Additional Bonds. The Bonds are issued on a parity with the 2021B Bonds as to the pledge of revenues of the System. No bonds or obligations payable out of the revenues of the System may be issued in such manner as to enjoy priority over the Bonds. Additional obligations may be issued if the lien and pledge is junior and subordinate to that of the Bonds. Parity Bonds may be issued only under the following circumstances: (a) Additional Parity Bonds may be issued for the purpose of completing the Project and for the purpose of financing costs of the Project which are ineligible for payment under the State of Wisconsin Safe Drinking Water Loan Program. However, such additional Parity Bonds shall be in an aggregate amount not to exceed 20% of the face amount of the Bonds; or (b) Additional Parity Bonds may also be issued if all of the following conditions are met: (1) The Net Revenues of the System for the Fiscal Year immediately preceding the issuance of such additional bonds must have been in an amount at least equal to the maximum annual interest and principal requirements on all bonds outstanding payable from the revenues of the System, and on the bonds then to be issued, times the greater of (i) 1.10 or (ii) the highest debt service coverage ratio to be required with respect to the Additional Parity Bonds to be issued or any other obligations payable from the revenues of the System then outstanding. Should an increase in permanent rates and charges, including those made to the Municipality, be properly ordered and made effective during the Fiscal Year immediately prior to the issuance of such additional bonds or during that part of the Fiscal Year of issuance prior to such issuance, then Net Revenues for purposes of such computation shall include such additional revenues as a registered municipal advisor, an independent certified public accountant, consulting professional engineer or the Wisconsin Public Service Commission may certify would have accrued during the prior Fiscal Year had the new rates been in effect during that entire immediately prior Fiscal Year. (2) The payments required to be made into the funds enumerated in Section 6 of this Resolution must have been made in full. (3) The additional bonds must have principal maturing on May 1 of each year and interest falling due on May 1 and November 1 of each year. (4) The proceeds of the additional bonds must be used only for the purpose of providing extensions or improvements to the System, or to refund obligations issued for such purpose.
Appears in 1 contract
Sources: Resolution Authorizing the Issuance and Sale of Sewerage System Revenue Bonds
Additional Bonds. The Bonds are issued on a parity with the 2021B Bonds as to the pledge of revenues of the System. No bonds or obligations payable out of the revenues of the System may be issued in such manner as to enjoy priority over the Bonds. A. Additional obligations may be issued if the lien and pledge is junior and subordinate to that of the Bonds. Parity Bonds may be issued only under to finance Improvements or to refund then Outstanding Bonds, including the following circumstances:costs and expenses of the financing, interest during construction, and any amount of proceeds of the Additional Bonds to be credited to the Reserve Fund.
(a) B. Any Additional Parity Bonds may be issued for the purpose of completing refunding Outstanding Bonds shall mature no earlier than the Project and for Bonds being refunded unless all then Outstanding Bonds are being refunded.
C. On the purpose date of financing costs delivery of any series of Additional Bonds the Project which are ineligible for payment under balance in the State Reserve Fund must be not less than the Minimum Reserve Balance, computed with reference to all then Outstanding Bonds (exclusive of Wisconsin Safe Drinking Water Loan Program. However, such additional Parity any thereof being refunded by that series of Additional Bonds) plus that series of Additional Bonds.
