Electric System or indebtedness for <br /> which the Net Revenues of the Electric System have been appropriated or pledged. <br /> 2.04. Sufficiency of Gross Revenues and Net Revenues. The Commission reasonably <br /> anticipates that the Gross Revenues to be received during the period for which the Series 2016B <br /> Bonds will be outstanding will be more than sufficient to pay all costs of the operation and <br /> maintenance of the Electric System and to provide Net Revenues adequate to pay the principal of <br /> and interest on the Series 2016A Bonds, Series 2016B Bonds and the Prior Bonds when due. <br /> 2.05. Authorization of Series 2016B Bonds. The Commission is authorized by law to <br /> borrow money necessary to finance the Project and to pay the related financing costs and fund <br /> the Reserve Account. It is necessary and expedient for the City forthwith to issue its Electric <br /> Revenue Refunding Bonds, Series 2016B, in the principal amount of$1,370,000. All costs of <br /> the Project in excess of the proceeds of the Series 2016B Bonds available for payment of such <br /> costs shall be paid from any other funds legally available to the Commission for such purpose. <br /> 5 <br /> 479283v3 JSB EL185-42 <br />