§ 1413. EMERGENCY LOANS.

The Commission shall have power, upon determination that an emergency exists which justifies it in so doing, to borrow money upon such terms and conditions, and under such procedure, as may be prescribed by resolution, for the purpose of acquiring, constructing, reconstructing, repairing, extending or improving works, for supplying the City and its inhabitants with water and sewer service, and to issue notes, certificates, or other evidences of indebtedness therefor, subject to the following provisions:

(a)

The whole amount of any such indebtedness shall be payable in not exceeding five years from the time of contracting the same; provided, that any such indebtedness, or part thereof, made payable after one year from the time of contracting the same, shall be subject to the right of the Commission to pay the same with accrued interest thereon on any interest due date, after said one year period.

(b)

The total outstanding indebtedness incurred under the provisions of this section, for the purpose of the Water Department, must not exceed 33 1/3 % of the gross operating revenue from the Water Department during the preceding fiscal year.

(c)

The rates for water and sewer service shall be so fixed as to provide for payment at maturity of the principal and interest of such indebtedness in addition to all other obligations and liabilities payable out of the revenues of the Water Department.

(d)

Such indebtedness shall be payable only from the revenue of the Water Department, and shall not be an obligation of the City.

(Amended by Prop. 2, 4-10-1990, eff. 5-3-1990)