D. No Additional Bonds shall be in an aggregate amount not issued to exceed 20finance Improvements unless the Net Income for each of the two complete fiscal years immediately proceeding the issuance of such Additional Bonds was at least 125% of the face maximum amount of principal and interest to become due in any complete calendar year following the Bonds; or
(b) Additional Parity Bonds may also be issued if all issuance of the following conditions are met:Additional Bonds, on both the then Outstanding Bonds and the Additional Bonds then proposed to be issued, provided that;
(1) The Net Revenues If the rates and charges for the availability and service of the System for Electric Utility were in any respect increased since the Fiscal Year immediately preceding the issuance beginning of such additional bonds must have been in an amount at least equal to two preceding fiscal years, the maximum annual interest and principal requirements on all bonds outstanding payable from the revenues Net Income of the SystemElectric Utility may be adjusted upward, and on the bonds then to be issued, times the greater of (i) 1.10 or (ii) the highest debt service coverage ratio to be required with respect to the Additional Parity Bonds to be issued or any other obligations payable from the revenues of the System then outstanding. Should an increase in permanent rates and charges, including those made to the Municipality, be properly ordered and made effective during the Fiscal Year immediately prior to the issuance of such additional bonds or during that part of the Fiscal Year of issuance prior to such issuance, then Net Revenues for purposes of paragraph (D) by such computation shall include such additional revenues amount, if any, as a registered municipal advisor, an independent certified public accountant, consulting professional engineer or Consulting Engineer reports in writing to the Wisconsin Public Service Commission may certify Council would have accrued during the prior Fiscal Year been received if such increased rates and charges had the new rates been in effect during that entire immediately prior Fiscal Year.throughout such two preceding fiscal years;
(2) The payments required to be made into If the funds enumerated Improvements being financed by the Additional Bonds are such that if they had been in Section 6 of this Resolution must have been made in full.
(3) The additional bonds must have principal maturing on May 1 of each year and interest falling due on May 1 and November 1 of each year.
(4) The proceeds of the additional bonds must be used only for the purpose of providing extensions or improvements service throughout such two preceding fiscal years, according to the Systemwritten report of a Consulting Engineer, or to refund obligations issued for such purpose.either
Appears in 1 contract
Additional Bonds. The Bonds are issued on a parity with the 2021B Bonds as to the pledge of revenues of the System. No bonds or obligations payable out of the revenues of the System may be issued in such manner as to enjoy priority over the Bonds. Additional obligations may be issued if the lien and pledge is junior and subordinate to that of the Bonds. Parity Bonds may be issued only under the following circumstances:
(a) Additional Parity Bonds may be issued for the purpose of completing the Project and for the purpose of financing costs of the Project which are ineligible for payment under the State of Wisconsin Safe Drinking Clean Water Loan Fund Program. However, such additional Parity Bonds shall be in an aggregate amount not to exceed 20% of the face amount of the Bonds; or
(b) Additional Parity Bonds may also be issued if all of the following conditions are met:
(1) The Net Revenues of the System for the Fiscal Year immediately preceding the issuance of such additional bonds must have been in an amount at least equal to the maximum annual interest and principal requirements on all bonds outstanding payable from the revenues of the System, and on the bonds then to be issued, times the greater of (i) 1.10 or (ii) the highest debt service coverage ratio to be required with respect to the Additional Parity Bonds to be issued or any other obligations payable from the revenues of the System then outstanding. Should an increase in permanent rates and charges, including those made to the Municipality, be properly ordered and made effective during the Fiscal Year immediately prior to the issuance of such additional bonds or during that part of the Fiscal Year of issuance prior to such issuance, then Net Revenues for purposes of such computation shall include such additional revenues as a registered municipal advisor, an independent certified public accountant, consulting professional engineer or the Wisconsin Public Service Commission may certify would have accrued during the prior Fiscal Year had the new rates been in effect during that entire immediately prior Fiscal Year.
(2) The payments required to be made into the funds enumerated in Section 6 of this Resolution must have been made in full.
(3) The additional bonds must have principal maturing on May 1 of each year and interest falling due on May 1 and November 1 of each year.
(4) The proceeds of the additional bonds must be used only for the purpose of providing extensions or improvements to the System, or to refund obligations issued for such purpose.
