Electric and water refunding revenue bonds may be issued to purchase, redeem or retire any bonds heretofore or hereafter issued pursuant to Section 1210 or this Section 1210.1, whenever the City Council determines that (1) costs of the City will be reduced by the refunding of any bonds, or (2) issuance of the refunding bonds will otherwise be financially advantageous to the City.
If as a result of the issuing of refunding bonds pursuant to this Section 1210.1, the water or electric utility of the City shall, in any Fiscal Year, realize a reduction in principal and interest on debt issued to finance such utility when the principal and interest paid on the refunding bonds in such Fiscal Year is compared to the principal and interest that would have been payable on the refunded bonds in such Fiscal Year, the City Council shall, not later than the last day of the next succeeding Fiscal Year, adjust rates of such utility, if necessary, to reflect fully such reduction in principal and interest payments as a reduction in costs of service of such utility.
All provisions of Section 1210 are applicable to refunding bonds, except that notwithstanding Section 1210 no additional election shall be required to authorize their issuance. (Amended June 2, 1981, filed in office of Secretary of State, July 20, 1981.)