The town reserves the right to authorize and issue additional bonds, payable out of the revenues of its sewage works, ranking on a parity with the bonds authorized by this chapter, for the purpose of financing the cost of future additions, extensions and improvements to the sewage works, subject to the following conditions.
(A) The interest on and principal of all bonds payable from the revenues of the sewage works shall have been paid to date in accordance with the terms thereof and all credits required to be made to the Sewage Works Sinking Fund and the accounts thereof shall have been made to date.
(B) The net revenues of the sewage works in the fiscal year immediately preceding the issuance of any such bonds ranking on a parity with the bonds authorized by this chapter shall not be less than 120% of the maximum annual interest and principal requirements of the then outstanding bonds and the proposed additional parity bonds to the final maturity of the then outstanding bonds. For purposes of this subsection, the records of the sewage works shall be analyzed and all showings shall be prepared by a certified public accountant retained by the town for that purpose.
(C) (1) The interest on the additional parity bonds shall be payable annually on October 1, and the principal shall be payable annually on October 1 in the years in which principal and interest are payable.
(2) Parity bonds may also be issued to refund less than all of the then outstanding bonds issued pursuant to this chapter or ranking on a parity therewith, but any such refunding bonds shall be subject to the conditions in this section unless the bonds being refunded mature within 3 months of the date of such refunding and no other funds are available to pay such maturing bonds. In computing the maximum annual interest and principal requirements pursuant to division (B), the interest on and principal of the refunding bonds shall be substituted for the interest on and principal of the bonds being refunded.
(1989 Code, § 32.16) (Ord. SB-83, passed 9-21-1983)