Appears in 1 contract
Sources: Resolution Authorizing the Issuance and Sale of Sewerage System Revenue Bonds
Additional Bonds. The Bonds are issued on a parity Except as hereinafter provided, the city shall not issue additional bonds of equal standing with respect to the net revenues with the 2021B Bonds as series 2016 bonds but may issue junior ▇▇▇▇ ▇▇▇▇▇. Additional bonds shall be issued only in accordance with this section 27. In accordance with the provisions of act 94, the right is reserved to issue additional bonds payable from the pledge of net revenues of the System. No bonds or obligations payable out system, which shall be of equal standing and priority of lien on the net revenues of the System system with the series 2016 bonds but only for the acquisition and construction of repairs, enlargements extensions, additions and improvements to the system, for refunding all or a part of any outstanding bonds or any other debt incurred by the city for any purpose for which bonds may be issued in hereunder, for paying costs of issuing such manner as additional bonds, including deposits, if any, to enjoy priority over the Bondsbe made to a bond reserve account, and for payment of interest on such additional bonds. Additional obligations may bonds for such purposes shall not be issued if pursuant to this section 27 unless the lien and pledge is junior and subordinate to that actual or augmented (as hereinafter provided) net revenues of the Bonds. Parity Bonds may be issued only under system (not including investment earnings on the following circumstances:
(avarious funds and accounts established hereunder but including investment earnings on any bond reserve account) Additional Parity Bonds may be issued for the purpose of completing the Project and then last preceding fiscal year for the purpose of financing costs of the Project which are ineligible for payment under the State of Wisconsin Safe Drinking Water Loan Program. However, such additional Parity Bonds an audit was performed shall be in an aggregate amount not to exceed 20% of the face amount of the Bonds; or
(b) Additional Parity Bonds may also be issued if all of the following conditions are met:
(1) The Net Revenues of the System for the Fiscal Year immediately preceding the issuance of such additional bonds must have been in an amount at least equal to one hundred ten percent (110%) (or such higher percentage not exceeding one hundred twenty-five percent (125%) as may be required by the purchaser of the bonds and as set forth in the sale order) of the maximum annual interest debt service on any outstanding bonds and principal requirements on all bonds outstanding payable from the revenues of the System, and on the additional bonds then to be being issued, times . If the greater of (i) 1.10 or (ii) the highest debt service coverage ratio to be required with respect to the Additional Parity Bonds additional bonds are to be issued in whole or any other obligations payable in part for refunding of outstanding bonds, the annual principal and interest requirements shall be determined by deducting from the revenues principal and interest requirements for each fiscal year the annual principal and interest requirements of any bond or bonds to be refunded from the proceeds of the System then outstandingadditional bonds. Should an increase in permanent rates and chargesFor this purpose, including those made the city may elect to use as the Municipality, be properly ordered and made effective during the Fiscal Year immediately last preceding fiscal year any fiscal year ending not more than sixteen (16) months prior to the issuance date of delivery of the additional bonds for which an audit is available. If any change in the rates, fees or charges of the system shall be authorized at or prior to the time of the resolution or order authorizing the sale of any additional bonds, the net revenues for the preceding fiscal year shall be augmented by an amount reflecting the effect of such additional bonds or change had the system’s ▇▇▇▇▇▇▇▇ during that part such fiscal year been at the adopted rates. In addition, the actual net revenues for the preceding fiscal year for which an audit is available may be augmented by seventy percent (70%) of the Fiscal Year of issuance prior estimated increase in net revenues to such issuance, then Net Revenues for purposes of such computation shall include such additional revenues accrue as a registered municipal advisorresult of the acquisition and construction of the repairs, an independent certified public accountantenlargements, consulting professional engineer or extensions, additions and improvements to the Wisconsin Public Service Commission may certify would have accrued during the prior Fiscal Year had the new rates been in effect during that entire immediately prior Fiscal Year.
(2) The payments required system to be made into paid for in whole or in part from the funds enumerated in Section 6 of this Resolution must have been made in full.
(3) The additional bonds must have principal maturing on May 1 of each year and interest falling due on May 1 and November 1 of each year.
(4) The proceeds of the additional bonds must be used only for and one hundred percent (100%) of the purpose of providing extensions increase in net revenues resulting from any repair, enlargement, extension, addition or improvements improvement which was made subsequent to the Systemend of the last fiscal year for which an audit is available. Determination by the finance director as to existence of conditions permitting the issuance of additional bonds shall be conclusive; provided, however, that with respect to augmentation of net revenues, the city shall engage the services of and receive the certificate of a consulting engineer (with experience in advising municipalities with respect to setting rates and charges for parking systems) regarding the existence of such conditions, or, if no augmentation is required, the finance director may rely only on audited financial statements. No additional bonds of equal standing with respect to the net revenues of the system shall be issued pursuant to the authorization contained in this section if the city is then in default in making its required payments to any funds or to refund obligations issued for such purposeaccounts created hereunder.
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