97-008 ORD AUTHORIZING ISSUANCE/DELIVERY OF COP WATERWORKS AND SEWER SYSTEM REVENUE BONDS SERIES 1997 IN THE PRINCIPAL AMOUNT OF $5,000,000 AND ORDAINING OTHER MATTERS RELATING THERETO

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(k) The term "year" or "fiscal year" shall mean the fiscal year used by the Issuer in connection with the operation of the System. Section 9. PLEDGE. (a) The Bonds authorized hereby are Revenue Bonds which shall be on a parity and equal dignity with the Outstanding Bonds. (b) The Bonds are issued as "Revenue Bonds" in accordance with Sections 24 and 25 of the Bond Ordinance for the Outstanding Bonds. (c) The Bonds, the Outstanding Bonds, and any Additional Bonds which may be issued in accordance with this Ordinance and the interest thereon, are and shall be payable from and secured by a first lien on an pledge of the Net Revenues of the System, and said Net Revenues are further pledged irrevocably to the establishment and maintenance of the Funds created by this Ordinance. Sections 8 through 27 of the Bond Ordinance that authorized the Outstanding Bonds are hereby adopted by reference and shall be restated and be applicable to the Bonds for all purposes except to the extent hereafter specifically modified and supplemented. Section 10. MAINTENANCE OF RATES. The Issuer hereby covenants and agrees that it will at all times, while any of the Bonds, the Outstanding Bonds, or any Revenue Bonds, or any interest thereon, are outstanding and unpaid, charge and collect for services rendered by the System rates sufficient to pay all maintenance, depreciation, replacement, betterment, and interest charges, and to provide an Interest and Sinking Fund sufficient to pay the interest and principal of such Bonds, the Outstanding Bonds and the Revenue Bonds as such interest and principal mature, and any outstanding indebtedness of the System, as is required by applicable statutes of Texas. For the benefit of the original purchasers and all subsequent holders of the Bonds, the Outstanding Bonds, and any Revenue Bonds, or any part thereof, and in addition to all other provisions and covenants in the laws of the State of Texas, and in this Ordinance, it is expressly covenanted that the Issuer shall fix and maintain rates and collect charges for the facilities and services afforded by the System to the Issuer, and to all other customers, which will provide revenues sufficient at all times: (a) to pay all operating, maintenance and replacement charges of the System, as is required by Article 1113 of the Civil Statutes, as amended, and by other applicable statutes of the State of Texas; (b) to establish and maintain the Interest and Sinking Fund for the Bonds and the Interest and Sinking Fund and the Reserve Fund, if any, for the Bonds, the Outstanding Bonds and the Revenue Bonds; and (c) provide Net Revenues at least equal to 1.10 times the principal and interest requirements of the Bonds, the Outstanding Bonds, and the Revenue Bonds, if any, from time to time outstanding. 22