The right is reserved, in accordance with the provisions of Public Act 94 of 1933, being M.C.L.A §§ 141.101 through 141.138, as amended, to issue additional bonds payable from the revenues of the system, which shall be of equal standing with the bonds herein authorized but only for the following purposes:
(A) To complete the public improvements in accordance with the plans and specifications therefore, and the bonds shall not be authorized unless the consulting engineers or the successor engineers in charge of construction, shall execute a certificate evidencing the fact that additional funds are needed to complete the public improvements in accordance with the plans and specifications therefore. If the certificate shall be so executed and filed with the Village Clerk, it shall be the duty of the Village Council to provide for and issue additional revenue bonds in the amount stated in the certificate to be necessary to complete the public improvements in accordance with the plans and specifications.
(B) For subsequent extensions and improvements to the system; provided that no additional bonds shall be issued unless the average annual net revenues for the last two preceding completed operating years of the system, or the net revenues for the last completed operating year, whichever is lower, when supplemented by the net revenues estimated to accrue from an increase in rates imposed at or prior to the time of authorization of the additional bonds and/or when supplemented by the net revenues estimated to accrue from the extensions and improvements to be built from the proceeds of sale of the additional bonds, shall be equal to at least 1-1/2 times the largest annual principal and interest requirements thereafter maturing on the bonds herein authorized, on any then previously issued bonds of equal standing with the bonds herein authorized, and on the additional bonds then being issued. For the purpose of determining net revenues under the above requirements, if the village shall raise the water rates at or prior to the time of authorizing the additional bonds, then the net revenues of the system for each of the last two preceding operating years, or the net revenues of the last preceding operating year, as the case may be, shall be augmented to an amount reflecting the effect of the increase had the village's water billings during the years been at the increased rates. In addition, the net revenues for each of the last two preceding operating years shall be increased by an amount to reflect the increase in net revenues estimated to accrue from the extensions and improvements. Prior to the issuance of any additional bonds pursuant to this section, there shall be filed with the Village Clerk a statement showing the net revenues for each of the two preceding completed operating years, the net additional or augmented revenues reflecting the application of the increased rates, and from the additions and extensions to be acquired and constructed, if any, and the annual principal and interest requirements on all outstanding bonds payable from revenues of the system and the bonds proposed to be issued. The statement shall be executed by a registered engineer appointed by the village. Permission of the Municipal Finance Commission (or the other state body having jurisdiction over the issuance of municipal bonds) to issue the additional bonds shall constitute a conclusive presumption of the existence of conditions permitting the issuance thereof.
Except as herein authorized, no additional bonds having equal standing with the bonds of this issue shall be authorized or issued.
(1992 Code, § 80.018) (Ord. 1-62, passed - - 1962)