Agda Pkt 2024.08.26 Regular Meeting

Browse Search

17 employed by the City, plus, in either case, (at the option of the City) the Additional Revenues (defined below), shall be at least equal to one hundred twenty percent (120%) of the amount of Maximum Annual Debt Service. In order to maintain the parity relationship of the 2024 Installment Payments to all Parity Obligations permitted under the 2024 Installment Purchase Contract, the City covenants in the 2024 Installment Purchase Contract that all payments in the nature of principal and interest with respect to any Parity Obligations, except with respect to Governmental Loans, will be structured to occur semi-annually on the Installment Payment Dates and in each year as such payments are due with respect to the 2024 Installment Payments, and to otherwise structure the terms of such Parity Obligations to ensure that they are in all respects payable on a parity with the 2024 Installment Payments and not prior thereto; provided that the City shall not make a payment on such Governmental Loan to the extent it would have the effect of causing the City to fail to pay 2024 Installment Payments on a timely basis. In such event, during each Bond Year, the City shall make 2024 Installment Payments and payments on such Governmental Loan on a pro rata basis. For the avoidance of doubt, this paragraph concerns the dates on which principal and interest due in a year must be paid, and does not require level debt service or annual level amortization or prohibit debt service structures involving balloon payments or interest that accrues and compounds until maturity. The provisions relating to Debt Service Coverage described above shall not apply to any Parity Obligations if (i) all of the proceeds of which (other than proceeds applied to pay costs of issuing such Parity Obligations or fund a debt service reserve fund) shall be deposited in an irrevocable escrow held in cash or invested in Federal Securities for the purpose of paying the principal of and interest and premium (if any) on any Outstanding Bonds or on any outstanding Parity Obligations, (ii) at the time of the incurring of such refunding Parity Obligations, the City certifies in writing that maximum annual debt service on the refunding Parity Obligations will not exceed Maximum Annual Debt Service on the Outstanding Bonds or on any outstanding Parity Obligations, and (iii) the final maturity of the refunding Parity Obligations is not later than the final maturity of the refunded Bonds or Parity Obligations. The term “Additional Revenues” means, with respect to the issuance of any Parity Obligations, an allowance for Net Revenues (i) arising from any increase in the charges made for service from the Enterprise adopted prior to the incurring of such Parity Obligations and effective within eighteen (18) months following the date of incurring such Parity Obligations, in an amount equal to the total amount by which the Net Revenues would have been increased if such increase in charges had been in effect during the whole of the most recent completed Fiscal Year or during any more recent twelve (12) month period selected by the City, and (ii) arising from any increase in service connections to the Enterprise prior to the incurring of such Parity Obligations, in an amount equal to the total amount by which the Net Revenues would have been increased if such connections had been in existence during the whole of the most recent completed Fiscal Year or during any more recent twelve (12) month period selected by the City, all as shown by the certificate or opinion of an Independent Municipal Finance Consultant. The term “Governmental Loan” means a loan from the State or the United States of America, acting through any of its agencies, to finance improvements to the Enterprise, and the obligation of the City to make payments to the State or the United States of America under the loan agreement memorializing said loan is on a parity basis with the payment of 2024 Installment Payments. 8.A. - Page 31 of 255 659