AgdaPkt 2005-01-24 - Laserfiche WebLink

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No Outstanding Enterprise Debt The City currently does not have any outstanding debt secured by Net Revenues. Future Parity Debt The Installment Purchase Contract permits the City to issue bonds or incur other obligations payable from and secured by a pledge of and lien upon any of the Net Revenues on a parity with the Installment Payments, if the conditions contained in the Installment Purchase Contract are satisfied. See "SECURITY FOR THE BONDS - Additional Debt." Rate Covenants The City is obligated under the Installment Purchase Contract to fix, prescribe and collect rates, fees and charges in connection with the Enterprise so as to yield Gross Revenues at least sufficient to pay operation and maintenance costs of the Enterprise, all Installment Payments and all payments of principal of and interest on any Parity Debt as they become due and payable, all amounts, if any, required to restore the balance in the Reserve Fund to the full amount of the Reserve Requirement, and all payments required to meet any other obligations of the City which are charges, liens, encumbrances upon, or which are otherwise payable from, the Gross Revenues. In addition, the City is required to fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Enterprise during each Fiscal Year which are sufficient to yield estimated Net Revenues which are at least equal to 120% of the aggregate amount of the Installment Payments, and principal of and interest on any Parity Obligations (being all bonds, notes, loan agreements, installment sale agreements, leases or other obligations of the City, payable from and secured by a pledge of and lien upon any of the Net Revenues incurred on a parity with the payment of the Installment Payments) issued or incurred after the issuance of the Bonds, payable from Net Revenues coming due and payable during such Fiscal Year. See "SECURITY FOR THE BONDS - Rate Covenants; Collection of Rates and Charges." Bond Insurance Payment of the principal of and interest on the Bonds when due will be insured by a insurance policy to be issued by simultaneously with the delivery of the Bonds. See "MUNICIPAL BOND INSURANCE POLICY." The Official Statement This Official Statement contains brief descriptions of, among other things, the City, the Enterprise, the Bonds, the Indenture and the Installment Purchase Contract. These descriptions do not purport to be comprehensive or definitive. All references in this Official Statement to documents are qualified in their entirety by reference to such documents, and references to the Bonds are qualified in their entirety by reference to the form of Bond included in the Indenture. During the offering period respecting the Bonds, copies of the Indenture and other documents described in this Official Statement may be obtained at the City. Copies of these documents may be obtained from the Trustee or the City after issuance of the Bonds. 2