Ordinances-1965-58

Said Town hereby covenants and agrees that so long as any of the bonds issued pursuant to this ordinance are outstanding and unpaid no other bonds or obligations payable from the net revenues of said sewage works and facilities will be issued except upon the basis of such additional bonds or obligations being subject to the priority as to security and payment of any of the bonds herein authorized which are then outstanding; provided, however, that said Town hereby reserves the right and privilege of issuing additional bonds from time to time payable from the same source and ranking on a parity with the bonds herein authorized in order to pay the cost of future improvements and extensions to said sewage works and facilities, but only if the officially reported net revenues of said sewage works and facilities for the last preceding calendar or fiscal year prior to the issuance of such additional bonds was equal to at least one and three tenths times the total of (1) the maximum amount of principal and interest that will become due in any calendar year on the bonds then outstanding under the terms of this ordinance and (2) the maximum amount of principal and interest falling due in any calendar year prior to the last year in which any of the bonds issued pursuant to this ordinance mature on the bonds then proposed to be issued, and provided also that the interest payment dates for any such additional bonds shall be semiannually on July 1 and January 1 of each year, and the principal maturities of such additional bonds shall be on January 1 of any year in which any of such principal is scheduled to become due. The term "net revenues" is defined as gross revenues less operating expenses which shall include salaries, wages, cost of maintenance and operation, materials, and supplies, pumping costs, and insurance, as well as all other items as are normally included under recognized accounting practices, but shall not include allowance for depreciation in the value of physical properties. Section 9. That there has heretofore been established by ordinance of said Town, and said Town hereby covenants to maintain, just and equitable rates or charges for the use of or the service rendered by the sewage works and facilities of said Town, and that so long as any sewer revenue bonds remain outstanding and unpaid, rates or charges shall be revised, and at all times maintained so as to be sufficient in each year for the payment of the proper and reasonable expenses of operation, repair, replacements and maintenance of the sewage works and facilities, and for the payment of the sums therein required to be paid into aforesaid sinking fund to meet the principal of and interest on the outstanding revenue bonds issued hereunder. Section 10. All rates and charges for the use and service rendered by said sewage works and facilities if not paid when due shall constitute a lien upon the premises served by such sewage works and facilities and shall be collected in the same manner as taxes and when so collected shall become a part of the funds aforesubscribed.