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66 <br />2021 Amended and Restated WSA 17162043.1 <br />B. During each fiscal year, the SFPUC will set aside and deposit that portion of <br />revenue equal to Wholesale Revenue Coverage into a separate account that the SFPUC will <br />establish and maintain, to be known as the “Wholesale Revenue Coverage Reserve.” Deposits <br />into the Wholesale Revenue Coverage Reserve shall be made no less frequently than monthly. <br />The Wholesale Revenue Coverage Reserve shall be credited with interest at the rate specified <br />in Section 6.05.B. The SFPUC may use amounts in the Wholesale Revenue Coverage Reserve <br />for any lawful purpose. Any balance in the Wholesale Revenue Coverage Reserve in excess of <br />the Wholesale Revenue Coverage amount as of the end of any fiscal year (as calculated in <br />subsection 6.06(A) above) shall be applied as a credit against wholesale rates in the <br />immediately following fiscal year unless otherwise directed by BAWSCA. <br />C. Within 180 days following the later of expiration of the Term or final payment of <br />Debt Service due on Indebtedness issued during the Term to which Wholesale Customers were <br />contributing, SFPUC shall rebate to the Wholesale Customers an amount equal to the <br />Wholesale Revenue Coverage amount in effect for the fiscal year during which the Term expires <br />or the final payment of Debt Service on Indebtedness is made based on each Wholesale <br />Customer’s Proportional Annual Use in the fiscal year during which the Term expires or the final <br />payment of debt service on Indebtedness is made. <br />D. SFPUC shall provide a schedule of debt issuance (with assumptions), and the <br />Wholesale Customers’ share of Net Annual Debt Service (actual and projected) expected to be <br />included in wholesale rates starting in 2009-10 through the expected completion of the WSIP. <br />The schedule is to be updated annually prior to rate setting. If estimated Debt Service is used in <br />rate setting, the SFPUC must be able to demonstrate that the Water Enterprise revenues will be <br />sufficient to meet the additional bonds test for the proposed bonds and rate covenants for the <br />upcoming year. <br />E. Conditions in the municipal bond market may change from those prevailing in <br />2009. If, prior to expiration of the Term, the SFPUC determines that it would be in the best <br />financial interest of both Retail Customers and Wholesale Customers of the Regional Water <br />System for the Debt Service coverage requirement to be increased in one or more series of <br />proposed new Indebtedness above 1.25%, or for the coverage covenant to be strengthened in <br />other ways, it will provide a written report to BAWSCA. The report will contain (1) a description <br />of proposed covenant(s) in the bond indenture; (2) an explanation of how savings are expected <br />to be achieved (e.g., increase in the SFPUC’s credit rating over the then-current level; ability to